Back to the complete issue
Tuesday, 27 April 2021

What the markets are doing on 27 April 2021

The slow vaccine rollout in the developing world is holding back emerging-market stocks: The gap between developed and emerging markets is widening as the covid-19 pandemic continues to rage in the global south. As stocks in advanced economies go from strength to strength, EM equity funds had their worst week in more than three months last week, with investors pulling USD 1.3 bn on fears that vaccine shortages will hold back economic growth, according to Bloomberg. Equity funds in India, which has been especially hard hit by the latest wave of the virus, witnessed their largest outflows in more than a year.

It’s not just the pandemic that’s hitting investor sentiment: “Not only do we have a much slower vaccination program across emerging markets, but worries over debt loads, external vulnerabilities, fiscal prudence, inflation and currency stability will hamper a much stronger recovery post-pandemic,” said Mohammed Elmi, a portfolio manager at Federated Hermes.

Tearing up the rulebook: Conventional wisdom says that emerging markets offer investors an easy path to solid returns during global expansion, but this time it is the developed economies experiencing the strongest growth. JPMorgan said last week that the US economy will outperform EM at an “unprecedented” rate this quarter due to the weak vaccine rollout. This disparity is being reflected in developed v emerging stocks: the MSCI emerging-market index has risen less than 5% in 2021, half that of the MSCI’s gauge of developed market stocks.




-0.7% (YTD: -2.95%)



Buy 15.63

Sell 15.73



Buy 15.63

Sell 15.73


Interest rates CBE

8.25% deposit

9.25% lending




+0.9% (YTD: +17.7%)




+0.5% (YTD: +21.8%)




+0.7% (YTD: +6.2%)


S&P 500


+0.2% (YTD: +11.5%)


FTSE 100


+0.4% (YTD: +7.8%)


Brent crude

USD 65.69



Natural gas (Nymex)

USD 2.79




USD 1,781.40




USD 53,460

+13.1% (as of midnight)

The EGX30 fell 0.7% yesterday on turnover of EGP 985 mn (23.5% below the 90-day average). Regional investors were net sellers. The index is down 3.0% YTD.

In the green: Qalaa Holdings (+2.0%), Eastern Co. (+1.6%) and ElSewedy Electric (+1.1%).

In the red: Oriental Weavers (-16.2%), Telecom Egypt (-6.1%) and MM Group (-3.4%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.