Investor appetite for riskier debt is good news for EM borrowers: Investors are rushing to add bonds (risky or not) to their portfolio — wanting to cash in on the anticipated interest rate cuts — helping emerging markets gain greater access to global debt markets and giving them a helping hand to refinance their debt, writes the Financial Times. This move will help debt-ridden EMs borrow some more rather than default. “I do think there is a chance that some who have been excluded from markets will have access now,” said Morgan Stanley’s Simon Waever.

Egypt is among the lucky ones: Egypt, along with nine other developing nations, has seen its borrowing costs fall, leaving debt distress territory — a USD-borrowing cost that is 10% higher than that of US treasury. That gives the country the needed steam to tap debt markets and avoid defaulting, according to the salmon-colored paper.

Remember: Emerging markets sealed some USD 24.4 bn in sovereign and corporate debt sales in the first four days of the new year, making it the busiest-ever start to a year for EUR- and USD-denominated debt issuance in emerging markets.

ALSO WORTH NOTING- Musk seeks funding for OpenAI challenger xAI: Elon Musk is looking to raise USD 6 bn in equity capital for his AI startup xAI. Musk is targeting family offices in Hong Kong, sovereign wealth funds in the Middle East, and investors from Japan and South Korea to climb aboard his latest venture. (Financial Times)

EGX30

27,666

+0.3% (YTD: +11.1%)

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

12,162

-0.1% (YTD: +1.6%)

ADX

9,568

-0.6% (YTD: -0.1%)

DFM

4,163

-0.2% (YTD: +2.6%)

S&P 500

4,891

-0.1% (YTD: +2.5%)

FTSE 100

7,635

+1.4% (YTD: -1.3%)

Euro Stoxx 50

4,635

+1.2% (YTD: +2.5%)

Brent crude

USD 83.6

+1.4%

Natural gas (Nymex)

USD 2.71

+5.5%

Gold

USD 2,036

0.0%

BTC

USD 42,134

+0.4% (YTD: -0.3%)

THE CLOSING BELL-

The EGX30 rose 0.3% at Wednesday's close on turnover of EGP 5.0 bn (55.6% above the 90-dayaverage). Regional investors were net buyers. The index is up 11.1% YTD.

In the green: TMG Holding (+8.4%), CIRA Education (+2.6%) and Credit Agricole Egypt (+1.9%).

In the red: Palm Hills Development (-2.4%), GB Corp (-1.9%) and CIB (-1.8%).

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