Aramco raises dividend payout: Saudi Arabian oil giant Aramco will raise its payout to investors and the country’s government by more than half to USD 29.4 bn, up from USD 18.8 bn in 2022, the company said (pdf). The dividend boost comes despite declines in oil earnings across the sector. “The second quarter of 2023 was characterized by continued global economic uncertainty and market volatility,” Bloomberg quoted Aramco CEO Amin Nasser as telling reporters. “This obviously affected energy prices, yet Aramco delivered strong earnings thanks to our low cost production, high supply reliability and strong demand for our products.”

Aramco funds are key to the Saudi government: The payout will offer some relief to the Saudi government, whose budget deficit widened in 2Q 2023 due to rising social benefit spending and projects focusing on diversifying the economy away from oil.

Cruise lines and hotels defy the moneymen: Hedge funds have taken a hit valued at USD 6 bn so far this year by wagering against cruise lines and hotels after misjudging the resilience of US consumer demand, the Financial Times reports. Short sellers — mainly hedge funds — have been surprised by steep rises in the share price of tourism companies including cruise line Royal Caribbean, Airbnb, and Booking.com, as the US economy appears to steer its way past a potential recession and into a “soft landing,” the newspaper says.

Credit Suisse is set to cut 80% of its Hong Kong-based investment banking s taff as the bank integrates with UBS Group, Reuters reports, quoting two sources close to the matter. Only some 20 bankers will be spared redundancy, the sources said, of Credit Suisse’s 100-person Hong Kong banking team. Bloomberg also covered the story.

REMEMBER- Swiss banking giant UBS was forced to acquire the Swiss lender after it was left on the verge of collapse following turmoil in the global financial system triggered by rising interest rates.

ALSO WORTH NOTING-

  • Greece restored to investment-grade status: Greece’s sovereign rating has been lifted to BBB- from BB+ by Scope Ratings on the back of sustained European institutional support and declining public debt, marking a turnaround for the country since its 2010 debt crisis. (Bloomberg)
  • Saudi’s PIF closes 2022 in the red: Saudi Arabia’s wealth fund PIF closed 2022 with losses worth USD 15.6 bn as its tech investments were hit by the slowdown. (Bloomberg)
  • Paypal makes gains on stablecoin launch: Shares in payments giant Paypal rose almost 3% following its launch of a USD-backed stablecoin on Monday. (Reuters)

EGX30

17,839

+0.8% (YTD: +22.2%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,272

-0.7% (YTD: +7.6%)

ADX

9,824

+0.4% (YTD: -3.8%)

DFM

4,079

-0.1% (YTD: +22.3%)

S&P 500

4,518

+0.9% (YTD: +17.7%)

FTSE 100

7,554

-0.1% (YTD: +1.4%)

Euro Stoxx 50

4,338

+0.1% (YTD: +14.3%)

Brent crude

USD 85.34

-1.0%

Natural gas (Nymex)

USD 2.74

+0.5%

Gold

USD 1,971.80

+0.1%

BTC

USD 29,135

+0.3% (YTD: +76.8%)

THE CLOSING BELL-

The EGX30 rose 0.8% at Monday’s close on turnover of EGP 2.73 bn (39.7% above the 90-day average). Foreign investors were net buyers. The index is up 22.2% YTD.

In the green: Beltone Financial Holding (+5.9%), Ezz Steel (+4.8%) and Credit Agricole Egypt (+4.5%).

In the red: Orascom Construction (-0.9%), Edita (-0.9%) and Alexandria Containers and Cargo Handling (-0.3%).

A sian markets are largely up in early trading this morning and futures suggest European markets will also open in the green later on today. It’s a more mixed picture on Wall Street, with futures suggesting most major indexes will open in the red.

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