1. Today’s Trading Playbook
KEY THEMES
Yesterday, we published a MACROView note as part of our Global Commodity Watch. In the note, we tried to answer three questions concerning the current commodity supercycle: (1) which stage are we in, (2) what are the underlying forces, and (3) how it will impact emerging markets, Egypt included. In summary, our Chief Economist Mona Bedeir thinks that this commodity supercycle is sustainable for cyclical commodities given the faster-than-expected rebound in global economy led by China. However, oil market dynamics are still posing some uncertainties as oil demand is still battered from COVID-19 related distortions. Meanwhile, she believes emerging markets will not necessarily feel the brunt of high commodity prices due to their recently strengthening local currency which if otherwise depreciated would simply unwind their previous gains. For more details, please refer to our MACROView note.
positive
SKPC: A decision to exchange its polypropylene project license for a 5% stake in Red Sea National for Refining & Petrochemicals (RSNRPC) would be positive for Sidi Kerir Petrochemicals [SKPC] which would relieve SKPC from future cash outflows. According to media reports, RSNRPC is majority owned by military-owned National Service Projects Organization (NSPO).
Now, on to the top news and analysis for the day.