Saudi Telecom’s Q2 profit up 3.6% on reduced expenses
Saudi Telecom Company, the biggest telecoms operator in the kingdom by market value, reported a 3.6 per cent year-on-year increase in second-quarter net profit, underpinned by a drop in operating expenses in three months to June 30.
Net profit increased to 2.8 billion Saudi riyals ($746.5 million) in the April-June period, the company said in a statement to Saudi Arabia's Tadawul stock exchange, where its shares trade.
Revenue for the quarter rose 6.6 per cent on an annual basis to 15.9bn riyals, almost 980m riyals more than the same period last year.
STC is majority owned by the kingdom's sovereign wealth fund Public Investment Fund, which holds a 70 per cent stake in the company. The Riyadh-based telecoms operator has more than 13,500 employees in Saudi Arabia and more than 19,000 across the group.
The company’s operating profit rose more than 6 per cent annually to 3.3bn riyals in the second quarter.
Its operating expenses were cut by 177m riyals in the second quarter as selling and marketing costs fell by 73m riyals and general and administration expenditures reduced by 201m riyals. But this was offset by an increase in depreciation and amortisation by 97m riyals, STC said.
STC proposed an interim dividend of 1 riyal per share, equating to about 2bn riyals, to its shareholders for the second quarter.
The company is also rolling out a fifth-generation network across the kingdom. By February, it had deployed its 5G network in more than 47 cities.
Monday, 2 August 2021
Mubadala and BDT complete purchase of water treatment solutions firm Culligan
Mubadala and BDT complete purchase of water treatment solutions firm Culligan
Mubadala Investment Company, its asset management subsidiary Mubadala Capital, and private equity firm BDT Capital Partners said on Monday they closed the deal to acquire sustainable water solutions provider Culligan International.
BDT acquired a majority interest in Culligan from Advent International and Centerbridge Partners in a transaction that was announced in May, in which Mubadala provided a significant capital commitment as an anchor partner.
Advent will retain a minority stake in Culligan, Mubadala said in a statement, without disclosing financial terms of the deal.
“We are pleased to have Mubadala invest alongside us in this transaction given their global presence, long-term capital and our deep relationship with them since the founding of BDT,” San Orr, president of BDT Capital Partners, said.
“[The deal] pairs well with our interest in profitably investing in businesses where ESG [environment, social and governance ... norms] is at the core of their value proposition to the market, namely the delivery of clean drinking water on a global basis and reducing the use of single use plastic bottles through innovative water solutions, among others,” Adib Mattar, head of private equity at Mubadala Capital, said.
Illinois, US-based Culligan sells products and services for water filtration and treatment and has more than 35 brands in 90 countries.
Culligan Middle East operates through facilities in Abu Dhabi, Dubai, Sharjah and Qatar. The company established a presence in Dubai more than 20 years ago and has since become one of the most diverse water treatment companies in the Gulf region.
In 2014, Culligan Middle East opened a manufacturing facility in Dubai Techno Park. The 10,000-square metre site is a purpose-built, integrated manufacturing, sales and service centre housing facilities for equipment fabrication, chemical blending and water bottling.
Mubadala Investment Company, its asset management subsidiary Mubadala Capital, and private equity firm BDT Capital Partners said on Monday they closed the deal to acquire sustainable water solutions provider Culligan International.
BDT acquired a majority interest in Culligan from Advent International and Centerbridge Partners in a transaction that was announced in May, in which Mubadala provided a significant capital commitment as an anchor partner.
Advent will retain a minority stake in Culligan, Mubadala said in a statement, without disclosing financial terms of the deal.
“We are pleased to have Mubadala invest alongside us in this transaction given their global presence, long-term capital and our deep relationship with them since the founding of BDT,” San Orr, president of BDT Capital Partners, said.
“[The deal] pairs well with our interest in profitably investing in businesses where ESG [environment, social and governance ... norms] is at the core of their value proposition to the market, namely the delivery of clean drinking water on a global basis and reducing the use of single use plastic bottles through innovative water solutions, among others,” Adib Mattar, head of private equity at Mubadala Capital, said.
Illinois, US-based Culligan sells products and services for water filtration and treatment and has more than 35 brands in 90 countries.
