Gulf central banks lift rates as Fed makes second 75-bps hike | Reuters
Most Gulf central banks lifted their main interest rates by three quarters of a percentage point on Wednesday, moving with the U.S. Federal Reserve as their currencies are pegged to the dollar.
The Central Bank of Kuwait, the only one of the six Gulf Cooperation Council (GCC) countries that ties its currency to a basket rather than just the dollar, raised its key discount rate by 25 basis points (bps) to 2.5%. read more
The central banks of Saudi Arabia, the United Arab Emirates, Qatar and Bahrain all raised their key rates by 75 bps to 3%, 3.75%, 3% and 3.25%, respectively. read more
"The rates hikes by the GCC central banks continue to show commitment to the regional currency pegs to the USD," said Monica Malik, chief economist at Abu Dhabi Commercial Bank, adding Kuwait's currency basket gave it more monetary flexibility.
Wednesday, 27 July 2022
Oil settles higher on U.S. inventory drop, Russia gas cuts | Reuters
Oil settles higher on U.S. inventory drop, Russia gas cuts | Reuters
Oil settled up more than $2 on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a U.S. interest rate hike.
U.S. crude oil stockpiles dropped 4.5 million barrels last week as exports surged to an all-time high due to U.S. crude's big discount to international benchmark Brent, the Energy Information Administration said. read more
Brent crude rose $2.22, or 2.1%, to $106.62 a barrel. U.S. West Texas Intermediate (WTI) crude gained $2.28, or 2.4%, to $97.26.
After a sharp drop in the last two weeks, U.S. gasoline demand rebounded by 8.5% week on week, according to the data.
"All talk about demand destruction stopped in its tracks in this report...the situation has changed dramatically in two weeks," said Bob Yawger, director of energy futures at Mizuho.
Oil settled up more than $2 on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a U.S. interest rate hike.
U.S. crude oil stockpiles dropped 4.5 million barrels last week as exports surged to an all-time high due to U.S. crude's big discount to international benchmark Brent, the Energy Information Administration said. read more
Brent crude rose $2.22, or 2.1%, to $106.62 a barrel. U.S. West Texas Intermediate (WTI) crude gained $2.28, or 2.4%, to $97.26.
After a sharp drop in the last two weeks, U.S. gasoline demand rebounded by 8.5% week on week, according to the data.
"All talk about demand destruction stopped in its tracks in this report...the situation has changed dramatically in two weeks," said Bob Yawger, director of energy futures at Mizuho.
Watch Rakbank CEO: Feeling Confident About 2H Outlook - Bloomberg video
Watch Rakbank CEO: Feeling Confident About 2H Outlook - Bloomberg
Raheel Ahmed, CEO of Rakbank discusses the company's 2Q earnings. The UAE lender reported net income of 310.5 million dirhams, which beat analysts' estimates. In this exclusive interview, he speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Dubai Islamic Bank's first-half profit surges to over $735mln
Dubai Islamic Bank's first-half profit surges to over $735mln
Dubai Islamic Bank announced on Wednesday a significant surge of 45 per cent to Dh2.7 billion in first-half profitability compared to Dh1.86 billion in the same period last year.
The strong year-on-year growth was driven by rising core revenues and sustained lower impairments, the bank said in a statement.
The bank said gross new financing and sukuk investments saw a remarkable increase by Dh33 billion during the period. Excluding regular repayments and maturities, the bank saw a Dh20 billion growth in the first half that ended on June 30, 2022.
The bank, the largest Islamic bank in the UAE, said it had significantly lower impairments of Dh948 million compared to Dh1.498 billion in previous year, down by 37 per cent year-on-year basis, demonstrating continued improvement in asset quality.
Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and Chairman of DIB, said Dubai’s progressive economic recovery remains on track and DIB’s momentous first half results reflect the improving macroeconomic conditions.
Dubai Islamic Bank announced on Wednesday a significant surge of 45 per cent to Dh2.7 billion in first-half profitability compared to Dh1.86 billion in the same period last year.
The strong year-on-year growth was driven by rising core revenues and sustained lower impairments, the bank said in a statement.
The bank said gross new financing and sukuk investments saw a remarkable increase by Dh33 billion during the period. Excluding regular repayments and maturities, the bank saw a Dh20 billion growth in the first half that ended on June 30, 2022.
