MIDEAST STOCKS Major Gulf markets end mixed; blue-chips buoy Egypt | Reuters
Major Gulf stock markets ended mixed on Sunday, with Qatar registering sharp losses following a surge in the previous session when it removed a cap on foreign ownership, while blue-chip Egyptian shares boosted the main index.
Saudi Arabia's benchmark index (.TASI) finished up 0.6%, extending gains from the previous day, with Saudi Telecom Company (7010.SE) rising 1.7%, while Al Rajhi Bank (1120.SE) was up 0.3%.
Meanwhile, Saudi and Iranian officials held direct talks this month in a bid to ease tensions between the two foes, a senior Iranian official and two regional sources said, as Washington works to revive a 2015 nuclear pact with Tehran and end the Yemen war.
The Qatari index (.QSI) retreated 1.3%, with petrochemical firm Industries Qatar (IQCD.QA) losing 2.3%, while Commercial Bank (COMB.QA) slid 3.6%.
In the previous session, Qatar's index saw its biggest intraday gain in over a year after its cabinet approved a bill to allow non-Qatari investors to own up to 100% of listed companies' capital.
The cabinet also decided to keep central bank liquidity support for local banks based on need as the country faces a second wave of coronavirus infections.
Dubai's main share index (.DFMGI) edged up 0.1%, helped by a 1.8% rise in Emaar Properties (EMAR.DU).
Emaar Properties, Dubai's largest listed real estate developer, will go ex-dividend on Tuesday.
The managing director of Emaar said earlier this month that the company had first-quarter sales of 6 billion dirhams, up from 2.5 billion dirhams a year earlier.
In Abu Dhabi, the benchmark (.ADI) gave up early gains to close 0.1% lower, hit by a 0.7% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Sunday 18 April 2021
Bank of #Israel to hold rates, vaccinations to fuel economic rebound | Reuters
Bank of Israel to hold rates, vaccinations to fuel economic rebound | Reuters
The Bank of Israel is expected to leave short-term interest rates unchanged this week for an eighth straight meeting amid an economic rebound thanks to a rapid COVID-19 vaccination roll-out.
All 16 economists polled by Reuters believe the monetary policy committee (MPC) will keep the benchmark rate (ILINR=ECI) at an all-time low of 0.1% when the decision is announced on Monday at 4 p.m. (1300 GMT).
The next policy move is widely expected to be a rate hike but not until at least 2022.
Israel's economy grew an annualised 6.5% to end 2020 on a positive note, the Central Bureau of Statistics said on Sunday in its third estimate of the October-December period. The gain followed a 42.3% surge in the third quarter.
The Bank of Israel is expected to leave short-term interest rates unchanged this week for an eighth straight meeting amid an economic rebound thanks to a rapid COVID-19 vaccination roll-out.
All 16 economists polled by Reuters believe the monetary policy committee (MPC) will keep the benchmark rate (ILINR=ECI) at an all-time low of 0.1% when the decision is announced on Monday at 4 p.m. (1300 GMT).
The next policy move is widely expected to be a rate hike but not until at least 2022.
Israel's economy grew an annualised 6.5% to end 2020 on a positive note, the Central Bureau of Statistics said on Sunday in its third estimate of the October-December period. The gain followed a 42.3% surge in the third quarter.
#UAE banks’ Q1 earnings will reflect continued pressure on profitability | Banking – Gulf News
UAE banks’ Q1 earnings will reflect continued pressure on profitability | Banking – Gulf News
UAE banks reporting their first quarter results for 2021 starting this week are expected to reflect continued pressure on their profitability, largely due to margin pressures, modest loan growth and slow growth in non-interest income streams.
The aggregate net profit of the top 10 UAE banks declined by about 40 per cent year on year in 2020, on the back of lower operating income and increased provisions, according to data analysed by Alvarez & Marsal (A&M) and KPMG.
A&M expects the operating environment for the UAE’s banking sector to remain less volatile in 2021 compared to last year, although profitability isexpected to remain under stress.
“The anticipated economic recovery in 2021 should support the operating environment and the fundamentals of banks in the UAE. Profitability in the sector has shown signs of vulnerability with declining interest income and increased provisioning weighing on the net profit,” said Asad Ahmed, A&M Managing Director and Head of Middle East Financial Services.
UAE banks reporting their first quarter results for 2021 starting this week are expected to reflect continued pressure on their profitability, largely due to margin pressures, modest loan growth and slow growth in non-interest income streams.
The aggregate net profit of the top 10 UAE banks declined by about 40 per cent year on year in 2020, on the back of lower operating income and increased provisions, according to data analysed by Alvarez & Marsal (A&M) and KPMG.
A&M expects the operating environment for the UAE’s banking sector to remain less volatile in 2021 compared to last year, although profitability isexpected to remain under stress.
“The anticipated economic recovery in 2021 should support the operating environment and the fundamentals of banks in the UAE. Profitability in the sector has shown signs of vulnerability with declining interest income and increased provisioning weighing on the net profit,” said Asad Ahmed, A&M Managing Director and Head of Middle East Financial Services.
#Saudi Stocks Rise on Earnings Optimism: Inside EM - Bloomberg
Saudi Stocks Rise on Earnings Optimism: Inside EM - Bloomberg
Saudi Arabia’s benchmark stock index was the biggest gainer in the Gulf as better-than-expected earnings fueled investor optimism and talks between Iran and the U.S. to end a years-long standoff progressed.
Gauges in Dubai, Israel and Egypt also gained while those in Abu Dhabi, Kuwait, Qatar and Oman fell. Bahrain’s index little changed.
World powers advanced efforts to revive a 2015 nuclear accord between Iran and the U.S. during key negotiations in Vienna. Meanwhile, senior officials from Saudi Arabia and Iran have been holding talks to repair relations between the two regional rivals, four years after they broke off diplomatic ties, the Financial Times reported.
“The news of Saudi-Iran meeting is encouraging, but it could just be a beginning step,” said Joice Mathew, the head of equity research at United Securities in Muscat. “Rather than Iran, I think the focus is shifting to results season. Most of the results so far have been good, so I guess it is the results optimism.”
Companies including Advanced Petrochemical Co. and United Electronics Co. reported first-quarter results that exceeded estimates in Saudi Arabia, where the earnings factor is more pronounced, Mathew said. Companies in Oman also announced results the market is cheerful about, he said.
Saudi Arabia’s benchmark stock index was the biggest gainer in the Gulf as better-than-expected earnings fueled investor optimism and talks between Iran and the U.S. to end a years-long standoff progressed.
Gauges in Dubai, Israel and Egypt also gained while those in Abu Dhabi, Kuwait, Qatar and Oman fell. Bahrain’s index little changed.
World powers advanced efforts to revive a 2015 nuclear accord between Iran and the U.S. during key negotiations in Vienna. Meanwhile, senior officials from Saudi Arabia and Iran have been holding talks to repair relations between the two regional rivals, four years after they broke off diplomatic ties, the Financial Times reported.
“The news of Saudi-Iran meeting is encouraging, but it could just be a beginning step,” said Joice Mathew, the head of equity research at United Securities in Muscat. “Rather than Iran, I think the focus is shifting to results season. Most of the results so far have been good, so I guess it is the results optimism.”
Companies including Advanced Petrochemical Co. and United Electronics Co. reported first-quarter results that exceeded estimates in Saudi Arabia, where the earnings factor is more pronounced, Mathew said. Companies in Oman also announced results the market is cheerful about, he said.
Historic Oil Glut Amassed During the Pandemic Has Almost Gone - Bloomberg
Historic Oil Glut Amassed During the Pandemic Has Almost Gone - Bloomberg
The unprecedented oil inventory glut that amassed during the coronavirus pandemic is almost gone, underpinning a price recovery that’s rescuing producers but vexing consumers.
Barely a fifth of the surplus that flooded into the storage tanks of developed economies when oil demand crashed last year remained as of February, according to the International Energy Agency. Since then, the lingering remnants have been whittled away as supplies hoarded at sea plunge and a key depot in South Africa is depleted.
The re-balancing comes as OPEC and its allies keep vast swathes of production off-line and a tentative economic recovery rekindles global fuel demand. It’s propping international crude prices near $67 a barrel, a boon for producers yet an increasing concern for motorists and governments wary of inflation.
“Commercial oil inventories across the OECD are already back down to their five-year average,” said Ed Morse, head of commodities research at Citigroup Inc. “What’s left of the surplus is almost entirely concentrated in China, which has been building a permanent petroleum reserve.”
The unprecedented oil inventory glut that amassed during the coronavirus pandemic is almost gone, underpinning a price recovery that’s rescuing producers but vexing consumers.
Barely a fifth of the surplus that flooded into the storage tanks of developed economies when oil demand crashed last year remained as of February, according to the International Energy Agency. Since then, the lingering remnants have been whittled away as supplies hoarded at sea plunge and a key depot in South Africa is depleted.
The re-balancing comes as OPEC and its allies keep vast swathes of production off-line and a tentative economic recovery rekindles global fuel demand. It’s propping international crude prices near $67 a barrel, a boon for producers yet an increasing concern for motorists and governments wary of inflation.
“Commercial oil inventories across the OECD are already back down to their five-year average,” said Ed Morse, head of commodities research at Citigroup Inc. “What’s left of the surplus is almost entirely concentrated in China, which has been building a permanent petroleum reserve.”
Al Rayan Investment's Khan on #Qatar's Plans to Allow Foreign Ownership of Stocks, #Iran Nuke Talks - Bloomberg video
Al Rayan Investment's Khan on Qatar's Plans to Allow Foreign Ownership of Stocks, Iran Nuke Talks - Bloomberg
Akber Khan, Senior Director of Asset Management at Al Rayan Investment, discusses Qatar's stock surge on plans to allow foreign investors to fully own listed companies, the significance of ongoing negotiations to revive the 2015 Joint Comprehensive Plan of Action, and the Saudi government's plan to add over a million homes by 2030. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Saudi, #UAE Stocks Rise on Earnings, #Iran Optimism: Inside EM - Bloomberg
Saudi, UAE Stocks Rise on Earnings, Iran Optimism: Inside EM - Bloomberg
Benchmark stock indexes in Saudi Arabia and the United Arab Emirates were among the biggest gainers in the Gulf as better-than-expected earnings fueled investor optimism and talks between Iran and the U.S. to end a years-long standoff progressed.
Gauges in Abu Dhabi, Dubai, Saudi Arabia and Israel gained while those in Qatar and Oman fell. Bahrain and Kuwait were little changed.
World powers advanced efforts to revive a 2015 nuclear accord between Iran and the U.S. during key negotiations in Vienna. Meanwhile, senior officials from Saudi Arabia and Iran have been holding talks to repair relations between the two regional rivals, four years after they broke off diplomatic ties, the Financial Times reported.
“The news of Saudi-Iran meeting is encouraging, but it could just be a beginning step,” said Joice Mathew, the head of equity research at United Securities in Muscat. “Rather than Iran, I think the focus is shifting to results season. Most of the results so far have been good, so I guess it is the results optimism.”
Companies including Advanced Petrochemical Co. and United Electronics Co. reported first-quarter results that exceeded estimates in Saudi Arabia, where the earnings factor is more pronounced, Mathew said. Companies in Oman also announced results the market is cheerful about, he said.
MIDDLE EASTERN MARKETS:
Benchmark stock indexes in Saudi Arabia and the United Arab Emirates were among the biggest gainers in the Gulf as better-than-expected earnings fueled investor optimism and talks between Iran and the U.S. to end a years-long standoff progressed.
Gauges in Abu Dhabi, Dubai, Saudi Arabia and Israel gained while those in Qatar and Oman fell. Bahrain and Kuwait were little changed.
