Most Gulf markets in red ahead of Eid break, interest rate hike worries | Reuters
Most stock markets in the Gulf ended lower on Wednesday in thin trade ahead of Eid al-Fitr holidays and weighed by concerns around interest rate hikes, with the Dubai index leading the losses.
The U.S. Federal Reserve is likely to have one more interest rate rise in store, Atlanta Fed President Raphael Bostic said on Tuesday, as the central bank continues to battle inflation.
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.
Dubai's main share index (.DFMGI) declined 1.2%, dragged down by a 5.2% slide in Dubai Electricity and Water Authority (DEWAA.DU) as the stock traded ex-dividend.
In Abu Dhabi, the index (.FTFADGI) ended flat.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for at least three days in most Gulf countries.
The Qatari index (.QSI) fell 0.1%, declining for a sixth consecutive session, with Qatar Islamic Bank (QISB.QA) losing 2.3%.
The Qatari bourse maintained its downtrend with uncertainties around the developments in natural gas markets affecting confidence, said Ahmed Negm, head of market research MENA at XS.com.
"Investors were also concerned about the global economic developments and the resilient inflation levels in Europe. Tighter monetary policies could affect demand for energy products and the local economy."
Outside the Gulf, Egypt's blue chip index (.EGX30) finished 0.1% lower, as profit-taking continues.
According to Negm, international investors continue to drive selling pressures with these investors in particular taking a more cautious approach following global developments and local risks.
** Saudi was close for Eid
Billionaire Ray Dalio Set to Open Branch of Family Office in Abu Dhabi - Bloomberg
Ray Dalio is setting up a branch of his family office in Abu Dhabi, part of the hedge fund billionaire’s deeper push into the Middle East.
The Bridgewater Associates founder has cultivated a close relationship with the United Arab Emirates leadership over several decades and the new setup in the country’s capital builds upon the Dalio Family Office’s existing hubs in the US and Singapore, according to people familiar with the matter.
The new office will be located in Abu Dhabi Global Market, the international financial free zone in the emirate, which has wooed a cadre of big hedge funds, venture capital firms and crypto companies this past year.
Plans are underway to bring in a team of experienced investment professionals to lead the arm of the family office, said the people, who requested anonymity as the matter is private.
Mubadala-backed M42 buys Bridgepoint's dialysis firm Diaverum | Reuters
Abu Dhabi's M42, a newly created healthcare joint venture between state fund Mubadala Investment Company and artificial intelligence firm G42, is buying Bridgepoint Group's European dialysis clinic chain Diaverum.
The deal, which is expected to close this year subject to regulatory approvals, values the Sweden-based firm at about $2-$2.5 billion, a person familiar with the matter told Reuters.
It will make M42 the largest healthcare company in the Middle East, it said in a statement.
Diaverum, founded in 1991, is a multinational firm that provides renal care and operates 440 clinics in 23 countries.
Gulf investors have been eyeing opportunities in Europe and elsewhere amid global volatility, supported by proceeds from oil sales after prices last year reached their highest levels since 2008.
Mubadala and G42 said on Monday they were combining their healthcare assets into M42, which will own a large portfolio including Imperial College London Diabetes Centre, Danat Al Emarat, and HealthPoint Hospital.
Mubadala does not disclose financials related to transactions, a spokesperson said on Wednesday.
Dubai Islamic Bank posts 12% rise in Q1 profit, beats estimate
Dubai Islamic Bank, the UAE’s largest Islamic lender, posted a 12% jump year-on-year (YoY) in its Q1 2023 net profit to 1.5 billion dirhams ($408 million), driven by higher revenues and lower impairments.
The earnings beat Refinitiv’s mean analysts’ estimate of AED 1.43 billion.
Net financing and sukuk investments came in at AED 240 billion, up 1% year-to-date with nearly AED 21 billion in new underwriting during Q1 2023 vs AED 15 billion in Q1 2022, the Dubai Financial Market-listed lender said in a statement on Wednesday.
Impairment charges fell to AED 496 million, down 24% YoY.
Net operating revenues rose 12% YoY to reach AED 2.75 billion.