Culligan Middle East operates through facilities in Abu Dhabi, Dubai, Sharjah and Qatar. The company established a presence in Dubai more than 20 years ago and has since become one of the most diverse water treatment companies in the Gulf region.
In 2014, Culligan Middle East opened a manufacturing facility in Dubai Techno Park. The 10,000-square metre site is a purpose-built, integrated manufacturing, sales and service centre housing facilities for equipment fabrication, chemical blending and water bottling.
Oil falls over 3% on concerns over demand and OPEC supply boost | Reuters
Oil falls over 3% on concerns over demand and OPEC supply boost | Reuters
Oil prices fell more than 3% on Monday after weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures settled down $2.52, or 3.3%, at $72.89 a barrel, while U.S. West Texas Intermediate (WTI) crude ended $2.69, or 3.6%, lower at $71.26.
"Energy futures...are still expressing concerns over slowed production consumption as coronavirus cases are back on the rise in several regions of the U.S. as well as several countries overseas," said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
The weaker results in the private survey, mostly covering export-oriented and small manufacturers, broadly aligned with those in an official survey released on Saturday. read more
Oil prices fell more than 3% on Monday after weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures settled down $2.52, or 3.3%, at $72.89 a barrel, while U.S. West Texas Intermediate (WTI) crude ended $2.69, or 3.6%, lower at $71.26.
"Energy futures...are still expressing concerns over slowed production consumption as coronavirus cases are back on the rise in several regions of the U.S. as well as several countries overseas," said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
The weaker results in the private survey, mostly covering export-oriented and small manufacturers, broadly aligned with those in an official survey released on Saturday. read more
Oil slumps 4% on concerns over demand and OPEC supply boost | Reuters
Oil slumps 4% on concerns over demand and OPEC supply boost | Reuters
Oil prices tumbled about 4% on Monday as weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures slid by $2.65, or 3.5%, to $72.76 a barrel by 11:52 a.m. EDT (1552 GMT). U.S. West Texas Intermediate (WTI) crude dropped fell $2.91, or 3.9%, to $71.04.
"The complex is reacting pretty strongly from the more bearish economic data from China and the U.S.," said John Kilduff, partner at Again Capital LLC in New York.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
The weaker results in the private survey, mostly covering export-oriented and small manufacturers, broadly aligned with those in an official survey released on Saturday. read more
Oil prices tumbled about 4% on Monday as weak economic data from China and the United States, the world's top oil consumers, and higher crude output from OPEC producers stoked fears of weakness in oil demand and oversupply.
Brent crude oil futures slid by $2.65, or 3.5%, to $72.76 a barrel by 11:52 a.m. EDT (1552 GMT). U.S. West Texas Intermediate (WTI) crude dropped fell $2.91, or 3.9%, to $71.04.
"The complex is reacting pretty strongly from the more bearish economic data from China and the U.S.," said John Kilduff, partner at Again Capital LLC in New York.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
The weaker results in the private survey, mostly covering export-oriented and small manufacturers, broadly aligned with those in an official survey released on Saturday. read more
Israeli-backed #UAE scooter start-up expands to Turkey | Reuters
Israeli-backed UAE scooter start-up expands to Turkey | Reuters
FENIX, a United Arab Emirates-based e-scooter company backed by Israeli venture capital funding, has acquired Turkish scooter company PALM for $5 million, it said on Monday, as the start-up expands across the Middle East into its fifth country.
With almost 10,000 e-scooters in 13 cities, FENIX has the largest fleet in the Middle East and North Africa.
It was the first UAE start-up to get Israeli VC money after the two countries normalised relations last September, receiving $3.8 million from Israel-based venture capital firm Maniv Mobility in November as part of its $5 million seed funding.
Undisclosed additional funds have been raised since and FENIX aims for series A fundraising later this year, FENIX Co-Founder and CEO Jaideep Dhanoa told Reuters.
Moving into Turkey, which has milder summers, will help to offset the impact on scooter hires of the Gulf’s scorching mid-year temperatures, Dhanoa said.
FENIX, a United Arab Emirates-based e-scooter company backed by Israeli venture capital funding, has acquired Turkish scooter company PALM for $5 million, it said on Monday, as the start-up expands across the Middle East into its fifth country.
With almost 10,000 e-scooters in 13 cities, FENIX has the largest fleet in the Middle East and North Africa.
