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Shakeel Ahmad

MIDEAST STOCKS-Egyptian blue chips surge on inflation beat, robust earnings

Aug 08 2019

* Egypt's blue chips see strongest day in six months * SODIC surges on strong Q2 results * EFG Hermes rises on higher Q2 profit * Saudi Investment Bank plunges after swinging to Q2 loss * Air Arabia climbs on Q2 profit surge By Shakeel Ahmad and Maqsood alam Aug 8 Egyptian blue-chip stocks had their strongest day in nearly six months on Thursday as better-than-expected July inflation data and a host of strong corporate earnings buoyed investors ahead of a three-day religious holiday starting Sunday. Egypt's headline inflation rate fell to its lowest in nearly four years, dropping to 8.7% in July, defying analyst expectations since it followed a fresh round of fuel subsidy cuts that pushed domestic fuel prices up by 16%-30%. "It's great news for the markets because it reinforces hopes of interest rate cuts in August. I think the central bank now has enough room to restart its monetary easing policy going forward," said Allen Sandeep, head of research at Naeem Brokerage. Last month the monetary policy committee kept key interest rates on hold at 15.75% and 16.75% for overnight deposit and lending, respectively. Egypt's unemployment rate also fell to 7.5% in the second quarter of 2019, down from 8.1% in the first quarter. Egypt's blue-chip index rose 2.2%, its biggest single-day gain since February, with Commercial International Bank increasing 1.2%. Investment bank EFG Hermes, which posted a nearly 50% surge in the second-quarter profit, gained 3.5%, while developer SODIC jumped 7.7% after its profit for the same period rose 8.6% and revenue almost doubled. Saudi Arabia's index further gained 0.8% after snapping a five-day losing streak in the last session. Banks led the gains with Riyad Bank adding 3.5% and Saudi British Bank leaping 4.8%. Capping the gains was Saudi Investment Bank which plunged as much as 9.1% to its biggest intraday fall in over a decade before closing down 6.2%, after it swung to a second-quarter loss. Dubai's index closed 0.2% higher with Emaar Properties gaining 1.9% and Air Arabia climbing 3.5% after the budget airline posted a 75% jump in its second-quarter profit. In Abu Dhabi the index, which on Wednesday ended six days of losses, fell back 0.4%. Emirates Telecommunications Group slipped 0.9% and Abu Dhabi Commercial Bank dropped 1.6%. Qatar's index was also down 0.6%. Banks were biggest drag on the index with Commercial Bank dropping 3.6%, while Qatar Gas Transport traded 3.5% lower. Markets will remain shut for much of next week on account of Eid holiday that begins on Sunday and lasts for a week in Saudi Arabia and at least three days in other Gulf countries. SAUDI ARABIA The index rose 0.8% to 8,550 points ABU DHABI The index fell 0.4% to 5,097 points DUBAI The index was up 0.2% to 2,838 points QATAR The index lost 0.6% to 9,835 points EGYPT The index rose 2.2% to 14,180 points BAHRAIN The index was flat at 1,544 points OMAN The index gained 0.6% to 3,862 points KUWAIT The index was down 0.4% at 6,719 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru Additional reporting by Nadine Awadalla Editing by Frances Kerry)

