The US securities regulator wants a look in the books of private funds + tech stocks fuel a market comeback
Hedge funds and private equity firms are going the have to make a lot more information public if the Securities and Exchange Commission (SEC) gets its way. The SEC gave preliminary approval to proposals that would force both types of firms to disclose more information in a bid to improve their transparency, the Wall Street Journal reports. If passed, the proposals would require annual audits of private funds, quarterly performance and fee disclosures, and written policies to mitigate cybersecurity risks. The watchdog also called for rules cutting the time required for stock and bond trades to be finalized.
With IPOs on the out, private investors are set to see more scrutiny: Volatility in the US markets that has seen the S&P 500 lose nearly 4% since the start of the year means fewer companies are looking to go public — and more are turning to private sources to raise capital instead, the Financial Times reports. Private equity buyouts surged 133% to USD 818 bn in the first three quarters of 2021, on the back of a record year for M&As, according to Reuters.
That said, US markets could be staging a comeback: The S&P500 extended Tuesday’s rally yesterday, buoyed by the comeback in tech stocks that saw them recover about half of this year’s losses, Bloomberg reports. The Nasdaq also posted its biggest daily gains so far this month, with stronger-than-expected earnings reports from Uber and Walt Disney (pdf) pushing the index higher, as well as dip-buying on Meta shares. Last week, Meta and Spotify saw their shares fall sharply after posting disappointing forecasts.
Also worth knowing about this morning:
- Danish container shipping group Maersk expects freight rates to fall and the global supply chain crunch to ease by the second half of this year, it said in its earnings release (pdf) yesterday.
- Saudi Aramco has restarted talks to build a huge refining and petrochemicals complex in China, Bloomberg reports, citing anonymous sources.
|
|
EGX30 |
11,596 |
+0.6% (YTD: -3.0%) |
|
|
USD (CBE) |
Buy 15.66 |
Sell 15.76 |
|
|
USD at CIB |
Buy 15.66 |
Sell 15.76 |
|
|
Interest rates CBE |
8.25% deposit |
9.25% lending |
|
|
Tadawul |
12,206 |
-0.2% (YTD: +8.2%) |
|
|
ADX |
8,842 |
+0.7% (YTD: +4.2%) |
|
|
DFM |
3,246 |
+1.0% (YTD: +1.6%) |
|
|
S&P 500 |
4,587 |
+1.5% (YTD: -3.8%) |
|
|
FTSE 100 |
7,643 |
+1.0% (YTD: +3.5%) |
|
|
Brent crude |
USD 91.83 |
+1.2% |
|
|
Natural gas (Nymex) |
USD 4.01 |
-5.6% |
|
|
Gold |
USD 1,837 |
+0.5% |
|
|
BTC |
USD 44,505 |
+0.5% (as of midnight) |
THE CLOSING BELL-
The EGX30 rose 0.6% at today’s close on turnover of EGP 1.24 bn (14.8% above the 90-day average). Local investors were net buyers. The index is down 2.95% YTD.
In the green: EFG Hermes (+9.3%), GB Auto (+5.1%) and TMG Holding (+5.0%).
In the red: Fawry (-3.9%), MM Group (-2.8%) and Credit Agricole Egypt (-1.4%).