Mideast Stocks Slump on Lower Oil, U.S. Election Risk: Inside EM

(Bloomberg) -- Most Middle East equities fell as traders reduced risk before the U.S. election, and amid mounting concerns over pandemic lockdowns and declining oil prices.

Kuwait’s Premier Market Index dropped 2.1%, the biggest loss in the region, followed by a 1.6% retreat in Dubai. Gauges in Abu Dhabi, Riyadh, Doha, Muscat and Cairo also fell, while Tel Aviv’s benchmark edged higher.

Middle East stocks are following a slump in the price of oil, which had the largest drop in seven months in October as renewed lockdown measures to contain the coronavirus threatened to choke off a recovery in demand. Several regional markets including the United Arab Emirates and Kuwait were closed Thursday for a holiday, when indexes in Saudi Arabia and Qatar slumped.

Sentiment is also being eroded by concern the U.S. presidential election result will be contested, despite polls showing a solid lead for Democrat Joe Biden. Russia will use disinformation to attempt to meddle in American politics no matter who wins the vote, but it may intensify efforts if there is a close result, current and former U.S. officials have warned.

“Markets are waiting for clarity,” said Luciano Jannelli, head of investment strategy at Abu Dhabi Commercial Bank PJSC. “There is a major risk of a contested election,” he said in an interview with Bloomberg Television.

MIDDLE EASTERN MARKETS:

• The Tadawul All Share Index falls 0.5%, after sliding 7% last week
  • Saudi Aramco retreats 0.3% to 33.60 riyals
  • The Saudi benchmark stock index is nearing it’s 100-day average, a mark it has traded above since early June
• Kuwait’s main index ends at the lowest level in two and a half weeks
  • Kuwait Finance House -2.7%, National Bank of Kuwait -1.4%, Zain -1.9%
• Dubai’s DFM General Index extends drop this year to 22%
  • Emirates NBD -1.7%, Emaar Properties -3%, Dubai Islamic Bank -1.2%, Damac Properties -4.6%
  • MORE: UAE Food Maker Agthia Seeking Buyouts Despite Third-Quarter Loss
• Gauges in Abu Dhabi, Doha, Oman, Egypt and Bahrain fall as much as 0.6%
• MORE: Abu Dhabi Stock Exchange Appoints Saeed Al Dhaheri as CEO

RECENT FINANCIAL RESULTS:

• Riyad Bank 3Q Profit 1.30B Riyals
• Saudi Ground Svcs 3Q Loss 86.8M Riyals
• Qassim Cement 3Q Profit 110.1M Riyals
• Seera Group Holding 3Q Loss 180M Riyals
• Saudi Hardware 3Q Profit 16.5M Riyals
• Saudi Invest. Bank 3Q Profit 301.4M Riyals
• Abu Dhabi Commercial Bank (ADCB UH) 3Q Profit 1.37b Dirhams, -3.3% Y/y
• Commercial Bank of Dubai (CBD UH) 9-Month Profit 816m Dirhams vs 1.06b
• Agthia (AGTHIA UH) 3Q Loss 32.4m Dirhams vs 33.2m Profit; Cites Bad Debt Provisioning
• International Holdings (IHC UH) 3Q Profit 932.7m Dirhams vs 16.6m
• Bupa Arabia (BUPA AB) 3Q Pretax Profit 170.1m Riyals, -35% Y/y
• Gulf International Service (GISS QD) 9M Profit 49m Riyals, +42% Y/y
• Qatar First Bank (QFBQ QD) 9M Loss 227.9m Riyals, -24% Y/y
• Al Meera Consumer (MERS QD) 9M Profit 140.1m Riyals, +13% Y/y
• United Development (UDCD QD) 9M Profit 96m Riyals, -70% Y/y
• Ooredoo Qatar (ORDS QD) 9M Profit 1.5b Riyals vs 1.27b
• Mesaieed Petrochemical (MPHC QD) 9M Profit 330m Riyals vs 493m
• Batelco (BATELCO BI) 3Q Profit 17.8m Dinars Vs. 8.1m Dinars Y/y

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