Shenzhen, Abu Dhabi exchanges link up as China, Middle East move closer | Reuters
The stock exchange in China's city of Shenzhen and the Abu Dhabi securities exchange agreed to promote cross-border investment and listings in the latest flurry of co-operation between institutions in countries looking to cut reliance on the West.
It comes days after a similar pact between the Shenzhen exchange and the Saudi exchange, and less than a month after another between the Shanghai Stock Exchange and the Dubai Financial Market.
"What we're seeing is that international investment flows are shifting," said Mike Wardle, chief executive of think tank Z/Yen Group, which is based in London.
A lot of investments are starting to flow into China from the Middle East and vice versa, he added, even as some global investors are leaving China for Southeast Asian countries, such as Vietnam or Malaysia.
The signing of the memorandum of understanding between the Shenzhen Stock Exchange in the southern Chinese city and the Abu Dhabi Securities Exchange (ADX) in the United Arab Emirates was announced late on Wednesday.
Thursday 14 December 2023
Mideast Stocks: Most Gulf markets in black on dovish Fed
Mideast Stocks: Most Gulf markets in black on dovish Fed
Most stock markets in the Gulf ended higher on Thursday, after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead. The Fed left interest rates unchanged on Wednesday and U.S. central bank chief Jerome Powell said its historic tightening of monetary policy is likely over with inflation falling faster than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index advanced 1.2%, with Al Rajhi Bank jumping 3.6% and Elm Co rising 1.9%. Among other gainers, oil giant Saudi Aramco was up 0.3%. Oil prices - a catalyst for the Gulf's financial markets - rose, extending the previous session's gains, on a bigger-than-expected weekly withdrawal from U.S. crude storage and a weaker dollar after the Fed signalled lower borrowing costs for 2024.
Dubai's main share index finished 1.1% higher, led by a 2.3% gain in blue-chip developer Emaar Properties and a 3.3% increase in utility firm Dubai Electricity and Water Authority. In Abu Dhabi, the index added 0.4%. The Abu Dhabi bourse recorded a positive performance and benefited from the changing sentiment as well as a rebound in oil prices, said Abdelhadi Laabi, chief marketing officer at KAMA Capital.
"The latter could, however, remain a source of risks for the market while they stay within a downtrend for now."
The Qatari benchmark closed 1.9% higher, extending gains from the previous session when it snapped an eight-day losing streak, as most of its constituents were in positive territory including Qatar Islamic Bank, which was up 2.9%.
According to Laabi, changing global sentiment helped pull the Qatari stock market out of the current downtrend. Although, some risks are likely to remain depending on the developments in energy markets which could continue to see downside risks.
Outside the Gulf, Egypt's blue-chip index eased 0.2%, hit by a 0.7% fall in top lender Commercial International Bank Egypt.
Most stock markets in the Gulf ended higher on Thursday, after the U.S. Federal Reserve flagged the end of its tightening cycle and struck a dovish tone for the year ahead. The Fed left interest rates unchanged on Wednesday and U.S. central bank chief Jerome Powell said its historic tightening of monetary policy is likely over with inflation falling faster than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index advanced 1.2%, with Al Rajhi Bank jumping 3.6% and Elm Co rising 1.9%. Among other gainers, oil giant Saudi Aramco was up 0.3%. Oil prices - a catalyst for the Gulf's financial markets - rose, extending the previous session's gains, on a bigger-than-expected weekly withdrawal from U.S. crude storage and a weaker dollar after the Fed signalled lower borrowing costs for 2024.
Dubai's main share index finished 1.1% higher, led by a 2.3% gain in blue-chip developer Emaar Properties and a 3.3% increase in utility firm Dubai Electricity and Water Authority. In Abu Dhabi, the index added 0.4%. The Abu Dhabi bourse recorded a positive performance and benefited from the changing sentiment as well as a rebound in oil prices, said Abdelhadi Laabi, chief marketing officer at KAMA Capital.
"The latter could, however, remain a source of risks for the market while they stay within a downtrend for now."
The Qatari benchmark closed 1.9% higher, extending gains from the previous session when it snapped an eight-day losing streak, as most of its constituents were in positive territory including Qatar Islamic Bank, which was up 2.9%.
According to Laabi, changing global sentiment helped pull the Qatari stock market out of the current downtrend. Although, some risks are likely to remain depending on the developments in energy markets which could continue to see downside risks.
Outside the Gulf, Egypt's blue-chip index eased 0.2%, hit by a 0.7% fall in top lender Commercial International Bank Egypt.
HSBC Boosted by Wave of Middle East IPOs to Top of EMEA Ranking - Bloomberg
HSBC Boosted by Wave of Middle East IPOs to Top of EMEA Ranking - Bloomberg
HSBC Holdings Plc is often described as a local bank in the Middle East, a perception that’s come in handy this year as initial public offering activity in the region far outpaced the levels seen in Europe.
The British lender claimed the top spot for IPOs in Europe, the Middle East and Africa for the second year running, more than doubling its market share since 2021, according to league table data compiled by Bloomberg.
“It’s only half right to call us a local bank in the Middle East,” said Chris Laing, HSBC’s head of equity capital markets for Central and Eastern Europe, the Middle East and North Africa.
“We really are an international bank with strong local capabilities,” he said, adding that it has 6,000 to 7,000 banking professionals in the region, and the largest emerging markets salesforce in New York, London and Hong Kong.
HSBC Holdings Plc is often described as a local bank in the Middle East, a perception that’s come in handy this year as initial public offering activity in the region far outpaced the levels seen in Europe.
