Expectations of IMF support are driving gains in some of the riskiest EM debt markets: Emerging-market debt has been battered by a tightening monetary environment as central banks crack down on inflation, losing 6% last month alone. But investors are flocking to buy high-risk bonds in the belief that the IMF will step in with financial support, Bloomberg writes. Debt from nations including Pakistan, Zambia and Tunisia offered returns as high as 6.6% in April, as investors predict the IMF will offer more lenient terms than usual on assistance packages amid high global inflation.

Global food prices fell slightly in April after hitting another record high in March, despite difficult market conditions and continued global food security concerns, according to UN data released Friday. The FAO Food Price Index fell 0.8% m-o-m in April — its second-highest level on record and up nearly 30% on April 2021.

Cereal and vegetable prices dropped from their record highs last month, while international wheat prices (key for Egypt) rose marginally again last month even as big shipments from India and Russia helped to ease pressure on supply caused by the war in Ukraine. But the FAO’s Meat Price Index (which includes poultry) hit its own all-time record in April as disruptions to Ukrainian exports and a bird flu outbreak in the Northern Hemisphere squeezed supply.

THE CLOSING BELL-

The EGX30 rose 3.1% at last Thursday’s close on turnover of EGP 1.21 bn (27.4% above the 90-day average). Foreign investors were net sellers. The index is down 7.5% YTD.

In the green: GB Auto (+10.1%), Heliopolis Housing (+9.3%) and Madinet Nasr Housing (+9.1%).

In the red: Eastern Company (-3.6%), Rameda (-2.2%) and Housing and Development Bank (-0.1%).