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Wednesday, 18 August 2021

Investors turn to private capital and unlisted assets as equity markets max out

US private capital groups jump on higher investments in unlisted assets: The top five listed US private capital firms saw their value rise threefold since the market sell-off last year off the back of higher management fees, the Financial Times reports. The combined market value of Blackstone, KKR, Carlyle, Apollo and Ares jumped from a low of USD 80 bn in March 2020 to about USD 252 bn this year. Investors are looking at investments in private capital as “alternatives to generate their target returns” as the prospect for more gains is restricted in almost all top bond and equity markets due to record or near-record valuations, one analyst said.

Oman Oil Company is looking to list 10-15% of its shares in an initial public offering in its local capital market by 2022, in an offering that could be worth between USD 2-3 bn, unnamed banking sources told CNBC Arabia. The company could increase the size of the stake on offer if it receives high demand from investors, the sources added. The proceeds will be put towards the company’s USD 8 bn three-year investment plan. The shares will be offered through private placement.

ETF investors are turning defensive amid a “bullish but worried” sentiment on Wall Street: Exchange traded funds (ETFs) linked to US “defensive” sectors that tend to pay off in tougher environments — such as healthcare, consumer staples and utilities — attracted net inflows of c. USD 5 bn last month after recording outflows that totaled USD 3.6 bn in 1H2021 as Wall Street turned wary of record peaks in US stocks, the Financial Times reports, citing figures from the State Street Global Advisors. ETFs linked to more economically sensitive US sectors like financials, energy and real estate, meanwhile, all registered combined outflows of USD 7.2 bn in July.

Up

EGX30

10937.69

-0.98% (YTD: +0.9%)

None

USD (CBE)

Buy 15.65

Sell 15.75

None

USD at CIB

Buy 15.65

Sell 15.75

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,392.83

+0.63% (YTD: +31.11%)

Up

ADX

7,729.88

+0.87% (YTD: +53.21%)

Up

DFM

2,837.34

+0.44% (YTD: +13.86%)

Down

S&P 500

4,448.08

-0.71% (YTD: +18.42%)

Up

FTSE 100

7,181.11

+0.38% (YTD: +11.15%)

Down

Brent crude

USD 69.03

-0.69%

Down

Natural gas (Nymex)

USD 3.83

-0.10%

Down

Gold

USD 1,787.50

-0.02%

Down

BTC

USD 44,667.93

-3.34% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 1% at yesterday’s close on turnover of EGP 1.9 bn (29% above the 90-day average). Local investors were net sellers. The index is up 0.9% YTD.

In the green: Egyptian for Tourism Resorts (+2.7%), Ibnsina Pharma (+1.8%), and Rameda (+1.7%).

In the red: Sidi Kerir Petrochemicals (-2.7%), CIB (-2.6%), and Ezz Steel (-2.1%).

It’s green as far as the eye can see this morning. Asian shares are largely in the green this morning, and futures suggest stocks in London, Frankfurt and Wall Street will follow suit later today. Shars in Paris and Toronto look set to dip at the opening bell.

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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