The British lender claimed the top spot for IPOs in Europe, the Middle East and Africa for the second year running, more than doubling its market share since 2021, according to league table data compiled by Bloomberg.
“It’s only half right to call us a local bank in the Middle East,” said Chris Laing, HSBC’s head of equity capital markets for Central and Eastern Europe, the Middle East and North Africa.
“We really are an international bank with strong local capabilities,” he said, adding that it has 6,000 to 7,000 banking professionals in the region, and the largest emerging markets salesforce in New York, London and Hong Kong.
#Dubai’s economy shows ‘strong upwards trend’
Dubai’s economy shows ‘strong upwards trend’
Operating conditions in the Dubai non-oil private sector economy improved sharply in the penultimate month of the year, despite the rate of growth softening from October, analysts at S&P Global said.
Despite a slowdown in sales growth after hitting a peak in October, activity levels remained on a strong upwards trend, with inventories also continuing to rise at a historically rapid pace, S&P said in its PMI Survey report.
“Strong demand, new clients and increased project work underlined a robust expansion in new order intakes midway through the final quarter of the year, fuelling a rapid increase in non-oil economic activity,” S&P said.
Dubai's ongoing economic performance extends the momentum of growth achieved in 2022, when the emirate expanded by 4.4 per cent. It is forecast to grow by 3.5 per cent in 2023, according to Emirates NBD. Dubai, which started 2023 with an ambitious 10-year plan to double its economy, unveiled a raft of measures intended to achieve its goal.
The 10-year plan has been designed to make the city a powerful force globally, as the UAE moves away from its reliance on oil. Most of Dubai’s revenues are non-oil based nowadays and it is already leading the way in generating income from other sources, such as tourism and finance. The UAE’s economy grew 3.7 per cent in the first half of the year as the country stepped up efforts to become less reliant on oil and more dependent on knowledge-based industries.
Operating conditions in the Dubai non-oil private sector economy improved sharply in the penultimate month of the year, despite the rate of growth softening from October, analysts at S&P Global said.
Despite a slowdown in sales growth after hitting a peak in October, activity levels remained on a strong upwards trend, with inventories also continuing to rise at a historically rapid pace, S&P said in its PMI Survey report.
“Strong demand, new clients and increased project work underlined a robust expansion in new order intakes midway through the final quarter of the year, fuelling a rapid increase in non-oil economic activity,” S&P said.
Dubai's ongoing economic performance extends the momentum of growth achieved in 2022, when the emirate expanded by 4.4 per cent. It is forecast to grow by 3.5 per cent in 2023, according to Emirates NBD. Dubai, which started 2023 with an ambitious 10-year plan to double its economy, unveiled a raft of measures intended to achieve its goal.
The 10-year plan has been designed to make the city a powerful force globally, as the UAE moves away from its reliance on oil. Most of Dubai’s revenues are non-oil based nowadays and it is already leading the way in generating income from other sources, such as tourism and finance. The UAE’s economy grew 3.7 per cent in the first half of the year as the country stepped up efforts to become less reliant on oil and more dependent on knowledge-based industries.
Major Gulf markets rise on dovish Fed | Reuters
Major Gulf markets rise on dovish Fed | Reuters
Major stock markets in the Gulf rose in early trade on Thursday, tracking global peers, after the U.S. Federal Reserve suggested that its tightening was over.
The Fed left interest rates unchanged on Wednesday and Chair Jerome Powell said its historic tightening of monetary policy is likely over with inflation falling faster than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark index (.QSI) jumped 1.3% with all stocks in the positive territory, led by the region's largest lender Qatar National Bank(QNBK.QA), which climbed 2%.
Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) shot up 1.5% and 2.2% respectively.
Saudi Arabia's benchmark stock index (.TASI) was up 0.7%, supported by gains in all sectors with Elm Company (7203.SE) rising 1.9% and the world's largest Islamic lender Al Rajhi Bank (1120.SE) climbing 2%.
Dubai's benchmark stock index (.DFMGI) rose 0.7% in early trade with all sectors in the green.
Emaar Properties (EMAR.DU) gained 1.6% and Dubai Electricity and Water Authority (DEWAA.DU) surged 2.5%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) advanced 0.2%, aided by a 1.1% gain in blue-chip developer Aldar Properties (ALDAR.AD) and a 1.8% rise in Abu Dhabi Ports Co (ADPORTS.AD).
Major stock markets in the Gulf rose in early trade on Thursday, tracking global peers, after the U.S. Federal Reserve suggested that its tightening was over.
The Fed left interest rates unchanged on Wednesday and Chair Jerome Powell said its historic tightening of monetary policy is likely over with inflation falling faster than expected.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark index (.QSI) jumped 1.3% with all stocks in the positive territory, led by the region's largest lender Qatar National Bank(QNBK.QA), which climbed 2%.
Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) shot up 1.5% and 2.2% respectively.
Saudi Arabia's benchmark stock index (.TASI) was up 0.7%, supported by gains in all sectors with Elm Company (7203.SE) rising 1.9% and the world's largest Islamic lender Al Rajhi Bank (1120.SE) climbing 2%.
Dubai's benchmark stock index (.DFMGI) rose 0.7% in early trade with all sectors in the green.
Emaar Properties (EMAR.DU) gained 1.6% and Dubai Electricity and Water Authority (DEWAA.DU) surged 2.5%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) advanced 0.2%, aided by a 1.1% gain in blue-chip developer Aldar Properties (ALDAR.AD) and a 1.8% rise in Abu Dhabi Ports Co (ADPORTS.AD).