Mideast Stocks: Most Gulf markets gain on corporate earnings

Mideast Stocks: Most Gulf markets gain on corporate earnings

Most stock markets in the Gulf ended higher on Wednesday after the usual flurry of annual corporate earnings, while shrugging off concerns about further delay in interest rate cuts following hotter-than-expected U.S. inflation.

U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare, but the pick-up in inflation likely does not change expectations that the Fed will start cutting rates in the first half of this year.

Most Gulf currencies are pegged to the dollar, and Qatar, Saudi Arabia and the United Arab Emirates usually mirror any monetary policy change in the United States.

Saudi Arabia's benchmark index gained 0.3%, rising for a tenth consecutive session, led by a 8.2% jump in Savola Group. Meanwhile, the kingdom's deficit reached 80.946 billion riyals ($21.58 billion) in 2023's budget, the finance ministry reported on Wednesday. Saudi's expenditures reached 1.293 trillion and revenues stood at 1.212 trillion riyals in the same budget, the ministry added.

In Abu Dhabi, the index finished 0.5% higher, with the country's biggest lender First Abu Dhabi Bank rising 2.6%, while Alpha Dhabi Holding climbed 1.2%, a day after reporting a sharp rise in full-year profit. Abu Dhabi National Company For Building Materials rose 5.5% after its annual losses narrowed and revenue increased.

Dubai's main share index added 0.1%, with Emirates NBD rising 2.9% and blue-chip developer Emaar Properties closing 1.8% higher. Emaar's board doubled the full-year cash dividend to 50 fils a share from 25 fils per share in 2022.

However, budget airline Air Arabia declined 3% following a slide in quarterly profit.

The Qatari benchmark increased 1.2%, as most of its constituents were in positive territory, including Qatar Islamic Bank, which was up 2%.

Outside the Gulf, Egypt's blue-chip index was up 1%, with Commercial International Bank gaining 1.1%.

Alibaba (BABA) Seeks #SaudiArabia, #UAE Partners as China Deepens Mideast Ties - Bloomberg

Alibaba (BABA) Seeks Saudi Arabia, UAE Partners as China Deepens Mideast Ties - Bloomberg

Chinese e-commerce giant Alibaba Group Holding Ltd. has sought to partner with local firms in Saudi Arabia and the United Arab Emirates as China deepens its ties with the Gulf.

“One of the things we’ve chosen to do, which is a little unusual for a Chinese company, is we partner,” Alibaba’s president, Michael Evans, said on a panel in Dubai’s World Government Summit, responding to how his firm navigates industrial policy initiatives. “And partnering in a local market, we’ve done it here in the GCC. We’re going to do it in the UAE. We’ve just finished doing something very interesting in Saudi.”

Alibaba is trying to stage a comeback after years of government punishment and strategic missteps that cost the e-commerce operator its place as leader of the country’s tech industry. Co-founder Jack Ma in November urged the company to correct its course.

“A local partner is basically an opportunity to keep you very tightly integrated in the dialogue about what’s happening,” Evans said.

Gulf countries have been deepening ties with Beijing over the past few years as the oil-rich region expands its global influence and seeks investments to diversify its economy away from hydrocarbons. Last year, the UAE and Saudi Arabia were among a few countries invited to join the BRICs bloc in a push for expansion largely driven by China.

These efforts are complicated by pushback from the US on entities perceived to have close ties with Beijing. Abu Dhabi’s G42 told Bloomberg this week it’s paring back its presence in China and has pledged to invest in key Western markets in an effort to assuage US concerns.

BP and #AbuDhabi's Adnoc Form Gas Joint Venture to Focus on Egypt - Bloomberg

BP and Abu Dhabi's Adnoc Form Gas Joint Venture to Focus on Egypt - Bloomberg

BP Plc and Abu Dhabi National Oil Co. agreed to form a joint venture in Egypt to focus on natural gas, giving the United Arab Emirates access to production in a country that supplies the fuel to Europe.

The move is the latest in Adnoc’s push for international growth, following a multibillion-dollar pursuit of Covestro AG, and the purchase of stakes in a gas field in Azerbaijan and a fertilizer company. It would also deepen Egypt’s economic ties with the UAE, which has been a key backer of President Abdel-Fattah El-Sisi.

BP will contribute its interests in three development concessions, as well as exploration projects in Egypt to the venture, according to a statement. Adnoc will provide cash to help fund future growth opportunities, the company said, without providing a value.