The bank, the largest Islamic bank in the UAE, said it had significantly lower impairments of Dh948 million compared to Dh1.498 billion in previous year, down by 37 per cent year-on-year basis, demonstrating continued improvement in asset quality.
Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and Chairman of DIB, said Dubai’s progressive economic recovery remains on track and DIB’s momentous first half results reflect the improving macroeconomic conditions.
ADX ranked first in Arab region in terms of market value increase: AMF
ADX ranked first in Arab region in terms of market value increase: AMF
Abu Dhabi Securities Exchange (ADX) has recorded its highest rise in terms of market value and trading value at end of the second quarter of 2022, according to the Arab Monetary Fund (AMF).
In its quarterly bulletin on the performance of Arab stock markets issued today, the AMF noted that the ADX achieved an increase of US$29.23 billion in terms of market value, rising from $513.19 billion at the end of the first quarter of 2022 to $542.42 billion in the second quarter of 2022.
The report also pointed out that the market value of the Dubai Financial Market increased by some $24.45 billion, reaching $143.57 billion by end of the second quarter of 2022, compared to $119.12 billion in the first quarter.
The AMF report also noted that the market value of Arab financial markets listed in its database dropped by about 2.86 percent, equivalent to nearly $126.89 billion, reaching some $4,311.93 billion by end of the second quarter of 2022, noting that most of performance indicators of Arab stock exchanges witnessed consistent declines.
The report added that several Arab markets declined in performance due to interest rate rises by the US Federal Reserves and a number of international banks in the Arab region, as well as inflationary pressures.
Abu Dhabi Securities Exchange (ADX) has recorded its highest rise in terms of market value and trading value at end of the second quarter of 2022, according to the Arab Monetary Fund (AMF).
In its quarterly bulletin on the performance of Arab stock markets issued today, the AMF noted that the ADX achieved an increase of US$29.23 billion in terms of market value, rising from $513.19 billion at the end of the first quarter of 2022 to $542.42 billion in the second quarter of 2022.
The report also pointed out that the market value of the Dubai Financial Market increased by some $24.45 billion, reaching $143.57 billion by end of the second quarter of 2022, compared to $119.12 billion in the first quarter.
The AMF report also noted that the market value of Arab financial markets listed in its database dropped by about 2.86 percent, equivalent to nearly $126.89 billion, reaching some $4,311.93 billion by end of the second quarter of 2022, noting that most of performance indicators of Arab stock exchanges witnessed consistent declines.
The report added that several Arab markets declined in performance due to interest rate rises by the US Federal Reserves and a number of international banks in the Arab region, as well as inflationary pressures.
OPEC+ Walks a Fine Line on Oil Output: Elements by Julian Lee - Bloomberg
OPEC+ Walks a Fine Line on Oil Output: Elements by Julian Lee - Bloomberg
The OPEC+ group of oil producers will meet a week today to discuss production plans for September.
Their deliberations come after US President Joe Biden visited Saudi Arabia to press the group’s Gulf Arab members - the only ones with significant spare production capacity - to open their taps wider.
Expect Russia (quietly) to counter calls for more Persian Gulf crude. Its own shipments have come under pressure from the loss of most of its north European market and the need to offer big discounts to sell displaced barrels into India. President Vladimir Putin wants high oil prices both to boost state revenues and to hurt those who oppose its invasion of Ukraine.
The Kremlin wields real power in the group. OPEC worked hard to bring Russia into the expanded market management club and will do all it can to keep it there.
The group also faces uncertainty over demand for its crude in the coming months as rising interest rates, Europe’s energy crunch and China’s never-ending Covid battle cloud the economic outlook.
The OPEC+ group of oil producers will meet a week today to discuss production plans for September.
Their deliberations come after US President Joe Biden visited Saudi Arabia to press the group’s Gulf Arab members - the only ones with significant spare production capacity - to open their taps wider.
Expect Russia (quietly) to counter calls for more Persian Gulf crude. Its own shipments have come under pressure from the loss of most of its north European market and the need to offer big discounts to sell displaced barrels into India. President Vladimir Putin wants high oil prices both to boost state revenues and to hurt those who oppose its invasion of Ukraine.
