Gulf Stocks Head for Best Month Since April: Inside EM
Gulf Stocks Head for Best Month Since April: Inside EM
(Bloomberg) --
Most Middle East stock markets rose, with major gauges heading for the best monthly performance since April amid growing optimism regarding a coronavirus vaccine and a rebound in oil prices.
The main indexes in Dubai, Abu Dhabi, Saudi Arabia and Qatar were all poised to register their best months in four, with Dubai’s DFM General Index leading the rally with an 10% gain since July. Kuwait’s gauge was poised for the biggest increase since March 2019.
The gains bring the region’s equity gauges more into line with those of the rest of the world’s emerging markets, which were buoyed last week amid progress toward a vaccine and signs the U.S. and China remain committed to the phase-one trade deal. Crude prices also climbed as U.S. Gulf Coast refineries began restarting after Hurricane Laura.
“Equity markets are likely to continue their upward trend, encouraged by the liquidity packages being rolled out by central banks and hopes of potential vaccines to treat Covid-19,” said Iyad Abu Hweij, managing partner at Allied Investment Partners PJSC in Dubai.
If Middle East markets hold on to their gains through Monday, it would mark a recovery from a phase that saw them lagging behind other developing markets in the previous two months. The advance this month came as Brent crude traded near the highest level since early March.
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MIDDLE EASTERN MARKETS:
- Saudi Arabia’s Tadawul All Share Index rises 0.6% on Sunday
- Daily new coronavirus cases in Saudi Arabia dropped below 1,000 for the first time since April
- Bank Leumi gains 1.4% as of 3:26 p.m. in Tel Aviv after Bloomberg reported that it’s in talks with Dubai’s Emirates NBD for collaboration
- Telecom operator Zain Saudi falls 0.2% after it said it plans a SAR4.5b rights issue
- READ: Zain Saudi to Issue Priority Rights Shares Worth 4.5b Riyals
- Egypt’s EGX 30 drops 0.3%
- The country’s health minister warned that a second coronavirus wave could emerge due to dismissal of precautionary measures, according to Egypt Today
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