Gas transactions have been high on Adnoc’s list of priorities, as it seeks more production and targets a bigger trading business. Egypt supplies liquefied natural gas to Europe through export plants on the country’s Mediterranean coast. European producers like BP and Italy’s Eni SpA have been working in the country for decades to develop fields that can supply both domestic and export markets.

The venture “represents a significant step forward as Adnoc builds its international natural gas portfolio,” Musabbeh Al Kaabi, the company’s head of low-carbon solutions and international growth, said in the statement.

BP and Adnoc have also worked together on a deal for gas in the Mediterranean region earlier through a joint bid for an Israeli producer. That’s now on hold because of war in the region.

Shuaa Capital’s 2023 net loss widens to $236mln

Shuaa Capital’s 2023 net loss widens to $236mln

Dubai-based investment bank Shuaa Capital said net loss widened to 866 million dirhams ($235.78 million) in 2023 from AED 135 million in 2022, primarily due to non-cash impairments related to legacy assets and goodwill.

Total operating revenue rose 34% year-on-year (YoY) to AED 165 million last year, driven by growth within core business areas, particularly in asset management, the company said in a statement to the Dubai Financial Market on Wednesday.

Net loss stood at AED 296 million for the fourth quarter of 2023 due to significant non-cash impairment of legacy assets worth AED 128 million and one-off charges of AED 124 million.

Currently, Shuaa is negotiating agreements with its creditors and securing essential regulatory approvals to convene a shareholders’ general assembly over the coming few weeks, the statement said.

The agenda includes seeking approval for a reduction in share capital and a subsequent capital increase aimed at reducing leverage and bolstering its capital base.

The company aims to complete the process by June 2024.

#Dubai-listed Emirates Investment Bank swings to $29mln net profit for 2023

Dubai-listed Emirates Investment Bank swings to $29mln net profit for 2023

Emirates Investment Bank (EIB) has swung to a net profit after incurring losses in 2022.

The Dubai-based lender’s total net profit for the year ended December 31, 2023 reached AED 107.5 million ($29.3 million) versus a loss of AED 23.6 million in 2022, according to preliminary financial results posted on the Dubai Financial Market (DFM) on Tuesday.

The lender achieved the turnaround as revenues during the year surged 61% to AED 220.6 million.

Net operating income also went up to AED 161.3 million from AED 101.4 million over the same period.

Total assets increased to AED 4.5 billion from AED 3.8 billion.

Earnings per share stood at AED 14.62, compared to a loss per share of AED 6.48 in the previous year.

Major Gulf markets gain in early trade | Reuters

Major Gulf markets gain in early trade | Reuters

Major stock markets in the Gulf edged higher in early trade on Wednesday, even as hotter-than-expected U.S. inflation fuelled concerns about further delay in interest rate cuts from the Federal Reserve.

U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare, but the pick-up in inflation likely does not change expectations that the Fed will start cutting rates in the first half of this year.

Most Gulf currencies are pegged to the dollar and Qatar, Saudi Arabia and the United Arab Emirates usually mirror any monetary policy change in the United States.

Saudi Arabia's benchmark stock index (.TASI) edged 0.1% higher, helped by a 0.5% rise in oil giant Saudi Aramco (2222.SE).

Aramco has started trading a U.S. crude oil grade that underpins the global Brent benchmark in a process run by oil-index publisher S&P Global Commodity Insights, the publisher said.

In Abu Dhabi, the benchmark stock index (.FTFADGI) gained 0.6%.

India and the United Arab Emirates on Tuesday signed an agreement on a trade corridor that aims to connect Europe with India through parts of the Middle East by sea and rail, an ambitious plan backed by the U.S. and the European Union.

Dubai's main share index (.DFMGI) added 0.1%, led by a 1.8% rise in Emaar Properties (EMAR.DU), opens new tab after the blue-chip developer's board doubled full-year cash dividend to 50 fils a share from 25 fils per share in 2022.


Meanwhile, Shuaa Capital (SHUA.DU) slumped about 7% as annual losses widened. The investment bank and asset manager reported full-year net loss of 866 million dirhams ($235.82 million) compared to a loss of 135 million dirhams in 2022.

The Qatari benchmark (.QSI) gained 0.8%, with Qatar Islamic Bank (QISB.QA) rising 1.5% and petrochemical maker Industries Qatar (IQCD.QA) advancing 1%.