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Tuesday, 25 May 2021

EM debt levels rose at a faster pace than developed markets last year

Emerging market debt levels rose quicker than those in the developed world in 2020, and this “increasing divide” threatens to undermine the post pandemic recovery in many vulnerable nations, according to Moody’s Analytics. Debt levels worldwide spiraled to a record USD 24 tn during the pandemic year, after more than doubling in EMs, a report published by Moody’s last week showed. Indebted EMs now account for a third of debt globally, despite developing economies having smaller GDPs, according to the report. EMs have, in general, been slower to roll out vaccines, adding to the recovery headwinds.

Also worth knowing:

  • Shareholders will vote tomorrow on US oil and gas corporation ExxonMobil’s board members, with hedge fund Engine No. 1 pushing for a shakeup in response to Exxon’s ineffective climate change policy, the Financial Times reports.
  • Oil prices are inching back up after after Iran said more still needs to be done to reach a nuclear agreement, which would pave the way for the official return of Iranian oil to global markets and see the US lift sanctions on Tehran, according to Bloomberg.
  • Saudi Arabia is planning to raise USD 55 bn through its privatization program by 2025 in a bid to narrow its budget deficit, Finance Minister Mohammed Al Jadaan told the Financial Times.

Down

EGX30

10,761

-0.5% (YTD: -0.8%)

None

USD (CBE)

Buy 15.62

Sell 15.72

None

USD at CIB

Buy 15.62

Sell 15.72

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

10,319

-0.3% (YTD: +18.8%)

Up

ADX

6,615

+1.1% (YTD: +31.1%)

None

DFM

2,788

– (YTD: +11.9%)

Up

S&P 500

4,197

+1.0% (YTD: +11.7%)

Up

FTSE 100

7,052

+0.5% (YTD: +9.2%)

Up

Brent crude

USD 68.69

+0.3%

None

Natural gas (Nymex)

USD 2.89

Down

Gold

USD 1,879.70

-0.4%

Up

BTC

USD 39,161.92

+11.7%

The EGX30 fell 0.5% yesterday on turnover of EGP 1.75 bn (27.7% above the 90-day average). Local investors were net sellers. The index is down 0.78% YTD.

In the green: ElSewedy Electric (+1.7%), Eastern Company (+0.5%) and CIB (+0.3%).

In the red: Pioneers Holding (-3.0%), Alexandria Mineral Oils (-2.9%) and Citadel Capital (-2.8%).

Major Asian indexes are solidly in the green this morning and futures suggest more of the same when markets open in Europe and on Wall Street.

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.

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