Most Mideast Shares Climb With Oil, Earnings Eyed: Inside EM

Most Middle Eastern stock markets edged higher as investors weighed lower Treasury yields, pressure on the oil price and corporate earnings.

Abu Dhabi’s ADX General Index climbed the most in the region, ending 0.3% higher on Sunday. Gauges in Saudi Arabia, Dubai, Bahrain, Oman, Qatar and Egypt also made gains while those in Kuwait and Israel slipped.

Stocks and currencies in developing economies rose last week as easing Treasury yields offset concerns over an increase in virus cases. But Brent crude, a major source of revenue for Gulf countries, declined for the week on concern the surge in cases in India will hamper demand recovery. India is the world’s third-largest oil importer, after the U.S. and China.

On the earnings front, Vodafone Qatar and Industries Qatar are expected to deliver results this week.

HIGHLIGHTS:
  • The MSCI Emerging Markets Index rose 0.3% last week, extending the increase in April to 2.8%
  • EM Review: Moderating U.S. Yields Offset Renewed Virus Spread
  • MORE: Vaccine Shortage Holds Emerging Markets Back from Global Rally

MIDDLE EASTERN MARKETS:

  • In Saudi Arabia, Saudi Kayan climbed as much as 5.1% after posting a profit for the 1Q that compares to a loss last year
    • READ, April 22: Saudi Kayan 1Q Profit 492.9M Riyals Vs. Loss 516.8M Riyals Y/y
  • Abu Dhabi’s ADX General Index extends increase this year to 21%, the best performance among major gauges in the region
    • Etisalat rises 1% on Sunday, boosting the index the most by points, followed by First Abu Dhabi Bank +0.3% and Ras Al Khaimah Ceramics +5.2%
  • Dubai’s DFM General Index trades near its 100-day moving average, a mark it has traded above for most part of the time since early November

COMMENTS:

  • Within those banks that already delivered 1Q results in Saudi Arabia - Al Rajhi Bank, Bank AlBilad and Alinma Bank - loan growth was “robust” and “even higher than our already generous expectations,” CI Capital analysts wrote in a note
    • Strong momentum attributed to the mortgage segment, analysts including Sara Boutros and Monsef Morsy write
    • Loan growth in Kuwait is coming in “healthy” and driven mostly by the consumer segment, while loan trends in the United Arab Emirates have been “so far weak” as significant loan repayments outweigh the “already weak new loan originations”
  • MORE: Higher Provision Buffer Against Stage 3 Bad Loans

FINANCIAL RESULTS:

  • ADCB (ADCB UH) 1Q Net Income 1.12B Dirhams Vs. 209M Dirhams Y/y
  • DXB Entertainments (DXBE UH) 1Q Net Loss 359.8M Dirhams
  • Saudi Telecom (STC AB) 1Q Profit 2.95b Riyals, +1.3% Y/y; Est. 2.78
  • Zamil (ZIIC AB) 1Q Profit 5.20m Riyals Vs. Loss 28.8m Y/y
  • Yanbu Cement (YNCCO AB) 1Q Profit 73.4m Riyals, -20% Y/y; Est. 90.5
  • Al Khalij Commercial Bank (KCBK QD) 1Q Profit 185.1m Riyals vs 177m y/y
  • Qatar Navigation (QNNS QD) 1Q Profit 297.2m Riyals vs 283.2m

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