Gulf markets end mixed; #Qatar hits six-month low | Reuters

Gulf markets end mixed; Qatar hits six-month low | Reuters

Stock markets in the Gulf put in a mixed performance while the Qatari index hit a six-month low on Thursday after the U.S. Federal Reserve downplayed risks of an interest rate hike.

Saudi Arabia's benchmark stock index (.TASI), opens new tab rose 0.1%, supported by gains in most sectors, led by IT, utilities and real estate stocks.

Acwa Power (2082.SE), opens new tab gained 1.7% and Middle East Pharmaceutical (4016.SE), opens new tab added 1.8% while Saudi Basic Industries (2010.SE), opens new tab known as SABIC fell 1.6%.

The petrochemical group SABIC reported a 62% drop in first-quarter net profit on Wednesday.

Dubai's benchmark index (.DFMGI), opens new tab bounced back after two straight sessions of losses and ended 0.2% higher, helped by gains in consumer staples, real estate, finance and industry sectors. Emaar Properties (EMAR.DU), opens new tab rose 2.5% and Dubai Islamic Bank (DISB.DU), opens new tab added 1.1%.

In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab eased 0.1%, pressured by a 1% drop in First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender and a 0.3% dip in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.

Agility Global (AGILITY.AD), opens new tab, owned by Kuwaiti logistic firm Agility, closed at 1.58 dirham a share, surging more than 300% from its trading reference price of 0.37 dirham on its debut.

The Qatari benchmark index (.QSI), opens new tab slipped 1% to 9,611, its lowest for six months with almost all stocks in the red.

Qatar Islamic Bank (QISB.QA), opens new tab dropped 1.6% and network provider Ooredoo Qatar slid 2.4%.

The U.S. central bank late on Wednesday kept interest rates unchanged as expected and flagged hopes of no rate hikes in the near term.

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

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up for a second straight session and advanced 3.3% with almost all stocks gaining.

Talaat Mostafa (TMGH.CA), opens new tab rose 7.2% and E-Finance for Digital (EFIH.CA), opens new tab surged 10.3%.

Janus Henderson buys National Bank of #Kuwait's alternative investment business in Mideast foray | Reuters

Janus Henderson buys National Bank of Kuwait's alternative investment business in Mideast foray | Reuters

Global asset manager Janus Henderson plans to buy National Bank of Kuwait's alternative investments business in a deal that is expected to strengthen its position in emerging markets and its access to clients in the Middle East.

As part of the deal, the team at NBK Capital Partners (NBKCP) will join the $353 billion asset manager as the firm’s new emerging markets private capital division, according to a joint statement on Thursday.

The value of the transaction, which is subject to regulatory approval, was not disclosed.

Established in 2006, NBK Capital Partners advises across emerging markets including the Middle East and North Africa, and its private credit strategy has attracted investment from some of the region's biggest sovereign wealth funds.

Money managers are vying for a slice of the growing private credit market that emerged after the 2008 financial crisis. Private credit funds are increasingly competing with banks, including for financing large company buyouts.

#SaudiArabia: JPMorgan, Deutsche, Others Ramp Up Amid MBS's Pressure Campaign - Bloomberg

Saudi Arabia: JPMorgan, Deutsche, Others Ramp Up Amid MBS's Pressure Campaign - Bloomberg

When Deutsche Bank AG last month brought back its former CEO for the Middle East and Africa, the reappointment came with a twist: Unlike his prior stint at the German lender, Jamal Al Kishi will no longer be based in Dubai, the region’s traditional business hub known for swanky villas and expat comforts. Instead, he will be based in a far less glamorous Middle Eastern city — Riyadh.

Germany’s largest lender is also ramping up headcount in the Saudi Arabian capital, one of the few places it is doing so globally. The changes reflect how the conservative city — where alcohol is banned — is gradually emerging as a financial hub. Taking a carrot-and-stick approach, Crown Prince Mohammed Bin Salman has made it easier for foreign firms to operate, but a new law is also forcing them to set up headquarters in the country or risk losing business from government entities sitting on billions of dollars in oil wealth.

The move is intended to lure business from international financial centers like Hong Kong and Singapore and particularly nearby Dubai. And bankers say Saudi pressure to expand on the ground goes beyond the new law: During discussions, senior Saudi officials persistently ask if executives plan to spend more time in the kingdom or expand existing offices, while offering to fast track licenses for those committing to live with their families in Riyadh. Government representatives didn’t respond to a request for comment.

Biggest #Saudi IPO of the Year Fakeeh Hospital Sells Out In Under An Hour - Bloomberg

Biggest Saudi IPO of the Year Fakeeh Hospital Sells Out In Under An Hour - Bloomberg

Investors snapped up all shares on offer in a Saudi hospital group minutes after books opened on the deal that’s shaping up to be the largest listing in the kingdom so far this year.

