Saudi bourse jumps on earnings; Egypt extends losses | Reuters
Saudi Arabia's stock market ended higher on Sunday boosted by a slew of strong earnings, although the Egyptian bourse extended losses.
Saudi Arabia's benchmark index (.TASI) gained 1.2%, buoyed by a 6% jump in Saudi British Bank (1060.SE), its biggest intraday gain since Dec. 2021, following a steep rise in first-quarter earnings.
The lender reported a quarterly net profit of 1.77 billion riyals ($471.99 million) up from 1 billion riyals year ago.
Among other gainers, oil giant Saudi Aramco (2222.SE) advanced 2%.
Oil prices - a key catalyst for the Gulf's financial markets - jumped on Friday on signs of economic strength, but registered their third weekly decline in a row.
The kingdom's economy grew by 3.9% year-on-year in the first quarter of 2023, according to initial government estimates of real gross domestic product published on Sunday.
In Qatar, the index (.QSI) added 0.3%, with Qatar Islamic Bank (QISB.QA) climbing 2.7%.
However, the index's gains were limited by a 1.1% fall in petrochemical maker Industries Qatar (IQCD.QA) ahead of its earnings announcement.
MSCI's gauge of stocks across the globe (.MIWD00000PUS) closed 1.43% higher on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, falling for a fifth consecutive session, with tobacco monopoly Eastern Company (EAST.CA) losing 1.8%.
Fitch downgraded Egypt to 'B' on Saturday with the outlook as negative. The ratings agency said external financial risk has increased.
Dubai's Efforts to Attract Commodities Companies Got Boost From Ukraine Invasion - Bloomberg
London’s commodities merchants are following some of their Swiss peers to Dubai, as the emirate moves from being an outpost focused on crude to a major energy trading hub.
Dubai has long tried to attract more commodities companies, investing in banking infrastructure and developing exchange-traded futures. Those efforts have helped drive a transformation after the Kremlin’s invasion of Ukraine, with many traders of Russian raw materials rushing to set up businesses in the city as European Union and Swiss sanctions made it harder for them to deal with Moscow.
While London has a much bigger commodities presence, more energy traders are now moving or expanding from the UK capital to Dubai. They’re being enticed by the growing pool of merchant counterparts and low taxes at a time when traders themselves are raking in unprecedented bonuses. Dubai also offers other lifestyle perks, something that’s becoming increasing important to attract top talent.
In the past year, Hartree Partners LP and Freepoint Commodities LLC are among those to move energy traders and senior executives to Dubai, according to people familiar with the matter who asked not to be identified. It shows how historic trading centers like London are starting to lose out to the emirate’s growing appeal.
Saudi Arabia economy grew 3.9% in Q1 boosted by non-oil activities | Reuters
Saudi Arabia's economy grew by 3.9% year-on-year in the first quarter of 2023, according to initial government estimates of real gross domestic product published on Sunday.
Non-oil activities grew by 5.8% in the first quarter from a year prior, the General Authority for Statistics said, citing flash estimates, while oil activities grew by 1.3%. Government services activities grew by 4.9%, it said.
However growth slowed compared to the fourth quarter of 2022, when GDP grew 5.5% year-on-year.
Seasonally adjusted real GDP decreased by 1.3% in the first quarter of this year, compared with the previous quarter as a result of a decline in oil activities by 4.8%, the report said.
The IMF says the Saudi economy grew 8.7% last year, but projects that Saudi GDP growth will more than halve to 3.1%, this year.
Saudi Arabia last month said it would cut oil output by 500,000 barrels per day from May, part of further cuts by OPEC+ oil producers of around 1.16 million bpd.
