Gulf bourses end mixed on regional tensions, US data | Reuters

Gulf bourses end mixed on regional tensions, US data | Reuters

Stock markets in the Gulf ended mixed on Thursday, with most posting weekly losses amid geopolitical tensions in the Middle East and traders awaiting economic data for insights into the U.S. Federal Reserve's policy path.

The killing of senior members of militant groups Hamas and Hezbollah last week raised the possibility of retaliatory strikes by Iran against Israel, further fuelling concerns over oil supply from the world's largest producing region.

Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran last week, an attack that drew threats of revenge on Israel and fuelled further concern that the conflict in Gaza was turning into a wider Middle East war.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 1.3% and ACWA Power Company (2082.SE), opens new tab falling 1.7%.

The Saudi index posted a weekly loss of 3.1%.

Dubai's main share index (.DFMGI), opens new tab ended Thursday flat.

Among gainers, blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 1.1%, after reporting a rise in first-half net-profit.

In Abu Dhabi, the index (.FTFADGI), opens new tab gained 0.8%, led by a 1.2% rise in conglomerate International Holding (IHC.AD), opens new tab.

After trading hours in the region, U.S. figures showed there were 233,000 initial jobless claims last week, below the 240,000 expected by economists and down from 250,000 the week before. The data has taken on extra significance after weak employment numbers helped spark a market rout on Monday.

Markets see a 72% chance of the Fed cutting interest rates by 50 basis points in September, up from 70% on Monday, according to the CME FedWatch Tool, with an additional cut anticipated in December.

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

The Qatari benchmark (.QSI), opens new tab eased 0.2%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 0.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.4%, led by a 2.3% rise in Ezz Steel Co (ESRS.CA), opens new tab.

#AbuDhabi's Etihad Airways reports surge in first-half profit | Reuters

Abu Dhabi's Etihad Airways reports surge in first-half profit | Reuters

Etihad Airways reported a 48% increase first-half profit on Thursday, helped by an increase in passenger and cargo revenue, ahead of possible stock market listing of the Abu Dhabi carrier.

The airline, which over the past seven years has gone through a massive restructuring, including overhauling its management, reported a profit after tax of 851 million AED dirhams ($232 million), up from 575 million a year earlier.

Revenue rose 21% to 11.7 billion dirhams, helped by a 38% rise in passenger numbers to 8.7 million. Cargo revenue rose 10% to 1.9 billion dirhams.

In July 2024, credit rating agency Fitch upgraded Etihad’s rating to an A+ status, citing its materially stronger standalone credit profile.

CEO Antonoaldo Neves told Reuters in March the state-owned airline was improving transparency, governance and its balance sheet to be ready for a public flotation should its Abu Dhabi sovereign wealth fund owner, ADQ, decide to list it.

Bloomberg has reported that ADQ, which took over Etihad in October 2022 and appointed Neves as CEO, is considering an IPO for the airline as early as this year.

#Saudi Aramco Seeks More China Deals in Oil-to-Chemicals Push - Bloomberg

Saudi Aramco Seeks More China Deals in Oil-to-Chemicals Push - Bloomberg

Saudi Aramco is looking to invest in more chemical plants in China this year and next, adding to deals it’s already clinched in the country to secure long-term buyers for its crude.

The world’s largest crude exporting company is targeting additional facilities that can turn oil into chemicals, Chief Executive Officer Amin Nasser said. Aramco sees demand for goods such as plastics outlasting the growth in consumption for gasoline and diesel amid the energy transition.

“We are looking currently at a number of investments in China that will be announced in due course this year and next year,” Nasser said on an earning call Tuesday. He also mentioned South Korea and India as potential investment destinations.

Aramco is already in talks to buy a 10% stake in China’s Hengli Petrochemical Ltd. and is seeking similar deals with two other Chinese companies. It closed a separate $3.4 billion deal for a stake in Rongsheng Petrochemical Co. last year.

The Saudi state-run company aims to eventually turn about 4 million barrels a day of crude into chemicals, from about 2 million currently, Nasser said. It’s looking to upgrade existing facilities in Saudi Arabia to be able to process more oil into petrochemicals, he said.

On Wednesday, Aramco agreed to boost its stake in Saudi Arabia-based Rabigh Refining and Petrochemical Co. with a $702 million deal.

