Is EM enthusiasm swinging back to skepticism? Some investors may have pulled the trigger on emerging markets too soon, encouraged by pivots towards more market-friendly policies and economic reforms, analysts tell Bloomberg. EM bulls encouraged by signs like the successive devaluations seen in Egypt, an apparent return to orthodox policy in Turkey, or similar developments in Nigeria and Argentina should maintain some skepticism, says AllianceBernstein EM research head Adriaan Du Toit. “[R]eal reform takes time and compromise… and it’s harder to pull it off in a weak growth environment.” With interest rates remaining high in developed economies, it may be an uphill battle for EMs to entice back foreign flows this year, the business newswire says.

BTC resilient in the face of crypto-cynics and sector scandals: Cryptocurrency BTC hit its highest level in a year at the end of last week, breaching USD 31k, Bloomberg reports. The currency — while still down more than half on its all-time peak of USD 69k — is up more than 80% so far in 2023, and other cryptocurrencies are rising in tandem. That’s despite successive scandals including the civil charges recently brought by the US securities regulator against the US arm of crypto exchange Binance.

What gives? Challenging times in global finance may be lending BTC a boost, one analyst tells Bloomberg. “The token’s most fundamental investment thesis is playing out: inflation, monetary mismanagement, banking crises, sovereign debt anxiety, USD-reserve-status questions are all playing a role in giving BTCers an ‘I told you so’ moment,” says FRNT Financial’s Strahinja Savic.

International law firms flood the KSA: Kirkland & Ellis is the latest major law firm to consider expanding its business to Riyadh, attracted by the KSA’s lucrative dealmaking business amid an M&A drought in Europe and the US, the Financial Times reports. The move comes on the heels of new regulations allowing foreign companies to establish a direct presence in the kingdom, scrapping an old requirement to partner up with local entities.

EGX30

17,288

-2.4% (YTD: +18.4%)

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

11,459

-0.1% (YTD: +9.4%)

ADX

9,557

+0.3% (YTD: -6.4%)

DFM

3,793

+0.4% (YTD: +13.7%)

S&P 500

4,348

-0.8% (YTD: +13.3%)

FTSE 100

7,462

-0.5% (YTD: +0.1%)

Euro Stoxx 50

4,272

-0.8% (YTD: +12.6%)

Brent crude

USD 73.85

-0.4%

Natural gas (Nymex)

USD 2.73

+4.6%

Gold

USD 1,929.60

+0.3%

BTC

USD 30,484

-0.4% (YTD: +84.6%)

THE CLOSING BELL-

The EGX30 fell 2.4% at yesterday’s close on turnover of EGP 1.7 bn. Local investors were net buyers. The index is up 18.4% YTD.

In the green: Orascom Construction (+4.5%), Telecom Egypt (+2.2%) and Ibnsina Pharma (+0.4%).

In the red: Elsewedy Electric (-5.7%), CIB (-4.5%) and Qalaa Holdings (-4.4%).

Asian markets are mixed in early trading this morning, while futures suggest major European and US indexes are set to open in the green later on today.

Tags: