Tuesday 8 August 2023
Most Gulf markets track oil, global shares lower | Reuters
Most Gulf markets track oil, global shares lower | Reuters
Most stock markets in the Gulf ended down on Tuesday after tracking oil and global shares lower with the Saudi index falling for a ninth consecutive session.
Oil prices - a catalyst for the Gulf's financial markets - fell by more than 1.5% after data showed China's imports and exports fell much more than expected in July in another sign of a sluggish post-COVID rebound for the world's largest oil importer.
Saudi Arabia's benchmark index (.TASI) lost 0.3%, weighed down by a 1.8% fall in Dr Sulaiman Al-Habib Medical Services Co (4013.SE) and a 2.2% decrease in Saudi National Bank (1180.SE).
Oil giant Saudi Aramco (2222.SE), however, advanced 1.2%.
Aramco on Monday 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 more than $19.51 billion, roughly in line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter.
The Qatari index (.QSI) dropped 1.1%, as most of the stocks on the index were in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), which retreated 3.5% ahead of its earnings announcement.
Dubai's main share index (.DFMGI) finished flat.
MSCI's index of global stocks (.MIWD00000PUS) fell 0.36% as investors assessed the latest weak economic data out of China.
Abu Dhabi bucked the trend. Its index (.FTFADGI) advanced 1.7%, led by a 3% rise in International Holding Co (IHC) (IHC.AD).
Last week, conglomerate IHC said it was refocusing on domestic acquisitions as global economic challenges hamper its efforts to expand abroad and net profit fell slightly in the second quarter.
Outside the Gulf, Egypt's blue (.EGX30) dropped 0.5%, with tobacco monopoly Eastern Co (EAST.CA) losing 2.8%.
Most stock markets in the Gulf ended down on Tuesday after tracking oil and global shares lower with the Saudi index falling for a ninth consecutive session.
Oil prices - a catalyst for the Gulf's financial markets - fell by more than 1.5% after data showed China's imports and exports fell much more than expected in July in another sign of a sluggish post-COVID rebound for the world's largest oil importer.
Saudi Arabia's benchmark index (.TASI) lost 0.3%, weighed down by a 1.8% fall in Dr Sulaiman Al-Habib Medical Services Co (4013.SE) and a 2.2% decrease in Saudi National Bank (1180.SE).
Oil giant Saudi Aramco (2222.SE), however, advanced 1.2%.
Aramco on Monday 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 more than $19.51 billion, roughly in line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter.
The Qatari index (.QSI) dropped 1.1%, as most of the stocks on the index were in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), which retreated 3.5% ahead of its earnings announcement.
Dubai's main share index (.DFMGI) finished flat.
MSCI's index of global stocks (.MIWD00000PUS) fell 0.36% as investors assessed the latest weak economic data out of China.
Abu Dhabi bucked the trend. Its index (.FTFADGI) advanced 1.7%, led by a 3% rise in International Holding Co (IHC) (IHC.AD).
Last week, conglomerate IHC said it was refocusing on domestic acquisitions as global economic challenges hamper its efforts to expand abroad and net profit fell slightly in the second quarter.
Outside the Gulf, Egypt's blue (.EGX30) dropped 0.5%, with tobacco monopoly Eastern Co (EAST.CA) losing 2.8%.
Aramco Dividends May Help #Saudi Government Avoid Fiscal Deficit - Bloomberg
Aramco Dividends May Help Saudi Government Avoid Fiscal Deficit - Bloomberg
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Saudi Aramco’s dividend boost may go a long way toward ensuring the government, its biggest shareholder, posts a fiscal surplus this year, even as other forms of oil income decline.
The world’s biggest crude company announced a $29.4 billion payout for investors on Monday when it posted second-quarter results. That was an increase of almost $10 billion from the first quarter and was due to the introduction of a “performance-linked” dividend that comes on top of the base quarterly payout of $19.5 billion.
The Saudi government was on course for a budget deficit for this year, running a shortfall of $2.2 billion in the first half as it cut crude production to try to bolster sagging prices.
The additional dividends will wipe out the deficit, according to Ziad Daoud, chief emerging-markets economist at Bloomberg Economics. He was forecasting a shortfall of about $9 billion for the full year before Aramco’s announcement.