It was the first UAE start-up to get Israeli VC money after the two countries normalised relations last September, receiving $3.8 million from Israel-based venture capital firm Maniv Mobility in November as part of its $5 million seed funding.
Undisclosed additional funds have been raised since and FENIX aims for series A fundraising later this year, FENIX Co-Founder and CEO Jaideep Dhanoa told Reuters.
Moving into Turkey, which has milder summers, will help to offset the impact on scooter hires of the Gulf’s scorching mid-year temperatures, Dhanoa said.
MIDEAST STOCKS Major Gulf bourses gain as earnings boost #Saudi index | Reuters
MIDEAST STOCKS Major Gulf bourses gain as earnings boost Saudi index | Reuters
Major Gulf stock markets ended higher on Monday, with a slew of corporate earnings driving up Saudi shares.
Saudi Arabia's benchmark index (.TASI) rose 0.8%, with Al Rajhi Bank (1120.SE) leaping 3.4% a day after it posted a 48% jump in quarterly profit, helped by an increase in net financing and investment income, and fees from banking services. read more
Among other gainers, Saudi Telecom Co (7010.SE) was up 0.7% following an increase in second-quarter net profit.
Dubai's main share index (.DFMGI) added 0.3%, with Emirates NBD Bank (ENBD.DU) rising 1.5% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) firming 0.8%.
In Abu Dhabi, the index (.ADI) reversed early losses to close 0.2% higher, supported by a 1% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
However, the index's gains were capped by declines at Emirates Telecommunication Group (Etisalat) (ETISALAT.AD), which was down 0.4%.
In the previous session, Etisalat jumped more than 5% after reporting an increase in quarterly net profit and approving payment of an interim dividend of 40 fils per share for the first half of 2021.
The United Arab Emirates will start providing China's Sinopharm (1099.HK) COVID-19 vaccine to children aged between three and 17 years, the UAE government said on Twitter on Monday. read more
The Qatari benchmark (.QSI) gained 0.8%, as most of its stocks were in positive territory including Islamic lender Masraf Al Rayan (MARK.QA), which advanced 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged up 0.1%, with Ezz Steel (ESRS.CA) gaining 6.3%.
The Egyptian Stock Exchange will lift the limit on intraday share price moves to 20% from September, the bourse said on Sunday.
Major Gulf stock markets ended higher on Monday, with a slew of corporate earnings driving up Saudi shares.
Saudi Arabia's benchmark index (.TASI) rose 0.8%, with Al Rajhi Bank (1120.SE) leaping 3.4% a day after it posted a 48% jump in quarterly profit, helped by an increase in net financing and investment income, and fees from banking services. read more
Among other gainers, Saudi Telecom Co (7010.SE) was up 0.7% following an increase in second-quarter net profit.
Dubai's main share index (.DFMGI) added 0.3%, with Emirates NBD Bank (ENBD.DU) rising 1.5% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) firming 0.8%.
In Abu Dhabi, the index (.ADI) reversed early losses to close 0.2% higher, supported by a 1% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD).
However, the index's gains were capped by declines at Emirates Telecommunication Group (Etisalat) (ETISALAT.AD), which was down 0.4%.
In the previous session, Etisalat jumped more than 5% after reporting an increase in quarterly net profit and approving payment of an interim dividend of 40 fils per share for the first half of 2021.
The United Arab Emirates will start providing China's Sinopharm (1099.HK) COVID-19 vaccine to children aged between three and 17 years, the UAE government said on Twitter on Monday. read more
The Qatari benchmark (.QSI) gained 0.8%, as most of its stocks were in positive territory including Islamic lender Masraf Al Rayan (MARK.QA), which advanced 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged up 0.1%, with Ezz Steel (ESRS.CA) gaining 6.3%.
The Egyptian Stock Exchange will lift the limit on intraday share price moves to 20% from September, the bourse said on Sunday.
#Saudi Stocks Hit Highest Level Since 2008 Over Earnings, Oil - Bloomberg
Saudi Stocks Hit Highest Level Since 2008 Over Earnings, Oil - Bloomberg
Saudi Arabian stocks closed at their highest level in more than 13 years, boosted by positive earnings announcements and higher oil prices.
The benchmark Tadawul All Share Index climbed 0.8% on Monday, closing at the highest level since January 2008. The gauge rose for an 11th session, the longest winning streak in about a year.