The Kremlin wields real power in the group. OPEC worked hard to bring Russia into the expanded market management club and will do all it can to keep it there.
The group also faces uncertainty over demand for its crude in the coming months as rising interest rates, Europe’s energy crunch and China’s never-ending Covid battle cloud the economic outlook.
Most major Gulf indexes rise as solid corporate earnings boost #Dubai | Reuters
Most major Gulf indexes rise as solid corporate earnings boost Dubai | Reuters
Most major Gulf indexes closed higher on Wednesday, with the Saudi market extending gains on the back of steady oil prices, while Dubai's index was supported by solid corporate earnings.
Saudi Arabia's benchmark index (.TASI) rose 0.7%, with country's luxury property developer Retal Urban Development Company (4322.SE) increasing 1% and Saudi Electricity (5110.SE) up 1.5%.
Saudi National Bank (1180.SE), the kingdom's biggest lender, jumped 1.7% after its second-quarter net profit almost doubled.
Bolstered by its banking stocks, the Qatari benchmark (.QSI) climbed 1.7%, led by a 2.6% jump in Qatar Islamic Bank (QISB.QA) and a 3.8% leap in Sharia-compliant lender Masraf Al Rayan (MARK.QA).
In Dubai, the main share index (.DFMGI) gained 0.4%, helped by a 1.5% hike in blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% rise in Dubai Islamic Bank (DISB.DU) after the lender posted second-quarter net profit of 1.34 billion dirhams ($365 million), up from 1.01 billion dirhams a year earlier.
Cooling solutions provider Tabreed (TABR.DU) rose 2.6% after it posted a quarterly net profit of 152.2 million dirhams, compared with 148 million dirhams a year earlier, and the board approved an increase in the foreign ownership limit to 100%.,
Abu Dhabi's index (.FTFADGI) edged up 0.3%, led by a 2.7% increase in ADNOC Drilling (ADNOCDRILL.AD) after it announced $2 billion in contracts to enable the delivery of ADNOC’s Ghasha offshore mega gas project.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was weighed down by a 0.4% decline in e-payment platform Fawry Banking and Payment Technology Services (FWRY.CA).
Most major Gulf indexes closed higher on Wednesday, with the Saudi market extending gains on the back of steady oil prices, while Dubai's index was supported by solid corporate earnings.
Saudi Arabia's benchmark index (.TASI) rose 0.7%, with country's luxury property developer Retal Urban Development Company (4322.SE) increasing 1% and Saudi Electricity (5110.SE) up 1.5%.
Saudi National Bank (1180.SE), the kingdom's biggest lender, jumped 1.7% after its second-quarter net profit almost doubled.
Bolstered by its banking stocks, the Qatari benchmark (.QSI) climbed 1.7%, led by a 2.6% jump in Qatar Islamic Bank (QISB.QA) and a 3.8% leap in Sharia-compliant lender Masraf Al Rayan (MARK.QA).
In Dubai, the main share index (.DFMGI) gained 0.4%, helped by a 1.5% hike in blue-chip developer Emaar Properties (EMAR.DU) and a 0.9% rise in Dubai Islamic Bank (DISB.DU) after the lender posted second-quarter net profit of 1.34 billion dirhams ($365 million), up from 1.01 billion dirhams a year earlier.
Cooling solutions provider Tabreed (TABR.DU) rose 2.6% after it posted a quarterly net profit of 152.2 million dirhams, compared with 148 million dirhams a year earlier, and the board approved an increase in the foreign ownership limit to 100%.,
Abu Dhabi's index (.FTFADGI) edged up 0.3%, led by a 2.7% increase in ADNOC Drilling (ADNOCDRILL.AD) after it announced $2 billion in contracts to enable the delivery of ADNOC’s Ghasha offshore mega gas project.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was weighed down by a 0.4% decline in e-payment platform Fawry Banking and Payment Technology Services (FWRY.CA).
#SaudiArabia May Hike Oil Price to Record Even as Traders See Risks - Bloomberg
Saudi Arabia May Hike Oil Price to Record Even as Traders See Risks - Bloomberg
OPEC+ kingpin Saudi Arabia is expected to price its flagship crude to Asia at a record differential for September even as traders see the scope for a weaker spot market the following month, highlighting a potential turning point for the market.
