Mideast Stocks: Most Gulf markets in red ahead of Fed's decision
Most stock markets in the Gulf ended lower on Wednesday ahead of the U.S. Federal Reserve's interest rate decision, although the Dubai index bucked the trend to close higher. Investors are awaiting a raft of central bank interest rate decisions this week to assess the outlook for economic growth and fuel demand.
The U.S. central bank is widely expected to keep interest rates on hold, but the focus will be on its projected policy path. The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index eased 0.1%, with Dr Sulaiman Al Habib Medical Services dropping 1.8%. Separately, Saudi oil and gas driller ADES Holding said it had set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
In Qatar, the index fell 0.2%, hit by a 0.7% drop in Qatar Islamic Bank. Oil prices, which fuel the Gulf's economy, fell ahead of the Federal Reserve's interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
The Abu Dhabi index finished flat.
Dubai's main share index, however, advanced 1.6%, extending gains for a third session, with blue-chip developer Emaar Properties jumping 5.2%.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, snapping a five-day winning streak, weighed down by a 1% fall in Commercial International Bank.
Luxury Beach Club Nikki, Aldar to Build Ocean-View Homes in Ras Al Khaimah/RAK - Bloomberg
An international luxury beach club is tying up with a United Arab Emirates-based developer to bring branded residences to Ras Al Khaimah, a city about 45 minutes from Dubai that’s increasingly positioning itself as a haven for high net worth individuals.
Ras Al Khaimah — RAK for short — is pursuing an ambitious strategy that’s luring five-star hotels, industrialists and adventure-seeking tourists from around the world. The new development by Aldar Properties and Nikki Beach Global will be located in Al Marjan Island, where Wynn Resorts is building a $3.9 billion gaming resort.
The firms plan to develop three residential buildings as part of a larger beachfront community in the area, with sales set to start this year. The homes will feature ocean views, and residents will have access to a wide range of facilities.
Famous for its raucous Miami and Saint Tropez beach clubs, Nikki Beach was set up in 1998 by entrepreneur Jack Penrod. It operates 11 beach clubs, five hotels and resorts — including one in Dubai — as well as a fashion division. Aldar is one of the UAE’s largest real estate developers.
Their new development comes on the back of two years of surging real estate prices in Dubai, which is now among the world’s hottest property markets. RAK, among the smaller of the UAE’s seven emirates, has ambitious plans to position itself as an alternative getaway to Dubai, analysts at Knight Frank have said.
Russia Becomes UAE’s Top Gold Source After Being Shut Out of West - Bloomberg
Russia became the United Arab Emirates’ top source of gold last year after Western countries imposed sanctions on supplies following the Kremlin’s invasion of Ukraine.
The UAE last year imported 96.4 tons of gold from Russia, more than any other country, according to the United Nations’ Comtrade database. That’s roughly a third of Russia’s annual mine production, and a more than 15-fold increase year-on-year in the UAE’s gold imports from the country.
The UAE has long been a key hub for precious metals, particularly from Africa and India, but last year was the first time it played a major role in trading Russian gold. Before the war, almost all of Russia’s bullion was shipped to London, the world’s top market, but it rapidly became taboo among the banks that used to handle it.
Western sanctions have severed Russia’s usual export routes, forcing the country’s miners to find new ways to sell their metal. Little-known traders in Dubai, Istanbul and Hong Kong have taken over the trade, Bloomberg reported earlier this year.
Other key suppliers of gold to the UAE last year were Mali and Ghana, which shipped 95.7 tons and 81 tons respectively. Switzerland was the top destination for the Arab nation’s gold exports, taking 145 tons.
Saudi PIF-backed ADES prices IPO at top end, implying over $4 bln valuation | Reuters
Saudi oil and gas driller ADES Holding said on Wednesday it has set the final price for its initial public offering (IPO), implying a valuation of 15.242 billion riyals ($4.06 billion) for the Saudi sovereign wealth fund-backed firm.
Reuters reported last week that the IPO was expected to be priced at 13.50 riyals a share, the top-end of a previously announced range.
ADES confirmed the pricing for the IPO, saying it drew nearly $76.5 billion in orders from institutional investors.
The firm is expected to raise about $1.22 billion from the sale of more than 338.7 million existing and new shares or about 30% of its issued share capital post-capital increase.
Reuters reported in November that the planned IPO could fetch more than $1 billion, citing sources close to the matter.
Institutional book-building has closed. Retail subscription runs from Sept. 26-28. Final share allocations are expected no later than Oct. 4. No date has yet been set for shares to begin trading.
Major Gulf markets little changed ahead of Fed decision | Reuters
Major stock markets in the Gulf were little changed in early trade on Wednesday ahead of the U.S. Federal Reserve's interest rate decision.
Investors are awaiting a raft of central bank interest rate decisions this week to assess the outlook for economic growth and fuel demand.
The U.S. central bank is widely expected to keep interest rates on hold, but the focus will be on its projected policy path.
The six-member Gulf Cooperation Council's monetary policy is usually guided by the Fed's decision as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) edged 0.1% lower, hit by a 2.8% fall in Dar Al Arkan Real Estate Development (4300.SE) and a 0.2% decrease in oil giant Saudi Aramco (2222.SE).
Separately, the kingdom welcomed positive results from discussions to reach a road map supporting the peace process in Yemen, Saudi Arabia's foreign ministry said in a statement, after Houthi negotiators' talks with the Saudis in Riyadh.
In Abu Dhabi, the index (.FTFADGI) added 0.1%.
Oil prices - which fuel the Gulf's economy - fell nearly $1, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
Prices fell despite a bigger-than-expected draw in U.S. oil stockpiles and weak U.S. shale output that indicated tight crude supply for the rest of 2023.
The Qatari benchmark (.QSI) rose 0.1%, helped by a 0.7% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
