Most Gulf markets gain as interest rate fears ease | Reuters

Most Gulf markets gain as interest rate fears ease | Reuters

Most Gulf stock markets closed higher on Wednesday, tracking oil and global equities after comments from the head of the U.S. Federal Reserve boosted risk appetite, though the Qatar index fell amid energy price volatility.

The Fed's Jerome Powell told a Q&A session at the Economic Club of Washington that he expects 2023 to be a year of "significant declines in inflation", raising investor hopes for a slowing in the pace of increases to interest rates.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to direct impact from monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, snapping a seven-day losing streak, with oil behemoth Saudi Aramco (2222.SE) climbing 1.3% while petrochemicals giant Saudi Basic Industries (2010.SE) rose by 1.9%.

Oil prices - a key contributor to Gulf economies - jumped more than 1% on supply concerns after an earthquake shut a major export terminal in Turkey and on prospects of demand growth in China.

Brent crude futures rose 86 cents, or 1.03%, to $84.55 a barrel by 1053 GMT.

Dubai's benchmark index (.DFMGI) settled 0.4% higher, gaining for a sixth straight session, as momentum in heavyweight stocks in the real estate sector helped to keep it in positive territory.

Blue-chip developer Emaar Properties (EMAR.DU) and business park operator Tecom Group (TECOM.DU) climbed by 2% and 5.3% respectively.

A 3% jump in real estate developer Aldar Properties (ALDAR.AD) bolstered Abu Dhabi's benchmark index (.FTFADGI), which was up 0.1% at the close.

Aldar is due to announce full-year earnings on Feb. 9.

Qatari index (.QSI) dipped 0.7%, as losses in banking and materials sector sapped early gains.

Qatar Islamic Bank (QISB.QA) declined 2.3% and fuel retailer Qatar Fuel (QFLS.QA) dropped by 1.9%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.3% despite most constituents finishing in the red, with the index lifted by a 1.9% gain for Commercial International Bank Egypt (COMI.CA).

Separately, ratings agency Moody's lowered Egypt's sovereign rating by a notch to B3 from B2 on Tuesday, citing the country's reduced external buffers and shock absorption capacity.

#UAE's Dana Gas FY 2022 net profit drops 43%; misses estimates

UAE's Dana Gas FY 2022 net profit drops 43%; misses estimates

The UAE-based Dana Gas reported a 43% year-on-year (YoY) drop in full-year (FY) 2022 net profit to $182 million from $317 and warned of challenges related to collections in Kurdistan and Egypt operations.

The result missed the analysts’ mean profit estimates of $223.50 million as compiled by data provider Refinitiv.

Dana, which is the Middle East's largest private sector natural gas company, said excluding other income and impairments, adjusted net profit rose 53% to $196 million compared with $128 million in 2021.

Revenue rose 17% to $529 million due to higher realised prices and production output in the Kurdistan Region of Iraq (KRI).

Manchester United (MANU) Shares Surge as Qatari Report Stokes M&A Bets - Bloomberg

Manchester United (MANU) Shares Surge as Qatari Report Stokes M&A Bets - Bloomberg

Manchester United shares surged on growing M&A speculation following a Daily Mail report that Qatari investors are planning to make a bid for the English Premier League club in the coming days.

Shares in the football club jumped as much as 18% in US premarket trading, set for their biggest one-day gain since November. A bid would come from separate, individual Qatari investors who want a full takeover, the Daily Mail reported late Tuesday citing people it didn’t identify. Manchester United representatives didn’t immediately reply to a request for comment.

The iconic club has been at the center of bid chatter since last year, with shares soaring in November on news that its current owners, the Florida-based Glazer family, were mulling a potential sale of the team.

Possible suitors for the club include British billionaire and fan Jim Ratcliffe, while Saudi Arabia’s sports minister Prince Abdulaziz bin Turki Al-Faisal told the BBC last year that its government would support private sector bids for the team, as well as Liverpool FC.