The world’s top crude exporter is expected to price its Arab Light crude to Asia at a $10.80-a-barrel premium to the region’s benchmark for September-loading cargoes, according to the median estimate in a Bloomberg survey of five refiners. At the same time, a slump in margins for Asian processors means that such a hike may dampen any requests for extra barrels, traders said.
Global crude prices are headed in July for their first back-to-back monthly loss since late 2020 as investors attempt to price in the risks of a US recession, tighter monetary policy, and China’s repeated efforts to tame Covid-19. Despite the drop, the oil market’s physical signals remain robust for now, with Saudi Aramco set to release its official selling prices for September next week.
OPEC+ kingpin Saudi Arabia is expected to price its flagship crude to Asia at a record differential for September even as traders see the scope for a weaker spot market the following month, highlighting a potential turning point for the market.
The world’s top crude exporter is expected to price its Arab Light crude to Asia at a $10.80-a-barrel premium to the region’s benchmark for September-loading cargoes, according to the median estimate in a Bloomberg survey of five refiners. At the same time, a slump in margins for Asian processors means that such a hike may dampen any requests for extra barrels, traders said.
Global crude prices are headed in July for their first back-to-back monthly loss since late 2020 as investors attempt to price in the risks of a US recession, tighter monetary policy, and China’s repeated efforts to tame Covid-19. Despite the drop, the oil market’s physical signals remain robust for now, with Saudi Aramco set to release its official selling prices for September next week.
Kuwaiti banks rated high among emerging markets
Kuwaiti banks rated high among emerging markets
Four Kuwaiti banks make a mark among the top 100 banks in emerging markets, according to a report issued by the Fitch Ratings Agency.
The four banks are the National Bank of Kuwait with total assets of $109.9 billion and total loans of $67.3 billion as at the end of the fiscal year 2021; followed by Kuwait Finance House with total assets of $72 billion and loans of $39.7 billion, in third place is the Burgan Bank with total assets of $72 billion and $23.4 billion in total loans, and then comes the Al Ahli Bank of Kuwait with total assets of $18.6 billion and total loans of $12 billion.
Thus, in the GCC countries Kuwaiti banks rank third in the list equally with Saudi Arabia, with 4 banks each, while the UAE topped with 7 banks, followed by Qatar with a total of 5 banks. In contrast, the list included one Omani bank and a Bahraini bank.
Fitch stated that it is launching a series of reports that follow a sample of 100 large banks from emerging markets, as defined by the International Monetary Fund, explaining that this sample primarily includes banks that issue bonds in the capital markets, and were selected based on the total size to its balance sheets regardless of whether they are classified by Fitch, provided that the report is updated on a semi-annual basis.
The largest banks by asset volume in the sample are located in China, followed by Brazil, India, Qatar and the UAE.
Four Kuwaiti banks make a mark among the top 100 banks in emerging markets, according to a report issued by the Fitch Ratings Agency.
The four banks are the National Bank of Kuwait with total assets of $109.9 billion and total loans of $67.3 billion as at the end of the fiscal year 2021; followed by Kuwait Finance House with total assets of $72 billion and loans of $39.7 billion, in third place is the Burgan Bank with total assets of $72 billion and $23.4 billion in total loans, and then comes the Al Ahli Bank of Kuwait with total assets of $18.6 billion and total loans of $12 billion.
Thus, in the GCC countries Kuwaiti banks rank third in the list equally with Saudi Arabia, with 4 banks each, while the UAE topped with 7 banks, followed by Qatar with a total of 5 banks. In contrast, the list included one Omani bank and a Bahraini bank.
Fitch stated that it is launching a series of reports that follow a sample of 100 large banks from emerging markets, as defined by the International Monetary Fund, explaining that this sample primarily includes banks that issue bonds in the capital markets, and were selected based on the total size to its balance sheets regardless of whether they are classified by Fitch, provided that the report is updated on a semi-annual basis.
The largest banks by asset volume in the sample are located in China, followed by Brazil, India, Qatar and the UAE.
Oil rises on U.S. inventory drop, Russian gas cuts | Reuters
Oil rises on U.S. inventory drop, Russian gas cuts | Reuters
Oil rose by $1 a barrel on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a looming U.S. interest rate hike.
