Gulf equity boom isn’t going anywhere
The Gulf stock boom shows no signs of slowing next year, Bloomberg reports, citing fund managers and strategists. Gulf stocks are on track to deliver a 36% return for 2021 in their best annual performance since 2007, thanks in no small part to the global oil squeeze — and the Qatar-hosted 2022 World Cup and Dubai’s stacked listing pipeline look set to further fuel this year’s surge in the region’s markets. Geopolitics could favor Gulf markets next year, too, with analysts pointing to warming relations with Israel as paving the way for another strong year.
Dubai’s IPO pipeline makes another gain: State-owned air-conditioning provider Emirates Central Cooling System (Empower) will list on the Dubai stock market as part of the exchange’s IPO push, the Dubai Media Office wrote in a tweet yesterday, without disclosing further details. The emirate has been attempting to catch up amid the IPO boom taking place in Abu Dhabi and Saudi Arabia, offering financial incentives for companies to list on the DFM and announcing plans to list 10 state-owned firms, most recently business park operator Tecom Group. Though 2022 won’t be without its risks (including a potential covid resurgence scuppering World Cup plans), “the outlook for Gulf equities is unequivocally bright,” one asset manager told the outlet.
Private equity firms are snapping up wealth management and investment advising companies, the Financial Times reports. PE outfits are being drawn by the high recurring revenues, strong customer loyalty, and access to specialized investments enjoyed by investment advisors, according to the salmon-colored paper.
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EGX30 |
11,708 |
+1.5% (YTD: +8.0%) |
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USD (CBE) |
Buy 15.66 |
Sell 15.76 |
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USD at CIB |
Buy 15.66 |
Sell 15.76 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
10,969 |
+0.3% (YTD: +26.2%) |
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ADX |
8,971 |
+0.1% (YTD: +77.8%) |
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DFM |
3,231 |
+0.2% (YTD: +29.7%) |
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S&P 500 |
4,712 |
+1.0% (YTD: +25.5%) |
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FTSE 100 |
7,292 |
-0.4% (YTD: +12.9%) |
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Brent crude |
USD 72.21 |
+0.8% |
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Natural gas (Nymex) |
USD 3.98 |
+1.5% |
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Gold |
USD 1,784.60 |
– |
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BTC |
USD 50,275.41 |
+1.6% |
THE CLOSING BELL-
The EGX30 rose 1.5% at yesterday’s close on turnover of EGP 1.2 bn (14.2% below the 90-day average). Regional investors were net sellers. The index is up 8.0% YTD.
In the green: Egyptian Resorts Company (+5.6%), Credit Agricole Egypt (+4.7%) and Fawry (+4.6%).
In the red: Abu Qir Fertilizers (-5.7%), Speed Medical (-4.4%) and Palm Hills Development (-0.6%).
Asian markets are solidly in the green this morning, and major indexes in London, Frankfurt, New York and Toronto are set to follow suit later today. The outlier: Paris’ CAC 40, which looks set to open (just barely) in the red.