Manchester United’s shares traded 13% higher in the US premarket as of 9:30 a.m. in London, after having fallen over 9% this year up to Tuesday. They surged 64% in 2022.

Hong Kong Targets Prized Aramco Listing With Xi’s Backing - Bloomberg

Hong Kong Targets Prized Aramco Listing With Xi’s Backing - Bloomberg

Two months after Chinese President Xi Jinping visited Saudi Arabia, Hong Kong’s leader John Lee has followed in his footsteps by taking a sizable entourage to the kingdom.

Lee, who wrapped up a two-day trip to Saudi on Monday, made it clear his goal is to persuade oil giant Saudi Aramco to list in the financial hub despite competition from rivals such as New York and London. Such a move would be a major victory for Lee, who, since taking power in July, has focused on reopening Hong Kong after years of pandemic isolation battered the city’s economy and reputation.

Aramco has a market capitalization of about $1.9 trillion, more than four times that of Tencent Holdings Ltd., the most valuable stock on the Hong Kong exchange. Securing such a listing would not only add much-needed diversity to the China-dominated bourse, which has seen $2.3 trillion erased in the past two years as global investor confidence in the country collapsed, but also further Xi’s aims of deepening ties with the Gulf.

“When China is thinking about new partners, new allies, it’s seeking to use Hong Kong more from the financial perspective,” said Dongshu Liu, assistant professor specializing in Chinese politics at the City University of Hong Kong. “If you’re taking about financial cooperation between those countries, a big hub is needed.”

#Russia's MTS bank has #UAE licence -central bank website | Reuters

Russia's MTS bank has UAE licence -central bank website | Reuters

The Central Bank of the United Arab Emirates has granted a licence to Russia's MTS Bank, according to information on its website.

MTS Bank is registered in Abu Dhabi and received the licence last year, the information shows.

It is a fintech unit of Russia's largest mobile operator Mobile TeleSystems. The Financial Times reported the approval from the central bank earlier on Wednesday.

Sweeping Western sanctions against Russia have not yet directly targeted telecoms infrastructure, meaning MTS does not face the same restrictions as some banks and energy companies.

Gulf bourses open higher on less-hawkish Fed stance | Reuters

Gulf bourses open higher on less-hawkish Fed stance | Reuters

Gulf stock markets trended higher on Wednesday after less-hawkish comments from U.S. Federal Reserve Chair Jerome Powell lifted sentiment and fuelled investor hopes that it may soon ease monetary policy.

In an eagerly awaited speech earlier on Tuesday, the Fed's Powell reiterated that disinflation has begun.

With less-aggressive interest rate hikes in the United States, the market is hoping the world's biggest economy and oil consumer can dodge a sharper slowdown in economic activity or even a recession and avoid a slump in oil demand.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

The Qatari Stock index (.QSI) rose 0.4%, lifted by gains in almost all sectors with Qatar Insurance jumping 5.5%, and heavyweight Islamic bank Qatar Islamic Bank climbing 1.1%.

Gulf's largest lender Qatar National Bank rose 0.4%, recouping losses after two sessions of decline.

Dubai's benchmark stock index (.DFMGI) rose marginally with Emaar Properties rising 1.1% and tolls operator Salik gaining 0.8%. But, Dubai's biggest lender Emirates NBD and Emirates Central Cooling (EMPOWER.DU) declined 0.7% and 0.6%, respectively.

Saudi Arabia's stock index (.TASI) edged 0.1% higher to snap seven sessions of losses. The benchmark index was aided by energy and healthcare sectors with oil giant Saudi Aramco rising 0.5% and Dr Sulaiman Al-Habib Medical gaining 0.3%.

The luxury real estate developer Retal Urban and Saudi British Bank fell 0.6% and 3.1%, respectively.

In Abu Dhabi, the benchmark stock index (.FTFADGI) opened 0.2% higher, supported by a nearly 1% gain in Alpha Dhabi and 0.8% rise in largest lender by assets, First Abu Dhabi Bank.

Abu Dhabi National Hotels jumped 4.4% after the lender reported an increase in its full-year net profit.