Most Gulf markets in red after China cuts rates | Reuters
Most stock markets in the Gulf ended lower on Tuesday on reduced risk appetite after rate cuts by China and more disappointing data from the world's second biggest economy.
China's central bank unexpectedly cut key policy rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery.
Saudi Arabia's benchmark index (.TASI) dropped 0.7%, extending losses from the previous session, with oil giant Saudi Aramco (2222.SE) losing 0.6% and Saudi Awwal Bank (1060.SE) retreating 2.2%.
Dubai's main share index (.DFMGI) dropped 0.2%, weighed down by a 5.8% decline in Mashreq Bank (MASB.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.4%.
The Qatari index (.QSI) lost 0.3%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.8%.
Oil prices - which fuels the Gulf's economy - edged lower on sluggish Chinese economic figures coupled with fears that Beijing's unexpected cut in key policy rates was not substantial enough to rejuvenate the country's sputtering post-pandemic recovery.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.4%, led by a 0.8% rise in top lender Commercial International Bank (COMI.CA).
Egypt sold 626.4 million euros ($683 million) in one-year euro T-bills in an auction at an average yield of 4%, the central bank said on Monday.
Oil Prices Push Toward $90 Gets Lift From Crude Markets Everywhere - Bloomberg
As headline oil prices edge ever closer to $90 a barrel, there’s little sign of a let up in the day-to-day demand that’s underpinned the rally.
Across the global market, record crude demand has driven up the premiums that traders pay to get cargoes.
The differentials for spot cargoes from the Middle East have surged in recent days as buyers in China grab supplies. In the North Sea, a vital window has seen a spate of bidding, while Asian buyers have also bought millions of barrels of US crude. Those are all signs that the latest cycle is off to a strong start, even as Chinese data highlight its economic challenges remain potent.
The move comes as refining margins — the profit processors make from buying crude and making fuels — have increased in recent weeks. The International Energy Agency said on Friday that global oil consumption surged to a record in June and should rise further on average later in the year.
Abu Dhabi’s KBBO Said to Get Creditor Approval for Debt Revamp - Bloomberg
KBBO Group and its hospitals unit have received creditor approval for a debt restructuring plan, two years after the Abu Dhabi-based investment firm’s founder filed for bankruptcy.
Creditors approved Emirates Hospitals Group’s plan earlier this week, according to people familiar with the matter and a presentation seen by Bloomberg News. The deal allows Emirates Hospitals to stave off liquidation and paves the way for a sale of the company by 2025.
KBBO also received the go-ahead this month, the people said, asking not to be named because the information isn’t public. The Abu Dhabi court has to now ratify both restructurings.
The firm, whose creditors include Mashreqbank and Dubai Islamic Bank PJSC, has a debt pile of more than $2 billion, Bloomberg News has reported. The case marks one of the first instances of a large conglomerate using the United Arab Emirates federal bankruptcy regime to restructure, indicating domestic insolvency laws are maturing.
Most Gulf markets subdued after China cuts rates | Reuters
Most major stock markets in the Gulf fell in early trade on Tuesday as investors mulled over China cutting key policy rates, the world's second largest economy, with the Saudi index on course to extend losses from the previous session.
China's central bank unexpectedly cut rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery.
Saudi Arabia's benchmark index (.TASI) eased 0.2%, on course to extend losses from the previous session, with Saudi Awwal Bank (1060.SE) retreating 1.5%.
Separately, Saudi Arabia's annual inflation rate eased for a second consecutive month to 2.3% in July from 2.7% in June, government data showed on Tuesday.
In Qatar, the index (.QSI) dropped 0.5%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.9%.
However, Qatar Insurance <QINS.QA advanced 3.6% after reporting a steep rise in first-half profit.
The Gulf's largest insurer by market value reported a net profit of 324.5 million riyals ($89.07 million) for the period ending June 30, up from 96.8 million riyals year ago.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
Dubai's main share index (.DFMGI) was flat.
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