Three courses of action could help the Arab world withstand economic headwinds and uncertainties resulting from geopolitical conflict and crises, IMF Managing Director Kristalina Georgieva said during her keynote speech at the World Government Summit in Dubai.

  • Phasing out energy subsidies could save the region USD 336 bn and help address pollution and improve social spending;
  • Implementing tax reforms and diversifying away from hydrocarbon revenues is also key;
  • and Improving state-owned companies’ performance.

Support from GCC countries — and the IMF — will also be crucial for the region moving forward, the IMF head said.

Remember- The IMF recently lowered its MENA growth outlook for the year by 0.5 percentage points, now expecting regional growth to pick up to 2.9% in 2024 from 2.0% the year before. The Fund pointed to temporary oil cuts in Saudi Arabia as the main driver behind the slashed outlook.

ELSEWHERE- More gains for the S&P 500 incoming? The S&P 500 is poised to hit fresh peaks and deliver returns in the double digits in the upcoming months after surpassing the 5,000 mark last week, the Financial Times reported. The blue-chip index has traditionally reached numerous all-time highs within a year of hitting a previous record in cases where over a year had elapsed since its last peak — and this pattern has held since 1950, Truist Advisory Services’ Keith Lerner told the salmon-colored paper.

Asian markets are quiet this morning — and will likely remain so for the week asChina is closed for a weeklong Lunar New Year holiday. Exchanges in Hong Kong, Shanghai, and Korea are all off today. The Nikkei is up slightly, and futures suggest a mixed open in Europe and on Wall Street.

EGX30

28,199

-0.8% (YTD: +13.3%)

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

12,209

+0.1% (YTD: +2.0%)

ADX

9,344

-0.1% (YTD: -2.4%)

DFM

4,184

+0.6% (YTD: +3.1%)

S&P 500

5,027

+0.6% (YTD: +5.4%)

FTSE 100

7,573

-0.3% (YTD: -2.1%)

Euro Stoxx 50

4,716

+0.1% (YTD: +4.3%)

Brent crude

USD 82.19

+0.7%

Natural gas (Nymex)

USD 1.85

-3.7%

Gold

USD 2,039

-0.5%

BTC

USD 48,204

+1.1% (YTD: +13.9%)

THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 4.8 bn (30.4% above the 90-day average). Regional investors were net sellers. The index is up 13.3% YTD.

In the green: Alexandria Containers and Cargo Handling (+9.4%), Qalaa Holdings (+3.3%) and Abou Qir Fertilizers (+1.7%).

In the red: E-Finance (-3.2%), Orascom Development Egypt (-3.0%) and Egypt Kuwait Holding (-2.6%).

CORPORATE ACTIONS-

Eastern Company wants to raise its capital: The tobacco giant’s board of directors has decided to raise the company’s issued capital by EGP 770 mn to EGP 3 bn and to increase its authorized capital to EGP 15 bn from EGP 3 bn, Eastern Company said in an EGX disclosure (pdf). The board also approved a USD 400 mn credit facility from local banks, which will go towards opening up letters of credit to the company’s suppliers. Its General Assembly is meeting on 4 March to discuss and vote on the decisions.

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