Most Gulf markets in black ahead of US inflation data; Egypt eases | Reuters
Most stock markets in the Gulf ended higher on Wednesday, as traders awaited a crucial U.S. inflation reading to determine whether the Federal reserve is at the end of its rate hike cycle.
Most Gulf Cooperation Council (GCC) countries, including Qatar, Saudi Arabia and the United Arab Emirates, 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.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, extending gains from the previous session, led by a 5.2% jump in Banque Saudi Fransi (1050.SE).
The kingdom has signed a Treaty of Amity and Cooperation with the Association of Southeast Asian Nations (ASEAN), Saudi state news agency reported on Wednesday.
The Saudi bourse extended gains thanks to strong local fundamentals. The recent rebound in oil prices could also contribute to improving traders' expectations, said Daniel Takieddine, CEO MENA at BDSwiss.
"At the same, the market could continue to see some downside risks with the possibility of price corrections if traders move to secure their gains."
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
The Qatari benchmark index (.QSI) gained 0.4%, as most of its constituents were in the positive territory including petrochemical maker Industries Qatar (IQCD.QA), which was up 2.1%.
Dubai's main share index (.DFMGI) gave up early gains to end flat.
Dubai residential property prices in the year to June 30 rose at their fastest pace in almost a decade, climbing by 16.9%, while average rents jumped by 22.8%, property consultancy CBRE said on Tuesday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, hit by a 3.2% fall in Misr Fertilizers Production Co (MFPC.CA).
The Egyptian stock market remained at risk with global traders maintaining their selling spree, said Takieddine. With attention turning to the U.S., volatility could be significant in the coming trading session.
Abu Dhabi’s Multiply Group buys a stake in Breakwater Energy for $100 million
Abu Dhabi’s Multiply Group has bought a minority stake in Breakwater Energy for Dh367 million ($100 million) to increase its global portfolio.
Breakwater Energy is a unit of EIG, a top institutional investor in the global energy and infrastructure sectors. It acquired a 25 per cent interest in Spain's Repsol E&P, a gas-weighted exploration and production company comprising Repsol’s entire global upstream oil and gas business for $4.8 billion including debt in March.
Repsol’s globally diversified portfolio of upstream assets comprises more than 550,000 barrels of oil equivalent per day of production and operations in 15 countries. Repsol plans to use the proceeds of this transaction to expand its low-carbon platforms around the world, Multiply Group said on Wednesday in a statement to the Abu Dhabi Securities Exchange.
Repsol and EIG also foresee the potential to list the business in the US from 2026 onward, subject to favourable market conditions.
“The minority stake in Repsol E&P through EIG’s Breakwater Energy is a good fit for our Multiply+ portfolio, which identifies attractive dividend-paying investments with mid-to-short term horizon,” said Samia Bouazza, group chief executive and managing director at Multiply Group.
Most Gulf markets gain ahead of US inflation data; Abu Dhabi falls | Reuters
Most major stock markets in the Gulf rose in early trade on Wednesday ahead of U.S. inflation data that could provide clues to the Federal Reserve's rate hike path going ahead.
Most Gulf Cooperation Council (GCC) countries, including Quatar, Saudi Arabia and the United Arab Emirates, 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.
Saudi Arabia's benchmark index (.TASI) gained 0.7%, with Riyad Bank (1010.SE) rising 2.4% and Saudi National Bank (1180.SE) putting on 2.2%.
Separately, the kingdom has signed a Treaty of Amity and Cooperation with the Association of Southeast Asian Nations (ASEAN), Saudi state news agency reported on Wednesday.
Dubai's main share index (.DFMGI) rose 0.2%, trading at its highest since late 2015, driven by a 0.7% rise in blue-chip developer Emaar Properties (EMAR.DU).
Dubai residential property prices in the year to June 30 rose at their fastest in almost a decade, climbing by 16.9%, while average rents jumped by 22.8%, property consultancy CBRE said on Tuesday.
The average apartment price per square foot reached 1,294 dirhams ($352.31) and villas averaged 1,525 dirhams per sq ft.
In Qatar, the index (.QSI) was up 0.1%, helped by a 1.3% rise in petrochemical maker Industries Qatar (IQCD.QA).
The Abu Dhabi index (.FTFADGI), however, bucked the trend to trade 0.1% lower.
Oil prices - which fuels the Gulf's economy - barely moved as markets weighed a possible build in U.S. crude stockpiles and economic concerns against planned supply cuts by the world's biggest oil exporters and hopes for higher global demand.