Al Rajhi Bank, which reported earnings on Sunday, led gains on the benchmark, rising 3.4%. Saudi National Bank and Saudi Basic Industries Corp. were among other key leaders.
There are “structural factors such as a growing mortgage market, shift into organized sectors, more listed companies with different economics and better liquidity all translating to better returns for the Saudi stock market,” according to Mazen Al-Sudairi, head of research at Al Rajhi Capital. Also, Saudi Arabia’s full-year inflation is expected to be higher than bond yields, making stocks a more attractive inflation hedge, he said.
Higher oil prices and government projects, including a program which aims to release 5 trillion riyals ($1.3 trillion) of private sector investment, have also supported shares listed in the kingdom this year.
The benchmark has outperformed emerging-market peers through 2021, but is still about 46% below its record high in 2006, when efforts by the government to use capital markets to help redistribute oil wealth went some way to fueling a speculative bubble driven mostly by retail traders.
A steep crash followed, sparked by several factors including rumors of a crackdown on insider trading and trading limits introduced by the regulator that sparked a wave of panic selling.
Saudi Arabian stocks closed at their highest level in more than 13 years, boosted by positive earnings announcements and higher oil prices.
The benchmark Tadawul All Share Index climbed 0.8% on Monday, closing at the highest level since January 2008. The gauge rose for an 11th session, the longest winning streak in about a year.
Al Rajhi Bank, which reported earnings on Sunday, led gains on the benchmark, rising 3.4%. Saudi National Bank and Saudi Basic Industries Corp. were among other key leaders.
There are “structural factors such as a growing mortgage market, shift into organized sectors, more listed companies with different economics and better liquidity all translating to better returns for the Saudi stock market,” according to Mazen Al-Sudairi, head of research at Al Rajhi Capital. Also, Saudi Arabia’s full-year inflation is expected to be higher than bond yields, making stocks a more attractive inflation hedge, he said.
Higher oil prices and government projects, including a program which aims to release 5 trillion riyals ($1.3 trillion) of private sector investment, have also supported shares listed in the kingdom this year.
The benchmark has outperformed emerging-market peers through 2021, but is still about 46% below its record high in 2006, when efforts by the government to use capital markets to help redistribute oil wealth went some way to fueling a speculative bubble driven mostly by retail traders.
A steep crash followed, sparked by several factors including rumors of a crackdown on insider trading and trading limits introduced by the regulator that sparked a wave of panic selling.
House Prices May Have Bottomed in the Middle East, Kamco Says - Bloomberg
House Prices May Have Bottomed in the Middle East, Kamco Says - Bloomberg
Prices for residential real estate in the six-member Gulf Cooperation Council may have bottomed and total transaction value for the year is on track to eclipse 2019 levels, Kuwait’s Kamco Investment said.
“Dubai real estate witnessed opportunistic buying from investors, especially at the higher end of the apartment and villa market,” Kamco said. “Saudi Arabia real estate prices recovered, driven by government support in the form of mortgage financing and housing initiatives.”
The GCC includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. Transactions in the first half of 2021 reached $64.9 billion, compared to $90.5 billion for 2020 and $96.5 billion in 2019, the firm said.
A higher average value per transaction in the first six months of the year, when compared to pre-pandemic levels of the first half of 2019, indicated “the investment appetite for attractively priced real estate,” Kamco said.
Prices for residential real estate in the six-member Gulf Cooperation Council may have bottomed and total transaction value for the year is on track to eclipse 2019 levels, Kuwait’s Kamco Investment said.
“Dubai real estate witnessed opportunistic buying from investors, especially at the higher end of the apartment and villa market,” Kamco said. “Saudi Arabia real estate prices recovered, driven by government support in the form of mortgage financing and housing initiatives.”
The GCC includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. Transactions in the first half of 2021 reached $64.9 billion, compared to $90.5 billion for 2020 and $96.5 billion in 2019, the firm said.
A higher average value per transaction in the first six months of the year, when compared to pre-pandemic levels of the first half of 2019, indicated “the investment appetite for attractively priced real estate,” Kamco said.
Oil prices hit by concern over Chinese economy and higher supply | Reuters
Oil prices hit by concern over Chinese economy and higher supply | Reuters
Oil prices fell on Monday as worries over China's economy resurfaced after a survey showing growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by higher crude output from OPEC producers.
