PIF’s 2023 splurge lands it in first place as the world’s highest spending sovereign wealth fund, revealing an “unparalleled bandwidth and reach,”Diego López, founder and managing director of Global SWF said in the consulting group’s annual report (pdf). The past year saw the kingdom’s Public Investment Fund (PIF) spend USD 31.6 bn through 49 transactions, up 33% from the USD 20.7 bn invested in 2022. For the first time in six years, Singapore’s deep-pocketed GIC was knocked out of first place.

It also laid claim to the three largest investments of the year: PIF paid USD 4.9 bn for US gaming company Scopely, took over Standard Chartered’s aircraft leasing division in a USD 3.6 bn purchase, and acquired SABIC’s steel unit Hadeed for USD 3.3 bn.

PIF also treated itself to the occasional sports league: In June, PIF took control of the kingdom’s four leading soccer clubs, Al-Ittihad, Al-Ahli, Al-Hilal, and Cristiano Ronaldo’s Al-Nassr, Reuters reports. In addition, the fund stunned the golf world with its PGA Tour merger, which is yet to be finalized. PIF also owns a USD 8.1 bn stake in gaming companies Activision Blizzard, Electronic Arts, and Take-Two — in a bid to turn the country into a gaming hub.

HONORABLE MENTION-

The GCC named “Region of The Year”: In 2023, assets under management of GCC sovereign wealth fundsGCC sovereign wealth funds reached a historical peak of USD 4.1 tn, led by the so-called “Oil Five”: KSA’s PIF, Abu Dhabi’s ADIA, Mubadala, and ADQ, and Qatar’s QIA.

ALSO WORTH NOTING-

  • US firms are turning to convertible bonds: Issuance of convertible debt in theUS climbed 77% last year to USD 48 bn, bucking the trend of otherwise quiet corporate fundraising across capital markets. Experts see the love for convertible debt continuing into 2024 as companies look to refinance maturing debt. (Financial Times)

EGX30

25,409

+0.4% (YTD: +2.1%)

USD (CBE)

Buy 30.82

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,929

-1.6% (YTD: -0.3%)

ADX

9,716

+1.3% (YTD: +1.4%)

DFM

4,078

-0.3% (YTD: +0.4%)

S&P 500

4,705

-0.8% (YTD: -1.4%)

FTSE 100

7,682

-0.5% (YTD: -0.7%)

Euro Stoxx 50

4,448

-1.4% (YTD: -1.6%)

Brent crude

USD 78.25

+3.1%

Natural gas (Nymex)

USD 2.69

+4.7%

Gold

USD 2,048.90

-1.2%

BTC

USD 42,765

-4.9% (YTD: +1.2%)

THE CLOSING BELL-

The EGX30 fell 0.4% at yesterday’s close on turnover of EGP 3.6 bn (8.5% above the 90-day average). Regional investors were net sellers. The index is up 2.1% YTD.

In the green: GB Corp (+4.8%), Qalaa Holdings (+4.2%), and Beltone Holding (+2.8%).

In the red: Alex Containers and Cargo Handling (-2.2%), Mopco (-2.1%) and ADIB Egypt (-1.8%).

Asian shares are solidly in the red this morning, with Japan leading sentiment down as trading resumed after a prolonged New Year’s holiday that saw an earthquake and the burning of a Japan Airlines jet at Tokyo’s Haneda airport after it struck another airplane on landing. Futures suggest benchmark indexes in Europe (excluding the CAC40) will open in the green. It’s also looking good for Wall Street and Bay Street as we head into dispatch time.

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