Kuwaiti Stocks Lead Middle East Gains Helped by Banks: Inside EM

(Bloomberg) --

Kuwait’s benchmark stock index traded at a record high for a fourth session after oil posted the biggest weekly gain and banking shares drove gains this month. Equities in Saudi Arabia and Abu Dhabi also advanced.

The Kuwaiti lenders’ gains are a result of the government support to the sector by “subsidizing this year’s relief program on retail loans after the cost was borne by banks last year,” Bloomberg Intelligence’s analyst Edmond Christou wrote in a note. adding that the banks’ “margins are likely to outperform Saudi peers and strong 1H loan growth looks sustainable in 2H.”

MIDDLE EASTERN MARKETS:

• Kuwait’s Premier Market Index rose as much as 0.6% before paring gains to close up 0.4%
  • Kuwait Finance House +0.9%; Zain +0.8%; Warba Bank +3.5%
  • Banking shares have been leading the gauge’s 4.5% rally in August
• Egypt’s EGX 30 benchmark fell as much as 0.7%, led by losses in Commercial International Bank and Fawry
  • Commercial International bank -0.7%; Fawry -1.9%; Pioneers Holding -3.3%
    • Long-term, the investment race in Egypt will be held back by political risks including high government debt crowding out lending to the private sector, the military playing an over-sized role in the economy, and unemployment among youth, Hasnain Malik, head of equity research of Tellimer, tells Bloomberg TV
    • “With Dubai having rallied, Egypt now represents deep value among key MENA markets,” Malik added
• Abu Dhabi’s ADX General Index closed 0.4% higher, snapping a three-day loss
  • Alpha Dhabi +4.9%; Dana Gas +1.9%; Waha Capital +3.9%
  • International Holding unit Al Seer Marine Supplies & Equipment listed in Abu Dhabi on Sunday, opening at 13 dirhams and closing at 15 dirhams
• Saudi Arabia’s Tadawul All Share Index closed 0.5% higher, driven by gains in Al Rajhi Bank and Saudi National Bank
  • NOTE: SNB Profitability Aided by Margin and Early Cost-Saving
• Dubai’s benchmark DFM General Index closed little changed
• Qatar Exchange Index drops for a third day after reaching the highest level since August 2016 on Tuesday
  • Commercial Bank of Qatar -0.9%; Qatar Islamic Bank -0.5%; Qatar National Bank -0.4%
• Shares in Tel Aviv rise after U.S. stocks rose on Friday over the Federal Reserve chairman’s dovish tone about tapering

Key News:

• Abu Dhabi and Dubai stock exchanges will extend trading hours by one hour from Oct. 3, with the markets opening at 10 a.m. and closing at 3 p.m. local time. The Abu Dhabi Securities Exchange will also cut its trading commission to 0.025% from 0.05% starting Sept. 1.
• Abu Dhabi has made booster doses mandatory for people who were inoculated with the Sinopharm vaccine.
• The United Arab Emirates will open up tourist visa applications to everyone who has been vaccinated with one of the shots approved by the World Health Organization, a potential boost to the country’s key tourism sector.
• Oman, the largest Arab oil producer outside of OPEC, is bolstering ship-fueling services at the container and commodities port of Sohar as it looks to rival the region’s busiest shipping terminal in the neighboring
• Iraq’s regional allies stressed Saturday the need to provide support to an OPEC member struggling to rebuild after decades of ruinous wars, in a conference that also afforded a platform for meetings between longtime rivals.

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