MIDEAST STOCKS-Gulf markets bounce back as trade war simmers down

Aug 07 2019

* Saudi snaps five-day losing streak * United Cooperative Assurance leaps on strong Q2 results * Gulf General Insurance surges after swinging to Q2 profit * Qatar, Abu Dhabi end six days of losses By Shakeel Ahmad and Maqsood alam Aug 7 Gulf stocks rebounded from their recent losses on Tuesday as markets' renewed fears about an escalating global trade war eased, with Beijing stepping in to stabilise the yuan and Washington dismissing fears of a lengthy trade war with China. The recovery was led by financial shares. Abu Dhabi and Qatar's share indexes had suffered six days of straight losses each, while Saudi Arabia and Dubai's bourses retreated in the previous five and four consecutive sessions, respectively, on fears over the trade dispute between the world's two biggest economies. Saudi's index rose 1.1% with Riyad Bank increasing 4.4% and Al Rajhi Bank gaining 1.1%. Some robust earnings from insurers added to the index gains. United Cooperative Assurance jumped 6% after its pre-zakat second-quarter profit more than doubled, while Gulf General Insurance, which swung to profit for the same period, surged 7.9%. Dubai's index was up 1.2% as Dubai Islamic Bank advanced 2% and Emirates NBD traded 1.8% up. Qatar’s index also rose 1.2%. Qatar Islamic Bank increased 1.7% while Qatar Gas Transport closed 4.1% higher. In Abu Dhabi, the index gained 0.7% with First Abu Dhabi Bank edging up 0.5% and Emirates Telecommunications Group climbing 2%. Outside the Gulf, Egypt's blue-chip index moved 1.7% higher. Egypt Kuwait Holding leapt 6.9%. On Tuesday, it obtained a regulatory nod for land allocations concerning agricultural projects which would provide raw materials to its planned compressed wood factory. SAUDI ARABIA The index rose 1.1% to 8,483 points ABU DHABI The index was up 0.7% at 5,119 points DUBAI The index was up 1.2% to 2,831 points QATAR The index rose 1.2% to 9,898 points EGYPT The index rose 1.7% to 13,881 points BAHRAIN The index was down 0.1% at 1,544 points OMAN The index gained 0.9% to 3,839 points KUWAIT The index was up 0.6% at 6,744 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru; Editing by Hugh Lawson)

MIDEAST STOCKS-Trade war rattles Gulf stocks, Qatar slips to worst day in two years

Aug 05 2019

* Banks are down across Gulf * Banque Saudi Fransi falls on lower Q2 profit * Walaa Cooperative slumps on Q2 loss * Gulf International Services sinks on H1 profit drop * Emaar Properties slips on weak Q2 earnings By Shakeel Ahmad and Maqsood alam Aug 5 Gulf stock markets tumbled on Monday and Qatar suffered its biggest single-day loss as a new war of trade between the United States and China drove investors towards safer assets. Investors are also cashing in their positions ahead of a religious holiday starting from Sunday. U.S. President Donald Trump last week threatened to impose a 10% tariff on remaining $300 billion worth of Chinese imports and China said it would retaliate, adding to the woes of a global economy already showing signs of slowing down. The move, which could limit crude demand, caused oil prices to fall, handing yet another reason for oil-reliant Middle East markets to worry. "China’s retaliation by way of halting some US imports & letting the currency weaken against the dollar is impacting markets worldwide. MENA equities tend to correlate more with Global markets during extreme movements," said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital. "For the Middle East, tumbling crude oil prices is yet another negative." "Not surprising that traders are taking money off table before going into an extended break for the Eid holidays," Bhandari added. The Saudi Arabian index which was also hit by disappointment over some corporate earnings, fell 1.1% with all its banking shares falling. Banque Saudi Fransi shed 3.6% after posting a 4.4% decline in second-quarter profit, citing higher provision for zakat, an Islamic tax in Saudi Arabia. The insurer Walaa Cooperative Insurance slid 6.1% after swinging to a pre-zakat loss in the second quarter. Travel company, Seera Group Holding , which posted a 35.9% slump in profit for the same period, fell 2.7%. Qatar's index plunged 4.2% to its biggest single-day loss since June 5, 2017, wiping out gains for the year in its fifth straight session of losses. Blue-chip stocks hurt the index the most with Qatar National Bank slumping 6%, while petrochemical maker Industries Qatar raced 5.8% lower. Gulf International Services sank 9.7% after the drilling rig provider posted a nearly 15% decline in first-half profit In Dubai, the index fell 2% with property and financial stocks weighing heavily on the index. Dubai Islamic Bank slipped 2.1% and Emaar Properties, dropped 3.3%. Emaar Properties reported a 7.4% decrease in second-quarter profit to 1.37 billion dirhams ($373 million), missing an EFG Hermes forecast of AED 1.55 billion dirhams Dubai prime residential property prices fell 1.9% in the first half of the year due to the market being oversupplied, Reuters reported on Monday citing real estate company Savills. The Middle East financial hub's real estate market has steadily contracted since mid-2014 as foreign investor interest cooled. In Abu Dhabi, the index was down 1.9%. Market heavyweight lender First Abu Dhabi Bank dropped 2.2%, while Emirates Telecommunications Group lost 2.6%. Egypt's blue-chip index edged 0.1% lower with Qalaa Holdings losing 4.3%. SAUDI ARABIA The index was down 1.1% to 8,465 points ABU DHABI The index lost 1.9% to 5,083 points DUBAI The index fell 2% to 2,800 points QATAR The index plunged 4.2% to 9,925 points EGYPT The index slipped 0.1% to 13,599 points BAHRAIN The index fell 0.3% 1,545 points OMAN The index was up 0.2% at 3,789 points KUWAIT The index was flat at 6,727 points (Reporting by Shakeel Ahmad Maqsood Alam in Bengaluru)