World powers advanced efforts to revive a 2015 nuclear accord between Iran and the U.S. during key negotiations in Vienna. Meanwhile, senior officials from Saudi Arabia and Iran have been holding talks to repair relations between the two regional rivals, four years after they broke off diplomatic ties, the Financial Times reported.
“The news of Saudi-Iran meeting is encouraging, but it could just be a beginning step,” said Joice Mathew, the head of equity research at United Securities in Muscat. “Rather than Iran, I think the focus is shifting to results season. Most of the results so far have been good, so I guess it is the results optimism.”
Companies including Advanced Petrochemical Co. and United Electronics Co. reported first-quarter results that exceeded estimates in Saudi Arabia, where the earnings factor is more pronounced, Mathew said. Companies in Oman also announced results the market is cheerful about, he said.
- Dubai Financial Market General Index rises as much as 1.3%
- Emaar Properties +1.8%; Dubai Islamic Bank +1.1%; Emaar Malls +2.2% at 12:59 p.m. in Dubai
- Abu Dhabi’s ADX General Index rises 0.9% at 12:57 p.m.
- International Holdings Co. leads gains on the exchange
- Saudi Arabia’s Tadawul All Share Index climbs for a third day
- Al Rajhi Banks pushes the gauge most, rising 1% at 11:58 a.m. in Riyadh
- Qatar Exchange Index falls as much as 0.1%
- Index rallied the prior trading session after the country said it may allow foreign investors to fully own listed companies
#Saudi Crown Prince’s Latest Economic Plan Comes With Big Risks - Bloomberg
Saudi Crown Prince’s Latest Economic Plan Comes With Big Risks - Bloomberg
Saudi Arabia’s latest economic plan comes with a big risk: while it might help boost investment, it could also hit the government’s finances.
Crown Prince Mohammed bin Salman wants the kingdom’s biggest companies -- including oil giant Saudi Aramco and chemical maker Sabic -- to reduce their dividends, most of which are paid to the state, and spend the money locally.
The idea is that their expenditure on new infrastructure and technology will be big enough to accelerate the country’s growth and cause a jobs boom.
The de facto leader’s strategy amounts to a “sacrificing of current profits for future investments,” Karen Young, resident scholar at the American Enterprise Institute in Washington, said in an opinion piece. “There is a generational shift: a moment to build and create a post-oil era, but in the short-term, the government will be exhausting its resources.”
Here’s a look at the likely impact on the budget and the economy, which was hit hard last year by the coronavirus pandemic and crash in oil prices.
Saudi Arabia’s latest economic plan comes with a big risk: while it might help boost investment, it could also hit the government’s finances.
Crown Prince Mohammed bin Salman wants the kingdom’s biggest companies -- including oil giant Saudi Aramco and chemical maker Sabic -- to reduce their dividends, most of which are paid to the state, and spend the money locally.
The idea is that their expenditure on new infrastructure and technology will be big enough to accelerate the country’s growth and cause a jobs boom.
The de facto leader’s strategy amounts to a “sacrificing of current profits for future investments,” Karen Young, resident scholar at the American Enterprise Institute in Washington, said in an opinion piece. “There is a generational shift: a moment to build and create a post-oil era, but in the short-term, the government will be exhausting its resources.”
Here’s a look at the likely impact on the budget and the economy, which was hit hard last year by the coronavirus pandemic and crash in oil prices.
#Saudi and Iranian officials hold talks to patch up relations | Financial Times
Saudi and Iranian officials hold talks to patch up relations | Financial Times
Senior Saudi and Iranian officials have been holding direct talks in a bid to repair relations between the two regional rivals, five years after they cut off diplomatic ties, according to three officials briefed on the discussions.
The negotiations, which took place in Baghdad this month, are thought to be the first significant political discussions between the two nations since 2016 and come as Joe Biden seeks to revive the nuclear deal Iran signed with world powers in 2015 and de-escalate regional tension.