Brent crude oil futures slid by 79 cents, or 1.06%, to $74.62 a barrel by 0945 GMT, having earlier touched a low of $74.10.
U.S. West Texas Intermediate (WTI) crude futures dropped 88 cents, or 1.2%, to $73.07 after slipping to a session low of $72.77.
"China has been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline," said Edward Moya, senior analyst at OANDA.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
Oil prices fell on Monday as worries over China's economy resurfaced after a survey showing growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by higher crude output from OPEC producers.
Brent crude oil futures slid by 79 cents, or 1.06%, to $74.62 a barrel by 0945 GMT, having earlier touched a low of $74.10.
U.S. West Texas Intermediate (WTI) crude futures dropped 88 cents, or 1.2%, to $73.07 after slipping to a session low of $72.77.
"China has been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline," said Edward Moya, senior analyst at OANDA.
China's factory activity growth slipped sharply in July as demand contracted for the first time in more than a year, a survey showed on Monday.
MIDEAST STOCKS #Saudi gains on banking boost; Etisalat drags #AbuDhabi lower | Reuters
MIDEAST STOCKS Saudi gains on banking boost; Etisalat drags Abu Dhabi lower | Reuters
Most stock markets in the Gulf rose in early trade on Monday, with banks boosting the Saudi index, while the Abu Dhabi bourse was hit by declines in Etisalat shares.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) rising 1.9% and petrochemical firm Saudi Basic Industries (2010.SE) was up 1.2%.
Al Rajhi Bank posted on Sunday a net profit of 3.6 billion riyals ($959.92 million) for the period ended June 30, up from 2.44 billion riyals in the same period a year earlier. read more
Alinma Bank (1150.SE) rose 1.5%, a day after it reported a rise in quarterly net profit.
Saudi banks have benefited from growth in mortgages and an economic recovery this year following the easing of coronavirus lockdowns.
The Qatari index (.QSI) gained 0.6%, as almost all the stocks were in the positive territory including Qatar Aluminium Manufacturing CO (QAMC.QA), up over 6%.
The aluminium maker is scheduled to report its first-half earnings on Thursday.
Dubai's main share index (.DFMGI) added 0.3%, led by a 14.5% surge in Mashreq Bank (MASB.DU).
In Abu Dhabi, the index (.ADI) retreated 0.7%, hit by a 2.5% fall in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
The Abu Dhabi index touched a record high on Sunday buoyed by a jump in telecoms firm Etisalat after it reported quarterly net profit of 2.40 billion dirhams ($653.49 million), up from 2.39 billion dirhams a year earlier.
Etisalat also approved distribution of interim dividend of 40 fils per share for the first-half of 2021.
The United Arab Emirates will start providing China's Sinopharm (1099.HK) COVID-19 vaccine to children aged 3-17, the UAE government said on Twitter on Monday. read more
Most stock markets in the Gulf rose in early trade on Monday, with banks boosting the Saudi index, while the Abu Dhabi bourse was hit by declines in Etisalat shares.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) rising 1.9% and petrochemical firm Saudi Basic Industries (2010.SE) was up 1.2%.
Al Rajhi Bank posted on Sunday a net profit of 3.6 billion riyals ($959.92 million) for the period ended June 30, up from 2.44 billion riyals in the same period a year earlier. read more
Alinma Bank (1150.SE) rose 1.5%, a day after it reported a rise in quarterly net profit.
Saudi banks have benefited from growth in mortgages and an economic recovery this year following the easing of coronavirus lockdowns.
The Qatari index (.QSI) gained 0.6%, as almost all the stocks were in the positive territory including Qatar Aluminium Manufacturing CO (QAMC.QA), up over 6%.
The aluminium maker is scheduled to report its first-half earnings on Thursday.
Dubai's main share index (.DFMGI) added 0.3%, led by a 14.5% surge in Mashreq Bank (MASB.DU).
In Abu Dhabi, the index (.ADI) retreated 0.7%, hit by a 2.5% fall in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
The Abu Dhabi index touched a record high on Sunday buoyed by a jump in telecoms firm Etisalat after it reported quarterly net profit of 2.40 billion dirhams ($653.49 million), up from 2.39 billion dirhams a year earlier.
