Egypt was among the top three countries in the region for M&A volumes in 2023, closing 93 transactions during the year, according to the latest PwC 2024 TransAct Middle East report (pdf). Along with Saudi Arabia and the UAE, the three countries accounted for 85.2% of the total transaction volume in the region with 381 transactions, according to the consulting firm.

But all three still witnessed y-o-y drops in the number of transactions closed, with Egypt clocking a 60% y-o-y decline in transaction value on the back of a depreciating EGP and high inflation, the Big Four accounting firm said. M&A volume dropped in the UAE saw a 14% y-o-y decline, Saudi Arabia recorded a 13% drop in the same period, and regional M&A activity as a whole was down 30% y-o-y to 447 transactions.

Despite the decline, regional transactions held up well compared to global figures over the past two years, which saw volumes plummet by half, from over USD 5 tn in 2021 to USD 2.5 tn in 2023. The consulting firm attributed the comparative regional resilience to strong market fundamentals, and supportive government policy environments.

By industry: Across the region, consumer-related mergers or acquisitions led with 106 transactions, followed by financial services with 96 and industrial, manufacturing, and automotive with 91. Healthcare and companies working in technology, media, and telecommunications rounded out the top five.

Regional outlook for 2024: “We anticipate that 2024 will be a year of growth and activity will bedriven by economic diversification goals, decarbonisation, and a focus on localisation and value creation, as organizations transform their business models and look to expand capabilities,” PwC transactions markets leader Romil Radia said.

MEANWHILE- Trump’s media company valued at nearly USD 8 bn: Former US President Donald Trump’s social media firm Trump Media & Technology Group saw its shares surge by 59% on its debut on the Nasdaq on Tuesday, bringing its value to almost USD 8 bn. (Reuters, New York Times)

THE MARKETS THIS MORNING-

Asian shares are in the red this morning while US futures were largely unchanged overnight, leaving the Dow, Nasdaq Composite, and S&P 500 still on track to close the first quarter up 10% or more. European futures were up slightly as we slid toward dispatch time this morning, suggesting major benchmarks will open in the green later today.

Remember: Today is the last day of trading in 1Q 2024 for most Western markets, which will close Friday and Monday for the Easter holiday weekend.

EGX30

28,224

-2.9% (YTD: +13.4%)

USD (CBE)

Buy 47.20

Sell 47.35

USD (CIB)

Buy 47.23

Sell 47.33

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,607

+0.2% (YTD: +5.4%)

ADX

9,273

-0.5% (YTD: -3.2%)

DFM

4,231

-0.3% (YTD: +4.2%)

S&P 500

5,248

+0.9% (YTD: +10.0%)

FTSE 100

7,931

0.0% (YTD: +2.3%)

Euro Stoxx 50

5,081

+0.4% (YTD: +12.4%)

Brent crude

USD 86.41

+0.4%

Natural gas (Nymex)

USD 1.72

+0.1%

Gold

USD 2,209.20

-0.2%

BTC

USD 69,010.50

-1.4% (YTD: +63.2%)

THE CLOSING BELL-

The EGX30 fell 2.9% at yesterday’s close on turnover of EGP 3.0 bn (42.1% below the 90-day average). Foreign investors were net buyers. The index is up 13.4% YTD.

In the green: Orascom Construction (+1.0%).

In the red: E-Finance (-11.6%), Alexandria Container and Cargo Handling (-6.1%) and Juhayna (-5.5%).

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