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Thursday, 7 April 2022

Dubai utilities firm makes USD 6 bn debut + Surprise: War in Europe is bad for global trade

DEWA pulls off one of the biggest IPOs since Aramco: Dubai’s main utilities firm DEWA has raised USD 6.1 bn in its stock market debut, making it the biggest IPO in Europe, the Middle East and Africa since Saudi Aramco in 2019, Bloomberg reported. The state-owned company sold 9 bn shares at the top of its price range of AED 2.48 apiece, valuing it at around USD 33.8 bn, DEWA’s stock will begin trading in Dubai on 12 April.

Russia-Ukraine war knocks global trade: Global trade fell an estimated 2.8% between February and March due to the conflict in Ukraine, according to a report by the Kiel Institute for the World Economy. Sanctions imposed on Russia, the world’s second-largest commodities exporter and 11th-largest economy, are isolating it from global trade and have led to an “abrupt decline” in the number of container ships moving through its ports.

FROM THE DEPT. OF THE OBVIOUS- European trade was hit hardest. EU imports fell 3.4% and exports declined 5.6% last month. US exports fell 3.4% and imports slipped 0.6%. China’s exports, unsurprisingly, were down only 0.9%, while its imports rose 0.9%.

In other financial news:

  • The Chinese economy is being battered by covid: Activity in China’s services sector saw its sharpest decline since 2020 in March as outbreaks of covid-19 hit demand, according to a purchasing managers’ survey. The Caixin PMI dropped to 42.0 in March, down from 50.2 a month earlier, well below the 50.0 mark that separates expansion from contraction. The composite PMI, which measures both services and manufacturing, also fell to two-year lows.
  • Another American tech firm flees Russia: Intel has suspended its operations in Russia, becoming the latest tech firm to join the exodus out of the country following its invasion of Ukraine. (Statement)

Down

EGX30

11,348

-0.3% (YTD: -5.0%)

Down

USD (CBE)

Buy 18.26

Sell 18.36

Down

USD at CIB

Buy 18.26

Sell 18.36

None

Interest rates CBE

9.25% deposit

10.25% lending

Up

Tadawul

13,256

+0.4% (YTD: +17.5%)

Down

ADX

10,068

-0.2% (YTD: +18.6%)

Down

DFM

3,500

-0.1% (YTD: +9.5%)

Down

S&P 500

4,481

-1.0% (YTD: -6%)

Down

FTSE 100

7,588

-0.3% (YTD: +2.8%)

Down

Euro Stoxx 50

3,825

-2.4% (YTD: -11%)

Up

Brent crude

USD 102.18

+1.1%

Up

Natural gas (Nymex)

USD 6.13

+1.6%

Up

Gold

USD 1,930

+0.3%

Down

BTC

USD 43,851

-4.6% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 232.55 mn (76.2% below the 90-day average). Foreign investors were net sellers. The index is down 5.0% YTD.

In the green: Qalaa Holdings (+6.7%), Rameda (+3.5%) and Eastern Company (+1.4%).

In the red: EKH (-3.9%), MM Group (-3.4%) and ADIB (-1.4%).

It’s red all across Asia this morning and futures suggest shares in Western Europe and North America will also face selling pressure at the opening bell later today.

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