EM bulls still optimistic: Bullish investors in emerging markets are holding out hope that the asset class will stage an extended rally later this year and prove correct Morgan Stanley’s recent prediction that the 2020s will be the decade of EMs, according to Bloomberg.

2023 (so far) hasn’t lived up to Morgan Stanley’s expectations: Waning economic activity in China and high global interest rates have continued to put pressure on EM assets, which have significantly underperformed their peers in advanced economies despite a promising start to the year. MSCI’s EM equity index is up 5% so far this year compared to the 11% increase in developed-market assets, while EM local-currency bonds have only slightly bettered a gauge of global debt.

Yes, but: EM assets stand to finally take off in the second half of 2023 as long as global interest rates peak, Chinese authorities support growth and structural reforms in India reassure the market, investors tell the news outlet.

Qatar’s sovereign wealth fund is going up a gear: The USD 450 bn Qatar Investment Authority (QIA) is planning to expand its investment reach into Asia and the US and strengthen its footprint in the tech sector amid expectations for increased inflows from the country’s natural gas revenues, the fund’s CEO told Bloomberg.

Remember: We’re expecting QIA investments in Egypt.Qatar pledged last year to invest as much as USD 5 bn in Egyptian companies as part of wider Gulf efforts to shore up our economy and provide us with vital FX. The QIA is yet to sign off on any acquisitions but reports in the local press last week claimed that it is close to acquiring Telecom Egypt’s 45% stake in Vodafone Egypt.

ALSO WORTH NOTING-

  • UBS finalizes Credit Suisse takeover: Swiss banking giant UBS has completed the acquisition of its embattled competitor Credit Suisse, ending the lender’s 167 years of independence, it said in a statement yesterday. UBS was forced to acquire Credit Suisse in March after it was left on the verge of collapse following turmoil in the global financial system triggered by rising interest rates. Five of the most senior Credit Suisse execs lefthours after the official takeover.
  • Nasdaq makes its biggest acquisition ever: Nasdaq has entered into a definitive agreement to fully acquire financial software maker Adenza in a USD 10.5 bn cash and stock deal from investment company Thoma Bravo. (Reuters)
  • Turkey’s stock market on a post-election tear: The Borsa Istanbul 100 index has gained 25% since the country’s election to hit an all-time high amid optimism that the reelected Erdogan administration will pursue a more conventional economic policy. (Bloomberg)
  • JPMorgan has agreed to pay USD 290 mn to settle a trafficking lawsuit with the victims of the late disgraced financier Jeffrey Epstein. (AP | the Guardian | The Wall Street Journal | CNN | FT | Bloomberg)

EGX30

17,705

-0.2% (YTD: +21.3%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,423

+0.2% (YTD: +9.0%)

ADX

9,380

+0.1% (YTD: -8.1%)

DFM

3,702

+0.1% (YTD: +11.0%)

S&P 500

4,339

+0.9% (YTD: +13.0%)

FTSE 100

7,571

+0.1% (YTD: +1.6%)

Euro Stoxx 50

4,316

+0.6% (YTD: +13.8%)

Brent crude

USD 72.09

-3.6%

Natural gas (Nymex)

USD 2,27

+0.5%

Gold

USD 1,969.70

-0.4%

BTC

USD 25,912

-0.5% (YTD: +56.8%)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 1.27 bn. Local investors were net buyers. The index is up 21.3% YTD.

In the green: Mopco (+20.0%), Credit Agricole (+2.9%) and Taaleem (+2.6%).

In the red: CIB (-2.0%), Telecom Egypt (-2.0%) and Palm Hills Developments (-1.8%).

Tags: