SoftBank has lots of appetite for AI: Japan’s SoftBank plans to earmark around USD 9 bn a year to AI investments as it looks to fuel the expansion of its chip-design subsidiary Arm, the Financial Times wrote.

All for the group’s “crown jewel:” The group’s founder and CEO Masayoshi Son has been pushing to transform it into an AI powerhouse, in hopes of securing acquisitions that can feed into its Arm. Much of the company’s USD 180 bn net asset value has been driven by the UK-based Arm, which saw its share price jump nearly 25% after its blockbuster September 2023 market debut. Arm’s valuation has soared since then to exceed USD 100 bn currently.

Refresher: SoftBank has shifted its investment strategy to AI and semiconductors after backtracking on venture capital investments and selling assets owned by its startup fund Vision Fund, which included a USD 14 bn stake in defunct coworking startup WeWork.

MARKETS THIS MORNING-

Asian markets are up slightly in early trading this morning as investors look forward to a week packed with macro data in the run-up to Friday’s release of US core personal consumption expenditures — a report that Reuters says “could set the stage for a cut in interest rates there, albeit not for a few months yet.”

European futures were down slightly overnight, and both Wall Street and the City are off today for holidays.

EGX30

27,539

+1.2% (YTD: +10.6%)

USD (CBE)

Buy 46.88

Sell 47.02

USD (CIB)

Buy 46.90

Sell 47.00

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,851

-1.2% (YTD: -1.0%)

ADX

8,834

-0.6% (YTD: -7.8%)

DFM

4,013

-0.3% (YTD: -1.2%)

S&P 500

5,305

+0.7% (YTD: +11.2%)

FTSE 100

8,318

-0.3% (YTD: +7.6%)

Euro Stoxx 50

5,035

0.0% (YTD: +11.4%)

Brent crude

USD 82.12

+0.9%

Natural gas (Nymex)

USD 2.52

-5.2%

Gold

USD 2,357

-0.1%

BTC

USD 68,625

-0.7% (YTD: +62.3%)

THE CLOSING BELL-

The EGX30 rose 1.2% at yesterday’s close on turnover of EGP 3.3 bn (32.6% below the 90-day average). Regional investors were net sellers. The index is up 10.6% YTD.

In the green: Qalaa Holdings (+7.8%), AMOC (+7.6%), ِand Palm Hills Development (+5.6%).

In the red: Elsewedy Electric (-2.0%), Edita (-1.9%), and Mopco (-1.6%).

CORPORATE ACTIONS-

#1-EFG Holding has repurchased 25 mn treasury shares from the open market, it said in an EGX disclosure (pdf).

Remember: The buyback is part of a wider program that will see EFG Holding return an additional EGP 400 mn to shareholders within 18 months — either through the distribution of dividends or more share buybacks.

#2- EBank has secured the Financial Regulatory Authority’s approval to raise its issued and paid-up capital by EGP 2.5 bn to EGP 9.9 bn and double its authorized capital to EGP 20 bn, according to an EGX disclosure (pdf). The proposed increase of the bank’s issued capital will be distributed as free shares with a nominal value of EGP 10 each, which would be financed through the bank’s 2023 income and retained earnings.

#3- Heliopolis Housing and Development is paying out a dividend of EGP 1.3415 per share on its 2023 earnings within a month, it said in an EGX disclosure (pdf).

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