Mideast Stocks: Saudi leads most Gulf markets higher; Qatar retreats
Most stock markets in the Gulf ended higher on Monday as oil prices hold above $85 a barrel with the Saudi index hitting its highest since November. Crude prices were steady as investors eyed Chinese first-quarter gross domestic product (GDP) due on Tuesday for signs of demand recovery in the world's second-largest oil consume
Most stock markets in the Gulf ended higher on Monday as oil prices hold above $85 a barrel with the Saudi index hitting its highest since November.
Crude prices were steady as investors eyed Chinese first-quarter gross domestic product (GDP) due on Tuesday for signs of demand recovery in the world's second-largest oil consumer.
The data is expected to be positive for commodity prices, with the International Energy Agency (IEA) forecasting it will account for most of 2023 demand growth.
Saudi Arabia's benchmark index gained 1.2%, hitting its highest since November, buoyed by a 4.7% jump in oil giant Saudi Aramco.
The Saudi stock market continued to extend gains, supported by positive sentiment and strong local fundamentals, said Farah Mourad, Senior Market Analyst of XTB MENA.
"However, the main index could be exposed to some price corrections if investors move to secure their gains at the next open."
Dubai's main share index gained 0.6%, with blue-chip developer Emaar Properties advancing 2.2%. In Abu Dhabi, the index finished 0.2% higher.
Abu Dhabi Commercial Bank, the UAE's third-biggest lender, reported a 27% rise in first-quarter net profit, boosted by higher net interest and non-interest income.
Shares in the lender were flat.
The Qatari index retreated 0.6%, hit by a 2.3% slide in petrochemical maker Industries Qatar. The Egyptian bourse was closed for a public holiday.
Saudi Arabia PIF Unit AviLease Vies for StanChart Leasing Arm - Bloomberg
AviLease, owned by Saudi Arabia’s Public Investment Fund, is among suitors competing to acquire Standard Chartered Plc’s aviation finance business, people familiar with the matter said.
The fledgling Riyadh-based jet lessor is one of several parties that were shortlisted to proceed to the second round of bidding for the unit, the people said, asking not to be identified as the discussions are confidential.
Dublin-based Standard Chartered Aviation Finance manages over 230 aircraft and offers other services such as jet fuel hedging, debt financing and remarketing unneeded planes. An acquisition of the business would help AviLease rapidly gain scale and boost its presence in key leasing markets in the Middle East and other parts of the world.
Discussions are still ongoing and could fall apart without an agreement, the people said. Representatives for PIF and AviLease declined to comment, while a spokesperson for Standard Chartered couldn’t immediately be reached for comment.
Standard Chartered announced in January that it was considering selling its aviation finance business, which it acquired in 2007, as part of its strategy to cut costs and improve shareholder returns.
AviLease was established last year as part of Saudi Arabia’s push to diversify its economy. It is led by Ted O’Byrne, who previously helped oversee Carlyle Group Inc.’s aviation arm.
UAE bank ADCB reports record profit in Q1, up 27% | Reuters
Abu Dhabi Commercial Bank (ADCB.AD), the UAE's third-biggest lender, reported a 27% rise in first-quarter net profit, boosted by higher net interest and non-interest income.
The bank reported a record net profit of 1.878 billion dirhams ($511 million) in the January-March quarter, a bourse filing showed, up from 1.483 billion a year earlier.
"We are pleased to achieve these record quarterly results, especially in light of the heightened uncertainty in the global economy and international banking sector," Chief Executive Alaa Eraiqat said.
Net interest income rose 33% to 2.851 billion dirhams while non-interest income rose 34% to 1.061 billion.
Total customer deposits increased by 19% to 311 billion dirhams as of the end of March while net loans rose 7% to 264 billion dirhams.
Major Gulf markets mixed ahead of earnings, China economic data | Reuters
Major stock markets in the Gulf were mixed early on Monday ahead of earnings and Chinese economic data, with the Saudi index on course to extend gains for a fourth consecutive session.
Crude prices - a key catalyst for the region's financial markets - were steady as investors eyed economic data from China for signs of demand recovery in the world's second-largest oil consumer.
China's first-quarter GDP data due this week is expected to be positive for commodity prices, with the International Energy Agency (IEA) forecasting that it will account for most of the demand growth in 2023.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, led by a 2.2% rise in Dr Sulaiman Al-Habib Medical Services Group (4013.SE) and a 1.7% increase in oil giant Saudi Aramco Base Oil Co JSE (2223.SE).
Elsewhere, shares of Saudi food retailer Almunajem Foods Company (4162.SE) advanced 3.9%, following an upbeat sequential first-quarter net profit.
Dubai's main share index (.DFMGI) added 0.3%, with blue-chip developer Emaar Properties (EMAR.DU) rising 0.8%, and a 4.2% jump in Dubai Financial Markets (DFM.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.2%, hit by a 0.9% fall in conglomerate International Holding (IHC.AD).
The Qatari index (.QSI) also fell 0.4%, weighed by a 2% slide in Qatar National Bank QPSC (QNBK.QA).
Banks in the Middle East and Central Asia have very limited exposure to the banking turmoil in the United States and Europe, but financial pressures are adding to strains caused by high interest rates, volatile oil prices and years of double-digit inflation, a top IMF official said on Saturday.
Abu Dhabi's G42, fund Mubadala combine healthcare assets | Reuters
Emirati intelligence firm G42 and Abu Dhabi state fund Mubadala Investment Company have combined their healthcare assets into a new company named M42, they said in a joint statement on Monday.
M42, to be led by group chief executive and managing director Hasan Jasem Al Nowais, will own a large portfolio which includes Imperial College London Diabetes Centre, Danat Al Emarat, and HealthPoint Hospital.
M42 will also look at "opportunities for global expansion and partnerships with pharmaceutical, healthcare, and healthtech leaders to bring high-quality care to communities around the world," the statement said.
Dubai's Network International receives $2.5bln takeover proposal
Dubai-based payments provider Network International has received a takeover proposal from a consortium of CVC Capital and Francisco Partners regarding a possible cash offer of 387 pence per Network share for the entire issued and to be issued share capital of the company.
The proposal values the London Stock Exchange-listed company at around 2 billion pounds ($2.5 billion), according to a Reuters report.
In a regulatory filing on the exchange, Network, which focuses on the Middle East and Africa, said if a firm offer is made, its board will recommend the proposal to the shareholders.
CVC Capital Partners is a French private equity firm with more than $130 billion as assets under management. Francisco Partners is a global investment firm that specializes in partnering with technology and technology-enabled businesses.
Dubai-based lender Emirates NBD holds 6% in Network International.
The offer from the consortium follows earlier proposals which the payments company had rejected.
Network's shares are trading up 1% at 304 pence on Monday.