MIDEAST STOCKS-Gulf shares dip as Fed hints no further rate cuts

Aug 01 2019

* Most Saudi banks fall, Samba plunges to lowest in eight months * Abu Dhabi suffers biggest one-day loss in over two months * Lender COMI boosts Egyptian market By Shakeel Ahmad and Maqsood alam Aug 1 Major Gulf stock markets fell on Thursday after the U.S. Federal Reserve cut interest rates by 25 basis points but, significantly, signalled the move may not mark the beginning of a long easing cycle. Markets had been looking for the Fed to signal more cuts were coming. Central banks in Saudi Arabia, the United Arab Emirates and Qatar followed the move, cutting their rates by the same degree. Their currencies are pegged to the U.S. dollar and they follow the Fed on interest rate moves. Banking shares were hard hit as the rate cuts are expected to take a toll on their margins. Saudi's index was down 0.8%, with Samba Financial Group slumping 4.3% to its lowest level since Jan. 2, after it became the first lender to report a fall in second-quarter profit, which dived nearly 25% as operating expenses mounted. Al Rajhi Bank, which earlier gained on robust earnings, fell 1.7%. Analysts expect rate cuts to hurt the margins of Saudi banks, which made record profits of around 50 billion riyals ($13.3 bln) in 2018 following several interest hikes over the past few years. Elsewhere Saudi's biggest petrochemical maker Saudi Basic Industries Co was down 0.9% after earlier this week reporting its lowest quarterly profit since late 2009. In Abu Dhabi, the index dropped 1.7% in its biggest single-day loss since mid-May, dragged down by a 1.8% fall in the market heavyweight First Abu Dhabi Bank, and a 1% fall in Abu Dhabi Commercial Bank. ADCB earlier this week reported an 11% drop in second-quarter profit in its first combined pro-forma financials after it merged with Union National Bank and Al Hilal Bank earlier this year. Qatar's index was down 1% as the Gulf's biggest lender Qatar National Bank shed 1% and Qatar Islamic Bank lost 2%. Dubai's index was fell 0.6%, with Emirates NBD Bank slipping 0.4%. Property shares dragged the index the most. Blue-chip developer Emaar Properties traded 1.5% lower after surging in recent sessions following a large deal in China. Outside the Gulf, Egypt's blue-chip index defied the downward trend and closed 0.9% higher. Its largest lender Commercial International Bank acted as the biggest boost for the index, rising 2.3%. SAUDI The index was down 0.8% to 8,666 points ARABIA ABU DHABI The index lost 1.7 % to 5,230 points DUBAI The index fell 0.6% to 2,900 points QATAR The index dropped 1% to 10,398 points EGYPT The index rose 0.9% to 13,526 points BAHRAIN The index was up 0.1% to 1,550 points OMAN The index was up 0.4% to 3,777 points KUWAIT The index edged up 0.1% to 6,754 points (Reporting by Shakeel Ahmad in Bengaluru Editing by David Holmes)

