Citi expects fresh IPOs in the Gulf in 4Q: Citigroup expects a fresh run of IPOs in Dubai and Saudi Arabia in 4Q and 2024, the bank’s head of Middle East and North Africa capital markets, Rudy Saadi, told Bloomberg yesterday. The bank is being courted by a number of companies looking to go public in the region, he said, without disclosing names or saying when he expected them to go live. “The pipeline is solid, it’s promising for post the summer and 2024,” he said.

The potential candidates: Advanced Inhalation Rituals and Alef Education are gearing up for IPOs, Bloomberg reports citing sources it says are familiar with the matter. Dubai Roads & Transport Authority’s Taxi and parking businesses are also on the list.

It has been a good year for Gulf markets: IPOs in the region have drawn more than USD 5 bn so far this year, exceeding volumes achieved during the same period in the past decade, with the exception of 2022, the news outlet reports.

ALSO WORTH NOTING-

  • China heads for new stimulus as manufacturing shrinks for fourth month running: Beijing hinted at fresh stimulus measures aimed at propping up the faltering Chinese economy on the same day that data showed that manufacturing activity declined for the fourth consecutive month in July. ( Reuters)
  • Saudi economy slows on oil price drop, supply cut: Saudi Arabia’s economy slowed in 2Q 2023 on the back of a drop in oil prices and the country’s voluntary production cut. GDP grew 1.1% y-o-y in the April-June quarter, down from 3.8% y-o-y in Q1, according to preliminary data released yesterday. ( General Authority for Statistics, (pdf)
  • ECB weighs rate hike as euro-area economy returns to growth: The euro-area economy returned to growth in 2Q, with GDP rising 0.3% as inflation continued to abate. The data comes as the European Central Bank (ECB) considers its next move on interest rates in September. ( Eurostat, pdf)
  • Argentina secures a lifeline from IMF: Argentina has reached a staff-level agreement with the IMF that will unlock some USD 7.5 bn in aid meant to help the country avoid a default. ( IMF statement)

EGX30

17,596

+0.2% (YTD: +20.5%)

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

11,692

-0.8% (YTD: +11.6%)

ADX

9,787

+0.3% (YTD: -4.2%)

DFM

4,059

+0.6% (YTD: +21.7%)

S&P 500

4,589

+0.2% (YTD: +19.5%)

FTSE 100

7,699

+0.1% (YTD: +3.3%)

Euro Stoxx 50

4,471

+0.1% (YTD: +17.9%)

Brent crude

USD 85.56

+0.7%

Natural gas (Nymex)

USD 2.64

+0.1%

Gold

USD 2,003.70

+0.2%

BTC

USD 29,193

-0.2% (YTD: +76.6%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 2.10 bn (9.8% above the 90-day average). Foreign investors were net buyers. The index is up 20.5% YTD.

In the green: Heliopolis Housing (+4.4%), Ibnsina Pharma (+4.3%) and GB Corp (+3.2%).

In the red: Oriental Weavers (-1.2%), Eastern Company (-0.9%) and EFG Holding (-0.7%).

Asian markets largely in the green this morning despite fresh economic data from China suggesting manufacturing activity continued to weaken in July. Stocks in Europe and the US are expected to make rise at the opening bell.

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