What the markets are doing on 17 May 2021
Global remittance flows have held up in the face of the pandemic: Remittances to low- and middle-income countries fell only 1.6% to USD 540 bn in 2020, according to the World Bank, despite widespread expectations that covid-19 disruptions would cause flows to tank. Fiscal stimulus and the rapid adoption of fintech helped remittances stay more or less stable through the year, despite the economic crisis wrought by the pandemic.
In comparison: The global fall in remittance flows was less than that seen during the global financial crisis (-4.8%) and was far less than the fall in FDI flows to low and middle-income countries (excluding China), which saw a 30% drop last year.
An 11% increase in remittance flows from Egypt helped buoy figures from the Middle East, with the region witnessing a 2.3% growth in remittances to USD 56 bn, the World Bank report found. Of those, a record high of USD 30 bn flowed into Egypt, the WB said. Central bank figures released earlier reported Egypt’s remittances growth as 10.5% during 2020 and put the total amount at some USD 29.6 bn. This is an increase from the USD 26.8 bn recorded in 2019, even as GCC countries — where most Egyptian expats are based — were rocked by the twin shocks of covid shutdowns and collapsing oil prices.
|EGX30||10,768||+0.8% (YTD: -0.7%)|
|USD (CBE)||Buy 15.63||Sell 15.73|
|USD at CIB||Buy 15.61||Sell 15.71|
|Interest rates CBE||8.25% deposit||9.25% lending|
|Tadawul||10,323||+0.9% (YTD: +18.8%)|
|ADX||6,428||+3.5% (YTD: +27.4%)|
|DFM||2,665||-1.2% (YTD: +6.9%)|
|S&P 500||4,174||+1.5% (YTD: +11.1%)|
|FTSE 100||7,044||+1.2% (YTD: +9.0%)|
|Brent crude||USD 68.73||
|Natural gas (Nymex)||USD 3.04||+2.6%|
THE CLOSING BELL-
The EGX30 rose 0.8% at Tuesday’s close on turnover of EGP 1.11 bn (10.5% below the 90-day average). Foreign investors were net sellers. The index is down 0.7% YTD.
In the green: Edita (+8.9%), Fawry (+5.0%) and MM Group (+4.2%).
In the red: Cleopatra Hospital (-3.4%), Credit Agricole (-0.9%) and Madinet Nasr Housing (-0.6%).