Central banks everywhere are stocking up on USD as they prepare to prop up their currencies: Central banks are letting go of their US Treasuries in favor of cold hard cash that could be deployed to boost their local currencies if necessary, Bloomberg reports. Central banks sold a combined USD 81 bn in Treasury securities over the past four weeks, in the most aggressive selloff since March 2020. At the same time, the Fed’s foreign reserve repurchase agreement facility — which allows central banks to hold USDs — saw inflows of USD 61 bn. That suggests policymakers “want to build up their cash position potentially for the purpose of defending their currencies,” one strategist said.

Also worth knowing about this morning:

• Burjeel Holdings IPO priced at bottom of range: The Abu Dhabi healthcare firm and its selling shareholder VPS Healthcare Holdings raised USD 300 mn (AED 1.1 bn) in the IPO, priced at AED 2.0 a share. Burjeel begins trading on the Abu Dhabi stock exchange tomorrow. (Bloomberg)
• Asia is witnessing its sharpest increase in local currency-denominated bond issuances in more than a decade as USD debt gets pricier. (Reuters)
• The UAE’s PMI — S&P Global’s gauge of private sector activity — dipped to 56.1 in September, after reaching a more than three-year high of 56.7 in August. (Statement)

THE CLOSING BELL-

The EGX30 rose 0.9% at Wednesday’s close on turnover of EGP 941.06 mn (2.5% below the 90-day average). Foreign investors were net sellers. The index is down 16.2% YTD.

In the green: Qalaa Holding (+3.1%), CIB (+2.5%) and Palm Hills Development (+2.3%).

In the red: CIRA (-1.6.%), Orascom Construction (-1.2%) and Madinet Nasr Housing and Development (-1.1%).