OECD sees the global economy growing at a 2.9% clip this year

A more optimistic global growth outlook: OECD has revised upwards its 2024 world growth forecast to 2.9% from November’s 2.7% forecast, it said in its latest economic outlook. Geopolitical risks within the MENA region, however, pose a “significant” risk to activity and inflation.

Don’t celebrate yet: Despite raising its growth outlook, OECD’s 2024 forecast remains below 2023’s 3.1% growth rate. Next year’s 3.0% growth forecast was left unchanged.

Where we could see fallout: Regional escalation “could disrupt shipping more extensively than presently expected, intensify supply bottlenecks, and push up energy prices if traffic is interrupted in the key routes for the transport of oil and gas,” the report wrote, adding that this could spur a rush to safety in global markets.

ICYMI- The IMF revised upwards its 2024 global growth outlook by 0.2 percentage points to 3.1% last week, also noting the potential for price spikes amid Red Sea attacks.

LuLu Group International, the operator of the iconic supermarket chain, is shopping around for bankers for a potential dual-listing on the ADX and Riyadh’s Tadawul in 2H 2024, Bloomberg reports. The offering could be worth as much as USD 1 bn, the business information service says, citing sources it says have knowledge of the company’s plans.

Abu Dhabi-headquartered LuLu is likely to list its GCC assets in the transaction. The company valued itself at north of USD 5 bn in 2020 when it sold a stake to Abu Dhabi wealth fund ADQ and last explored the possibility of an IPO in 2022. LuLu was thought in late 2023 to have been discussing the potential sale of a stake to Saudi Arabia’s Public Investment Fund.

By the numbers: LuLu has 18 hypermarkets and seven shopping malls in its pipeline as it pushes ahead with aggressive growth plans. It has some 70k employees across more than two dozen countries, but its centers of gravity are the GCC, India and, more recently, Egypt.

Asian markets are in the red, tracking declines yesterday in New York. Futures point to a mixed open for major benchmarks in Europe, New York, and Toronto later today.

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 6.6 bn (88% above the 90-day average). Egyptian investors were net buyers. The index is up 11.1% YTD.

In the green: Egypt Kuwait Holding (+12.8%), Talaat Moustafa Group (+10.3%), and Orascom Development Egypt (+7.1%).

In the red: CIB (-4.0%), Juhayna (-3.8%), and Mopco (-2.3%).

CORPORATE ACTIONS-

Sidpec wants a bigger slice of EBIOL: Sidi Kerir Petrochemicals’ board of directors discussed raising its ownership in the Egyptian Bioethanol Company (EBIOL) to 7.5%, according to an EGX disclosure (pdf). The USD 180k transaction would bring Sidpec’s capital in EBIOL to USD 3.2 mn.