The government is the main beneficiary of the dividends. It owns 90% of Aramco directly and another 8% through the sovereign wealth fund.
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Saudi Aramco’s dividend boost may go a long way toward ensuring the government, its biggest shareholder, posts a fiscal surplus this year, even as other forms of oil income decline.
The world’s biggest crude company announced a $29.4 billion payout for investors on Monday when it posted second-quarter results. That was an increase of almost $10 billion from the first quarter and was due to the introduction of a “performance-linked” dividend that comes on top of the base quarterly payout of $19.5 billion.
The Saudi government was on course for a budget deficit for this year, running a shortfall of $2.2 billion in the first half as it cut crude production to try to bolster sagging prices.
The additional dividends will wipe out the deficit, according to Ziad Daoud, chief emerging-markets economist at Bloomberg Economics. He was forecasting a shortfall of about $9 billion for the full year before Aramco’s announcement.
The government is the main beneficiary of the dividends. It owns 90% of Aramco directly and another 8% through the sovereign wealth fund.
Foreigners Flee #Saudi Stocks as Growth Worries Interrupt Rally - Bloomberg
Foreigners Flee Saudi Stocks as Growth Worries Interrupt Rally - Bloomberg
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Foreign investors sold the most Saudi Arabian stocks in almost five months last week as concerns about economic growth and a disappointing outlook for banks in the kingdom hit sentiment.
Outflows reached 6.5 billion riyals ($1.7 billion) in the week through Aug. 3 as the benchmark Tadawul All Share Index slumped 4%. That resulted in the largest net exit by non-residents and worst performance by the local market since March, when global equities were in the grips of a crisis over the health of US banks.
A rally this year in the Tadawul pushed it to the brink of a bull market in late July, when eight straight sessions of declines halted its surge. A relatively stable oil price as OPEC+ members curbed production and a slew of government projects supported stocks before the recent drop.
“The downward trend is a natural occurrence following a strong rally in the early part of the year,” said Jassim Al-Jubran, head of sell-side research at Aljazira Capital. A downgrade by the International Monetary Fund of its forecast for Saudi growth in 2023 as well as cautious earnings guidance from some large banks also contributed to the decline, he said.
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Foreign investors sold the most Saudi Arabian stocks in almost five months last week as concerns about economic growth and a disappointing outlook for banks in the kingdom hit sentiment.
Outflows reached 6.5 billion riyals ($1.7 billion) in the week through Aug. 3 as the benchmark Tadawul All Share Index slumped 4%. That resulted in the largest net exit by non-residents and worst performance by the local market since March, when global equities were in the grips of a crisis over the health of US banks.
A rally this year in the Tadawul pushed it to the brink of a bull market in late July, when eight straight sessions of declines halted its surge. A relatively stable oil price as OPEC+ members curbed production and a slew of government projects supported stocks before the recent drop.
“The downward trend is a natural occurrence following a strong rally in the early part of the year,” said Jassim Al-Jubran, head of sell-side research at Aljazira Capital. A downgrade by the International Monetary Fund of its forecast for Saudi growth in 2023 as well as cautious earnings guidance from some large banks also contributed to the decline, he said.
#Dubai's GDP rises 2.8% in Q1 to reach $30 bln | Reuters
Dubai's GDP rises 2.8% in Q1 to reach $30 bln | Reuters
Dubai's economy grew by 2.8% in the first quarter, year on year, to hit 111.3 billion dirhams ($30.3 billion), according to official data published on Tuesday, supported by growth in the transportation and storage sector.
The city state, widely regarded as the trade and tourism hub of the Gulf region, launched a 10-year economic plan known as D33 in January aiming to double the size of the economy and make Dubai one of the top four global financial centres in a decade.
Transportation and storage grew 10.3% in the first quarter from a year earlier, while the accommodation and food services sector grew 5.6%, according to data from the Dubai Digital Authority, posted on state news agency WAM.
Wholesale and retail trade accounts for about 23% of the economy, followed by the transportation sector, which accounts for 14.1%.
Dubai's economy expanded 4.4% in 2022, boosted by a property boom which has sent prices soaring, and a sharp rebound in travel and tourism after the Covid-19 pandemic.
