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Monday, 4 July 2022

Hedgies ๐Ÿ’“ Dubai

Dubai is emerging as a favorite spot for hedge funds, Bloomberg reports. A handful of well-known fund managers are either expanding operations in the emirate or decamping there entirely as Brexit takes the shine off London as a global financial hub, Hong Kong suffers under covid restrictions, and living costs soar globally. Dubai’s efforts to lure financiers come with sizable incentives, including low or no taxes and reduced fees.

“We are in a unique situation where the classic financial centers are disintegrating,” one London School of Economics professor tells the business newswire. “Living in Dubai — that’s now come down to personal preferences with low taxes, good infrastructure and low regulation.”

Is the Gulf IPO boom running out of steam? Saudi Arabia’s Al Othaim family has pulled its plans to IPO 30% of its malls business on the Saudi stock exchange, Bloomberg reports. The u-turn could indicate a slowdown in the red-hot Gulf IPO market, which had a record first half this year on the back of surging oil prices. Long insulated from the market volatility that has gripped other parts of the world this year, Gulf equities have fallen in recent weeks on fears of a global recession.

ALSO IN PLANET FINANCE-

  • Prominent crypto hedge fund Three Arrows Capital (3AC) has filed for US bankruptcy days after it was forced to liquidate in the British Virgin Islands. Last week the fund defaulted on a USD 670 mn loan from Voyager Digital. (Financial Times)
  • Swedish BNPL darling Klarna’s valuation has nosedived by over 85% from USD 46 bn last year as it looks to make a fresh USD 600 mn raise in tougher times for growth-oriented tech startups. (The Financial Times)
  • Turkey hiked its minimum wage by another 30% amid soaring inflation, on the heels of a 50% hike in December. Turkish inflation is set to hit 80% annually. (Bloomberg)

Down

EGX30

9,009

-2.4% (YTD: -24.6%)

Up

USD (CBE)

Buy 18.78

Sell 18.86

Up

USD at CIB

Buy 18.80

Sell 18.86

None

Interest rates CBE

11.25% deposit

12.25% lending

Down

Tadawul

11,465

-0.5% (YTD: +1.6%)

Down

ADX

9,345

-0.3% (YTD: +10.1%)

Down

DFM

3,202

-0.7% (YTD: +0.2%)

Up

S&P 500

3,825

+1.1% (YTD: -19.7%)

None

FTSE 100

7,168

0.0% (YTD: -2.9%)

Down

Euro Stoxx 50

3,448

-0.2% (YTD: -19.8%)

Up

Brent crude

USD 111.63

+2.4%

Up

Natural gas (Nymex)

USD 5.73

+5.6%

Down

Gold

USD 1,801.50

-0.3%

Down

BTC

USD 19,275

-0.3% (YTD: -58.3%)

THE CLOSING BELL-

The EGX30 fell 2.4% at yesterday’s close on turnover of EGP 556.88 mn (32.7% below the 90-day average). Local investors were net buyers. The index is down 24.6% YTD.

In the green: Mopco (+2.1%), Rameda (+0.5%).

In the red: GB Auto (-7.1%), Credit Agricole Egypt (-7.1%) and Qalaa Holdings (-5.0%).

Asian markets are mixed on the opening trading session of the new quarter, with Chinese shares largely in the green and most other bourses in the region falling on recession fears. European shares are on course to see early gains when the markets open in a few hours. US stock futures slipped, signaling that equities will resume the downward trend when Wall Street reopens tomorrow after the July 4th holiday.

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. ยฉ 2022 Enterprise Ventures LLC.

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