Most Gulf markets track oil, global shares lower; Egypt gains | Reuters
Most stock markets in the Gulf ended lower on Monday, tracking a fall in oil and global shares, while the Egyptian index extended gains from the previous session.
Oil prices - a key catalyst for the Gulf's financial markets - edged lower following a protracted rally, but retained support from pledges by top producers Saudi Arabia and Russia to extend supply cuts through September.
Saudi Arabia's benchmark share index (.TASI) gave up early gains to close down 0.7%, extending losses for a sixth consecutive session.
However, the losses were limited by a 1.1% rise in oil giant Saudi Aramco (2222.SE).
Aramco reported a net profit of 112.81 billion riyals ($30.07 billion) for the second quarter, beating a company-provided median estimate from 15 analysts of $29.8 billion.
The group declared a base dividend of just over $19.51 billion for the second quarter, roughly in line with its payout for the first quarter.
It also said it will begin paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter.
The Saudi stock market recorded strong price swings as traders reacted to mitigated earnings reports from Saudi companies, said Milad Azar, market analyst at XTB MENA.
"The uncertainty around the developments in the oil market could also fuel volatility," he said.
In Abu Dhabi, the share index (.FTFADGI) gained 0.4%, supported by a 14.6% surge in Q Holding (QHOLDING.AD) after its board decided to proceed with an offer from ADQ and IHC to sell to Q Holding shares in Modon Properties, ADNEC and other assets in which ADQ and IHC have stakes in exchange for shares in Q Holding.
Qatar's stock index (.QSI) slipped 0.2%, hit by a 1.5% fall in petrochemical maker Industries Qatar (IQCD.QA).
Dubai's main share index (.DFMGI) fell 0.1%, with Emirates Central Cooling Systems (EMPOWER.DU) retreating 2.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.8%, as most of the stocks on the index were in positive territory including Beltone Financial Holding (BTFH.CA), which was up 5.9%.
The Egyptian bourse remained on an uptrend this week supported by international investors, said Azar.
"Some risks could remain as the main index approaches its previous peak where it could find some resistance."
Masdar lists its debut $750 million green bond on London Stock Exchange
Abu Dhabi clean energy company Masdar on Monday listed its first green bond on the London Stock Exchange to fund its new clean energy projects.
Masdar completed its issuance for the $750 million green bond offering on July 19 through the sale of 10-year senior unsecured notes. The offering was 5.6 times oversubscribed, with the order book peaking at $4.2 billion, following strong appetite from regional and international investors.
“This is a defining moment for Masdar and climate finance … The demand for green bonds is extremely high and will enable investment in renewable energy projects, many of which will be in developing economies and climate-vulnerable countries,” Dr Sultan Al Jaber, Cop28 President-designate and chairman of Masdar, said in a statement on Monday.
Dubai Tourist Arrivals Top Pre-Pandemic Levels, Room Rates Surge - Bloomberg
Dubai reported a record number of tourist arrivals in the first half of the year, topping levels last seen before the Covid-19 pandemic took hold and helping push hotel room rates to a fresh high.
The city reported 8.55 million international overnight visitors, up 20% from the first half of last year and more than the 8.36 million tourists who visited during the same period in 2019. Average daily hotel rates came in at 534 dirhams ($145.40), up by a fifth from 2019 levels.
The emirate’s deft handling of the pandemic, coupled with a series of reforms aimed at attracting visitors, helped it maintain its edge as the region’s top tourism, business and trade hub. At the start of the year, Dubai’s government reduced tax on alcohol, leaving the city better-positioned to cater to wider swathes of the market.
Tourists from Western Europe accounted for about a fifth of international visitors, with Russia, former Soviet states and Eastern Europe contributing 14%.
QIA likely picks up shares worth $500 mln in India's Adani Green - report | Reuters
Qatar Investment Authority (QIA) likely picked up shares worth $500 million in India's Adani Green Energy (ADNA.NS) via block deals on Monday, ET Now reported, citing sources.
Over 1.1 million shares of the Adani Group-owned renewable power producer changed hands in fourteen block deals as of 2 p.m. IST, as per data from Refinitiv, in a price range of 882 to 954 rupees per share.
QIA's potential investment in the billionaire Gautam Adani-owned firm comes at a time when the group is coming out of the impact caused after U.S.-based Hindenburg Research said it held short positions in the conglomerate in January.
The short seller's report battered investor confidence and wiped out nearly $147 billion from Adani companies' market value.
Shares of its group companies have rebounded but are still down around $100 billion in value.
QIA and Adani Green did not immediately respond to Reuters' request for comment.
Shares of Adani Green fell as much as 12.59% earlier on Monday, but have trimmed most of their losses. The stock was trading down 3.3%, as of 2:30 p.m IST.
Aramco Boosts Payout to Government, Investors to $29 Billion - Bloomberg
Saudi Aramco raised its payout to investors and Saudi Arabia’s government by more than half, in a move that will help fill state coffers that had increasingly been expected to be in deficit this year.
The total payout will be $29.4 billion, including the performance-linked portion, up from a regular dividend of $18.8 billion a year ago, according to a statement from the company. Operating income dropped to $57 billion from $86 billion a year earlier, the company said in a statement.
Aramco is a crucial source of funding for the Saudi government which announced last week that its budget deficit widened in the second quarter after an increase in spending on social benefits and multi-billion dollar projects meant to diversify the economy from oil.
Saudi Aramco followed other international oil producers in boosting payouts to shareholders even as profits declined. Oil majors have seen profits drop as crude prices retreated from last year’s highs when commodity markets were roiled by Russia’s invasion of Ukraine.
“The second quarter of 2023 was characterized by continued global economic uncertainty and market volatility,” Chief Executive Officer Amin Nasser said on a call with reporters. “This obviously affected energy prices, yet Aramco delivered strong earnings thanks to our low cost production, high supply reliability and strong demand for our products.”
Aramco fuels Saudi market's gains; Qatar eases | Reuters
Most major stock markets in the Gulf rose in early trade on Monday with the Saudi index on course to snap seven sessions of losses led by a rise in oil giant Saudi Aramco (2222.SE).
Saudi Arabia's benchmark index (.TASI) advanced 0.6%, on track to end a seven-day losing streak, led by a 1.4% gain in Saudi Aramco (2222.SE).
Aramco reported net profit of 112.81 billion riyals ($30.07 billion) for the second-quarter, down from 181.64 billion riyals a year earlier, it said in a statement, beating a company-provided median estimate from 15 analysts of $29.8 billion.
The group declared a base dividend of just over $19.51 billion for the second quarter, roughly in line with its payout for the first quarter.
It also said it will begin paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter.
Elsewhere, Al Etihad Cooperative Insurance (8170.SE) advanced 10%, to become the top gainer on the index, after it swung to quarterly profit.
The Abu Dhabi index (.FTFADGI) edged 0.2% higher, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) rising 0.8%.
ADNOC Gas (ADNOCGAS.AD) retreated 1.4%, after the energy firm reported on Friday a 24% slide in second-quarter revenue.
Dubai's main share index (.DFMGI) added 0.1%, with Mashreq Bank (MASB.DU) gaining 6.2%.
Oil prices - a key catalyst for the Gulf's financial markets - edged down but were still near their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to keep supplies down for another month to tighten global markets further and support prices.
In Qatar, the index (.QSI) eased 0.1% in choppy trade, weighed down by a 1.4% fall in petrochemical maker Industries Qatar (IQCD.QA).
