Turbulent times in infrastructure spending: Fund managers have expressed concerns over pouring funds in infrastructure projects due to “uncertainty over the outlook for green energy subsidies and tariffs, ahead of a US presidential election,” according to the Financial Times.

The why: Republican candidate Donald Trump’s return to office could possibly mean bidding farewell to incentives for domestic industry and clean tech under the Biden administration’s Inflation Reduction Act. This has put funds in a position where they can’t accurately cost or price a project. “We have to be more cautious over the next 12 months on committing to projects. There’s a bit of a stalling of momentum until we have more certainty around costs,” saud Quinbrook Infrastructure Partners Co-founder David Scaysbrook.

What’s next? Some asset managers expect a pick up in investment activity following election results in November, with the demand and need being there, while others expect some pullback.

Despite all this, investors continue to have an appetite for infrastructure funds: North American infrastructure funds raised some USD 10 bn during the first half of the year, a 150% y-o-y increase, in addition to another USD 7 bn raised between July and August. Investor appetite is expected to continue and even rise as fund managers view the funds as a safe haven for investors looking to put their funds in high-yielding assets ahead of upcoming rate cuts.

MARKETS THIS MORNING-

Asian markets are in the red in early trading this morning, as traders react to US big tech stocks falling the day before as Western markets get ready for Nvidia earnings out Wednesday. Japan’s Nikkei is down 0.3%, Korea’s Kospi is down 0.5%, and Hong Kong’s Hang Seng is down 0.9%.

EGX30

30,134

+0.2% (YTD: +21.1%)

USD (CBE)

Buy 48.68

Sell 48.81

USD (CIB)

Buy 48.68

Sell 48.78

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,261

0.0% (YTD: +2.5%)

ADX

9,356

-0.2% (YTD: -2.3%)

DFM

4,325

+0.8% (YTD: +6.5%)

S&P 500

5,617

-0.3% (YTD: +17.8%)

FTSE 100

8,328

+0.5% (YTD: +10.8%)

Euro Stoxx 50

4,897

-0.3% (YTD: +8.3%)

Brent crude

USD 81.43

+3.1%

Natural gas (Nymex)

USD 1.97

+0.9%

Gold

USD 2,553.50

+0.3%

BTC

USD 63,414.90

-1.2% (YTD: +50.2%)

THE CLOSING BELL-

The EGX30 rose 0.2% at yesterday’s close on turnover of EGP 4.9 bn (32.4% above the 90-day average). International investors were the sole net buyers. The index is up 21.1% YTD.

In the green: Fawry (+7.3%), EFG Holding (+6.4%), and Orascom Construction (+4.4%).

In the red: Ezz Steel (-5.3%), Mopco (-2.4%), and Elsewedy Electric (-2.4%).

CORPORATE ACTIONS-

#1- Integrated Diagnostics Holdings (IDH) has bought back some 18.7 mn shares at EGP 20 a piece as part of its delisting buyback program, according to an EGX bulletin. IDH decided to delist its shares from the EGX due to “limited trading activity.”

#2- Rameda has transferred 12.9 mn shares — worth EGP 3.2 mn — to its employees as part of its employee incentive and reward program, according to an EGXbulletin.

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