Israel’s Stocks Lead Drop as It Confirms Virus Case: Inside EM
Israel’s Stocks Lead Drop as It Confirms Virus Case: Inside EM
(Bloomberg) -- Israeli stocks fell the most in the Middle East as the country confirmed a coronavirus case and moved to contain its spread.
The main gauge in Tel Aviv retreated as much as 2.7% on Sunday, while those in Saudi Arabia, Dubai, Kuwait, Qatar and Egypt also fell. Israeli equities are highly correlated to moves in the U.S., where stocks sank on Friday.
Last week, emerging-market currencies had their worst five days since August and stocks fell on mounting evidence that the virus is taking a toll on corporate earnings and the global economy. Brent crude declined 1.4% on Friday to $58.50 a barrel, extending its loss this year to 11% as the outbreak cripples China’s industrial activity and transportation at a time when energy supplies already were abundant.
“We might see some rotation back to value, small and mid-caps, when we see the end of this virus crisis, and also if the markets start to believe in new stimulus coming in,” said Charles-Henry Monchau, the managing director at Al Mal Capital in Dubai.
At a meeting for Group of 20 nations in Saudi Arabia this weekend, the head of the Organisation for Economic Cooperation and Development and Indonesia’s finance minister backed growing calls for major economies to increase their spending.
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MIDDLE EASTERN MARKETS:
- The TA-35 falls 2% as of 2:13pm in Tel Aviv, set to end at the lowest level since Feb. 3
- Stocks contributing the most to the decline by index points: Teva Pharmaceutical Industries -2.9%, Bank Leumi -2.2%; Israel Discount Bank -2.1%, Bank Hapoalim -1.6%
- Israel has closed its borders to foreign nationals who live in or have visited Japan and South Korea in the past two weeks
- Israel’s Health Ministry instructed citizens who had contact with nine South Korean tourists, who recently visited and tested positive for the illness, to go into two-week quarantine
- MORE: Bank of Israel Has 50% Chance of Cutting Rates on Monday: Leader
- Indexes in Saudi Arabia, Dubai, Kuwait, Qatar and Egypt lose as much as 0.7%, while those in Abu Dhabi and Oman rise as much as 0.2%
- Earnings reports in the region:
- National Medical Care Full-Year Revenue 1.7% Above Estimates
- Agility Full-Year Net Income Rises 7% to 86.8 Million Dinars
- Mesaieed Petrochem FY Net Income 1.2 Bln Riyals, -14% Y/y
- Batelco Full-Year Net Income 51.6 Mln Dinars, +3.1% Y/y
--With assistance from Yousef Gamal El-Din.
To contact the reporter on this story: Filipe Pacheco in Dubai at fpacheco4@bloomberg.net
To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Bruce Stanley, Paul Wallace
©2020 Bloomberg L.P.