Energy Transition
Nasser pointed to China’s push into energy transition technologies like solar panels and batteries that use more plastics and other products derived from oil as factors attracting investment.

“Our strategic drive to convert liquid into chemicals remains unchanged,” Chief Financial Officer Ziad Al-Murshed said on the same call Tuesday. “Our highest priority is to do this in China for two reasons. One is it is the biggest market and, two, it is where the liquid-to-chemical expansions are happening.”

A big part of that push involves freeing up for exports as much as 1 million barrels a day of crude that it uses domestically for electricity generation. Aramco wants to ramp up gas production by 60% by the end of the decade, in part, for use in power plants in place of oil.

The company is also looking to boost trading in liquefied natural gas by tapping into supply deals globally and buying more stakes in export terminals outside Saudi Arabia, Nasser said.

Aramco last month signed an initial agreement for a stake in Sempra’s Texas LNG export plant in a deal that would include fuel shipments from the project. It has also agreed a 20-year non-binding contract to take 1.2 million tons per year of the liquefied fuel from NextDecade Corp.’s planned project in Texas.

#UAE retailer Spinneys posts $20mln profit for Q2 2024

UAE retailer Spinneys posts $20mln profit for Q2 2024

Dubai-listed supermarket operator Spinneys has announced a profit of 72 million dirhams ($20 million) for the second quarter of 2024, up 17.8% year-on-year.

The retailer, which debuted on Dubai Financial Market (DFM) earlier this year, reported revenue of AED 783 million for the quarter, with profit of AED 146 million for the first half of the year on revenue of AED 1.598 billion.

The company said in a DFM disclosure that profits increased despite impacts from the new UAE corporate tax as well as one-off IPO expenses.

The board has approved its first post-IPO dividend of AED 103 million for H1, the statement said.

Spinneys has been operating in the UAE since 1961 and opened its first Saudi Arabian store in June.

#Dubai's Emaar Properties, Emaar Development see H1 net profit rise as property sales surge

Dubai's Emaar Properties, Emaar Development see H1 net profit rise as property sales surge

Dubai-based Emaar Properties PJSC posted an H1 2024 net profit attributable to shareholders of 5.34 billion dirhams ($1.45 billion), up 8% compared year-on-year (YoY) on rising retail sales amid higher demand for real estate in Dubai.

Revenue came to AED14.4 billion, 17% higher on year, it said in a DFM disclosure on Thursday.

Emaar's property sales backlog reached AED 90.1 billion as of end June 2024 and is set to further boost future revenue, the company said.

Emaar Development

Emaar Development PJSC, the property development company specialising in build-to-sell properties is majority-owned by Emaar Properties. It made a net profit of AED 2.50 billion, an increase of 15% compared to the same period in 2023.

Emaar Development's sales backlog has increased to AED 74.2 billion, representing future revenue from property sales that will be recognised over the next 4-5 years, it added.

Major Gulf markets ease in early trade | Reuters

Major Gulf markets ease in early trade | Reuters

Major Gulf stock markets opened lower in a choppy trade on Thursday, in line with Asian shares, as global investors struggled to find their footing in a wild week for markets.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 3.2% and ACWA Power Company (2082.SE), opens new tab was down 1.3%.

On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.5%.

Aramco will buy from Japan's Sumitomo Chemical (4005.T), opens new tab a 22.5% stake in their petrochemical joint venture Petro Rabigh (2380.SE), opens new tab for $702 million, the companies said on Wednesday, outlining a turnaround strategy for the loss-making venture.

Petro Rabigh shares were up 5.5%.

Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with toll operator Salik Co (SALIK.DU), opens new tab dropping 0.9%.

However, the index's losses were limited by a 0.7% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab after reporting a rise in first-half net profit.

In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.2%.

Meanwhile, weekly U.S. jobless claims data due later in the day could prove market moving, following soft monthly payrolls figures on Friday that exacerbated fears of a U.S. economic downturn.

Traders are currently pricing in 111 basis points of cuts to the Fed funds rate over the remaining three meetings this year, which many analysts see as overdone.

The Qatari benchmark (.QSI), opens new tab declined 0.3%, with Qatar Islamic Bank (QISB.QA), opens new tab falling 0.9%.

Oil prices - a catalyst for the Gulf's financial markets - fell in choppy trade, and looked set to snap a two-session streak during which they gained about 3% due to growing supply risks amid simmering tensions in the Middle East.