Saudi Arabia is keen to end its war in Yemen against Iranian-aligned Houthi rebels, who have stepped up their attacks against Saudi cities and oil infrastructure. The Houthis have launched dozens of missiles and explosive-laden drones into the kingdom this year.
Crown Prince Mohammed bin Salman has also taken steps that appear to lean towards gaining favour with the Biden administration, which has pledged to reassess relations with the kingdom and end the six-year war in Yemen.
MIDEAST STOCKS Most major Gulf markets rise; #Qatar dips | Reuters
MIDEAST STOCKS Most major Gulf markets rise; Qatar dips | Reuters
Most major stock markets in the Gulf rose in early trade on Sunday, with property shares boosting the Dubai index, although Qatar bucked the trend to trade lower.
Saudi Arabia's benchmark index (.TASI) added 0.6%, with Al Rajhi Bank (1120.SE) rising 1.4% and SABIC Agri-Nutrients Co (2020.SE) advancing 3.9%.
Elsewhere, Bank Albilad (1140.SE) climbed 1%, as the lender completed a 3 billion riyal sukuk offering.
Dubai's main share index (.DFMGI) rose 0.7%, led by a 2.3% rise in Emaar Properties (EMAR.DU) and a 3.2% jump in Emaar Malls (EMAA.DU).
Emaar Properties, Dubai's largest listed real estate developer, will go ex-dividend on Tuesday.
The managing director of Emaar said earlier this month that the company had first-quarter sales of 6 billion dirhams, up from 2.5 billion dirhams a year earlier.
In Abu Dhabi, the index (.ADI) rose 0.8%, buoyed by a 7.6% surge in aquaculture firm International Holding (IHC.AD).
International Holding has gone through rapid expansion across its major business sectors, resulting in a sharp growth in its financials, positioning it for long-term growth.
The Qatari index (.QSI) fell 0.7%, with Commercial Bank (COMB.QA) shedding 3.3%, while petrochemical firm Industries Qatar (IQCD.QA) retreated 1.2%.
In the previous, Qatar's index saw its biggest intraday gain in over a year after its cabinet approved a bill to allow non-Qatari investors to own up to 100% of listed companies' capital.
The cabinet also decided to keep central bank liquidity support for local banks based on need as the country faces a second wave of coronavirus infections.
Most major stock markets in the Gulf rose in early trade on Sunday, with property shares boosting the Dubai index, although Qatar bucked the trend to trade lower.
Saudi Arabia's benchmark index (.TASI) added 0.6%, with Al Rajhi Bank (1120.SE) rising 1.4% and SABIC Agri-Nutrients Co (2020.SE) advancing 3.9%.
Elsewhere, Bank Albilad (1140.SE) climbed 1%, as the lender completed a 3 billion riyal sukuk offering.
Dubai's main share index (.DFMGI) rose 0.7%, led by a 2.3% rise in Emaar Properties (EMAR.DU) and a 3.2% jump in Emaar Malls (EMAA.DU).
Emaar Properties, Dubai's largest listed real estate developer, will go ex-dividend on Tuesday.
The managing director of Emaar said earlier this month that the company had first-quarter sales of 6 billion dirhams, up from 2.5 billion dirhams a year earlier.
In Abu Dhabi, the index (.ADI) rose 0.8%, buoyed by a 7.6% surge in aquaculture firm International Holding (IHC.AD).
International Holding has gone through rapid expansion across its major business sectors, resulting in a sharp growth in its financials, positioning it for long-term growth.
The Qatari index (.QSI) fell 0.7%, with Commercial Bank (COMB.QA) shedding 3.3%, while petrochemical firm Industries Qatar (IQCD.QA) retreated 1.2%.
In the previous, Qatar's index saw its biggest intraday gain in over a year after its cabinet approved a bill to allow non-Qatari investors to own up to 100% of listed companies' capital.
The cabinet also decided to keep central bank liquidity support for local banks based on need as the country faces a second wave of coronavirus infections.
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