Middle East shares weakened by rate worries; oil boosts Saudi | Reuters
Most major stock markets in the Gulf extended losses on Wednesday as concerns over interest rate hikes checked investor enthusiasm, although higher oil prices gave the Saudi Arabian bourse its biggest boost in nearly four months.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signalled one more interest-rate hike by the end of the year would likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Oil prices - a catalyst for Gulf's financial markets - rose by more than $1 on Wednesday, with Brent crude futures broaching $95, up $1.14 to $95.10 a barrel by 1112 GMT.
The Qatari benchmark stock index (.QSI) fell 0.6%, with financial and industrial stocks were among the top losers on the index. Qatar Islamic Bank (QISB.QA) dropped more than 1.4%, while chemical makers Industries Qatar (IQCD.QA) was down 1.3%.
Among other banking stocks, heavyweight Commercial Bank (COMB.QA) and Qatar National Bank (QNBK.QA), the Gulf's biggest lender, fell 2% and 0.3%, respectively.
Dubai's main share index (.DFMGI) slipped 0.7%, as losses in finance and utilities stocks were capped by gains in industrial sectors.
Emirates NBD Bank (ENBD.DU), Dubai's largest lender, and blue-chip developer Emaar Properties (EMAR.DU) fell 1.7% and 2.3%, respectively, but Gulf Navigation Holding (GNAV.DU) was up 3.4%.
In Abu Dhabi, the benchmark index (.FTFADGI), finished in the red, led by a 0.1% decrease in First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, and a 2.5% dive in developer Aldar Properties (ALDAR.AD).
Saudi Arabia's benchmark stock index (.TASI) rose 1.4%, its biggest gain since early June, boosted by gains in almost all the sectors with financial and energy stocks leading the boost.
Al Rajhi Bank (1120.SE), Saudi Arabia's second largest lender by assets, increased by 1.6% and index heavyweight and oil behemoth Saudi Aramco (2222.SE) hiked 1.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), fell 0.9%, after hitting all time high in its previous sessions, with 22 of the 30 constituent stocks slipping into negative territory.
Commercial International Bank COMI.CA and Fawry Banking FWRY.CA gained 2.1% and 5.2% respectively.
Abu Qir fertilizers and Chemical Industries Co (ABUK.CA) and electronic payments provider Fawry (FWRY.CA), declined by 3.6% and 4.1%, respectively.
UAE economy to expand 4% in 2024 on non-oil sector growth, S&P says
The UAE's economy is expected to expand by 4 per cent in 2024 and 3 per cent this year, driven by strong growth in its non-oil sector, according to a new report.
The rising number of tourist arrivals, supportive government initiatives and increasing tech advancements are expected to spur the country's economic expansion, S&P analysts said.
Key contributors to the country's economic growth in 2024 include wholesale trade, industry, real estate, construction, financial services and tourism, as well as oil and gas, Trevor Cullinan, sovereign ratings analyst at S&P, told state news agency Wam.
The government's economic and social measures implemented over the last two years “are strategically designed to set the stage for sustained, long-term economic expansion”, S&P said.
“The country's ability to host major international events is expected to play a pivotal role in achieving the UAE's ambitious goal of attracting 40 million visitors by 2030, accompanied by plans to expand the number of hotel rooms to 250,000 during the same period.”
The economic growth forecast is in line with projections from the UAE Central Bank, which expects the country's economy to expand by 3.3 per cent this year.
Dubai Repays $5.5 Billion of Crisis-Era Loans to Cut Debt Load - Bloomberg
Dubai said it began repaying a $20 billion bailout loan from Abu Dhabi and the country’s central bank, as part of an effort to reduce its debt burden almost 15 years after the sheikhdom teetered on the brink of default.
Taking advantage of an economic recovery, the emirate lowered its total debt to 25% of gross domestic product with payments that include 20 billion dirhams ($5.5 billion) to Abu Dhabi and the central bank. Dubai shelled out a combined 28.5 billion dirhams within a year and a half, its media office said Tuesday on social media site X, citing its debt management office.
It didn’t give details as to what liabilities were still included in its calculations, and the media office wasn’t able to comment when approached separately by Bloomberg. Dubai isn’t rated by any of the three major credit assessors.
S&P Global Ratings earlier estimated Dubai’s direct government debt at 244 billion dirhams, equivalent to around half the emirate’s economic output. Its broader debt climbs to 100% of GDP when including money owed by state-related entities, according to S&P.
Dubai cuts public debt by $7.8bln to 25% of GDP
Dubai has reduced its public debt by AED29 billion ($7.8 billion) as it managed to settle some of its loans amid strong economic recovery.
The reduction consequently brings down the emirate’s debt burden as a share of its gross domestic product (GDP) to 25%, the Dubai Media Office said on social media, citing the Public Debt Management Office of the Department of Finance.
The decline is achieved across all debt classes in the government’s debt portfolio, including a full redemption of Sukuk certificates worth AED3.3 billion.
It also includes the repayment of bilateral and syndicated facilities amounting to AED5.2 billion and a partial settlement of AED20 billion from the financing extended by the Abu Dhabi government and UAE Central Bank.
Oman's OQ Gas Networks says IPO oversubscribed multiple times
Oman's OQ Gas Networks SOAG (OQGN), which is floating up to 49% of its shares, said on Wednesday that the portion of the offer reserved for institutional investors, representing 40% of the IPO size, has been covered multiple times at the maximum price of 0.140 Omani rials ($36) on the first day of the book building process.
At the top of the price range the IPO is set to raise $771 million from the sale of 2 billion shares, making the offering bigger than Oman Telecommunications' $748 million stake sale in 2005.
The book-building period runs until October 9 for institutional investors, while the retail offer for 9% is expected to close on October 5. The final price is due to be announced on October 12 with shares set to start trading on October 24.
OQGN, which is Oman's gas transporter, supplies natural gas to power plants, free zones, industrial clusters, LNG complexes and other customers.
Most Gulf shares drop in early trade, Saudi gains | Reuters
Most stock markets in the Gulf were down in early trade on Wednesday as worries over higher interest rates by the U.S. Federal Reserve continued to dent investor sentiment.
The Fed last week held its policy rate steady in a range of 5.25%-5.50%, but most policymakers signaled they believe one more interest-rate hike by the end of the year will likely be appropriate.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI) was down 0.5% in early trade with Emaar Properties (EMAR.DU) dropping 1% and Emirates Central Cooling Systems (EMPOWER.DU) sliding 1.1%.
The emirate's largest lender Emirates NBD <ENBD.DU slipped 0.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%, weighed down by a 0.2% loss in conglomerate International Holding Company (IHC.AD) and 1.5% drop in Aldar Properties (ALDAR.AD).
The UAE's largest lender First Abu Dhabi Bank (FAB.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shed 0.4% and 0.8%, respectively.
In Qatar, the benchmark (.QSI) edged down 0.2% with Qatar Navigation (QNNC.QA) falling 2.6% and Ooredoo QPSC (ORDS.QA) dropping 1%.
Among the losers, Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) slipped 0.3% and 0.5%, respectively.
Saudi Arabia's benchmark stock index (.TASI) was up 0.3%, helped by gains in most sectors with Sahara International Petrochemical Co (2310.SE) surging 2.5% and Al Rajhi Bank (1120.SE) gaining 0.6%.
