Mideast Stocks: Most Gulf markets rise on higher oil prices; Egypt extends losses

Mideast Stocks: Most Gulf markets rise on higher oil prices; Egypt extends losses

Most stock markets in the Gulf rose on Wednesday, led by the Saudi benchmark on higher oil prices, while shares in Egypt continued to ease for a second straight session.

Oil prices - a catalyst for the Gulf's financial markets - climbed on the day, boosted by potential supply disruptions after Ukrainian attacks on Russian refineries and signs of strong demand.

Brent was up 1.9% at $83.44 a barrel by 1300 GMT.

Saudi Arabia's benchmark index advanced 0.9%, extending its rally to a second consecutive session, with almost all the sectors in the green. 

Al Rajhi Bank, the world's largest Islamic lender, climbed 1.5% and ACWA Power surged 3.1%.

Dubai's benchmark index was up 0.2%, lifted by gains in the communications, finance and industry sectors, with Emirates NBD, the Emirate's largest lender, rising 1.5% and Emaar Development gaining 2.4%. 

In Abu Dhabi, the benchmark rose 0.2%, supported by a 1.1% increase in conglomerate Alpha Dhabi and a 0.2% gain in the UAE's largest lender, First Abu Dhabi Bank.

The Qatari benchmark index was up marginally as gains in real estate, consumer staples, industry, energy, and material stocks countered losses in finance, utilities and communications. 

Qatar Navigation and Barwa Real Estate climbed 3.3% and 1.3%, respectively, while Qatar National Bank , the region's largest lender, shed 0.2%.

Outside the Gulf, Egypt's blue-chip index slumped 5%, extending its slide to a second consecutive session, with all the stocks in the red. Commercial International Bank dropped 6.8% and Eastern Co sunk 7.2%. 

Meanwhile, the European Union is readying a 7.4 billion euro ($8.08 billion) package aimed at shoring up Egypt's economy amid fears that the conflict in Gaza and Sudan could exacerbate the country's financial troubles, the Financial Times reported on Wednesday.

#AbuDhabi's ADIA, #SaudiArabia's PIF, #Kuwait's KIA Close In on $1 Trillion Mark - Bloomberg

Abu Dhabi's ADIA, Saudi Arabia's PIF, Kuwait's KIA Close In on $1 Trillion Mark - Bloomberg

The oil-rich Middle East is close to becoming the only region with three trillion-dollar wealth funds.

Saudi Arabia recently transfered a $164 billion stake in Aramco to the Public Investment Fund, while the Kuwait Investment Authority is on track for one of its best fiscal years on record amid a broad market rally, Bloomberg News has reported.

That’s helped both entities narrow the gap with the $993 billion Abu Dhabi Investment Authority — the region’s largest state-backed investor — according to data from the Sovereign Wealth Fund Institute.

Many wealth funds operate in secrecy, making it hard to ascertain the exact size of their portfolios.

Globally, Norway’s sovereign wealth fund is the world’s largest, followed by China Investment Corp., data from SWFI shows.

In the Middle East, Abu Dhabi is home to three wealth funds — ADIA, Mubadala Investment Co. and ADQ. The city is among few globally that manage about $1.5 trillion in sovereign wealth capital, and recently set up a technology investment firm that could surpass $100 billion in assets under management.

#AbuDhabi’s Lunate Partners With JPMorgan for First #UAE Bond ETF - Bloomberg

Abu Dhabi’s Lunate Partners With JPMorgan for First UAE Bond ETF - Bloomberg

Abu Dhabi-based Lunate Capital Limited has partnered with JPMorgan Chase & Co. to build the first exchange-traded fund tracking the performance of bonds in the United Arab Emirates.

The Chimera JPMorgan UAE Bond UCITS ETF will list on the Abu Dhabi Stock Exchange on March 26. It aims to replicate the performance of the J.P. Morgan MECI UAE Investment Grade Custom Index, which tracks the performance of liquid, dollar-denominated debt instruments from issuers based in the UAE.

The index includes investment-grade bond issuances with at least $500 million in face amount outstanding, such as those from Mubadala Investment Co PJSC, the Emirate of Abu Dhabi, the UAE government, First Abu Dhabi Bank PJSC, Abu Dhabi National Energy Co. and the Investment Corporation of Dubai.

Dividends received by the ETF will be distributed in June and December, when available. The indicative yield to maturity of the index is 5.4% as of March 7. The initial offering period is from March 14 to 20. The offering price is set at 3.67 dirhams ($1).

There are only a few ETFs tracking Middle Eastern fixed-income markets, and Lunate’s fund will be the first to offer exposure to UAE bonds. Abu Dhabi’s sovereign debt is rated at the third-highest investment grade by the three major ratings companies. Bloomberg has reported that the emirate is looking to tap international debt markets soon.

Israel's NewMed says BP, ADNOC buy-in offer on hold | Reuters

Israel's NewMed says BP, ADNOC buy-in offer on hold | Reuters

A $2 billion offer by Abu Dhabi's national oil company and BP (BP.L), opens new tab to acquire a 50% stake in Israeli gas producer NewMed (NWMDp.TA), opens new tab has been put on hold due to uncertainty in the region, NewMed said on Wednesday.

NewMed said all parties agreed to pause negotiations, although Abu Dhabi National Oil Co (ADNOC) and BP have reaffirmed their interest in the deal.

BP and ADNOC made their offer a year ago, intending to form a joint venture that gives them access to gas-rich areas in the east Mediterranean and Israel's energy sector. Along the way, a panel reviewing the offer for NewMed recommended to raise the asking price by 10%, according to sources.

NewMed, in a regulatory filing in Tel Aviv, said that the panel, BP and ADNOC have agreed to put the deal on hold due to uncertainty in the "external environment", presumably referencing the war in Gaza, opens new tab and fighting on the Israel-Lebanon border.

"The process was suspended until the date that it will be renewed or the process is ended," NewMed said.

Most Gulf bourses gain in early trade on higher oil prices | Reuters

Most Gulf bourses gain in early trade on higher oil prices | Reuters

Most stock markets in the Gulf region rose in early trade on Wednesday as expectations of strong global demand for crudes pushed up oil prices.

OPEC on Tuesday stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025, and further raised its economic growth forecast for this year, saying there was more room for improvement.

Oil price - a catalyst for the Gulf's financial markets - rose 0.4% to $82.21 a barrel by 0740 GMT.

The Qatari benchmark index (.QSI), opens new tab was up 0.4%, supported by gains in almost all sectors with Qatar Gas Transport (QGTS.QA), opens new tab rising 1.5% and Qatar Navigation (QNNC.QA), opens new tab gaining 1.1%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.2%, lifted by gains in utilities, industry, consumer staples, healthcare and finance.

Acwa Power (2082.SE), opens new tab and Company for Cooperative Insurance (8010.SE), opens new tab gained 3.2% and 2.0%, respectively, while Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, added 0.3%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab rose 0.1%, helped by a 0.5% increase in Aldar Properties (ALDAR.AD), opens new tab and 1.3% gain in Abu Dhabi National Energy(TAQA.AD), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab eased 0.1%, with Tecom Group (TECOM.DU), opens new tab sliding 2.5% and Commercial Bank of Dubai (CBD.DU), opens new tab slipping 3.2%, although Emirate's largest lender Emirates NBD (ENBD.DU), opens new tab added 0.6%.