Omicron Deals a Blow to Financial Markets💥

Global Pickup🌎

U.S. & European Stock Markets Dealt Heavy Blow💥

Amid fears the U.S. Fed might raise interest rates & the World Health Organization (WHO) declaring the new Corona-variant, “Omicron”, “a variant of concern”, western stock markets took a big hit over the weekend.

More on Omicron🦠 Early signs show Omicron to be highly transmissible, better able to evade COVID vaccines, & has an unusually high number of mutations. Several dozen cases have been fully identified so far in South Africa, Botswana, Hong Kong, Belgium & Israel. While the U.S. still hasn’t detected any Omicron cases, countries in Europe have confirmed cases, including the U.K. & Germany.

The U.S.🌎 U.S. stocks tumbled on Friday. The S&P 500 dropped 2.3%, the worst day for the index since February. The price of oil fell about 13%, the biggest decline since early in the pandemic, amid worries of another slowdown in the global economy. Even Bitcoin got caught up in the selling, which dropped 8.4%.

Europe🌍 The Stoxx Europe 600 index closed down 3.7%, its worst day since June 2020. The FTSE 100 in the U.K. dropped 3.6%, while major stock indexes in France and Spain fell about 5%.

Why is this important🤔 Investors are worried that supply chain issues that have impacted global markets for months will worsen. Along with supply chain issues, equity markets in the near term will closely follow developments around Omicron, inflation data, & Central Banks’ policies.

Local Pickup🌇

EGX Slips Amid Global Omicron Fears📉

The EGX tumbled yesterday amid global fears & uncertainty surrounding Omicron, the “highly transmissible” COVID variant. 

Who is affected🤷 The EGX30 & EGX70 fell 1.34% & 1.17%, respectively, following in global stock markets’ footsteps which took a beating over the weekend. 

Why is this important🤔 However, neighboring markets experienced much sharper losses. Saudi’s Tadawul index fell 4.53%, while Dubai Financial Market (DFM) fell 5.17%. 

CIRA & The Sovereign Fund of Egypt Partner to Establish Two New Schools🏫

Cairo Egypt for Education, a joint-venture between CIRA & El Sewedy Capital, has partnered with the Sovereign Fund of Egypt (SFE) to build two new schools in the Cosmic Village in west Cairo with a total investment of EGP 350 million.

More details🧐 This is the SFE’s fourth partnership this year in the education sector, signifying the importance of this sector & the SFE’s commitment towards realizing the goals of Egypt’s 2030 vision.

Why is this important🤔 This is CIRA’s second public-private partnership of the year after it recently partnered with Al Ahly Capital to build “Egypt’s Largest Education Platform.”

EGP 20/Share is UAE Consortium’s Final Offer for SODIC⏲

UAE consortium led by Aldar Properties have no intentions of increasing their MTO offer from EGP 20/share if shareholders reject the MTO, according to Al Shorouk.

More details🧐 SODIC shareholders must accept or reject the offer by December 7th. EFG Hermes will reportedly sell its stake in the real estate developer, with the decision coming in light of current market & sector situations. SODIC’s share price hit a 52-week high on Thursday to reach EGP 19.50/share, before closing EGP 19.38/share at yesterday’s session close.

Why is this important🤔 The consortium had already increased its offer from EGP 18-19 to EGP 20, valuing SODIC at EGP 7.1 billion. 

Headlines We’re Watching👀

  • Dr. Mohamed Farid: Pandemic the Main Reason for the Delay of Banque du Caire’s IPO
  • Ibn Sina Pharma Shareholders Agree to Capital Increase Through Bonus Shares
  • Egyptians for Housing & Development to Appoint Financial Advisor for Edge Acquisition
  • EFG’s valU Plans to Expand to Saudi Arabia & North Africa

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