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Monday, 23 May 2022

Some investors are dipping their toes back into EM

Time to buy emerging-market assets? Some investors are seeing buying opportunities in emerging markets despite the multifaceted risks posed by rising interest rates, heightened inflation and geopolitical uncertainty, Bloomberg reports. Some USD 5 tn has fled emerging markets over the past 15 months, making valuations more attractive to those who can stomach the risk. Some money managers tell the business newswire that, while they’re not bullish on EM assets, they’re willing to start slowly buying back in. “We have reduced our bearishness on the emerging-market asset class,” said Paul Greer, a money manager at Fidelity International. “While fundamentals remain very challenged, the valuations on offer, coupled with a more favorable technical picture, have meaningfully altered the near-term risk-reward asymmetry.”

Siemens Energy is bidding to fully acquire “deteriorating” wind turbine unit Siemens Gamesa in a potential USD 4.3 bn transaction. Siemens Energy already owns 67% of the firm, but a complex ownership structure means it has been unable to get a grip on operational issues that have contributed to the company issuing three profit warnings in less than a year. (Reuters)

Why should Egyptians care? Gamesa is a major player in Egypt’s wind energy sector, and is involved in the Ras Ghareb, West Bakr, and Gabal El Zeit projects in the Gulf of Suez.


  • The Saudi sovereign wealth fund has acquired a USD 1.5 bn stake in Prince Alwaleed bin Talal’s investment firm, Kingdom Holding, handing the PIF a 16.9% stake in the company. The Saudi b’naire and self-styled Saudi Warren Buffett — whose firm holds stakes in big tech names including Apple, Twitter, and Deezer — will retain a majority 78.1% stake in Kingdom Holding. (Bloomberg)
  • Saudi Arabia has indicated it will continue to welcome Russia as a member of the OPEC+ alliance of oil producers despite Western attempts to isolate Moscow from the global economy in the wake of its invasion of Ukraine. Riyadh wants to “to work out an agreement with OPEC+ . . . which includes Russia,” Saudi energy minister Prince Abdulaziz bin Salman told the Financial Times. (FT)




-0.8% (YTD: -12.4%)



Buy 18.22

Sell 18.31



Buy 18.24

Sell 18.31


Interest rates CBE

11.25% deposit

12.25% lending




-0.8% (YTD: +9.3%)




+0.9% (YTD: +17.0%)




+0.1% (YTD: +6.2%)


S&P 500


0.0% (YTD: -18.1%)


FTSE 100


+1.2% (YTD: +0.1%)


Euro Stoxx 50


+0.5% (YTD: -14.9%)


Brent crude

USD 112.46



Natural gas (Nymex)

USD 8.03




USD 1,854.90




USD 30,150

+3.7% (YTD: -35.1%)


The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 364 mn (57.8% below the 90-day average). Regional investors were net sellers. The index is down 12.4% YTD.

In the green: EFG Hermes (+0.6%), Ibnsina Pharma (+0.4%) and Qalaa Holdings (+0.2%).

In the red: Orascom Construction (-4.0%), Cleopatra Hospitals (-3.3%) and Abu Qir Fertilizers (-2.3%).

Asian markets are mixed this morning: Concerns over the economic impact of China’s covid-19 lockdowns sent Chinese shares lower in early trading, while other indexes in the region saw slight gains, with the Nikkei up 0.6%, the Kospi up 0.2% and the ASX 0.1% in the green. Shares in Europe and the US are on course to rise when markets open, according to the futures markets.

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.

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