Most Gulf markets gain on rising oil prices but focus turns to Fed | Reuters
Most stock markets in the Gulf ended higher on Thursday amid rising oil prices but the gains were limited after a surprise interest rate hike by Bank of Canada brought back fears that U.S. rates could stay higher for longer.
The U.S. Federal Reserve's next rate-setting meeting is on June 13-14 and investors are wary it may maintain its hawkish stance.
Oil - which fuels the Gulf's economy - rose as tighter supply resulting from Saudi Arabia's pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown.
Saudi Arabia's benchmark index (.TASI) gained 0.2%, with Al Rajhi Bank (1120.SE) rising 0.4% and Banque Saudi Fransi (1050.SE) advancing 2%.
The Saudi index posted its first weekly gain of 3.5% in four weeks.
Saudi Arabia's economy grew by 3.8% year-on-year in the first quarter of 2023, the General Authority for Statistics said on Thursday, broadly in line with estimates released last month.
Dubai's main share index (.DFMGI) ended flat after rising for nine straight sessions.
The Dubai bourse was volatile after this month's surge as investors moved to secure their gains, said Farah Mourad, senior market analyst of XTB MENA.
"As a result, the main index could record some price corrections over the short term before rebounding, in particular if economic conditions remain strong locally."
In Abu Dhabi, the index (.FTFADGI) fell 0.3%.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1%, as most of the stocks on the index were in positive territory including Commercial International Bank (COMI.CA), which was up 1%.
Saudi Arabia economy grew 3.8% in Q1 boosted by non-oil activities | Reuters
Saudi Arabia's economy grew by 3.8% year on year in the first quarter of 2023, the General Authority for Statistics said on Thursday, broadly in line with estimates released last month.
Non-oil activities grew by 5.4% in Q1 while oil activities grew by 1.4% and government service activity was up by 4.9%, official government data showed.
The statistics authority had estimated growth of 3.9% in the first quarter when it released flash estimates in May.
The Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom's first budget surplus in almost 10 years.
However, oil prices remain muted this year amid an uncertain demand outlook, despite moves by the kingdom which is the world's top oil exporter to make voluntary production cuts, the latest of which was announced on Sunday.
Kingsway Capital in talks with Big Tobacco over AIR stake sale - sources | Reuters
Britain's Kingsway Capital has started meetings with big tobacco firms as the private equity firm prepares to sell its stake in Dubai-based tobacco business Advanced Inhalation Rituals (AIR), two sources familiar with the matter told Reuters.
Kingsway, the majority owner of AIR, has held talks with potential investors including British American Tobacco (BATS.L) and Japan Tobacco (2914.T), said the sources, declining to be named as the matter is not public.
The talks are part of a dual-track process, where a seller pursues a sale and an initial public offering (IPO) at the same time.
Reuters reported in March that Kingsway had hired Rothschild & Co (ROTH.PA) to advise it on options for AIR, including a possible IPO.
Kingsway, Rothschild and Japan Tobacco did not immediately respond to a request for comment. AIR and BAT declined to comment.
An IPO would take place in the region, either on Saudi Arabia's Tadawul or the Abu Dhabi Securities Exchange, the same sources told Reuters in March.
Major Gulf bourses track Asian shares, oil prices lower | Reuters
Most Gulf stock markets looked set to post weekly gains, even as major indexes fell in early trade on Thursday, weighed down by weakness in Asian shares and oil prices.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.48%, after a surprise interest rate hike by the Bank of Canada brought back fears that U.S. rates could stay higher for longer and the Federal Reserve could remain hawkish when it meets next week.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Dubai's main share index (.DFMGI) dropped 0.2% and was on course to snap nine straight sessions of gains, with blue-chip developer Emaar Properties (EMAR.DU) losing 1.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) eased 0.3%.
Oil prices - a key catalyst for the Gulf's financial market - dipped as worries about weakening demand due to the global economic slowdown overshadowed a pending fall in supply with Saudi Arabia's pledged output cuts.
The Qatari stock index index (.QSI) retreated 0.7%.
Saudi Arabia's benchmark index (.TASI) was flat, but on track to register its first weekly gain in four weeks.
The International Monetary Fund (IMF) expects growth in Saudi Arabia to slow to 2.1% in 2023 on the back of OPEC+ production cuts announced in April, it said on Wednesday, lower than its forecast released in May.
