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Wednesday, 27 October 2021

Big Tech had a particularly great quarter

MARKET WATCH- Alphabet and Microsoft smash estimates as they release 3Q financials: Google’s parent blew past expectations, posting 41% growth in revenues y-o-y to USD 65.1 bn (pdf), while the Windows maker saw its top line rise 22% to USD 45.3 bn, also above analyst forecasts. Twitter, meanwhile, slid to a USD 537 mn net loss (pdf) after settling a shareholder class action lawsuit and as it ramps up investment in product development.

The US junk bond market is bigger than ever: A record 149 companies have joined the US junk bond market so far in 2021 as businesses take advantage of the huge demand for yield amid an environment of ultra-low interest rates, the Financial Times reports. As the Fed continues to hold interest rates at historic lows, lower-rated issuers seeking capital and yield-hungry investors have flocked to the market, with 26 new corporate issuers arriving in September, followed by 13 so far this month. This has sent the high-yield bond market to a record size, topping more than USD 1.5 tn for the first time ever.

The Evergrande contagion isn’t quite over yet: Chinese property developer Modern Land defaulted on a bond payment citing “liquidity issues,” making it the latest in a growing list of Chinese property developers to default on payments, reported Reuters. Developers are defaulting on payments “one by one,” an unnamed investor told the newswire, as the Evergrande crisis and concerns over plans to introduce a real estate tax have dragged down the Chinese property market crisis. Evergrande, which has more than USD 300 mn in liabilities, made good on its last debt payment this week.

Up

EGX30

11256.54

+0.7% (YTD: +3.8%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

11,846.69

-0.4% (YTD: +36.3%)

Down

ADX

7,902.98

-0.4% (YTD: +56.6%)

Up

DFM

2,866.12

+0.02% (YTD: +15%)

Up

S&P 500

4,583.68

+0.4% (YTD: +22%)

Up

FTSE 100

7,277.62

+0.8% (YTD: +12.7%)

Up

Brent crude

USD 86.35

+0.4%

Down

Natural gas (Nymex)

USD 5.87

-0.5%

Down

Gold

USD 1,794.40

-0.7%

Down

BTC

USD 61,343.97

-2.4% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday’s close on turnover of EGP 1.58 bn (3.6% above the 90-day average). Foreign investors were net sellers. The index is up 3.8% YTD.

In the green: Fawry (+6.8%), Sidi Kerir Petrochemicals (+6.6%) and AMOC (+4.8%).

In the red: Madinet Nasr Housing (-9.0%), Gadwa Industrial Development (-6.4%) and Egypt Resorts Company (-6.4%).

Shares in Hong Kong, Seoul, Tokyo and Shanghai are all in the red this morning, and the EuroStoxx, FTSE and DAX all seem on track to follow suit when European markets open later this morning. Futures suggest Wall Street is likely to open flat later today.

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