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Tuesday, 17 May 2022

Global growth prospects appear to be weakening

Global growth prospects appear to be weakening after the EU cut its GDP forecast and data out of China pointed to slowing economic activity:

  • The EU has downgraded its 2022 eurozone growth forecast to 2.7% from 4% in February as the war in Ukraine takes its toll. Draft forecasts seen by Bloomberg also see inflation averaging 6.1% this year, almost double what it predicted three months ago.
  • China’s economic activity drops as covid lockdowns bite: China’s main measure of consumer activity, retail sales, plunged 11.1% y-o-y in April, while industrial production unexpectedly fell 2.9%, the FT reports, much of it on the back of the government’s covid zero policy.

MEANWHILE- Vodacom is considering a bond issuance to fund its EUR 2.34 bn acquisition of a majority stake in Vodafone Egypt which the company agreed with UK parent Vodafone Group last year, Bloomberg reports.

Down

EGX30

10,462

-0.7% (YTD: -12.5%)

Down

USD (CBE)

Buy 18.23

Sell 18.32

Down

USD at CIB

Buy 18.25

Sell 18.32

None

Interest rates CBE

9.25% deposit

10.25% lending

Down

Tadawul

12,915

-1.8% (YTD: +14.5%)

None

ADX

9,493

0.0% (YTD: +11.8%)

Up

DFM

3,419

+2.8% (YTD: +7.0%)

Down

S&P 500

4,008

-0.4% (YTD: -15.9%)

Up

FTSE 100

7,465

+0.6% (YTD: +1.1%)

Down

Euro Stoxx 50

3,685

-0.5% (YTD: -14.3%)

Up

Brent crude

USD 114.24

+2.4%

Down

Natural gas (Nymex)

USD 8.02

-0.4%

Up

Gold

USD 1,823.60

+0.5%

Down

BTC

USD 30,097

-3.8% (YTD: -35.2%)

THE CLOSING BELL-

The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 817.87 mn (6.4% below the 90-day average). Local investors were net buyers. The index is down 12.5% YTD.

In the green: EFG Hermes (+3.3%), MM Group (+3.1%) and Sidi Kerir Petrochemicals (+1.1%).

In the red: TMG Holding (-4.7%), Orascom Construction (-4.6%) and Orascom Development Egypt (-4.4%).

Most Asian markets are marginally in the green this morning, and shares in Europe and the US are on course to follow suit later today, according to stock futures.

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.