#AbuDhabi hits 2-year low as Gulf bourses drop; #Qatar gains | Reuters

Abu Dhabi hits 2-year low as Gulf bourses drop; Qatar gains | Reuters

Most stock markets in the Gulf slipped on Tuesday amid rising geopolitical tensions in the region, while investors also awaited key U.S. inflation data later in the week.

Israeli tanks advanced to the centre of Rafah for the first time on Tuesday, as part of ground offensive in the southern Gaza city that has stirred global condemnation for its continued civilian toll.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was down for a fourth straight day, falling 1.5% to 11,660, its lowest level in five months. ACWA Power (2082.SE), opens new tab slid 4.7% and Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, declined 2.1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab dropped 1% to 8,742, its lowest level in more than two years. The conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declined 6% to close at 11.0 dirham per share, its lowest level since listing in June 2021.

Among other losers, First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, fell 2.2% to 11.58 dirham apiece, the lowest in three and half years.

Dubai's benchmark index (.DFMGI), opens new tab retreated 1% after the previous day's gains, with most sectors in the red. Tolls operator Salik Company (SALIK.DU), opens new tab slid 2.2% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, slipped 1.6%.

"GCC markets were mostly under pressure due to geopolitical tensions and uncertainty around oil prices, with coming inflation data from the U.S. also impacting market sentiment", said Hani Abuagla, Senior Market Analyst at XTB MENA.

The Qatari benchmark index (.QSI), opens new tab bounced back after four straight sessions of losses to end 0.5% higher, supported by gains in finance, industry, materials and utilities.

Qatar Islamic Bank (QISB.QA), opens new tab, the country's largest Islamic lender, climbed 3.2% and Qatar Navigation (QNNC.QA), opens new tab rose 1.1%.

The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday will also be closely watched for clues on the U.S. central bank's interest rate outlook. Markets are currently fully pricing in one 25 basis-point Fed rate cut this year.

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 eased 0.3%, pressured by a 1.9% drop in Talaat Mostafa Group (TMGH.CA), opens new tab and a 15.4% slump in Qalaa Holding (CCAP.CA), opens new tab. However, Palm Hills Development(PHDC.CA), opens new tab climbed 3.6%.

The developer, Palm, posted a 300% surge in its first-quarter net profit.

#SaudiArabia Taps Debt Markets With Three-Part Dollar Sukuk - Bloomberg

Saudi Arabia Taps Debt Markets With Three-Part Dollar Sukuk - Bloomberg

Saudi Arabia is looking to raise money through the sale of dollar-denominated sukuk as it seeks to plug a hole in its finances and fund spending on Crown Prince Mohammed bin Salman’s economic diversification drive.

The kingdom mandated banks for a three-part offering of three-, six- and 10-year notes, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The bonds may yield between 85 basis points and 110 basis points more than comparable US Treasuries, the person said.

Saudi Arabia is tapping the debt market as it works to find alternative sources of funding to help cover an expected fiscal shortfall of about $21 billion this year. The country has said total funding activities for the year may reach around $37 billion, with capital that’s raised helping to accelerate projects and programs of the so-called Vision 2030 agenda.

The latest offering follows a $12 billion sovereign debt sale by Saudi Arabia in January. The kingdom’s record year for international bond issuance came in 2017, when it sold $21.5 billion, according to data compiled by Bloomberg.

Citigroup Inc., Goldman Sachs Group Inc. and BNP Paribas SA are bookrunners and global coordinators. Moody’s Ratings has Saudi Arabia at A1, the fifth-highest level of investment grade, with a positive outlook.

Demand for Gulf Cooperation Council sovereign bonds remains strong, after recent deals involving Abu Dhabi and Qatar, according to Apostolos Bantis, managing director of fixed income advisory at Union Bancaire Privee Ubp SA. He expects that Saudi Arabia will raise at least $10 billion of fresh funds this time.

“The geopolitically turbulent environment in the wider Middle East region has not affected bond investor’s sentiment for high quality paper in the Gulf region,” Bantis added. Despite rising debt levels and small fiscal deficits, the Kingdom’s credit profile should remain stable, supported by ongoing high oil prices, he said.

#UAE's Alef Education sets IPO price range; set to raise up to $515mln

UAE's Alef Education sets IPO price range; set to raise up to $515mln

Alef Education, which is floating 20% of its share capital in an initial public offering (IPO), has set the offer price range between 1.30 ($0.35) UAE dirhams and AED 1.35 per share, potentially raising as much as AED 1.89 billion ($515 million) at the top of the price range.

The range implies a market capitalisation at listing of between AED 9.10 billion ($2.48 billion) and AED 9.45 billion ($2.57 billion), the Abu Dhabi-based edtech firm said.

The final offer price will be determined after the book-building process, followed by the listing on the ADX around 12 June.

The IPO subscription period starts on Tuesday and runs until 4 June for individual investors (first tranche) and until 5 June for professional investors (second tranche).

All the 1.4 billion shares to be offered are held by Tech Nova Investment – Sole Proprietorship L.L.C and Kryptonite Investments L.L.C.

Alef expects to distribute a minimum dividend of AED 135 million with respect to each of its financial years ending 31 December 2024 and 2025 to all shareholders, other than the selling shareholders, implying a dividend yield of approximately 7.42% at the bottom of the price range.

Alef Education is indirectly owned by Abu Dhabi Capital Group, a private institutional investment group.

Major Gulf bourses muted in early trade; U.S. inflation eyed | Reuters

Major Gulf bourses muted in early trade; U.S. inflation eyed | Reuters

Major stock markets in the Gulf were subdued in early trading on Tuesday amid volatile oil prices, while investors looked forward to inflation data later this week for clues on the path of U.S. interest rate cuts.

Oil prices, a catalyst for the Gulf's financial markets, flitted between gains and losses as markets waited for an OPEC+ meeting on June 2. Brent edged up to $83.18 a barrel by 0800 GMT.

The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched by investors for clues on the U.S. central bank's monetary easing plan.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell 0.4%, after declining for the last five sessions. Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab slid 2.6% and Aldar Properties (ALDAR.AD), opens new tab, the emirate's biggest developer, fell 2.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, weighed down by losses in most sectors. ACWA Power (2082.SE), opens new tab slipped 1.4% and Mouwasat Medical (4002.SE), opens new tab dropped 3.8%.

The Qatari benchmark index (.QSI), opens new tab slid 0.1%, pressured by a 1.4% drop in Qatar Fuel Co (QFLS.QA), opens new tab and a 1.1% loss in Commercial Bank (COMB.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.1%, helped by gains in most sectors. Blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 1% and tolls operator Salik Company (SALIK.DU), opens new tab added 1.3%. However, Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, and Ajman Bank (AJBNK.DU), opens new tab lost 0.6% and 1.7% respectively.