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Thursday, 18 August 2022

One of SODIC’s new owners just got a major new shareholder

Giant UAE firm wants to go long on EMs: Emirati firm International Holdings Co. (IHC) plans to invest bns of USDs into emerging markets like India, Colombia and Turkey as part of its plans to expand its exposure, IHC CEO Syed Basar Shueb told Bloomberg in an interview. The company, which has the country’s national security adviser, Sheikh Tahnoon bin Zayed al Nahyan, as chairman, will target sectors such as food, infrastructure and health care across countries with which the UAE has trade agreements. Investment tickets will range between USD 1-5 bn depending on the country, Shueb said.

The company is looking for ultra fast-growing companies: “These new markets are more lucrative for us because they give decent returns and it gives us exposure to that country,” Shueb said. “Double-digit growth is the minimum of what we’re looking for.” IHC has invested in the likes of Elon Musk’s SpaceX and major Abu Dhabi developer Tamouh.


One of SODIC’s new owners just got a major new shareholder: Private equity giant Apollo has acquired an 11.1% stake in the investment arm of Aldar Properties, Aldar Investment Properties, in a USD 400 mn transaction, the Emirati developer said yesterday. This is part of a USD 1.4 bn investment announced earlier this year.

Also worth noting this morning:

  • The original Dr Doom stays true to his name: The perma-bear economist Henry Kaufman — who forecast the 1982 bull market — calls on the US Fed to take more drastic measures and “shock the market” to rein in inflation. (Financial Times)
  • World’s largest wealth fund suffers record loss: Norway’s USD 1.2 tn sovereign fund lost USD 174 bn in 1H 2022 on the market sell-off, marking its biggest ever USD loss. (Financial Times)
  • The SPAC market has hit a new low: July was the first SPAC-less month since 2017, further evidence that the pandemic-era craze is well and truly over. (WSJ)
  • Meme-stock bulls are short-squeezing like it’s 2021: Bullish market inflation expectations have Reddit traders piling back into meme stocks, sending share prices surging and squeezing short sellers to the tune of USD 2.1 bn this month alone. (Bloomberg)

Up

EGX30

10,058

+2.2% (YTD: -15.8%)

None

USD (CBE)

Buy 19.09

Sell 19.20

None

USD at CIB

Buy 19.12

Sell 19.18

None

Interest rates CBE

11.25% deposit

12.25% lending

Up

Tadawul

12,647

+0.8% (YTD: +12.1%)

Up

ADX

10,252

+0.7% (YTD: +20.8%)

Up

DFM

3,458

+1.3% (YTD: +8.2%)

Down

S&P 500

4,274

-0.7% (YTD: -10.3%)

Down

FTSE 100

7,516

-0.3% (YTD: +1.8%)

Down

Euro Stoxx 50

3,756

-1.3% (YTD: -12.6%)

Up

Brent crude

USD 93.05

+0.8%

Down

Natural gas (Nymex)

USD 9.24

-0.9%

Down

Gold

USD 1,776.70

-0.7%

Down

BTC

USD 23,335

-2.5% (YTD: -49.6%)

THE CLOSING BELL-

The EGX30 rose 2.2% at yesterday’s close on turnover of EGP 898.48 mn (10.9% above the 90-day average). Foreign investors were net sellers. The index is down 15.8% YTD.

In the green: Madinet Nasr Housing (+7.5%), GB Auto (+5.6%) and Credit Agricole Egypt (+5.4%).

In the red: Juhayna (-2.2%), Oriental Weavers (-1.3%) and Mopco (-0.2%).

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.