Gulf markets upbeat despite volatile oil, economic gloom | Reuters
Most major Gulf markets extended their gains on Tuesday despite a gloomy global economic outlook and volatile oil prices, although Dubai fell.
Equity markets around the globe have been bruised by inflation worries, a tightening Fed policy and volatility on energy markets, whipped up by war in Ukraine and a price cap on Russian oil.
Crude prices, which strongly influence Gulf financial markets, swung wildly in 2022 and are expected to be under pressure in 2023.
A Reuters poll on Friday showed 30 economists and analysts forecast Brent crude will average $89.37 a barrel in 2023, about 4.6% lower than the $93.65 consensus in a November survey. The global benchmark averaged $99 per barrel in 2022.
Farah Mourad, Senior Market Analyst of XTB MENA said the Gulf stock markets were mostly seeing positive performances, but the outlook for energy markets was uncertain given geopolitical tensions in Europe and China COVID-19 restrictions.
A survey on Tuesday found that growth in Saudi Arabia's non-oil business activity shrank to a three-month low in December, although higher sales and strong demand ensured firms remained confident for the coming year.
The seasonally-adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index fell to 56.9 in December from 58.5 in November. It was the lowest reading since September but was well above the 50 mark separating growth from contraction.
Saudi Arabia's benchmark index (.TASI) rose 0.8%, extending gains to a third session in a row, buoyed by its banking stocks as Al Rajhi Bank (1120.SE) and Saudi National Bank (1180.SE) gained 1.4% and 1.2% respectively.
The benchmark index (.QSI) in Qatar - among the world's top exporters of liquefied natural gas - gained 0.7%, boosted by a 3.5% hike in Industries Qatar (IQCD.QA).
In Abu Dhabi, the index (.FTFADGI) also advanced 0.3%, extending gains from the previous session, as country's largest lender First Abu Dhabi Bank (FAB.AD) was up 0.5%.
Dubai's main share index (.DFMGI), however, eased 0.1%, following a 0.7% decline in sharia-complaint lender Dubai Islamic Bank (DISB.DU) and a 0.7% dip in Emirates Central Cooling Systems Corporation (EMPOWER.DU).
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.7%, with Misr Fertilizer Production Co (MFPC.CA) climbing 4.6% while e-Finance For Digital and Financial Investments was up 1.9%.
Oil Rich Kuwait Falls Behind Saudi, UAE, Qatar in Middle East Spending Spree - Bloomberg
After driving over a potholed street in one of the world’s wealthiest petrostates, Fatima Al-Sane joined an online protest. Instead of taking her complaints to a local authority or railing against the government, she posted a banned rainbow flag.
The global LGBTQ rights symbol gained wider resonance during the World Cup in Qatar, but in the neighboring conservative Gulf state of Kuwait it’s taken on a more unusual role. It’s not being used to rally for rights, but to bait authorities into fixing a country citizens like Al-Sane say is falling behind as some politicians focus on issues like gender segregation rather than the economy.
“It was just basically a message, about the priority crisis, weak education, weak medical and health sectors, no development,” said Al-Sane, 42, who works in the public sector. She posted the image to poke fun at conservative Kuwaiti lawmakers, some of whom have hit out against rainbow-colored toys and Christmas trees in the Muslim-majority state.
In a region that’s plowing ahead with everything from hosting global sporting events and building whole new cities in the desert to sending a mission to the moon, Kuwait stands out more for what it’s not doing.
Dubai regulator upholds $135.6 million fine on Abraaj founder and former CEO | Reuters
Dubai’s financial regulator said on Tuesday it upheld a $135.6 million fine on collapsed private equity firm Abraaj Group's founder and former CEO Arif Naqvi "for his serious failings" in respect of the company.
Dubai-based Abraaj was the largest buyout fund in the Middle East and North Africa until it collapsed in 2018 after investors raised concerns about the management of its $1 billion healthcare fund.
The Dubai Financial Services Authority (DFSA), the emirate’s financial regulator, on January 27 imposed a ruling which banned Naqvi from the emirate's financial centre and included a $135 million fine.
Naqvi disputed the findings and presented his case for review by the Financial Markets Tribunal (FMT), an independent appeal tribunal.
Most Gulf markets edge up as oil prices recover | Reuters
Most stock markets in the Gulf edged up on Tuesday as benchmark oil prices, the key catalyst for the region's financial markets, recovered from early losses.
Brent crude futures , which had fallen earlier by $1 a barrel, rebounded to $86.29 a barrel by 0737 GMT.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, extending gains to a third session in a row, supported by a 0.5% rise in Sulaiman Al-Habib Medical Services (4013.SE) shares and as luxury real estate developer Retal Urban Development Co (4322.SE) edged up 0.3%.
Among other stocks, Etihad Atheeb Telecom (7040.SE) gained for a second day after it signed a more than 105-million-riyal ($27.9 million) contract with Saudi Arabia's Najran and Tabuk provinces on Sunday.
The benchmark index (.QSI) in Qatar - among the world's top exporters of liquefied natural gas - gained 0.4%, led by a 2% gain in Industries Qatar (IQCD.QA) while its sharia lender Qatar Islamic Bank (QISB.QA) was up 1.7%.
In Abu Dhabi, the index (.FTFADGI) also advanced 0.4%, extending gains from the previous session, as United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) rose 0.5%.
Dubai's main share index (.DFMGI), however, eased 0.2%, following a 0.7% decline in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 1.4% slump in Emirates Central Cooling Systems Corporation (EMPOWER.DU).
Saudi Arabia News: Jobs Growth Is Strongest in Half Decade Amid Business Boom - Bloomberg
Saudi Arabia saw the strongest increase in employment in almost five years even as business conditions in its non-oil economy improved at a slightly slower pace at the end of last year following a surge.
Companies sought to add to their staffing capacity in response to an increase in sales and higher demand, according to a survey of purchasing managers compiled by S&P Global and published on Tuesday.
The Riyad Bank Saudi PMI stood at 56.9 in December, well above the 50-mark separating growth from contraction. The gauge reached 58.5 in November, the highest reading in more than seven years.
“We see operating conditions remaining favorable in December, characterized by rapid growth in the non-oil activities and a robust labor market by the end of 2022, with both jobs and wages having far more momentum than previously thought,” said Naif Al-Ghaith, chief economist at Riyad Bank.
Saudi non-oil private sector activity eases in December | Reuters
Growth in Saudi Arabia's non-oil business activity slowed to a three-month low in December, a survey showed on Tuesday, although higher sales and strong demand ensured firms remained confident about the outlook for the coming year.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index fell to 56.9 in December from 58.5 in November. It was the lowest reading since September but was still well above the 50 mark separating growth from contraction.
The rate of job creation was the fastest recorded in almost five years, with the employment subindex rising to 52.0 in December from 50.6 in November. Firms mostly linked this growth to the trend towards higher new orders.
However, the output subindex softened to 61 from November's 64.6 while the pace of growth in new orders also slowed.
The Saudi government has estimated GDP growth of almost 9% in 2022, revised up from its earlier estimates, with the finance ministry attributing the adjustment largely to non-oil private sector activity.
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