Most Mideast Stock Markets Set for Gains in May: Inside EM - Bloomberg
Stocks in the Middle East are poised to end the month higher on prospects of an economic rebound.
Benchmark indexes in the United Arab Emirates led gains through May. The UAE, a federation of seven sheikhdoms including Dubai and Abu Dhabi, has one of the highest coronavirus vaccine inoculation rates globally.
“There are multiple factors” for the gains across the region, including “vaccinations and ease in restrictions, recovery in oil price as well as growth in the private sector,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities. However, geopolitics continue to weigh on Egyptian shares, he said.
Brent crude, a key source of revenue for economies in the Gulf, climbed about 3.5% this month. The S&P 500 ended last week near a record, while the MSCI Inc.’s emerging markets index closed at the highest level in a month.
Stocks in Saudi Arabia, Kuwait, Bahrain, Oman and Egypt rose on Sunday. Shares in Dubai, Abu Dhabi and Qatar fell, while those in Israel were little changed.
MIDDLE EAST MARKETS:
- Kuwait’s Premier Market index rises as much as 0.6%
- National Bank of Kuwait +1.2%; Boubyan Bank +0.8%; Burgan Bank +2.2%
- In Saudi Arabia, the Tadawul All Share Index climbs for a fourth day, the longest winning streak in a month
- Abu Dhabi’s ADX General Index falls for a third day, the longest losing streak in a month
- The Dubai Financial Market General Index falls for a second day
- Dubai Investments -2.3%; Dubai Islamic Bank -0.4%; Aramex -1.4%
- Egypt’s EGX 30 index climbs most in the region after falling for four days, led by gains in Commercial International Bank
- The lender rises as much as 2.3% after dropping about 10% the past two weeks
Kuwait Finance House gets approval for $1bln sukuk issuance | ZAWYA MENA Edition
Kuwait Finance House, a Sharia-complaint bank, said the Central Bank of Kuwait has approved its request to issue sukuk (Islamic sharia-complaint bonds) worth up to $1 billion, or its equivalent in other currencies.
In a filing to the Kuwaiti bourse the lender said the sukuk would support its Tier 1 capital in accordance with Basel III requirements.
The COVID-19 pandemic has an impact on the Kuwaiti banking system with profitability declines reported last year. However, the sector is well capitalised, with capital adequacy ratio averaging 18 percent, well above the mandated 13 percent.
MIDEAST STOCKS Most major Gulf markets fall, Saudi bucks trend | Reuters
Most major Gulf stock markets fell on Sunday, led by the Abu Dhabi bourse, while Saudi Arabia closed higher supported by gains in telecom and healthcare shares.
In Abu Dhabi, the main share index (.ADI) lost 0.5%, weighed down by a 1.5% fall in First Abu Dhabi Bank (FAB.AD) and an 8.1% slide in Abu Dhabi National Company for Distribution (ADNOC Distribution) (ADNOCDIST.AD).
ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, extended losses for a second day after its parent Company Abu Dhabi National Oil Company (ADNOC) said it raised $1.64 billion by issuing exchangeable bonds and additional shares to investors in its listed retail unit ADNOC Distribution. read more
The transaction could increase ADNOC Distribution's free float to 30%.
Dubai's index (.DFMGI) closed 0.3% lower, giving up early gains.
Dubai Investments (DINV.DU) weighed most on the index, declining 2.3%. Losses were partially offset by a 0.4% gain in Emirates NBD Bank (ENBD.DU).
The Dubai index is nearly 8% up this month, cushioned by growth in the non-oil private sector and analysts' expectations of economic recovery. read more
The Qatari index (.QSI) slipped 0.3% following a decline in financial and energy stocks. Commercial Bank (COMB.QA) shed 2% and Qatar Fuel (QFLS.QA) was 1.6% lower.
Bucking the trend in the Gulf, Saudi Arabia's benchmark share index (.TASI) closed 0.3% up, its fourth consecutive day of gains.
Al Rajhi Bank (1120.SE) was up 0.6%, while hospital operator Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) and Saudi Telecom (7010.SE) both rose 1.5%.
Outside the Gulf, the Egyptian blue-chip index (.EGX30) rose 0.6%. The country's largest lender Commercial International Bank Egypt (CIB) (COMI.CA) gained 1.5%.
UAE's Agthia Group included in MSCI Small Cap Emerging Markets Index | Retail – Gulf News
Agthia Group, a leading food and beverages company, welcomed its inclusion in the Morgan Stanley Capital International Inc. (MSCI) Emerging Markets Index effective 27 May 2021.
Agthia Group joins the MSCI Emerging Markets Index, after fulfilling all the listing conditions, which comprises market capital, liquidity rates, and foreign inclusion factors, among others. By being in the index, which enjoys wide interest from international investors, Agthia is expected to increase the attractiveness of its stocks to foreign investors.
Agthia Group recently announced its Q1 2021 financial results recording Earnings per Share of AED0.069 per share and total revenues of Dh665.5 million, representing 57 per cent and 17 per cent year-on-year growth, respectively, compared to the same period in 2020. The Group also announced its long-term strategy which focuses on upscaling in priority markets, expanding into value-add categories and driving margin improvements by 2025.