MIDEAST STOCKS-Petchems lead Saudi lower, financials drag down Qatar

Jul 31 2019

* Saudi's Samba falls as it traded ex-dividend * Ataa Educational jumps on first day of trading * Qatar Insurance drops on earnings miss * Egypt's Qalaa plunges on stake dilution in Egyptian Refining By Shakeel Ahmad and Maqsood alam July 31 Saudi stocks dropped on Wednesday as losses in petrochemical shares outweighed earnings-fuelled gains in some banking stocks, while Qatar Insurance pulled the Qatari market down. Saudi's index slipped 0.1%, with petrochemical maker Saudi Basic Industries Co shedding 1.1% after earlier this week reporting its lowest quarterly profit since late 2009. The kingdom has returned to deficit in the second quarter after posting its first surplus in the first quarter since 2014, as oil revenues fell 5% and non-oil revenues declined 4%. Samba Financial Group fell 1.2% as the lender was trading ex-dividend. But some banks rose in the wake of strong second-quarter earnings. National Commercial Bank gained 0.7% after posting a 24% rise in second-quarter profit, helped by higher fee and commission income and lower expenses. Saudi banks have benefited from higher interest rates and increased demand for loans to support housing and government-related projects. Ataa Educational also surged 10% on its first day of trading. The school network operator offered 12 million shares representing 30% of its share capital at a price of 29 riyals per share. Qatar's index was 0.8% lower, with Qatar Insurance the biggest drag, falling 3.6%. It reported first-half profit of 410 million riyals including 266 million riyals for the first quarter, indicating earnings reached 144 million in the April to June period. EFG Hermes had forecast a profit of 209 million riyals for the second quarter. Petrochemical maker Industries Qatar dropped 1.1% before its earnings report on Thursday. EFG Hermes forecast a 47% plunge in its second-quarter profit. Dubai's index was up 0.2%. Emaar Properties rose 1.7% to its highest since June 14 last year. The developer has climbed in recent sessions after signing a memorandum of understanding for an $11 billion project at Beijing's new airport. Emirates NBD traded 1.7% higher. After the market closed, the lender said it had completed the acquisition of Turkey's fifth largest private bank, Denizbank, in a deal valued at 15.48 billion lira ($2.80 billion). Egypt's blue-chip index closed 0.2% higher with the market heavyweight Commercial International Bank rising 3.2%. Qalaa Holdings however plunged 9.9% after saying its indirect ownership in Egyptian Refining Company had been diluted to 13.14% over a couple of years. Abu Dhabi index fell 0.3%, hurt by a 1.6% drop in Emirates Telecommunications Group. ($1 = 5.5264 liras) SAUDI ARABIA The index was down 0.1% to 8,733 points ABU DHBAI The index lost 0.3% to 5,318 points DUBAI The index rose 0.2% to 2,918 points QATAR The index fell 0.8% to 10,505 points EGYPT The index was up 0.2% to 13,392 points BAHRAIN The index was up 0.1% to 1,548 points OMAN The index was up 0.1% to 3,761 points KUWAIT The index edged up 0.1% to 6,744 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru; Editing by Jan Harvey)

MIDEAST STOCKS-Saudi edges up on strong earnings, Dubai extends gains

Jul 30 2019

* Saudi's Al Rajhi Bank gains on higher Q2 profit * Yamama Cement jumps after posting Q2 profit * PetroRabigh slumps on swinging to Q2 loss * Qatar First Bank trades at record low By Shakeel Ahmad and Maqsood alam July 30 Saudi Arabian stocks edged up on Tuesday, recovering from the previous session's biggest single-day loss in a month, as strong earnings from two lenders boosted most bank shares. Dubai's bourse consolidated gains after touching nearly a year-high on Monday. The Saudi index was up 0.1%. Al Rajhi Bank gained 1% after it posted a more than 4% rise in second-quarter profit, as revenue from special commissions and investments increased. Riyad Bank gained as much as 2.4% after its profit surged over the same period on a 22.9% jump in operating income, but traded unchanged at the close. Outside banks, Yamama Cement jumped 4.4% after turning profitable in the second quarter on higher sales and lower expenses, while Saudi Ground Services, which posted a higher quarterly profit, rose 2.9%. By contrast PetroRabigh slumped 8.8% as it slipped to a second-quarter loss from a profit a year earlier. Dubai's index rose 1.1%, boosted by real estate and financial stocks. Emaar Properties gained 1.5%. The blue-chip developer has risen in recent sessions after signing a memorandum of understanding concerning an $11 billion project at Beijing's new airport. Dubai Financial Market jumped 5.1% to its highest level since Sept. 16 last year, after higher second-quarter profit triggered a seven-day rally. In Abu Dhabi, the index closed 0.6%. Emirates Telecom Group slipped 1.4% and the United Arab Emirates' biggest lender, First Abu Dhabi Bank, edged down 0.5%. Qatar's index slipped 0.1%, primarily driven by a 2% fall in Qatar Islamic Bank. Qatar First Bank plunged 7% to another record low after the company drifted to a first-half loss, having scored a profit in the first quarter. The market received some support from telecommunications firm Ooredoo, which traded 2% up after reporting a higher second-quarter profit. Egypt's blue-chip index was down 0.4%, with El Sewedy Electric dropping 7.9%. SAUDI ARABIA The index was up 0.1% to 8,741 points ABU DHBAI The index lost 0.6% to 5,331 points DUBAI The index rose 1.1% to 2,912 points QATAR The index was down 0.1% to 10,589 points EGYPT The index fell 0.4% to 13,365 points BAHRAIN The index was up 0.7% to 1,546 points OMAN The index was up 0.1% to 3,755 points KUWAIT The index fell 0.5% to 6,735 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru Editing by David Holmes)

