Mideast Stocks: Major Gulf markets slip on geopolitical tensions

Mideast Stocks: Major Gulf markets slip on geopolitical tensions

Major stock markets in the Gulf ended lower on Thursday amid rising geopolitical tensions in the region, while rising oil prices limited losses. Maersk said explosions nearby forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen, accompanied by the U.S. Navy.

On Wednesday, the U.S. military carried out more strikes in Yemen, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and were preparing to launch, the U.S. military said.

Saudi Arabia's benchmark index eased 0.1%, with media giant MBC Group declining 9.9%, falling for a third consecutive session. MBC Group, since its debut on Jan. 08, has risen more than 130% against its initial public offering price of 25 riyals per share. Elsewhere, oil giant Saudi Aramco finished 0.5% lower.

Saudi Arabian bourse's performance was relatively flat today, yet the overall bullish trend persisted and may lead to further gains, said Ahmad Awni, head of NCM Investment's marketing department.

"The recent rebound in oil prices, if sustained, could positively impact the energy sector, which has been under pressure for some time, with stocks like Saudi Aramco being affected."

Oil prices rose after data showed U.S. crude stockpiles fell more than expected last week and a fresh attack by Houthi forces on ships off Yemen's coast underscored the peril facing trade in a key global transit route.

Dubai's main share index eased 0.2%, hit by a 1.4% fall in toll operator Salik Co. Among other losers, Emirates NBD Bank (ENBD) - which rose more than 5% in early trade - concluded 0.8% lower. ENBD, Dubai's biggest bank by assets, reported a 3% rise in fourth-quarter profit, helped by asset growth, a low-cost funding base and higher transaction volumes.

The lender also doubled its annual dividend proposal to 120 fils per share compared to 60 fils per share in 2022.

In Abu Dhabi, the index was down 0.3%. The Qatari benchmark lost 0.3%, hit by a 1.7% fall in Islamic lender Masraf Al Rayan. Outside the Gulf,

Egypt's blue-chip index gained 0.3%, with Talaat Mostafa Holding advancing 8.4%.

One of World’s Richest Doctors Sees Fortune Surge to $12 Billion - Bloomberg

One of World’s Richest Doctors Sees Fortune Surge to $12 Billion - Bloomberg

A Saudi doctor saw his fortune close in on $12 billion on Thursday as shares of his healthcare firm rebounded, returning him to the ranks of the Middle East’s wealthiest private individuals.

Shares in Sulaiman Al Habib’s eponymous company have surged 30% since hitting a one-year low in October. That’s made Al Habib — who founded the firm and holds a 40% stake — the third-richest person in the Middle East who’s not a member of a royal family, according to the Bloomberg Billionaires Index.

The stock has risen sixfold since its initial public offering in 2020, putting it in touching distance of a record high. Since the listing, the shares have outperformed the benchmark Tadawul index, which has doubled in that period.

The billionaire, who is in his early 70’s, grew the $28 billion healthcare chain from a single clinic opened in 1993 to a company that operates 22 medical facilities and 22 pharmacies across Saudi Arabia, the UAE and Bahrain. The firm has 10 hospitals and medical centers under development.

Middle Eastern Broadcaster MBC Is World’s Best-Performing IPO - Bloomberg

Middle Eastern Broadcaster MBC Is World’s Best-Performing IPO - Bloomberg

A more than twofold jump in the share price of a Middle Eastern broadcaster has made it the world’s best-performing listing this year, highlighting the continued strength in one of the few busy markets for initial public offerings.

MBC Group, the biggest broadcaster in the Middle East, has seen its shares rise 134% since they started trading in Riyadh on Jan. 8 after a $222 million listing, making it the largest gainer among IPOs that raised at least $50 million worldwide, according to data compiled by Bloomberg.

For the past two years, the Persian Gulf has been a bright spot in an anemic global IPO market, buoyed by high oil prices and efforts by regional governments to grow their capital markets. A standout feature of the region has been the consistently strong level of investor demand for share sales, particularly from local buyers.

“MBC is a household name in the region and investors are putting faith in their streaming platform, which caters to the MENA region,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital. “As more IPOs come into regional markets, investors finally have a chance to gain exposure to sectors that were never represented on the equity markets.”

