Planet Finance breathed a sigh of relief yesterday after the 600 bps interest rate hike and the float of the EGP. Local traders reallocated, while a handful of more adventurous foreign investors have started taking positions in the local market as they look to get exposure to high-yield instruments.

#1- The EGX30 fell 3% at yesterday’s close, ending the day in the red after rising as much as 5% in intraday trading before paring back its gains. Many investors had bought into equities as a hedge against an EGP worth 65 or more to the greenback. This is investors taking profits.

The key thing to remember: The EGX30 just got much more attractive in USD terms to foreign portfolio investors.

#2- Bonds soar: Egypt’s USD-denominated debt — especially longer-dated bonds — surged onthenews, with those maturing in 2047 gaining as much as 3.7 cents during trading, narrowing the yield spread between Egyptian USD bonds and US treasuries to its narrowest margin since June 2021. The country’s 2047 bonds ended the day trading up nearly 3% at 82.7 cents.

#3- Gold rush: The price of 24 karat gold surged almost 15% to EGP 3,657 per gram.

EGX30

29,743

-3.0% (YTD: +19.5%)

USD (CBE)

Buy 49.43

Sell 49.57

USD atCIB

Buy 50.5

Sell 50.6

Interest rates CBE

27.25% deposit

28.25% lending

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+0.7% (YTD: +5.0%)

ADX

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-0.1% (YTD: -3.7%)

DFM

4,248

+0.1% (YTD: +4.6%)

S&P 500

5,105

+0.5% (YTD: +7.0%)

FTSE 100

7,679

+0.4% (YTD: +0.3%)

Euro Stoxx 50

4,915

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Brent crude

USD 82.91

+1.1%

Natural gas (Nymex)

USD 1.93

-1.4%

Gold

USD 2,158.20

+0.8%

BTC

USD 66,398.66

+5.0% (YTD: +57.4%)
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