Bonds are already having a great year: With US yields believed to be at their lowest levels, investors are looking to add bonds to their portfolios in 2024, sending a slew of developing nation borrowers to the debt markets in the first days of the new year, reports Bloomberg.

Emerging markets rang in the new year by jumping on the bond markets like never before: Emerging markets including Mexico, Hungary, Slovenia, Indonesia, and Poland sealed some USD 24.4 bn in sovereign and corporate debt sales in the first four days of the new year, the busiest-ever start to a year for EUR- and USD-denominated debt issuance in emerging markets, according to Bloomberg data. Market and investor optimism is likely to drive further bond issuances, which have so far been restricted to investment-grade sovereigns.

Could the rise of bad debt shrink US banks’ 4Q earnings? The largest four US lenders — JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup — have seen a rise in non-performing loans in the last three months of 2023 to an estimated USD 24.4 bn, up USD 6 bn since the end of 2022, the Financial Times reported. Analysts see the impact of unpaid loans and high interest rates dragging down the banks’ earnings for the quarter, with forecasts spelling out a y-o-y decline by an average of 13%.

Asian markets are solidly in the green this morning after yesterday’s selldown. Japan’s Nikkei leads the pack, up a bit more than 1.3% at dispatch time. Notably, even the KRX’s Kospi is up this morning despite index heavyweight Samsung warning that operating profit for 4Q could be down as much as 35%. Futures suggest European benchmarks should open in the green later this morning, while this afternoon Wall Street is on track to start the day in the red.

EGX30

25,345

0.0% (YTD: +1.8%)

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

12,252

-0.3% (YTD: +2.4%)

ADX

9,712

+0.5% (YTD: +1.4%)

DFM

4,089

0.0% (YTD: +0.7%)

S&P 500

4,764

+1.4% (YTD: -0.1%)

FTSE 100

7,694

+0.1% (YTD: -0.5%)

Euro Stoxx 50

4,485

+0.5% (YTD: -0.8%)

Brent crude

USD 76.27

-3.2%

Natural gas (Nymex)

USD 2.95

+2.0%

Gold

USD 2,034.10

-0.7%

BTC

USD 47,142.09

+6.6% (YTD: +10.9%)

THE CLOSING BELL-

The EGX30 was flat at yesterday’s close on turnover of EGP 2.98 bn (11% above the 90-dayaverage). Foreign investors were net sellers. The index is up 1.8% YTD.

In the green: Palm Hills Development (+5.1%), Madinet Masr (+4.1%), and EFG Holding (+2.1%).

In the red: Juhayna (-1.8%), TMG Holding (-1.4%), and Beltone Financial Holding (-1.4%).

CORPORATE ACTIONS-

B Investments shareholders will discuss today raising the company’s capital to EGP 1.2 bn. The extraordinary general assembly (pdf) comes as the company looks to go ahead with a mandatory tender offer (MTO) to acquire up to 90% of Orascom Financial Holding (OFH) via a share swap. B Investments’ board approved in December the call to raise its capital from EGP 800 mn today.

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