#Saudi bourse gains on US rate cut hopes, Egypt stocks fall after Gaza attack | Reuters

Saudi bourse gains on US rate cut hopes, Egypt stocks fall after Gaza attack | Reuters

Saudi Arabia's stock market closed higher on Sunday as investors turned their focus to U.S. Federal Reserve interest rate cuts, while Egypt's main index retreated amid rising tensions in Gaza.

U.S. producer prices increased slightly more than expected in June amid a rise in the cost of services, but that did not change expectations that the Federal Reserve could start cutting interest rates in September.

Markets have now priced in a quarter percentage-point cut in September compared with seeing just over a 50% chance of that a month ago.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.8%, with Al Taiseer Group (4143.SE), opens new tab advancing 10%, and Al Rajhi Bank (1120.SE), opens new tab closing up 1.1%.

In Qatar, the index (.QSI), opens new tab eased 0.1%, hit by a 0.4% fall in Qatar Islamic Bank (QISB.QA), opens new tab.

Oil futures prices settled slightly lower on Friday as investors weighed weaker U.S. consumer sentiment against mounting hopes for a Federal Reserve rate cut in September.

Outside the Gulf, Egypt's blue-chip index (.EXG30), opens new tab dropped 0.9%, as most of its constituents were in negative territory including Talaat Mostafa Group (TMGH.CA), opens new tab, which was down 3.9%.

The Egyptian market drop follows an Israeli airstrike in Gaza that according to the enclave's health ministry killed at least 90 Palestinians in a designated humanitarian zone on Saturday. Israel said the attack had targeted Hamas military chief Mohammed Deif.

#SaudiArabia Crown Prince’s Makeover Gets Reality Check, Stretches Petrowealth - Bloomberg

Saudi Arabia Crown Prince’s Makeover Gets Reality Check, Stretches Petrowealth - Bloomberg

Saudi Arabia faces the most precarious moment yet of its economic reinvention.

Eight years after now-Crown Prince Mohammed bin Salman unveiled Vision 2030, his blueprint for a life after oil, delays and scalebacks with the multitrillion dollar makeover are laying bare the pressure on the kingdom’s finances.

With the budget in deficit for six straight quarters, Saudi Arabia has become the biggest issuer of international debt in emerging markets. And its decision to cut oil production with other OPEC+ members in 2023 has failed to raise export revenues substantially.

Here is a look at the key stress points.

The Gulf country’s oil earnings have dropped around one-third from 2022 levels, when Brent crude averaged nearly $100 a barrel thanks to Russia’s invasion of Ukraine. That’s weighing on the kingdom’s overall economic stability as it keeps spending on Prince Mohammed’s huge projects, which include everything from the new city of Neom to tourist resorts, football leagues and AI investments.

“The vision is facing a test of reality and there are adjustments being taken,” said Jean-Michel Saliba, Bank of America Corp.’s Middle East and North Africa economist. “It is a sign of maturity. I don’t think it’s a sign that the vision is being derailed.”

Goldman Sachs Group Inc. found that Saudi Arabia’s sovereign-risk score — a measure that takes into account financial and governance metrics — worsened the most after Israel among emerging markets during the first half of the year. A ranking by Morgan Stanley in June reached a similar conclusion, with the kingdom among “key laggards.”

Sixteen Kuwaiti funds show strong performance in local investments

Sixteen Kuwaiti funds show strong performance in local investments



Sixteen Kuwaiti funds, including both conventional and Islamic, have reported positive returns from the beginning of the year through June, reports Al- Jarida daily. According to recent data, conventional funds exhibited returns ranging from 9.30% for the Vision Fund to 0.98% for the Wafra Fund.

Meanwhile, Islamic funds saw returns between 4.9% and 2.39%, with the Kamco Islamic Fund leading with a 4.9% return during the same period. Investment sources anticipate continued robust performance from these funds in the upcoming months, driven by first-half announcements and anticipated quarterly dividends.

Most of these funds have concentrated their investments in heavyweight and blue-chip stocks, many of which are known for distributing regular quarterly dividends. The positive performance of Kuwaiti funds underscores investor confidence and strategic investment decisions in the local market, despite global economic uncertainties. Investors and analysts alike are optimistic about the prospects for these funds as they navigate the evolving market landscape and capitalize on dividend-paying opportunities.