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Tuesday, 29 March 2022

EM bonds on course for their worst quarter in 24 years + UAE positioning itself as a global crypto hub

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)

Down

EGX30

11,241

-2.6% (YTD: -5.9%)

Down

USD (CBE)

Buy 18.27

Sell 18.37

None

USD at CIB

Buy 18.25

Sell 18.35

None

Interest rates CBE

9.25% deposit

10.25% lending

Up

Tadawul

13,064

+0.5% (YTD: +15.8%)

Up

ADX

9,829

+0.6% (YTD: +15.8%)

Up

DFM

3,484

+2.1% (YTD: +9.0%)

Up

S&P 500

4,576

+0.7% (YTD: -4.0%)

Down

FTSE 100

7,473

-0.1% (YTD: +1.2%)

Down

Brent crude

USD 112.48

-6.8%

Down

Natural gas (Nymex)

USD 5.49

-0.3%

Down

Gold

USD 1,928.00

-0.9%

Up

BTC

USD 47,601

+2.1% (as of midnight)

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%).

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.