Monday 3 June 2024

#Saudi bourse leads Gulf markets higher; Egypt extends decline | Reuters

Saudi bourse leads Gulf markets higher; Egypt extends decline | Reuters


Most stock markets in the Gulf ended higher on Monday, led by the Saudi bourse, after a U.S. inflation reading last week boosted hopes of interest rate cuts from the Federal Reserve Bank this year.

Saudi Arabia's benchmark stock index (.TASI), opens new tab extended its rally to a second consecutive day, advancing 1.6%, the highest intraday rise in five months.

Al Rajhi Bank (1120.SE), opens new tab gained 3.3% and Saudi Telecom (7010.SE), opens new tab (STC) climbed 2.1%. Reuters reported that STC was in the early stages of considering making an offer for European telecom and pay-TV operator United Group.

Among other gainers, Saudi Aramco (2222.SE), opens new tab bounced back from four straight sessions of losses to rise 1.6%.

Meanwhile, Saudi Arabia's sale of shares in oil major Aramco drew more demand than the stock on offer within hours of kicking off on Sunday in a deal that could raise up to $13.1 billion.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up for a third straight session, rising 0.6%. Conglomerate International Holding Co (IHC.AD), opens new tab and its unit Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab climbed 0.7% and 3.1%, respectively.

Among other gainers, ADNOC Logistics (ADNOCLS.AD), opens new tab, known as ADNOC L&S, surged 4.2% to 4.240 dirham a share, its highest level since its listing in June 2023.

Energy major ADNOC's logistics unit, ADNOC L&S, signed a deal to acquire shipping pool operator Navig8 Topco Holdings for a total value of up to $1.49 billion.

Dubai's benchmark index (.DFMGI), opens new tab rose 0.4%, with low-cost flyer Air Arabia (AIRA.DU), opens new tab climbing 4.8% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, adding 1%.

The Qatari benchmark index (.QSI), opens new tab edged up 0.3%, supported by a 1.5% rise in Qatar Islamic Bank (QISB.QA), opens new tab and a 0.4% gain in Industries Qatar (IQCD.QA), opens new tab.

Data showed on Friday that U.S. inflation rose in line with market expectations in April, spurring hopes of interest rates cuts by the Fed.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a sixth straight session, slipping 0.1%, with Commercial International Bank (COMI.CA), opens new tab 1.5% lower and Misr Fertilizers Production (MFPC.CA), opens new tab declining 3.5%.

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