BTC hit a fresh record of USD 105k yesterday after legislation was introduced in Texas that would, if passed, set up a strategic reserve for the digital currency. The rules would allow the state to accept taxes, fees and donations in BTC that would be held for a minimum of five years, Reuters and CNBC report. Also yesterday, president-elect Donald Trump said that he would look into setting up a strategic BTC reserve at the federal level. 

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In context: The news comes following a rally that saw BTC climb over 50%, spurred on by Donald Trump’s election in the US, and saw it hit the USD 100k milestone for the first time this month.

It’s not the first time we’ve heard of this: In July 2024, Trump initially touted the idea of a strategic national BTC reserve, predicting the digital currency could surpass gold's market capitalization of USD 16 tn.

The US is not alone: The possibility of a US BTC reserve has gained traction following similar moves by Russia, where lawmakers are advocating for a national BTC reserve as an alternative to foreign currency reserves. Analysts predict that BTC’s price could reach as high as USD 800k by the end of next year, resulting in a market capitalization of approximately USD 15 tn, Forbes reports.

SIGN OF THE TIMES? Shares of OQ Base Industries fell 3.6% in Oman yesterday, becoming the third regional IPO in a row to disappoint in their trading debut. Talabat’s USD 2 bn IPO saw its shares on the Dubai Financial Market dip 7% on opening day, while shares of retailer Lulu closed flat in their first day on the ADX.

Background: State-owned OQ sold a 49% stake in methanol producer OQ Base Industries in a transaction worth USD 489 mn before the start of trading, pricing the offering at the top of the range.

Advisors: Morgan Stanley, Bank Dhofar and Bank Muscat quarterbacked the offering.

MARKETS THIS MORNING-

Asian markets are mixed after South Korea’s president was impeached over the weekend, and as investors await key interest rate decisions from the Bank of Japan and the People’s Bank of China. South Korea’s Kospi is hovering near the flatline, while Kosdaq is up nearly 0.7%. Japan’s Nikkei is also up, while China’s CSI 300 and Hong Kong’s Hang Seng are both down.

Over on Wall Street, futures are calm following a losing week for the S&P 500 and the Nasdaq.

EGX30

30,776

-0.1% (YTD: +23.6%)

USD (CBE)

Buy 50.73

Sell 50.87

USD (CIB)

Buy 50.75

Sell 50.85

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,060

-0.3% (YTD: +1.1%)

ADX

9,265

-0.1% (YTD: -3.3%)

DFM

4,830

+0.4% (YTD: +19.0%)

S&P 500

6,051

0.0% (YTD: +26.9%)

FTSE 100

8,300

-0.1% (YTD: +7.3%)

Euro Stoxx 50

4,968

+0.1% (YTD: +9.9%)

Brent crude

USD 74.49

+1.5%

Natural gas (Nymex)

USD 3.28

-5.1%

Gold

USD 2,676

-1.2%

BTC

USD 102,645

+1.6% (YTD: +143.1%)

THE CLOSING BELL-

The EGX30 fell 0.1% at yesterday’s close on turnover of EGP 3.1 bn (26.3% below the 90-day average). Local investors were the sole net buyers. The index is up 23.6% YTD.

In the green: Cleopatra Hospitals (+3.3%), Faisal Islamic Bank - USD (+1.9%), and ADIB (+1.8%).

In the red: Juhayna (-1.9%), TMG Holding (-1.8%), and Egypt Kuwait Holding - EGP (-1.2%).

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