US, EU investor optimism on IPOs plummets: Underwhelming initial listings in recent months have drained investor’s last hopes for a rebound in the IPO market. You can blame market volatility, falling valuations, and a potential early winter shutdown of the market, writes the Financial Times. Tech startups Arm, Instacart, and Klaviyo were all met with strong investor demand during their recent IPOs, yet are now trading below their initial prices. On the other side of the pond, London’s most high-profile IPO, fintech CAB Payments, witnessed a 72% collapse in its share prices only three months after its listing.

A while to wait: Analysts don’t expect investor appetite to return until 2024, with one predicting a March 2024 return. “The momentum dies when deal performance dies and that’s what you’ve seen,” said former equity capital markets banker David Erickson. “Until the market improves, I think we’re going to be sitting here for a while.”

ALSO- Oil cuts pull down Saudi’s GDP: Saudi Arabia’s GDP contracted by 4.5% y-o-y in 3Q 2023, marking its biggest contraction since 2020 on the back of oil cuts, Bloomberg reported. The country saw its oil activity dip by 17.3% y-o-y for the quarter, while non-oil activity grew 3.6% y-o-y, according to preliminary data by the country’s General Authority for Statistics (pdf). The kingdom has been keeping oil supply tight with voluntary supply cuts, which, combined with Russia’s supply curbs, have removed a combined 1.3 mn barrels of oil a day from the global market.

EGX30

22,551

-3.8% (YTD: +54.5%)

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

10,690

+1.5% (YTD: +2.0%)

ADX

9,344

+0.6% (YTD: -8.5%)

DFM

3,877

+1.0% (YTD: +16.2%)

S&P 500

4,194

+0.7% (YTD: +9.2%)

FTSE 100

7,322

-0.1% (YTD: -1.7%)

Euro Stoxx 50

4,061

+0.8% (YTD: +7.1%)

Brent crude

USD 87.41

-0.1%

Natural gas (Nymex)

USD 3.58

+6.7%

Gold

USD 1,994.30

-0.6%

BTC

USD 34,477

-0.2% (YTD: +108.7%)

THE CLOSING BELL-

The EGX30 fell 3.8% at yesterday’s close on turnover of EGP 4.7 bn (98.1% above the 90-day average). Foreign investors were net sellers. The index is up 54.5% YTD.

In the green: Telecom Egypt (+4.0%), Alexandria Containers and Goods (+1.6%).

In the red: Mopco (-13.1%), Abu Qir Fertilizers (-11.5%) and TMG Holding (-10.0%).

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