Dr. Soliman Abdul Kader Fakeeh Hospital and its shareholders are seeking to raise as much as 2.86 billion riyals ($763.4 million) in the Riyadh initial public offering. Books were covered throughout the price range of 53 riyals to 57.5 riyals per share, according to terms of the deal seen by Bloomberg News.

Abu Dhabi Investment Authority is buying shares in the deal, marking the first instance of the wealth fund participating in a Saudi IPO as a cornerstone investor. ADIA will be joined as an anchor by Olayan Saudi Investment Co., according to a statement.

The company is selling 30 million new shares and the founding family will offer 19.8 million shares in the IPO. The top end of the range implies a market capitalization of 13.3 billion riyals.

Bookbuilding for institutional investors runs until May 8, while the retail offering opens on May 21 for two days. The final price is expected to be announced on May 14.

IPO pipeline

Fakeeh Care Group is among three Saudi companies that have announced their intentions to go public in the last few weeks. The kingdom’s listings market has picked up despite a flaring up of tensions in the Middle East last month after Israel and Iran openly struck each other for the first time.

Water treatment firm Miahona Co. closes institutional order books for its IPO of as much as 555.2 million riyals on Thursday, while Saudi Manpower Solutions Co. announced its listing plans earlier this week.

Just under $697 million has been raised through Saudi IPOs so far this year, with the largest share sale being the $314 million listing of Modern Mills Co. in March. It’s still a large year-on-year increase after the kingdom’s IPOs ground to a halt in the first half of 2023 because of a decline in its stock market.

Fakeeh Care Group was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centers. It plans to expand to seven hospitals with 1,675 beds and nine medical centers by 2028 to capitalize on the kingdom’s growing population, which is expected to hit about 40 million by 2030.

The group reported 2023 revenue of 2.3 billion riyals, up from 1.7 billion riyals in 2020. Its profit for last year was 232 million riyals.

HSBC Holdings Plc is acting as sole financial adviser and joint bookrunner together with ANB Capital and EFG Hermes. Moelis & Co. is advising the selling shareholders.

#AbuDhabi's ADQ lists debut $2.5 bln bonds on London stock exchange | Reuters

Abu Dhabi's ADQ lists debut $2.5 bln bonds on London stock exchange | Reuters

The smallest of three Abu Dhabi sovereign wealth funds ADQ has listed a dual tranche $2.5 billion bond on the London Stock Exchange, the fund said in a statement.

The fund sold a $1.25 billion five-year portion at 80 basis points (bps) over U.S. Treasuries (UST) and another $1.25 billion 10-year tranche at 90 bps over the same benchmark, fixed income news service IFR reported.

Citigroup, Credit Agricole, First Abu Dhabi Bank, Goldman Sachs International, HSBC and Standard Chartered were joint global coordinators and active bookrunners on the bond issuance deal.

The proceeds from the debt sale, which was oversubscribed more than 4.4 times, will diversify ADQ's funding mix, enhance financial resilience and contribute growth capital.

Gulf bourses mixed in early trade | Reuters

Gulf bourses mixed in early trade | Reuters

Most stock markets in the Gulf were mixed in early trade on Thursday after the U.S. Federal Reserve downplayed risks of an interest rate hike, while rising oil prices lifted the investor sentiment.

Oil prices - a catalyst for the Gulf's financial markets- were up 0.95% with Brent trading at $84.22 a barrel by 0830 GMT.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab rose 0.1%, supported by a 2.7% gain in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab and a 1.4% climb in Aldar Properties (ALDAR.AD), opens new tab.

Meanwhile, shares of Agility Global (AGILITY.AD), opens new tab surged as much as 300% to 1.48 dirham a share against trading reference price of 0.37 dirham in its debut trading on Abu Dhabi bourse.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.1%, helped by gains in most sectors. Saudi Telecom (7010.SE), opens new tab, the kingdom's largest mobile operator, advanced 1.2% and Middle East Pharmaceutical (4016.SE), opens new tab added 1.5%.

Dubai's benchmark stock index (.DFMGI), opens new tab inched up 0.1% with Emaar Properties (EMAR.DU), opens new tab rising 1% and tolls operator Salik Company (SALIK.DU), opens new tab gaining 0.6%.

The Qatari benchmark index (.QSI), opens new tab fell 0.6%, weighed down by losses in almost all sectors with Qatar Islamic Bank (QISB.QA), opens new tab sliding 1.4% and Mesaieed Petrochemical (MPHC.QA), opens new tab dropping 1.3%.

The Fed had left interest rates on hold and its Chair Jerome Powell told reporters that inflation was too high and progress in bringing it down was uncertain. But he did not entertain growing speculation the Fed may need to hike rates.

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