Middle East

MIDEAST STOCKS Dubai bourse extends losses as Egypt outperforms

2 minute read

Electronic boards showing stock information are pictured at the stock market, in Dubai, United Arab Emirates, November 5, 2020. REUTERS/Abdel Hadi Ramahi

Sept 14 (Reuters) - Dubai's stock market ended lower on Tuesday, extending losses for a second consecutive session, while investors in Egypt were optimistic about the central bank keeping interest rates on hold.

Dubai's main share index (.DFMGI) fell 0.3%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) losing 1.2%, whereas Emirates NBD Bank (ENBD.DU) closed 0.4% lower.

The emirate's bourse continues its price correction weighed by global uncertainties, said Daniel Takieddine, senior market analyst at FXPrimus.

Markets are awaiting U.S. inflation data on Tuesday, expected to show core consumer prices rose 0.3% in August. Prices were up 0.3% the previous month and 0.9% in June.

Higher values could prompt the U.S. Federal Reserve to take a more aggressive stance regarding its asset purchasing programme, reducing liquidity and removing support for equities, Takieddine added.

Egypt's blue-chip index (.EGX30) gained 0.4%, outperforming regional peers, as most of the stocks on the index were in positive territory.

The market sentiment is positive as it expects the central bank to keep on hold rates which have already been at their lowest levels for years, said Takieddine.

"Investors are also enthusiastic as the Egyptian exchange takes more steps towards setting up a more favourable environment for initial public offerings."

In June, the head of Egypt's Financial Regulation Authority said he expected the government to start its programme of initial public offerings in September, and that two or three companies should be listed by the end of the year.

Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Riyad Bank (1010.SE) dropping 1.3% and petrochemical firm Saudi Basic Industries Corp (2010.SE) falling 0.7%.

In Abu Dhabi, the index (.ADI) reversed early losses to finish flat.

The UAE's Aldar Properties and ADQ have submitted a request to Egypt's Financial Regulatory Authority to acquire up to 90% of Egyptian property developer SODIC (OCDI.CA).

Aldar fell 0.2%, while Egypt's SODIC advanced about 4%.

Elsewhere, the Qatari benchmark (.QSI) added 0.4%, with Industries Qatar (IQCD.QA) rising 1%.

Reporting by Ateeq Shariff in Bengaluru; Editing by Andrew Cawthorne

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