Mideast Stocks: #UAE markets fall on concerns of global economic slowdown

Mideast Stocks: UAE markets fall on concerns of global economic slowdown

Stock markets in the United Arab Emirates closed in the red on Friday, tracking global equities after economic data from the U.S. and China fuelled concerns of a global slowdown. U.S. jobless claims jumped to a 1-1/2-year high last week, while producer prices rebounded modestly in April, suggesting a slowing economy.

Meanwhile, a decline in new loans to businesses in China and weaker economic data earlier in the week, are adding to worries that the country's post-pandemic recovery is losing steam.

The Abu Dhabi benchmark index dropped 0.4%, extending declines from the previous session, with state-owned firm Adnoc Gas Plc falling 2.1%, while investment firm Multiply Group PJSC slipped 1%. Bucking the trend, IHC -owned Alpha Dhabi Holding PJSC rose 0.6% after the firm picked up a 36.4% stake in National Corp for Tourism & Hotels in a 730 million dirhams ($198.8 million) deal.

Dubai's benchmark index settled 0.3% lower, weighed by losses in utilities and communication sector stocks, with most stocks trading in negative territory. Dubai telco Emirates Integrated Telecommunication dipped 1.7% and low-cost carrier Air Arabia PJSC lost 1.3%.

However, Dubai-based real estate heavyweight Emaar properties PJSC gained 1.2% as the developer recorded a 43% jump in first-quarter net profit to 3.2 billion dirhams.

The Dubai stock market continues to record price corrections, with traders becoming increasingly cautious in reaction to mitigated earnings reports locally and unceasing concerns about the health of the U.S. banking sector, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Dubai #AbuDhabi close

European, Middle Eastern & African Stocks - Bloomberg

Oil prices head for fourth weekly drop as demand fears weigh | Reuters

Oil prices head for fourth weekly drop as demand fears weigh | Reuters

Oil prices slipped on Friday, heading for a fourth weekly decline, as renewed economic concerns in the United States and China revived concern about fuel demand growth in the world's two largest oil consumers.

Brent crude futures fell 43 cents, or 0.57%, to $74.55 a barrel by 0931 GMT. West Texas Intermediate (WTI) U.S. crude futures were down 33 cents, or 0.47%, to $70.54.

Both benchmarks are set to fall by more than 1% for the week, which would be the longest streak of weekly declines since November 2021.

#Saudi IPOs Shelved in Cooling Middle East Markets - Bloomberg

Saudi IPOs Shelved in Cooling Middle East Markets - Bloomberg

The Middle East’s IPO market, until only recently a boom amid the gloom, is returning to Earth with a bump–or two.

Earlier today, colleagues Dinesh Nair, Julia Fioretti and Matthew Martin reported that Saudi Aramco is pushing back a planned Riyadh listing of its energy-trading business, a deal that would have ranked as one of the world’s largest share sales this year.

Then, soon after, Dinesh, Julia and Swetha Gopinath broke the news that ADES International, the oil and gas driller backed by Saudi Arabia’s wealth fund, has delayed its planned $1 billion IPO to the second half.

Companies have raised $3.5 billion from IPOs on exchanges in the Middle East this year, down almost 70% on the same period in 2022, according to data compiled by Bloomberg.

That’s quite a change in the narrative from last year, when ECM bankers contending with the world’s worst IPO slump since the financial crisis were at least able to bask in the glow of a scorching listings market in the Middle East. The region was one of few where deals got pushed through in the face rising interest rates and soaring inflation.

But oil prices have fallen from the highs hit in 2022 after Russia’s invasion of Ukraine, and a mini banking crisis in the US and Europe also did nothing for the stability of global stocks in recent months. Saudi’s IPO market has been particularly quiet this year. The kingdom’s benchmark Tadawul All Share Index is down about 15% over the last 12 months.

#Dubai Salik Q1 net profit flat despite rise in toll revenue

Dubai Salik Q1 net profit flat despite rise in toll revenue

Dubai's toll operator Salik has posted a net profit of 275 million dirhams ($75 million), flat year-on-year (YoY).

Salik listed on the Dubai Financial Market (DFM) last year, following a 20% stake sale.

On a sequential quarter basis, the net profit was 4% lower as higher toll usage revenue was offset by higher finance costs, the company said in a regulatory filing on DFM on Friday.

During the quarter, Salik "recorded the highest level of quarterly revenue-generating trips and toll usage revenue" since the start of operations in 2007, at 113.6 million trips netting AED454 million.

Toll usage revenue, which contributed 87% to total revenue, increased 8% YoY on the back of "a return to business-as-usual in Dubai following the complete lifting of Covid-19 restrictions, as well as solid organic growth in commercial and tourist activity," it said.

The number of vehicles registered with Salik increased 7% YoY to 3.9 million.

Free cash flow stood at AED325 million.

Vodafone’s largest shareholder e& to take board seat as ties deepen | Financial Times

Vodafone’s largest shareholder e& to take board seat as ties deepen | Financial Times

Vodafone has announced plans to deepen its ties with United Arab Emirates telecoms group e&, which has amassed an almost 15 per cent stake in the UK operator and will now have a seat on its board. 

Under a plan set out on Thursday, Hatem Dowidar, chief executive of e&, will join Vodafone’s board as the two companies said they would work together in areas including procurement and offering services to multinationals. 

Dowidar will have a board seat as long as Abu Dhabi-listed e& retains its 14.6 per cent stake. If its holding climbs above 20 per cent, the group will be able to nominate a second non-executive director. 

State-controlled e&’s stakebuilding began in May 2022 and comes as Vodafone faces increasing pressure to improve a performance blighted by its struggles in the German market. Vodafone’s challenges in Germany contributed to the exit of Nick Read as chief executive last year.

#UAE's Royal Group looking at opportunities in US market -chair | Reuters

UAE's Royal Group looking at opportunities in US market -chair | Reuters

The chairman of Abu Dhabi-based conglomerate Royal Group, Sheikh Tahnoon bin Zayed Al Nahyan, said on Thursday that the company has identified a number of "outstanding" investment opportunities in the U.S. market that it plans to pursue.

"First and foremost, I'd like to reiterate that I firmly believe in the stability and potential of the US market," Sheikh Tahnoon, who rarely speaks publicly about investments, said in a statement to Reuters.

"Despite current fluctuations, we have identified a number of outstanding investment opportunities that we plan to pursue."

Sheikh Tahnoon is one of the most powerful members of the UAE's ruling Nahyan family and brother of UAE President Sheikh Mohamed bin Zayed. He is one of two deputy rulers of oil-rich Abu Dhabi and oversees a sprawling investment and business portfolio in the emirate.

Royal Group's businesses and subsidiaries span several sectors including healthcare, real estate and construction, AI, technology, hospitality and media, among others.

"I want to make it clear that we do not support nor engage in shorting the market," Sheikh Tahnoon also said, referring to recent market speculation.

"We believe in investing for the long-term and actively seeking out opportunities that create meaningful, lasting impact."

In March, Sheikh Tahnoon was appointed chairman of the Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the world, in addition to his role as chair of ADQ, another, smaller Abu Dhabi investment fund.

In its 2021 Review released last October, ADIA said its long-term portfolio strategy sets exposure to North America at a range of 45% to 60%, to Europe at 15% to 30% and emerging markets at 10% to 20%.