Most Gulf markets gain; Egypt extends losses | Reuters
Most stock markets in the Gulf ended higher on Sunday in response to Friday's rise in oil prices, while the Egyptian index extended losses for a fourth session.
Oil prices -- a key catalyst for the Gulf's financial markets -- climbed about 3% to a nine-week high on Friday as supply concerns and technical buying outweighed fears that further interest rate hikes could slow economic growth and reduce demand for oil.
Saudi Arabia's benchmark index (.TASI) rose 0.1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) gaining 1.1%.
The kingdom has raised the prices for most its crude oil to Asian customers in August for a second month, after its announcement of prolonging an extra output cut on top of a broader OPEC+ deal.
In Qatar, the index (.QSI) gained 0.3%, led by a 1.8% increase in telecoms firm Ooredoo (ORDS.QA).
OPEC will likely maintain an upbeat view on oil demand growth for next year when it publishes its first outlook later this month, predicting a slowdown from this year but still an above-average increase, sources close to OPEC said.
Outside the Gulf, Egypt's blue-chip index (.EGX30) slid 3.2%, extending losses for a fourth session, as foreign investors continue to sell amid difficult economic conditions locally and internationally.
Almost all the stocks on the index were in negative territory including Misr Fertilizers (MFPC.CA), which retreated about 18%.
Saudi National Bank Wanted 40% Stake in Credit Suisse: Blick - Bloomberg
Credit Suisse’s largest shareholder, the Saudi National Bank, wanted to raise its stake to 40% ahead of the Swiss bank’s collapse in March, Swiss newspaper Blick reported.
The lender, which held just under 10% of Credit Suisse shares, had approached the Swiss government and regulators with a group of investors to inject $5 billion into the beleaguered bank, according to the newspaper, which cited two sources it didn’t identify.
Swiss regulator Finma vetoed the investment offer, Blick reported. Under Swiss law, major foreign shareholders must receive approval from Finma to own a larger than 10% stake in a Swiss bank.
The Saudi National Bank didn’t immediately respond to requests for comment. Credit Suisse declined to comment. Finma didn’t respond to requests for comment from Bloomberg News outside of normal business hours.
Credit Suisse was acquired by UBS Group AG in an emergency deal in March, brokered by the Swiss government. The Saudi National Bank’s Credit Suisse holdings were converted to about a 0.5% stake in UBS after the lenders completed the deal.
The Saudi bank’s former chairman, Ammar Al Khudairy, resigned days after his comments to Bloomberg TV helped trigger the slump in the stock and bonds that prompted the Swiss government to step in and arrange the takeover.
Saudi Oil Cuts Throw Last Year’s Standout Economy Into Slow Lane - Bloomberg
Saudi Arabia’s decision to extend its oil production cuts — part of a so far largely unsuccessful bid to raise prices — may trigger an economic contraction in what was the Group of 20’s fastest-growing country last year.
It would be a stark turnaround for the $1 trillion economy, which surged almost 9% in 2022, helping Crown Prince Mohammed bin Salman invest tens of billions of dollars in everything from sports to tourism and new cities.
The boom was propelled by record crude output of around 10.5 million barrels a day and prices averaging $100 a barrel as Russia’s invasion of Ukraine roiled energy markets.
With a global economic slowdown now weighing on crude demand, Riyadh is lowering output this month and next to just 9 million barrels a day, a level the kingdom’s rarely reached in the past decade. The move has lifted prices, but only slightly. Brent is trading around $78.50 a barrel, down almost 9% this year.
Turkey expects $10 billion in Gulf investments after upcoming Erdogan visit, sources say | Reuters
Turkey expects Gulf countries to make direct investments of about $10 billion initially in domestic assets as part of President Tayyip Erdogan's trip to the region in two weeks, according to two senior Turkish officials.
Erdogan is scheduled to visit leaders in Saudi Arabia, Qatar and the United Arab Emirates on July 17-19, in part to drum up foreign funding that would boost Turkey's strained economy after his re-election in May.
The sources, who spoke on condition of anonymity given the talks are private and deals are not yet finalised, said overall investments of up to $30 billion are expected over a longer period in Turkey's energy, infrastructure and defence sectors.
Direct investments worth about $10 billion "should come within a short time and this is crucial," said one of the officials. "Expectations are high for the Gulf visit. Some important agreements will be signed."