#Dubai sees rising appetite from Chinese asset managers -regulator chief | Reuters

Dubai sees rising appetite from Chinese asset managers -regulator chief | Reuters

Chinese asset managers are lining up for licenses to operate in Dubai, said Ian Johnston, chief executive of the Dubai Financial Services Authority (DFSA), as warming ties between China and the Middle East continue to offer business opportunities.

"(Chinese) investment management and asset management firms have been coming to be licensed by us ... That's growing," Johnston told Reuters on the sidelines of the Asian Financial Forum in Hong Kong.

The DFSA regulates the Dubai International Financial Centre (DIFC), which Johnson says has been luring global banks, asset and wealth managers, and hedge funds, and now is seeing rising interest from Chinese entities.

Johnston said previously it was mainly China's big commercial banks operating in the DIFC, offering trade and project financing. Now Chinese asset managers are joining as well, he said, while Chinese investors are looking to diversify their assets amid continuing China-U.S. tensions.

China is the United Arab Emirates' biggest trading partner, and last year the UAE, Saudi Arabia and four others were invited to join the BRICS block of emerging market economies.

A growing number of wealth managers and family offices based in Hong Kong and Singapore are also setting up offices in Dubai, as investors look for safe havens, neutral political stance and favourable policies.

Johnston said as well that Chinese and Dubai bourses had been in discussions for cooperation in exchange-traded fund (ETF) and index products.

Last year, a new ETF tracking Saudi equities made its trading debut in Hong Kong, becoming the first product of its kind in Asia.

The DFSA is also in close cooperation with the Hong Kong monetary and securities regulators, jointly working on promoting financial innovation and sustainable investments, Johnston said.

#Dubai's biggest bank Emirates NBD posts 3% rise in Q4 net profit; misses estimate

Dubai's biggest bank Emirates NBD posts 3% rise in Q4 net profit; misses estimate

Emirates NBD, Dubai’s biggest lender, reported a Q4 2023 net profit of 4 billion UAE dirhams ($1.09 billion), up 3% year-on-year.

For FY 2023, the lender reported a net profit of AED21.5 billion, up 65% from AED13 billion in the same period last year.

The surge in net profit was delivered on the back of 'a stable low-cost funding base, increased transaction volumes and substantial recoveries', the bank said in a statement to Dubai Financial Market on Thursday.

The Q4 net profit came in below analysts’ mean estimate of AED5.6 billion, according to LSEG data, while FY profit was in line at AED21.82 billion.

Impairment allowances were down 33% y-o-y due to strong recoveries achieved through the year with impaired loan ratio improving to 4.6%, the bank said.

Net interest margin (NIM) rose 52 basis points in 2023 to 3.95% on favourable loan and deposit mix and higher interest rates.

Total income jumped 32% to AED43 billion on "excellent deposit mix, solid loan growth and strong fee and commission growth across all business segments."

Emirates NBD saw its asset base jump 16% in 2023 to AED863 billion, on the basis of “strong capital”.

The bank, which is celebrating its 60th anniversary, proposed a 100 fils dividend plus 20 fils, doubling last year’s dividend.

Mideast Stocks: Most Gulf markets ease on geopolitical tensions; #Dubai gains

Mideast Stocks: Most Gulf markets ease on geopolitical tensions; Dubai gains

Most major stock markets in the Gulf were subdued in early trade on Thursday on simmering tensions in the region, although the Dubai index bucked the trend to trade higher.

Maersk said explosions nearby forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen, accompanied by the U.S. Navy.

On Wednesday, the U.S. military carried out more strikes in Yemen early on Wednesday, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and were preparing to launch, the U.S. military said.

Saudi Arabia's benchmark index fell 0.2%, weighed down by a 9.9% slide in media giant MBC Group.

Elsewhere, oil giant Saudi Aramco eased 0.2%.

However, Saudi Arabian Amiantit advanced 6.3%, following the Capital Market Authority's nod to increase capital through a rights issue.

In Qatar, the index dropped 0.2%, with Islamic lender Masraf Al Rayan losing 2.3%.

The Abu Dhabi index was down 0.1%.

Dubai's main share index added 0.6%, boosted by a 5.1% jump in top lender Emirates NBD after reporting an increase in fourth-quarter net profit.

The bank also doubled its annual dividend proposal to 120 fils per share compared to 60 fils for 2022.