Sunday 11 July 2021

#Saudi, #Dubai Stocks Slump On Reflation Trade Slowdown: Inside EM - Bloomberg

Saudi, Dubai Stocks Slump On Reflation Trade Slowdown: Inside EM - Bloomberg

Shares listed in Dubai and Saudi Arabia extended a slump triggered by the pullback in the reflation trade globally due to factors including the effect of the delta strain on economic recovery.
  • “The decline is linked to a partial unwind in the global reflation trade,” said Divye Arora, a portfolio manager at Daman Investments in Dubai
    • “The trade was impacted by Fed making a hawkish tilt leading to yield curve flattening, technical factors such as short squeeze on bets on yield curve steepeners, slowdown in positive economic data surprise and global economic growth concerns tied to delta variant,” he said
  • The Tadawul All Share Index slipped 0.7% at 11:59 a.m. in Riyadh, down for a fifth day in the longest losing streak since January 2020
    • Banks and food-linked stocks were among the sectors which fell the most over that period
  • Almarai shares dropped after reporting earnings on Sunday
    • “While the growth outlook is primarily driven by poultry expansion and strategic M&As, we believe all the positives are already priced in,” NCB Capital analyst Nauman Khan wrote in a note on June 30
  • Saudi Research and Media is among the biggest gainers on the benchmark after announcing plans to expand portfolio, digital offerings
  • Dubai shares fall for sixth day in the longest losing streak since July 2020
  • Abu Dhabi-listed shares rise the most in the Gulf
  • Israeli stocks gained as much as 1.5%, recovering from a 2% drop on Thursday
  • The MSCI Emerging Markets index dropped 2.7% last week, down for a second week for the first time since March

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