Sign in
EMs show resilience in face of rising interest rates, stronger USD: Net capital inflows into emerging markets excluding China rose to USD 110 bn, or 0.6% of GDP in 2023, their highest level since 2018, the International Monetary Fund said in a blog post. The recovery from post-pandemic lows comes despite monetary tightening by the US Federal Reserve and a stronger greenback.
The breakdown: EM saw a decline in more volatile net portfolio inflows, but net inflows of foreign direct investment (FDI) remained resilient, the IMF said. The Washington-based lender partly attributed EM resilience to “stronger fundamentals. … Indeed, many countries are now benefiting from more robust fiscal, monetary, and financial policy frameworks, as well as more effective implementation of policies and tools,” it said.
Negatives for China: China saw net capital outflows, including net FDI outflows over 2022-2023, the IMF said. “Some of this may reflect multinational firms repatriating earnings. But it may also reflect shifting expectations about Chinese growth and geoeconomic fragmentation,” the IMF said.
Zooming out:
- Global gross inflows fell to USD 4.4 trn (or 4.4%) of the world’s GDP during 2022-2023, down from USD 4.5 trn (or 5.8%) of global GDP in 2017-2019, according to the IMF.
- The US saw its share of global gross inflows almost double to 41% during 2022-2023 from 23% in 2017-2019. Its share of global gross outflows also increased to 21% from 14%.
ALSO- A breather for Islamabad: The IMF reached a staff-level agreement with Pakistan on a USD 7 bn loan for the cash-strapped South Asian country, according to an IMF statement. The 37-month extended fund facility will still need to be signed off by the fund’s executive board (usually a formality) before the funds are disbursed. The facility comes as Pakistan struggles to meet some USD 24 bn in loan repayments due this fiscal year, according to Bloomberg.
|
TASI |
11,792 |
+0.1% (YTD: -1.5%) |
|
|
MSCI Tadawul 30 |
1,472 |
0.0% (YTD: -5.1%) |
|
|
NomuC |
25,776 |
+1.0% (YTD: +5.1%) |
|
|
USD : SAR (SAMA) |
3.75 Sell |
3.75 Buy |
|
|
Interest rates |
6.0% repo |
5.5% reverse repo |
|
|
EGX30 |
28,288 |
-0.6% (YTD: +13.6%) |
|
|
ADX |
9,143 |
-0.1% (YTD: -4.5%) |
|
|
DFM |
4,104 |
+0.3% (YTD: +1.1%) |
|
|
S&P 500 |
5,615 |
+0.6% (YTD: +17.7%) |
|
|
FTSE 100 |
8,253 |
+0.4% (YTD: +6.7%) |
|
|
Euro Stoxx 50 |
5,043 |
+1.3% (YTD: +11.5%) |
|
|
Brent crude |
USD 85.03 |
-0.4% |
|
|
Natural gas (Nymex) |
USD 2.33 |
+2.7% |
|
|
Gold |
USD 2,420.70 |
-0.1% |
|
|
BTC |
USD 58,655 |
+1.8% (YTD: +38.8%) |
THE CLOSING BELL: TADAWUL-
The TASI rose 0.1% at Thursday’s close on turnover of SAR 6.4 bn. The index is down 1.5% YTD.
In the green: Saudi Re (+8.3%), Miahona (+7.2%) and Rasan (+5.3%).
In the red: Mouwasat (-2.1%), SGS (-1.9%) and NCLE (-1.8%).
THE CLOSING BELL: NOMU-
The NomuC rose 1.0% at Thursday’s close on turnover of SAR 24 mn. The index is up 5.1% YTD.
In the green: Gas (+6.1%), AlRasheed (+5.9%) and Bena (+5.8%).
In the red: Mayar (-7.4%), Ladun (-7.0%) and NGDC (-3.6%)
CORPORATE ACTIONS-
#1- Shareholders of Tadawul-listed Arabian Pipes have signed off the board’s recommendation to hike the company’s capital by 50% to SAR 150 mn, according to a disclosure to Tadawul (pdf). The move will see the company capitalize SAR 50 mn from its retained earnings by granting existing shareholders one share for every two shares they currently hold.
#2- Tadawul-listed Fitness Time has changed its trading name on Tadawul to Leejam Sports, it said in a disclosure to Tadawul. The gym operator said the change was made to “better align with the company’s vision of being the leader in the sports and fitness industry,” according to the statement.
#3- Alinma Investment will distribute SAR 17.7 mn in dividends to all unitholders of its Alinma Retail REIT Fund for 1H 2024, it said in a disclosure to Tadawul. Distribution will be completed within 15 working days of the eligibility date which was set for Monday, 22 July.
