It hasn’t been like this in 24 years: USD-denominated emerging bonds are on course to have their worst quarter since the Asian financial crisis shook emerging markets in 1998, according to Bloomberg.

What gives? Already under pressure from rising interest rates, the commodity price shock sparked by the conflict in Ukraine has had investors pulling money out of EM bonds as surging energy and food costs raises concerns over the fiscal stability of commodity importers.

It’s not just debt they’re dumping: Three-quarters of emerging currencies followed by Bloomberg are down so far in 2022, while EM stocks are almost having their worst quarter since the pandemic caused investors to flee EM in 2020.

The UAE’s bid to turn itself into a global crypto hub continues: Fresh off of passing crypto legislation and setting up a market regulator earlier this month, two other crypto trading players announced major expansions into Dubai yesterday. Crypto exchange Bybit will move its global headquarters to Dubai, while Crypto.com said it would set up a “regional base” in the emirate, providing further momentum to policymakers’ ambitions to turn it into a global crypto trading hub. Earlier this month, Dubai handed a license to Binance, the world’s largest crypto exchange, and FTX Europe, an arm of FTX, the third-largest exchange.

ALSO IN PLANET FINANCE- (xxDA) Oman will lift limits on foreign investment in listed companies in efforts to attract more inflows into the country’s public markets. (Statement)

THE CLOSING BELL-

The EGX30 fell 2.6% at yesterday’s close on turnover of EGP 1.1 bn (11.7% above the 90-day average). Local investors were net sellers. The index is down 5.9% YTD.

In the green: Orascom Construction (+1.0%).

In the red: Ezz Steel (-10.9%), MM Group (-7.4%) and Elsewedy Electric (-6.8%).