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US companies rush to secure financing ahead of elections: Companies in the US have issued USD 606 bn worth of corporate bonds since the start of the year — the highest total since 1990, as companies look to meet their financing needs ahead of any market volatility that could come about during the final stretch of the US election, the Financial Times reports. The possibility of a close election has caused companies to accelerate their financing plans to avoid the risk of running into pricier markets later this year, the salmon-colored paper wrote.
“I think what most companies are thinking — particularly frequent issuers — is — ‘let’s get the majority of our funding done in the first half of 2024’,” Morgan Stanley’s David Hodgson told FT. “[Then] if we go through the election, and the market response is positive for whatever reason, we’ll use the back end of the year to get a head start on 2025,” he added.
Meanwhile, investors continue to pour into corporate bonds: The US corporate bonds market has seen a record amount of inflows since the start of the year, as investors look to cash in on high yields ahead of anticipated rate cuts. Inflows into corporate bond funds have recorded almost USD 23 bn so far this year.
THE MARKETS THIS MORNING-
Benchmarks in Hong Kong, Shanghai and Seoul are in the green this morning, while Japan’s Nikkei is down 1.2% at dispatch time. Stock markets are closed across France, Germany and Italy and the London Stock Exchange is also closed today. Trading floors at the New York Stock Exchange and Nasdaq will reopen after a three-day weekend. US stock futures were up slightly overnight, with futures for the Dow, Nasdaq, and S&P 500 all up a bit more than 0.3%.
US markets start 2Q after a strong start to the year: The S&P was up 10.2% in the first quarter, while the Nasdaq Composite added 9.1% and the Dow 5.6%.
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ADX |
9,228 |
-0.4% (YTD: -3.7%) |
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DFM |
4,246 |
+0.3% (YTD: +4.6%) |
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Nasdaq Dubai UAE20 |
3,704 |
-0.1% (YTD: -3.6%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
4.9% o/n |
5.3% 1 yr |
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TASI |
12,402 |
-1.3% (YTD: +3.6%) |
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EGX30 |
26,883 |
-2.5% (YTD: +8.0%) |
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S&P 500 |
5,254 |
+0.1% (YTD: +10.2%) |
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FTSE 100 |
7,953 |
+0.3% (YTD: +2.8%) |
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Euro Stoxx 50 |
5,083 |
0.0% (YTD: +12.4%) |
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Brent crude |
USD 87.00 |
+1.9% |
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Natural gas (Nymex) |
USD 1.76 |
+2.6% |
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Gold |
USD 2,230 |
+1.6% |
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BTC |
USD 71,008 |
+1.8% (YTD: +68.0%) |
THE CLOSING BELL-
The ADX fell 0.4% yesterday on turnover of AED 1.1 bn. The index is down 3.7% YTD.
In the green: Palm Sports (+3.8%), Abu Dhabi National Company for Building Materials (+3.6%) and RAK Ceramics (+2.6%).
In the red: Abu Dhabi National Energy Company (-9.9%), RAK Co. for White Cement and Construction Materials (-5.4%) and GFH Financial Group (-2.7%).
Over on the DFM, the index is up 0.3% on turnover of AED 419.3 mn. Meanwhile in Nasdaq Dubai, the index
CORPORATE ACTIONS-
Dubai Taxi approved a dividend payout of AED 71 mn for 2023, equivalent to 2.84 fils per share, according to a DFM disclosure (pdf). The payment is scheduled for 23 April.
Adnoc Gas approved a dividend payout of USD 1.62 bn (about AED 5.9 bn or 7.8 fils per share) for 2Q 2023, according to an ADX disclosure (pdf). This brings the total dividend for the year to USD 3.2 bn (about AED 11.9 bn or 15.552 fils per share).
