Crypto gains on ETF optimism

Ether jumps on exchange-traded funds speculation: ETH approached its biggest two-day gain in nearly two years as traders await US regulators’ decision on spot exchange-traded funds (ETFs) for ETH, Reuters reported.

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The numbers: The crypto market’s second-largest player was up 7.3% yesterday to sit at USD 3.7k as of midnight. BTC also neared its all-time high on Tuesday, closing at USD 79.7k. BTC has surged 65% in 2024, closely trailed by ETH, which has gained 63%.

Driving the rally: Investors are keeping a close eye on the US Securities and Exchange Commission’s (SEC) decision regarding ETH ETFs, expected this week, the Financial Times writes. “The political dynamics around crypto in Washington were shifting, after 18 months of regulatory crackdowns and Democrat-led blocks to regulation,” Bernstein analyst Gautaum Chhugani.

Remember: Investors poured some USD 900 mn into BTC ETFs in the three days after the SEC greenlit the funds.

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Also worth knowing about this morning:

• Our friends at EFG Hermes have acquired an undisclosed minority stake in the Danish digital wealth manager Kenzi Wealth. EnterpriseAM Egypt has more.
• Blackstone will grant equity to rank-and-file employees of the companies in which it invests in the United States going forward. The private equity giant’s plan is “part of a broader movement in the buyout industry to expand ownership beyond management ranks. (Wall Street Journal)

MARKETS THIS MORNING-

Asian markets are largely unchanged in early trading this morning. Alone among major benchmarks, Japan’s Nikkei is down (-0.75%) while the Hang Seng, Kospi, and Shanghai Composite are all holding their ground. European and US futures were also pretty much flat overnight after US shares notched fresh highs again yesterday.

One weird thing: With all of these fresh highs being hit, there are virtually no headlines out there with random pundits called upon to declare that a correction is in the cards. Heck, even the so-called “fear index” — the Vix, or volatility index — is trading at a five-year low.

THE CLOSING BELL: TADAWUL-

The TASI was flat yesterday on turnover of SAR 5.4 bn. The index is up 1.3% YTD.

In the green: Al Rajhi Takaful (+9.9%), Retal (+5.3%) and Medgulf (+4.7%).

In the red: Al Baha (-7.1%), Al Babtain (-4.5%) and Al Saif Gallery (-4.2%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.4% yesterday on turnover of SAR 36 mn. The index is up 9.8% YTD.

In the green: Riyadh Steel (+16.7%), Quara (+5.4%) and Future Care (+4.7%).

In the red: Naseej Tech (-9.7%), Nofoth (-9.1%) and Pro Medex (-6.6%)

CORPORATE ACTIONS-

The board of petrochemicals giant Sabic approved the distribution of SAR 5.1 bn in dividends for the first half of 2024 at SAR 1.70 per share, it said in a disclosure to Tadawul.

Tadawul-listed Taiba Investment approved the distribution of a SAR 169.3 mn dividend for 2023 at SAR 0.65 a piece, it said in a statement (pdf).

The Arab National Bank is set to increase its capital to SAR 20 bn through the capitalization of SAR 5 bn from retained earnings, by issuing one new share for every 3 shares owned to enhance the bank’s solvency, according to its statement (pdf).

The board ofAmlak International Finance greenlit a capital hike to SAR 1 bn through capitalizing SAR 101.9 mn from statutory reserves and SAR 11.3 mn from retained earnings, and by granting one new share for every eight shares owned, it said in a statement (pdf).