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Wednesday, 16 June 2021

Brent price hits highest level since October 2018

Oil prices have reached their highest level since October 2018, with Brent climbing 1.6% yesterday to almost USD 74 per bbl.

And analysts are predicting the rally to continue: Vitol, Glencore and Trafigura and Goldman Sachs analysts have all said that USD 100/bbl oil is now possible as supply continues to tighten, the Financial Times reports. Oil hasn’t been in three figures since the price crash in the summer of 2014.

Investors could get a chance to own a slice of the world’s largest freezone: DP World could sell a stake in its Jebel Ali Freezone in a bid to cut its debt and keep its investment-grade rating, Bloomberg reports, quoting people familiar with the matter. The zone, which is responsible for almost a quarter of FDI into Dubai and hosts 8k companies, could net the port operator USD 1-1.3 bn if it sells a 30-40% stake.

Ten of the world’s largest banks have been blacklisted by the EU and won’t be allowed to manage bond sales under its EUR 800 bn covid recovery program for breaching antitrust laws, people familiar with the matter told the Financial Times. The banks, which include JPMorgan, Citigroup, Barclays and Deutsche Bank, were told that their past involvement in market-rigging scandals means that they won’t be able to take part in the huge debt issuance.

Down

EGX30

9,891

-0.4% (YTD: -8.8%)

None

USD (CBE)

Buy 15.60

Sell 15.70

None

USD at CIB

Buy 15.60

Sell 15.70

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

10,831

-0.8% (YTD: +24.7%)

Up

ADX

6,740

+0.1% (YTD: +33.6%)

Up

DFM

2,869

+0.1% (YTD: +15.2%)

Down

S&P 500

4,246

-0.2% (YTD: +13.1%)

Up

FTSE 100

7,172

+0.4% (YTD: +11.0%)

Up

Brent crude

USD 73.99

+1.6%

Down

Natural gas (Nymex)

USD 3.2

-0.7%

Up

Gold

USD 1,860.70

+0.2%

Down

BTC

USD 40,099

-0.5% (as of midnight)

The EGX30 fell 0.4% at today’s close on turnover of EGP 1.13 bn (11.9% below the 90-day average). Local investors were net sellers. The index is down 8.8% YTD.

In the green: Cleopatra Hospital (+2.0%), Fawry (+2.0%) and Ezz Steel (+1.6%).

In the red: Pioneers Holding (-4.3%), Orascom Investment Holding (-3.1%) and Qalaa Holdings (-3.0%).

Most Asian markets are down in early trading this morning ahead of the Fed meeting, which concludes later today. Futures suggest that European shares will open in the green, but US markets will fall in early trading.

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