Back to the complete issue
Wednesday, 16 March 2022

US stocks rally ahead of Fed decision; oil continues to plunge

Stocks rally ahead of Fed meeting: US stocks staged a comeback in yesterday’s session as oil prices continued to fall and weak data from a key manufacturing survey calmed concerns that the Federal Reserve will hike interest rates aggressively, according to Bloomberg. The tech-heavy Nasdaq ended three straight days of losses to climb 3.2% while the S&P 500 rose 2.1%.

Oil continued to plunge on signs that a nuclear agreement with Iran might still be in the cards and uncertainty over how a new wave of covid lockdowns in China might affect demand. Brent crude ended the day below USD 100 for the first time since 25 February, falling almost 8% to USD 98.60 a barrel. The benchmark has now plunged 24% since spiking to USD 130 last week.

Also worth noting:

  • Dubai will kick off its plan to list up to 10 state firms by selling a 6.5% stake in the Dubai Electricity & Water Authority (DEWA), according to a press release (pdf), which didn’t disclose the sum the listing aims to raise. Both the retail and institutional offerings are set to open on 24 March. EFG Hermes, Credit Suisse, First Abu Dhabi Bank, and Goldman Sachs are acting as joint bookrunners.
  • Qatar has begun operations at the USD 10 bn Barzan natgas plant. The plant is set to process nearly 1.4 bn cubic feet of gas daily, to help meet growing energy demand ahead of this year’s FIFA World Cup in Doha. (Bloomberg | CNBC Arabia)

None

EGX30

10,423

0.0% (YTD: -12.8%)

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

12,408

-0.7% (YTD: +10.0%)

Down

ADX

12,407

-0.7% (YTD: +11.69%)

Down

DFM

3,305

-1.4% (YTD: +3.42%)

Up

S&P 500

4,262

+2.1% (YTD: -10.57%)

Down

FTSE 100

7,176

-0.3% (YTD: -2.83%)

Down

Brent crude

USD 98.53

-7.8%

Down

Natural gas (Nymex)

USD 4.57

-1.9%

Down

Gold

USD 1,929.70

-1.6%

Up

BTC

USD 39,588

+2.2% (as of midnight)

THE CLOSING BELL-

The EGX30 rose less than 0.1% at today’s close on turnover of EGP 991 mn (7.4% above the 90-day average). Foreign investors were net sellers. The index is down 12.8% YTD.

In the green: Mopco (+8.5%), Abu Qir Fertilizers (+6.1%) and Fawry (+3.3%).

In the red: CIRA (-4.2%), Rameda (-4.2%) and Ibnsina Pharma (-3.9%).

This morning in Asia: Chinese shares are in the green this morning after suffering their worst sell-off since 2008 this week, while the Nikkei and the Kospi are also seeing gains. Stock futures indicate that shares in the US will open in the red. European indexes are on course to rise when the markets open.

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.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.