Industry group the American Petroleum Institute said on Tuesday crude stocks fell by 4 million barrels, four times the forecast decline. The Energy Information Administration's official figures are out at 1430 GMT.
"Coupled with the Fed decision on interest rates, today is sure to be a heavy U.S.-centric session," said Stephen Brennock of oil broker PVM.
Brent crude rose 91 cents, or 0.9%, to $105.31 a barrel at 0811 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.16, or 1.2%, to $96.14.
"It looks the more vulnerable from a technical perspective, and a large gain by official U.S. crude inventories tonight could spark more selling," said Singapore-based analyst Jeffrey Halley of brokerage OANDA, referring to WTI.
Oil rose by $1 a barrel on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a looming U.S. interest rate hike.
Industry group the American Petroleum Institute said on Tuesday crude stocks fell by 4 million barrels, four times the forecast decline. The Energy Information Administration's official figures are out at 1430 GMT.
"Coupled with the Fed decision on interest rates, today is sure to be a heavy U.S.-centric session," said Stephen Brennock of oil broker PVM.
Brent crude rose 91 cents, or 0.9%, to $105.31 a barrel at 0811 GMT. U.S. West Texas Intermediate (WTI) crude gained $1.16, or 1.2%, to $96.14.
"It looks the more vulnerable from a technical perspective, and a large gain by official U.S. crude inventories tonight could spark more selling," said Singapore-based analyst Jeffrey Halley of brokerage OANDA, referring to WTI.
Mideast Stocks: Most major Gulf bourses rise on solid corporate earnings
Mideast Stocks: Most major Gulf bourses rise on solid corporate earnings
Most major stock markets in the Gulf rose in early deals on Wednesday, largely supported by better-than-expected corporate earnings, while Abu Dhabi traded flat and was the only laggard.
Saudi Arabia's benchmark index rose 0.9%, boosted by banking stocks as Saudi National Bank, the kingdom's biggest lender, jumped 1.7% after its second-quarter net profit almost doubled.
Alinma Bank rose 2.3% after reporting a net profit of 925.1 million riyals ($246.31 million) for its second quarter, compared with 710.3 million riyals a year ago.
In Dubai, the main share index edged up 0.2%, led by a 0.7% rise in Dubai Islamic Bank after the lender posted a second-quarter net profit of 1.34 billion dirhams ($364.83 million), up from 1.01 billion dirhams.
Cooling solutions provider Tabreed gained 2.8% after it posted a quarterly net profit of 152.2 million dirhams ($41.44 million), compared with 148 million dirhams a year earlier, and the company board approved an increase in the foreign ownership limit to 100%.
In Qatar, the benchmark climbed 0.4%, extending gains to a ninth session. Sharia-compliant lender Masraf Al Rayan advanced 1.7%, while Qatar Navigation strengthened 2.9%.
Abu Dhabi's index was weighed down by a 0.4% decline in conglomerate International Holding Company and 0.8% drop in Alpha Dhabi Holding.
Most major stock markets in the Gulf rose in early deals on Wednesday, largely supported by better-than-expected corporate earnings, while Abu Dhabi traded flat and was the only laggard.
Saudi Arabia's benchmark index rose 0.9%, boosted by banking stocks as Saudi National Bank, the kingdom's biggest lender, jumped 1.7% after its second-quarter net profit almost doubled.
Alinma Bank rose 2.3% after reporting a net profit of 925.1 million riyals ($246.31 million) for its second quarter, compared with 710.3 million riyals a year ago.
In Dubai, the main share index edged up 0.2%, led by a 0.7% rise in Dubai Islamic Bank after the lender posted a second-quarter net profit of 1.34 billion dirhams ($364.83 million), up from 1.01 billion dirhams.
Cooling solutions provider Tabreed gained 2.8% after it posted a quarterly net profit of 152.2 million dirhams ($41.44 million), compared with 148 million dirhams a year earlier, and the company board approved an increase in the foreign ownership limit to 100%.
In Qatar, the benchmark climbed 0.4%, extending gains to a ninth session. Sharia-compliant lender Masraf Al Rayan advanced 1.7%, while Qatar Navigation strengthened 2.9%.
Abu Dhabi's index was weighed down by a 0.4% decline in conglomerate International Holding Company and 0.8% drop in Alpha Dhabi Holding.