International visitor numbers in the six months to June 30 reached 8.55 million, surpassing the 8.36 million recorded in the same period in 2019, before the pandemic, and up 20% year on year, according to government data released on Aug. 6.
Dubai's economy grew by 2.8% in the first quarter, year on year, to hit 111.3 billion dirhams ($30.3 billion), according to official data published on Tuesday, supported by growth in the transportation and storage sector.
The city state, widely regarded as the trade and tourism hub of the Gulf region, launched a 10-year economic plan known as D33 in January aiming to double the size of the economy and make Dubai one of the top four global financial centres in a decade.
Transportation and storage grew 10.3% in the first quarter from a year earlier, while the accommodation and food services sector grew 5.6%, according to data from the Dubai Digital Authority, posted on state news agency WAM.
Wholesale and retail trade accounts for about 23% of the economy, followed by the transportation sector, which accounts for 14.1%.
Dubai's economy expanded 4.4% in 2022, boosted by a property boom which has sent prices soaring, and a sharp rebound in travel and tourism after the Covid-19 pandemic.
International visitor numbers in the six months to June 30 reached 8.55 million, surpassing the 8.36 million recorded in the same period in 2019, before the pandemic, and up 20% year on year, according to government data released on Aug. 6.
#Saudi bourse gains on back of corporate earnings; #Qatar falls | Reuters
Saudi bourse gains on back of corporate earnings; Qatar falls | Reuters
Saudi Arabia's stock market rose in early trade on Tuesday, helped by strong corporate earnings, while the Qatari bourse was on course to extend losses.
Saudi's benchmark index (.TASI) gained 0.8%, led by a 2.9% rise in oil giant Saudi Aramco (2222.SE). The index was set to end eight sessions of losses, if the trend holds.
Aramco on Monday 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 more than $19.51 billion, roughly in line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87-billion payout in the third quarter.
Among others, Fawaz Abdulaziz Alhokair (4240.SE) surged 10%, to become the top gainer on the index, following a steep rise in second-quarter net profit.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 6.3% decline in Dubai National Insurance and Reinsurance (DNIN.DU).
In Abu Dhabi, the index (.FTFADGI) advanced 1.1%, led by a 2.5% rise in International Holding Co (IHC) (IHC.AD).
Last week, conglomerate IHC said it was refocusing on domestic acquisitions as global economic challenges hamper its efforts to expand abroad and net profit fell slightly in the second quarter.
The Qatari index (.QSI) slipped 0.7%, with most of the stocks on the index in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), which was down 2.1% ahead of its earnings announcement.
Oil prices, a key catalyst for the Gulf's financial markets, fell by 1% after data showed China's imports and exports fell much more than expected in July in yet another sign of a sluggish post-COVID rebound for the world's largest oil importer.
Saudi Arabia's stock market rose in early trade on Tuesday, helped by strong corporate earnings, while the Qatari bourse was on course to extend losses.
Saudi's benchmark index (.TASI) gained 0.8%, led by a 2.9% rise in oil giant Saudi Aramco (2222.SE). The index was set to end eight sessions of losses, if the trend holds.
Aramco on Monday 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 more than $19.51 billion, roughly in line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87-billion payout in the third quarter.
Among others, Fawaz Abdulaziz Alhokair (4240.SE) surged 10%, to become the top gainer on the index, following a steep rise in second-quarter net profit.
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 6.3% decline in Dubai National Insurance and Reinsurance (DNIN.DU).
In Abu Dhabi, the index (.FTFADGI) advanced 1.1%, led by a 2.5% rise in International Holding Co (IHC) (IHC.AD).
Last week, conglomerate IHC said it was refocusing on domestic acquisitions as global economic challenges hamper its efforts to expand abroad and net profit fell slightly in the second quarter.
The Qatari index (.QSI) slipped 0.7%, with most of the stocks on the index in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), which was down 2.1% ahead of its earnings announcement.
Oil prices, a key catalyst for the Gulf's financial markets, fell by 1% after data showed China's imports and exports fell much more than expected in July in yet another sign of a sluggish post-COVID rebound for the world's largest oil importer.