Mideast Markets Trade Mixed With Aramco, Oil Eyed: Inside EM
Mideast Markets Trade Mixed With Aramco, Oil Eyed: Inside EM
(Bloomberg) --
Middle Eastern equities were mixed as investors weighed the outlook for oil and Saudi Aramco kept its dividend unchanged even after posting a slump in profit for the second quarter.
Stock benchmarks in Egypt, Kuwait, Oman, Bahrain and Saudi Arabia rose, while those in Abu Dhabi, Dubai, Qatar and Israel declined. Aramco shares closed 0.3% higher after it said it will pay $18.75 billion in dividends for the second quarter, matching the payout for the first three months of the year.
The oil giant disclosed a 73% drop in profit for the second quarter. Still, it is sticking to its payout plans while major competitors such as BP Plc and Royal Dutch Shell slashed dividends after the coronavirus pandemic upended the oil business.
On Friday, oil ministers from Saudi Arabia, the United Arab Emirates, Kuwait, Iraq, Oman and Bahrain held a conference call to discuss the oil market, according to a joint statement. They reaffirmed their commitment to the OPEC+ agreement and said they are “very encouraged by the recent signs of improvement in the global economy.”
Investors should be “shifting their orientation to value stocks, especially those stocks that have the potential to emerge stronger from the pandemic,” said Iyad Abu Hweij, the managing partner at Allied Investment Partners PJSC.
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MIDDLE EASTERN MARKETS:
- Egypt’s EGX30 leads mideast gains, closing 1.3% higher
- CIB leads gains, rising 1.7%
- Medinet Nasr climbs 6.2%, the most since October, in its longest rising streak since 2013
- The Tadawul All Share Index closes 0.4% higher
- Al Rajhi Bank +0.8%, Banque Saudi Fransi +1.5%, Aramco +0.3%
- Kuwait’s Premier Market index gains 0.5%
- Kuwait Finance House, Ahli United Bank and Zain lead gains, each climbing about 1%
- READ: NBK Needs to Enhance Revenue and Cut Costs to Navigate Headwinds
- MORE: Kuwait’s Shamal Az-Zour to List on Stock Exchange Aug. 16
- Dubai’s DFM General Index drops 0.7%, with biggest lender Emirates NBD falling 1.1%
- Bad loans may grow within U.A.E’s deferred books without strong recovery, Bloomberg Intelligence analyst Edmond Christou writes in a note
- “U.A.E. banks’ initial review of the deferred-loan book shows that real estate, hospitality including services and retail are most affected”
- Bad loans may grow within U.A.E’s deferred books without strong recovery, Bloomberg Intelligence analyst Edmond Christou writes in a note
- Indexes in Bahrain and Oman climb as much as 0.5%, while those in Abu Dhabi, Qatar and Israel fall as much as 0.6%
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