A second shareholder in Capricorn Energy has come out against the proposed GBP 1.4 bn merger with rival producer Tullow Oil, the Financial Times reports, saying there was no benefit in the transaction for Capricorn and that it would slow the company’s transition away from fossil fuels. Hedge fund Kite Lake joins another Capricorn shareholder, LGIM, in opposing the transaction.

Why do we care? Capricorn has had a presence in Egypt ever since it acquired Shell’s oil and gas assets in the Western Desert with partner Cheiron last year under an agreement worth up to USD 926 mn. Those assets would form the second largest item on the newly merged company’s balance sheet, after Tullow’s flagship Ghanaian oil fields.

On the macro front, Biden wants a petrol tax holiday to ease surging prices: US President Joe Biden has called on Congress to pause federal gasoline and diesel taxes for 90 days under efforts to combat surging prices at the pump — though skeptics said the bill was unlikely to get past lawmakers or make much impact on people’s wallets. “I fully understand that the gas tax holiday alone is not going to fix the problem. But it will provide families some immediate relief… as we continue working to bring down prices for the long haul,” Biden said. The average cost of a gallon of petrol is now hovering around an unprecedented USD 5, helping drive inflation already at 40-year highs. Biden’s call got coverage from the Associated Press, CNBC, BBC, CNN and others.

Other markets news worth noting include:

• How low could BTC go? As low as USD 13k, one strategist warns, pointing to the digital currency’s tendency to plummet by up to 80% from its most recent peak. BTC is already down more than 50% YTD at around USD 20k. (CNBC)
• Qatar plans to introduce short selling and securities lending and borrowing to its bourse under efforts to lure investors and boost market turnover, an official said. (Bloomberg)
• Lebanese lenders are pushing back against the IMF rescue plan that could see USD 60 bn of their FX deposits at the central bank seized. (Financial Times)

THE CLOSING BELL-

The EGX30 fell 0.9% at yesterday’s close on turnover of EGP 431 mn (48.3% below the 90-day average). Local investors were net buyers. The index is down 19.6% YTD.

In the green: Abu Dhabi Islamic Bank Egypt (+1.2%), Palm Hills Development (+0.7%) and GB Auto (+0.7%).

In the red: Madinet Nasr Housing (-3.2%), Heliopolis Housing (-2.4%) and e-Finance (-2.2%).

Asian markets are up in early trading this morning. It’s another picture entirely for the European markets and Wall Street, which both look set to open in the red later on today if futures are anything to go by.