Egyptian Stocks Lead Gains in Mideast; Kuwait Falls: Inside EM
Egyptian stocks rose the most in the Middle East on bets of a tourism sector recovery. Kuwait shares declined as investors focused on the prospect for oil prices amid signs of stumbling economic recovery from Europe to Asia.
Egypt’s EGX 30 gained 2.1% in Cairo, with Commercial International Bank and Egyptian Financial Group-Hermes Holding adding the most.
There are indications that tourism “may be staging a comeback” despite the acceleration of coronavirus cases across Western Europe, analysts at Shuaa Securities Egypt wrote in a note. They also mentioned that the central bank appears to be edging toward the renewal of a relief to business that affected by the pandemic.
Kuwait’s main equity index led losses in the region, ending 1.9% lower, the biggest decline in a month. Saudi Aramco shares also dropped, while the Tadawul All Share Index finished higher.
Brent crude fell 1.2% on Friday as Europe’s economy unexpectedly lost momentum amid a battle to control a spike in coronavirus cases. Aramco has suspended a deal to build a $10 billion refining and petrochemicals complex in China, according to people familiar with the matter, as it slashes spending to cope with lower oil prices.
MIDDLE EASTERN MARKETS:
- Tadawul All Share Index rises 0.8% in Riyadh
- Aramco drops 0.2%, trimming increase of 1.9% last week
- Abdullah Al Othaim rises 3.9%, the most in over three months, after saying it will pay 3 riyals/share for 1H dividend, 1 riyal higher than last year
- Israel’s TA-35 climbs 1.2% as of 3:34 p.m. local time, with Bank Hapoalim, Nice and Israel Discount Bank boosting the index the most
- Kamco Invest downgrades Kuwait’s education company Humansoft to neutral from outperform on potential impact of a 20% fee reduction for online classes imposed on private universities
- Reduction could affect 2020-2021 revenue, analyst Thomas Mathew writes in a note
- He adds that higher dividend payout and/or growth via enrollment or acquisitions could drive a re-rating for the stock
- Markets in the United Arab Emirates and Oman were closed due to holidays.
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