Egyptian USD-denominated debt rides an EM bond rally: The country’s sovereign USD bonds gained more than USD 0.01 yesterday on the back of gains in other emerging markets including Pakistan — which recently reached a staff-level agreement with the IMF for a USD 3 bn bailout — and Ghana. Longer term debt saw the biggest boost, with a bond maturing in 2048 rising by USD 0.012, Reuters reports citing Tradeweb data. “IMF and other creditors' involvement and major bond rallies in high-yield markets like Pakistan, Sri Lanka, Argentina, and Ghana gave good reasons for investors to have a closer look at other high yielding markets like Egypt,” asset manager East Capital’s Emre Akcakmak told the newswire.

ALSO WORTH NOTING-

  • Emirati tobacco firm could go public in MENA: Dubai-based shisha company Advanced Inhalation Rituals (AIR) has invited banks to pitch for a potential IPO in the Middle East. London-based private equity outfit Kingsway Capital, the majority owner of AIR, is also considering a sale, with reports last month claiming that the company had opened talks with big tobacco companies to buy its stake. (Bloomberg)
  • Austrian-Emirati chemicals juggernaut in the making: Austrian oil and gas group OMV could combine its chemicals arm Borealis AG with Adnoc subsidiary Borouge Plc to form a USD 30 bn chemicals and plastics company. (Bloomberg)
  • The UK is currently the only G7 country still struggling with rising inflation.Price increases slowed in every other G7 country in May, leading average inflation in the G7 to fall to 4.6% y-o-y from 5.4% in April, according to the latest data from the Organization for Economic Cooperation and Development. (CNBC)

EGX30

17,466

-1.1% (YTD: +19.6%)

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

11,619

+0.6% (YTD: +10.9%)

ADX

9,583

+0.2% (YTD: -6.2%)

DFM

3,931

+1.4% (YTD: +17.8%)

S&P 500

4,456

+0.1% (YTD: +16.1%)

FTSE 100

7,520

-0.1% (YTD: +0.9%)

Euro Stoxx 50

4,391

-0.2% (YTD: +15.8%)

Brent crude

USD 76.25

+2.1%

Natural gas (Nymex)

USD 2.75

+1.4%

Gold

USD 1,933.60

+0.2%

BTC

USD 30,806

-0.8% (YTD: +87.7%)

THE CLOSING BELL-

The EGX30 fell 1.1% at yesterday’s close on turnover of EGP 1.47 bn (33% below the trailing 90-day average). Regional investors were net sellers. The index is up 19.6% YTD.

In the green: Sidi Kerir Petrochemicals (+3.3%), Mopco (+2.1%) and E-finance (+1.2%).

In the red: Elsewedy Electric (-5.0%), Eastern Company (-3.1%) and CIRA Education (-2.7%).

Asian markets are mixed in early trading this morning and futures suggest a similarly muddled start for European markets when they open later on in the day. Wall Street looks set to return from the 4 July holiday in the red.

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