ENBD REIT is considering strategic disposal of a real estate asset | Property – Gulf News
ENBD REIT, the Shari’a compliant real estate investment trust managed by Emirates NBD Asset Management Limited, has announced that it is considering the strategic disposal of a real estate asset that accounts for more than 5 per cent of its net asset value (NAV).
The Board of Directors has received and accepted a letter of intent (LoI) in respect to property held by ENBD REIT in Dubai Silicon Oasis (which constitutes approximately 6 per cent of the overall portfolio by value and 11.8 per cent of the prevailing NAV). The LoI makes a conditional offer for the asset on satisfactory terms, and is now negotiating the final terms and considering the final documentation prior to transfer.
“It is intended that definitive documents be agreed in June 2021. Further details of the transaction, including the proposed use of proceeds resulting from this proposed disposal, will be announced to the market following completion of the transaction,” Emirates REIT said in a statement.
The latest announcement comes close on the heels of a dispute with creditors on the plans of the company to convert its current Sukuk certificates – from the $400 million debt offering – with new ones that would mature in a further two years.
Emirates REIT had maintained the profit rate on the new issue. An ‘ad hoc’ grouping of investors had last week said they are opposed to such a move, saying they wanted more clarity on the fund manager’s operations and the reasons for the plan to issue new certificates.
Ex-premier's graft case a test of justice in oil-rich Kuwait
Where is Sheikh Jaber? Kuwait was abuzz with the question as citizens on social media demanded to know the whereabouts of their 79-year-old former prime minister. He’d been ordered detained pending trial in an unprecedented move last month over the alleged embezzlement of millions of dollars from a military aid fund.
When the scandal involving the sheikh and another royal family member erupted into public view nearly two years ago, it unleashed a rare wave of street protests. It prompted the Cabinet’s resignation and forced a reckoning in the Gulf Arab state about endemic corruption that has entrapped ministers and stained the country’s sprawling bureaucracy for generations.
Activists believe corruption runs rampant through the region of oil-rich Gulf Arab sheikhdoms, but public criminal cases against senior officials and royal family members remain rare, typically playing out behind palace doors.
That may be changing, however, with recent explosive feuds over money laundering in Kuwait, a major corruption sweep in Saudi Arabia and last week’s arrest of Qatar’s powerful finance minister in an embezzlement probe.
Now, Kuwait’s justice system is testing government pledges to hold ministers accountable for $790 million gone missing from the Defense Ministry fund years ago.
Abu Dhabi's Mubadala invests $497mln in IVC Evidensia | ZAWYA MENA Edition
Abu Dhabi state investor Mubadala has invested GBP350 million ($497 million) in IVC Evidensia, Europe’s largest veterinary care provider.
In a statement, Justin Sabet-Peyman, Head of Consumer at Mubadala, said the investment aligns well with its focus on investing in market leading consumer businesses in resilient and growing sectors.
“We are excited to be partnering with EQT, Silver Lake, Nestlé and IVC’s world-class management team to help drive the company’s continued leadership and innovation in pet care.”
Mubadala, which manages a $243 billion portfolio of investments, is the second largest sovereign investor in the UAE, after Abu Dhabi Investment Authority (ADIA).
IVC was originally acquired by EQT Private Equity in December 2016 and in May 2017 it merged with Evidensia, the Swedish veterinary group.
MIDEAST STOCKS Major Gulf stocks little changed, Dubai nudges higher | Reuters
Major stock markets in the Gulf were little changed in early trade on Sunday, with expectations of economic recovery nudging Dubai higher again after the index snapped an eight-session winning streak at the end of last week.
Dubai's index (.DFMGI) was up 0.1% after closing lower on Thursday.
The United Arab Emirate's only listed airline Air Arabia (AIRA.DU) rose 1.5%, while shopping mall operator Emaar Mall (EMAA.DU) was up 1%.
Analysts expect Dubai house prices to rise this year for the first time in six years, supported by a swift vaccine rollout that has lifted hopes for an overall economic recovery.
Saudi Arabia's benchmark index (.TASI) inched up around 0.2% in its fourth consecutive day of gains.
Hospital operator Dr. Sulaiman Al-Habib Medical Services Group (4013.SE) rose 0.9%, Saudi Telecom (7010.SE) added 0.7% and Sahara International Petrochemical (2310.SE) was up 1.4%.
Saudi Arabia will allow entertainment venues to open at 40% capacity for those who are vaccinated against the novel coronavirus, as the kingdom relaxes restrictions imposed to check the spread of COVID-19. read more
The Abu Dhabi index (.ADI) was down 0.4% led by financials. First Abu Dhabi Bank (FAB.AD) fell 1.3% and Abu Dhabi Commercial Bank (ADCB.AD) retreated 0.7%.
Losses were partially offset by International Holdings (IHC.AD) and Emirates Telecommunications Group (ETISALAT.AD) gaining 0.8% and 0.3% respectively.
Qatar's index (.QSI) edged down 0.2% after three session of gains triggered by easing COVID-19 restrictions. read more
Banking shares weighed the most with Commercial Bank (COMB.QA) dropping 1.6% and Qatar International Islamic Bank (QIIB.QA) down 1.7%.