MIDEAST STOCKS-Saudis post worst day in a month, Dubai best in nearly a year

Jul 29 2019

* All Saudi banks drop * SABIC extends loss on lower second-quarter profit * Dallah Healthcare plunges on poor second-quarter results * Abu Dhabi's ADCB ends eight days of gains on falling profits By Shakeel Ahmad and Maqsood alam July 29 Saudi Arabia's stock index suffered it biggest single-day loss in a month amid a host of poor earnings, while Emaar Properties pushed Dubai's market to nearly a year-high. Saudi's index fell 1.5% in its worst day since June 24, with all banking shares dropping and Al Rajhi Bank plunging 3% in the biggest drag on the index. Saudi Basic Industries Co (SABIC), the world's fourth-biggest petrochemicals firm, shed a further 1.6%, extending losses from the last session after reporting its lowest quarterly profit since late 2009. Dallah Healthcare slumped 6% after its second-quarter profit fell, hurt by increased operating and financing costs. Food producer Halwani Brothers, which swung to a loss for the same period, also dropped 2.3%. The company attributed the loss to a higher cost of goods sold in Saudi Arabia, and as sales and distribution expenses mounted in Egypt. Dubai's index rose 1.2% to 2,881 points, its highest since August 12, 2018, buoyed by real estate shares which all rose. Developer Emaar Properties jumped 3.9% to a level not seen since Aug. 7 last year. It has gained in five of past six sessions after signing a memorandum of understanding concerning an $11 billion project at Beijing's new mega airport. Dubai Financial Market surged 6.2% after higher second-quarter profit triggered a six-day rally. In Abu Dhabi, the index closed 0.3% higher, recovering from losses in the last session when it snapped eight days of winning streak. United Arab Emirates' biggest lender, First Abu Dhabi Bank , was up 0.5%. Emirates Telecom Group, edged up 0.3%. Abu Dhabi Commercial Bank, however, dropped 1%, bringing an end to its eight days of straight gains. The country's second-biggest bank reported an 11% drop in second-quarter profit in its first combined pro forma financials after it merged with Union National Bank and Al Hilal Bank earlier this year.(nL8N24T0GL) In Qatar, the index recouped earlier losses to close up 0.3%, with Qatar National Bank gaining 1% and Commercial Bank rising 1.3%. Capping the gains was Qatar First Bank, which dropped 3.3% as it continued to post first-half loss. Egypt's blue-chip index was down 0.3% with private equity firm Qalaa Holdings shedding 3.3%. SAUDI ARABIA The index fell 1.5% to 8,729 points ABU DHBAI The index was up 0.3% to 5,363 points DUBAI The index rose 1.2% to 2,881 points QATAR The index was up 0.3% to 10,603 points EGYPT The index fell 0.3% to 13,422 points BAHRAIN The index was up 0.6% to 1,536 points OMAN The index edged up 0.1% to 3,751 points KUWAIT The index added 0.3% to 6,767 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru)

MIDEAST STOCKS-Gulf tensions weigh on Saudi market, Abu Dhabi extends winning streak