Etisalat also approved distribution of interim dividend of 40 fils per share for the first-half of 2021.
The United Arab Emirates will start providing China's Sinopharm (1099.HK) COVID-19 vaccine to children aged 3-17, the UAE government said on Twitter on Monday. read more
GCC equity markets made small gains in July; #AbuDhabi flies high | ZAWYA MENA Edition
GCC equity markets made small gains in July; Abu Dhabi flies high | ZAWYA MENA Edition
The GCC equity markets reported gains, albeit marginal for the ninth consecutive month during July 2021, as monthly performance, though mixed, was skewed towards the gainers.
According to the GCC Markets Monthly Report by Kamco Invest, Abu Dhabi and Kuwait markets had returns of 7.1 percent and 3.0 percent, respectively, while Saudi Arabia and Qatari benchmarks showed only marginal gains. Dubai, down 1.6 percent, was the biggest decliner.
As a result, the MSCI GCC total return index recorded a flattish performance with a gain of 1 percent. Year-to-date (YTD) gains at the end of July stood at 23.7 percent, one of the best performances globally.
The sector performance chart also reflected the overall mixed trend during the month with a near equal split between gainers and losers. The Capital Goods index topped monthly performance chart with a gain of 10.2 percent followed by Pharma & Biotech and Utilities indices with gains of 4.7 percent and 4.2 percent, respectively. On the decliner’s side, the rally in the F&B index took a break resulting in a decline of 3.1 percent followed by Food & Drug Retailing and Consumer Durable & Apparel index with declines of 2.9 percent and 1.9 percent, respectively. Large-cap sectors like Banks and Energy showed flattish returns while Materials reported a gain of 3.2 percent.
The GCC equity markets reported gains, albeit marginal for the ninth consecutive month during July 2021, as monthly performance, though mixed, was skewed towards the gainers.
According to the GCC Markets Monthly Report by Kamco Invest, Abu Dhabi and Kuwait markets had returns of 7.1 percent and 3.0 percent, respectively, while Saudi Arabia and Qatari benchmarks showed only marginal gains. Dubai, down 1.6 percent, was the biggest decliner.
As a result, the MSCI GCC total return index recorded a flattish performance with a gain of 1 percent. Year-to-date (YTD) gains at the end of July stood at 23.7 percent, one of the best performances globally.
The sector performance chart also reflected the overall mixed trend during the month with a near equal split between gainers and losers. The Capital Goods index topped monthly performance chart with a gain of 10.2 percent followed by Pharma & Biotech and Utilities indices with gains of 4.7 percent and 4.2 percent, respectively. On the decliner’s side, the rally in the F&B index took a break resulting in a decline of 3.1 percent followed by Food & Drug Retailing and Consumer Durable & Apparel index with declines of 2.9 percent and 1.9 percent, respectively. Large-cap sectors like Banks and Energy showed flattish returns while Materials reported a gain of 3.2 percent.
Oil prices fall on worries over China economy and higher crude output | Reuters
Oil prices fall on worries over China economy and higher crude output | Reuters
Oil prices fell on Monday on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers.
Brent crude oil futures slid by 74 cents, or 1%, to $74.67 a barrel by 0653 GMT, after dropping to a low of $74.10 earlier in the day.
U.S. West Texas Intermediate (WTI) crude futures dropped 70 cents, or 1%, to $73.25 a barrel after slipping to a session low of $72.77.
"China's been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline," said Edward Moya, senior analyst at OANDA.
"The crude demand outlook is on shaky ground and that probably will not improve until global vaccinations improve."
Oil prices fell on Monday on worries over China's economy after a survey showed growth in factory activity slipped sharply in the world's second-largest oil consumer, with concerns compounded by a rise in oil output from OPEC producers.
Brent crude oil futures slid by 74 cents, or 1%, to $74.67 a barrel by 0653 GMT, after dropping to a low of $74.10 earlier in the day.
U.S. West Texas Intermediate (WTI) crude futures dropped 70 cents, or 1%, to $73.25 a barrel after slipping to a session low of $72.77.
"China's been leading economic recovery in Asia and if the pullback deepens, concerns will grow that the global outlook will see a significant decline," said Edward Moya, senior analyst at OANDA.
"The crude demand outlook is on shaky ground and that probably will not improve until global vaccinations improve."
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