Ceasefire triggers risk rally: Stock markets cheered signs of a potential resolution to the Iran-Israel conflict, with the S&P 500 ending the day up 1% yesterday. Regional markets, which closed earlier in the day before news of an Iran-Israel ceasefire broke out, also settled in the black.

Earlier this week, the USD had staged a modest rally, though it weakened yesterday, falling 0.2% against the JPY, while the EUR and AUD strengthened. The Bloomberg USD Spot Index — which weighs the USD against a basket of developed and emerging market currencies — fell 0.2%.

The earlier rush to safe havens still held when it came to US Treasuries, which rallied after Iranian state media reported a missile strike on a US air base in Qatar, Bloomberg reports. Yields on 10-year Treasuries fell to their lowest levels in a month, while the five-year yield fell to 3.86% on hopes for a sooner-than-expected interest rate cut from the US Federal Reserve, after Fed Governor Michelle Bowman said she would support a July rate cut if inflation continued to cool. Gold also settled up 0.3%.

The dip in yields have also spurred more bond sales, with companies in the US and Europe looking to lock in more affordable rates amid uncertainty over the outlook for yields down the line. The Royal Bank of Canada sold EUR 750 mn in green bonds, while BNP Paribas is looking to sell a USD-denominated AT1 bond, and Australia’s OMV sold a EUR 750 mn hybrid bond.

MARKETS THIS MORNING-

Asian markets also gained on the back of news of the ceasefire, with South Korea’s Kospi up 2.1%, Japan’s Nikkei rising 1.3%, and Hong Kong’s Hang Seng up 1.4%. China’s CSI 300 was flat. Over on Wall Street, futures rose on the news, with S&P 500 futures up 0.4% and Nasdaq futures rising 0.6%.

EGX30

31,419

+1.2% (YTD: +5.6%)

USD (CBE)

Buy 50.62

Sell 50.76

USD (CIB)

Buy 50.63

Sell 50.73

Interest rates (CBE)

24.00% deposit

25.00% lending

Tadawul

10,710

+1.3% (YTD: -11.0%)

ADX

9558

+0.5% (YTD: +1.5%)

DFM

5411

+1.1% (YTD: +4.9%)

S&P 500

6025

+1.0% (YTD: +2.4%)

FTSE 100

8758

-0.2% (YTD: +7.2%)

Euro Stoxx 50

5222

-0.2% (YTD: +6.7%)

Brent crude

USD 69.34

-3.0%

Natural gas (Nymex)

USD 3.66

-0.9%

Gold

USD 3395.00

+0.3%

BTC

USD 103,765.6

+4.7% (YTD: +11.0%)

S&P Egypt Sovereign Bond Index

878.77

+0.1% (YTD: +13.0%)

S&P MENA Bond & Sukuk

144.12

-0.1% (YTD: +3.0%)

VIX (Volatility Index)

19.83

-3.8% (YTD: +14.3%)

THE CLOSING BELL-

The EGX30 rose 1.2% at today’s close on turnover of EGP 5.0 bn (4.7% above the 90-day average). Local investors were the sole net buyers. The index is up 5.6% YTD.

In the green: Alexandria Mineral Oils (+7.9%), EFG Holding (+7.2%), and Beltone Holding (+5.0%).

In the red: Abu Qir Fertilizers (-0.9%), CIB (-0.9%), and GB Corp (-0.6%).

CORPORATE ACTIONS-

#1- Raya Holding will distribute a dividend of EGP 0.04 per share on its 1Q 2025 earnings starting 10 July, according to an EGX disclosure (pdf).

#2- Premium Healthcare Group has wrapped its 4.6x oversubscribed second phase of its capital increase subscription round, according to a statement seen by EnterpriseAM. Some 4.7 bn shares were requested, out of only 1.0 bn on offer. The company completed the first phase of its capital increase earlier this month with 95.6% of offered shares subscribed, accounting for 21.8 bn of the 22.8 bn shares being taken up.

REMEMBER- The healthcare group got the greenlight from the Financial Regulatory Authority in March to issue its issued and paid-up capital to EGP 2.4 bn from EGP 81.5 mn through the issuance of 22.8 bn new shares. The company also plans to increase its authorized capital to EGP 11.4 bn, up from the current EGP 315 mn.

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