Jul 22 2019

* Saudi market drops for a third day * Saudi Kayan Petrochemical falls on Q2 loss * Saudi Arabia Fertilizers slips on lower Q2 profit * Abu Dhabi rises for a fifth session * Dubai Emaar gains on China deal By Shakeel Ahmad and Maqsood alam July 22 Saudi Arabia's stock market dropped on Monday as banks and petrochemical shares weighed on the index against a backdrop of political tensions in the region, while Dubai and Abu Dhabi bourses rose sharply on gains in their blue-chip stocks. Saudi's main index fell 0.6%. The kingdom's largest petrochemical maker Saudi Basic Industries shed 1.8% and its biggest lender National Commercial Bank was down 0.7%. Weakness in worldwide demand for oil shifted sentiment in the oil market in recent days, with hedge funds, producers and traders all taking a more bearish tack. Saudi Kayan Petrochemical fell 1.4% after it swung to a second-quarter loss, which it blamed on lower product prices and higher financing costs, while Saudi Arabia Fertilizers dropped 1.9% after its profit for the same period was hurt by a production halt at one of its plants during maintenance. Dubai's main index was up 1.3%. Blue-chip developer Emaar Properties climbed 2.5% after it struck a deal with Beijing Daxing International Airport for joint execution of an $11 billion project, that includes residential and leisure facilities. Emaar units Emaar Development and Emaar Malls followed suit rising 2.8% and 2.6%, respectively. Dubai Financial Market edged up 0.7% after its second-quarter profit attributable to shareholders rose more than 9%. The Abu Dhabi index gained 1.2%, rising for a fifth day running, boosted by First Abu Dhabi Bank which closed 1.5% higher after reporting a 5% rise in second-quarter net profit. Aldar Properties rose 2.6%. After the market closed, the firm provided a progress update on recently awarded 5 billion dirhams ($1.36 billion) worth of projects. It also raised its annual profit guidance by 50% for the next three to four years. Egypt's blue-chip index also closed 0.8% higher with market heavyweight lender Commercial International Bank gaining 1.2%. Qatar's index recouped earlier losses to end 0.4% higher underpinned by its financial and industrial stocks. The Gulf's largest lender Qatar National Bank closed 1.5% up and Industries Qatar rose 1%. ($1 = 3.6728 UAE dirham) SAUDI ARABIA The index dropped 0.6% to 8,907 points ABU DHABI The index gained 1.2% to 5,299 points DUBAI The index was up 1.3% to 2,775 points QATAR The index was up 0.4% to 10,542 points EGYPT The index rose 0.8% to 13,685 points BAHRAIN The index slid 0.5% to 1,527 points OMAN The index was down 0.2% to 3,764 points KUWAIT The index was flat at 6,661 points (Reporting by Shakeel Ahmad and Maqsood Alam in Bengaluru; editing by Emelia Sithole-Matarise)

MIDEAST STOCKS-Banks halt Saudi gains, MSCI upgrade keeps Kuwait gaining

Jul 02 2019

* Saudi ends five days of gains * 10 of 11 Saudi banks fall * Pioneers Holding climb on offer for unit * Qalaa Holdings gains on smaller Q1 loss * Kuwait rises for a fourth day By Shakeel Ahmad July 2 Saudi Arabia's stock market snapped a five-day winning streak on Tuesday as most banks dropped, while Kuwait rose for a fourth straight session after MSCI announced it would upgrade Kuwaiti equities to its main emerging-markets index. The Saudi index was down 0.2% with Al Rajhi Bank shedding 0.7% and Samba Financial Group falling 1.5%. That comes after five days of gains, and the index is still up 12.6% this year, led by foreign investors. Saudi exchange data released late on Monday showed foreigners bought a net 16.16 billion riyals ($4.31 billion) worth of Saudi stocks last month. Three of five tranches of Saudi stocks have joined the FTSE emerging-market index this year and completed the first phase of joining the MSCI emerging-market benchmark in May. A second phase is due in August. Kuwait's index rose 1%. Last week, index compiler MSCI said it would move Kuwaiti equities to its main emerging-markets index in 2020, a move that could trigger billions of dollars of inflows. Kuwait has outperformed its Gulf peers in anticipation of the MSCI move, gaining 22.5% year-to-date. Middle Eastern funds plan to continue increasing their investments in Kuwait over the next three months, a Reuters poll found earlier this week. Egypt's blue-chip index was up 0.3% with Pioneers Holding Company for Financial Investments gaining 3.5% after unit Arab Dairy Products received an acquisition offer from GC Equity Partners Fund. Private equity firm Qalaa Holdings edged up 0.3% after posting a narrower first-quarter loss. Qatar's index edged up 0.2% with banks leading the way. Qatar Islamic Bank advanced 1.2% and Doha Bank leapt 4.3%. The index has gained in recent sessions as a 10-to-one stock split for companies on the exchange is being phased in from June 9 and will be completed by July 7. The move has been designed to boost liquidity by encouraging smaller investors to buy shares. In Dubai, the index was up 0.2%, lifted in part by a 0.7% rise in market heavyweight developer Emaar Properties . It said Dubai Aerospace Enterprise had bought back the company's shares for $107 million. Emaar Malls gained 0.5%. The firm said Chief Executive Officer Patrick Bousquet-Chavanne had resigned and Natalie Bogdanova was taking over the role. The Abu Dhabi index traded flat with Abu Dhabi Commercial Bank adding 0.6%. ($1 = 3.7502 riyals) SAUDI The index fell 0.2% to 8,834 points ARABIA ABU DHABI The index traded flat at 4,979 points DUBAI The index rose 0.2% to 2,679 points QATAR The index was up 0.2% at 10,578 points EGYPT The index rose 0.3% to 14,137 points BAHRAIN The index rose 1% to 1,490 points OMAN The index fell 0.5% to 3,859 points KUWAIT The index rose 1% to 6,453 points (Reporting by Shakeel Ahmad in Bengaluru Editing by Mark Heinrich)

