Chinese stocks rally on hopes of regulatory changes: After a turbulent few months that pushed China’s main indices to five-year lows, the country’s benchmark CSI 300 had its best day since late 2022, Bloomberg reports.

The trigger? The rally was fueled by hopes that authorities will introduce more significant support measures that would help the country’s slumping market following reports that Chinese regulators would brief Chinese President Xi Jinping on the market. Although it remains unclear whether the meeting will lead to any new support measures, traders and investors are hopeful that it could turn the tide in the market following multiple “false dawns” in the last year, according to Bloomberg. A pledge from Chinese state sovereign fund Central Huijin Investment to purchase more exchange-traded funds also helped fuel the rally.

Remember: Chinese and Hong Kong stocks have shed USD 7 tn in value since their peak in February 2021 amid the country’s economic slowdown, spiraling property crisis, and cooler relations with the US.

Asian benchmarks are largely in the green this morning as investors welcome broadly positive earnings as results season grinds on. Futures suggest we can expect more of the same when European and North American markets open later today.

EGX30

27,271

-1.4% (YTD: +9.6%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

21.25% deposit

22.25% lending

Tadawul

12,071

+0.4% (YTD: +0.9%)

ADX

9,332

-1.0% (YTD: -2.6%)

DFM

4,154

-1.8% (YTD: +2.3%)

S&P 500

4,954

+0.2% (YTD: +3.9%)

FTSE 100

7,681

+0.9% (YTD: -0.7%)

Euro Stoxx 50

4,691

+0.8% (YTD: +3.8%)

Brent crude

USD 78.59

+0.8%

Natural gas (Nymex)

USD 2.01

-3.5%

Gold

USD 2,051

+0.4%

BTC

USD 43,180

+1.7% (YTD: +2.0%)

THE CLOSING BELL-

The EGX30 fell 1.4% at yesterday’s close on turnover of EGP 7.5 bn (111% above the 90-day average). Local investors were net buyers. The index is up 9.6% YTD.

In the green: Talaat Moustafa Group (+18.9%), Madinet Masr (+5.8%), and Egypt Kuwait Holding (+3.4%).

In the red: Alex Containers and Cargo Handling (-9.7%), Abu Qir Fertilizers (-6.6%), and Oriental Weavers (-6.6%).

CORPORATE ACTION-

Orascom Construction to distribute dividends: Orascom Construction will pay out dividends worth EGP 5.88 per share on its earnings for the first nine months of 2023, it said in an EGX disclosure (pdf). The dividends will be distributed on Thursday, 22 February.

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