Chinese shares have best day since ‘08 after officials signal support
Chinese shares skyrocket after officials make pro-market pledges: Chinese markets had a massive day yesterday, with US-listed shares soaring and Hong Kong’s main benchmark seeing its biggest single-day rally since the global financial crisis, the Wall Street Journal reported, reversing much of this week’s steep sell-off. The Hang Seng surged 9.1% during trading, its biggest daily gain since late 2008, with its tech index jumping 22%. The rebound came after Chinese leaders vowed to keep its stock market stable by introducing market-friendly policies and supporting overseas share listings, according to China’s state news agency Xinhua.
The Saudis are not looking to ditch the petrodollar for the Chinese yuan, according to an unnamed source who denied the news to CNBC Arabia. Reports circulating in the foreign press had suggested that Riyadh was again in talks with Beijing — as it has been intermittently for years — to sell some of its oil in yuan instead of USD, amid deteriorating ties between the KSA and the US. Strategists suggested to Bloomberg yesterday that the move may not be aimed at overhauling oil markets, but is rather a geopolitical strategy amid global turbulence meant to signal to the US that Riyadh wants “more consideration.”
MEANWHILE-
- UAE telecom group e& (formerly Etisalat) has begun talks to increase its stake in Mobily to 50% and one share in a pre-conditional partial tender offer, it said in a disclosure (pdf) to the ADX yesterday. e&, which currently holds a 27.99% stake in the Saudi telecoms firm, is offering a more than 20% premium to Mobily’s closing price on 15 March.
- European energy traders are asking central banks for emergency funds: The European Federation of Energy Traders, which includes oil giants like BP and Shell, and major commodity traders, are urging central banks and governments to provide emergency assistance to “ensure that wholesale gas and power markets continued to function,” the Financial Times reports.
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EGX30 |
10,706 |
+2.7% (YTD: -10.4%) |
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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 |
12,656 |
+2.0% (YTD: +12.2%) |
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ADX |
9,591 |
+1.2% (YTD: +13.0%) |
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DFM |
3,373 |
+2.0% (YTD: +5.5%) |
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S&P 500 |
4,358 |
+2.2% (YTD: -8.6%) |
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FTSE 100 |
7,292 |
+1.6% (YTD: -1.3%) |
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Brent crude |
USD 98.02 |
-1.9% |
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Natural gas (Nymex) |
USD 4.75 |
+3.9% |
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Gold |
USD 1,909.20 |
-1.0% |
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BTC |
USD 41,182 |
+3.6% (as of midnight) |
THE CLOSING BELL-
The EGX30 rose 2.7% at yesterday’s close on turnover of EGP 2.3 bn (60.3% above the 90-day average). Local investors were net buyers. The index is down 10.4% YTD.
In the green: Heliopolis Housing (+9.2%), TMG Holding (+8.0%) and Madinet Nasr Housing (+7.5%).
In the red: Ibnsina Pharma (-1.0%), GB Auto (-1.0%) and Orascom Construction (-0.1%).