MIDEAST STOCKS-Saudi extends gains as global rally lifts most of Gulf

Jul 01 2019

* Saudi rises for a fifth session * Saudi's Tihama climbs on higher FY profit * Insurer Medgulf rises after tax settlement * Dubai's top lender gains on Denizbank deal By Shakeel Ahmad July 1 Saudi Arabia's stock market rose for a fifth straight day on Monday as most major Gulf bourses gained, reflecting positive global market sentiment after the United States and China reached a trade war truce. Saudi's index was up 0.4% with banks leading gains. Al Rajhi Bank rose 0.9% and Arab National Bank climbed 2.9%. The index is up 13% this year, led by foreign investors, who have been net buyers of Saudi equities in recent months. Three of five tranches of Saudi stocks have joined the FTSE emerging market index this year and completed the first phase of joining the MSCI emerging market benchmark in May, with the second phase due in August. "We estimate that the MSCI inclusion process will see more than $13 billion of passive flows coming in to the Saudi market in 2019," said Hootan Yazhari, head of MENA & frontier markets research, Bank of America Merrill Lynch. Assuming Saudi will have around 3% weight in the FTSE emerging market index would add "upwards of another $6 billion". Tihama Advertising And Public Relations And Marketing Holding moved 2.7% higher after posting a higher full-year profit. Insurer Medgulf gained 1.8% after it agreed 115.6 million riyals ($30.83 million) of settlement with the General Authority Of Zakat and Tax. Qatar's index rose 1% to climb for a third straight session. Qatar Islamic Bank was 1.8% higher and petrochemical maker Industries Qatar was up 1.7%. The index has gained in recent sessions as a 10-to-one stock split for companies on the exchange is being phased in from June 9, in a bid to boost liquidity by encouraging smaller investors to buy shares. Dubai's index rose 0.6% after registering a one-month high percentage gain in the last session. Banks were the biggest boost with a 1.2% rise in Dubai Islamic Bank and a 0.9% gain in Emirates NBD. The emirate's largest lender Emirates NBD surged 4.1% on Sunday after the bank received regulatory approval to buy shares in Turkey's Denizbank from Russia's Sberbank. Kuwait's index was up 0.2%, registering its third consecutive gain. Last week, index compiler MSCI said it would upgrade Kuwaiti equities to its main emerging markets index in 2020, a move that could trigger billions of dollars of inflows from passive funds. Middle Eastern funds plan to continue increasing their investments in Kuwait over the next three months, a Reuters poll found. The Abu Dhabi index traded flat with market heavyweight First Abu Dhabi Bank shedding 0.3%. The Egyptian stock exchange was closed for a holiday. ($1 = 3.7502 riyals) SAUDI The index rose 0.4% to 8,853 points ARABIA ABU DHABI The index traded flat at 4,979 points DUBAI The index rose 0.6% to 2,674 points QATAR The index was up 1% at 10,560 points BAHRAIN The index was up 0.3% at 1,476 points OMAN The index fell 0.2% to 3,876 points KUWAIT The index rose 0.2% to 6,392 points (Reporting by Shakeel Ahmad in Bengaluru; ; editing by John Stonestreet)

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