Monday 7 August 2023

Most Gulf markets track oil, global shares lower; Egypt gains | Reuters

Most Gulf markets track oil, global shares lower; Egypt gains | Reuters


Most stock markets in the Gulf ended lower on Monday, tracking a fall in oil and global shares, while the Egyptian index extended gains from the previous session.

Oil prices - a key catalyst for the Gulf's financial markets - edged lower following a protracted rally, but retained support from pledges by top producers Saudi Arabia and Russia to extend supply cuts through September.

Saudi Arabia's benchmark share index (.TASI) gave up early gains to close down 0.7%, extending losses for a sixth consecutive session.

However, the losses were limited by a 1.1% rise in oil giant Saudi Aramco (2222.SE).

Aramco reported a net profit of 112.81 billion riyals ($30.07 billion) for the second quarter, beating a company-provided median estimate from 15 analysts of $29.8 billion.

The group declared a base dividend of just over $19.51 billion for the second quarter, roughly in line with its payout for the first quarter.

It also said it will begin paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter.

The Saudi stock market recorded strong price swings as traders reacted to mitigated earnings reports from Saudi companies, said Milad Azar, market analyst at XTB MENA.

"The uncertainty around the developments in the oil market could also fuel volatility," he said.

In Abu Dhabi, the share index (.FTFADGI) gained 0.4%, supported by a 14.6% surge in Q Holding (QHOLDING.AD) after its board decided to proceed with an offer from ADQ and IHC to sell to Q Holding shares in Modon Properties, ADNEC and other assets in which ADQ and IHC have stakes in exchange for shares in Q Holding.

Qatar's stock index (.QSI) slipped 0.2%, hit by a 1.5% fall in petrochemical maker Industries Qatar (IQCD.QA).

Dubai's main share index (.DFMGI) fell 0.1%, with Emirates Central Cooling Systems (EMPOWER.DU) retreating 2.1%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.8%, as most of the stocks on the index were in positive territory including Beltone Financial Holding (BTFH.CA), which was up 5.9%.

The Egyptian bourse remained on an uptrend this week supported by international investors, said Azar.

"Some risks could remain as the main index approaches its previous peak where it could find some resistance."

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