Aramco Shares Eye Record High After Bumper Earnings: Inside EM

(Bloomberg) --

Saudi Aramco shares closed near a record high after the oil producer’s earnings soared. Other stocks in the region were mixed, with benchmarks in Egypt, Saudi Arabia and Qatar falling. While those in Kuwait and Oman climbed, stocks in Dubai and Bahrain were steady.

MIDDLE EASTERN MARKETS:

• Tadawul drops 0.5%, down for a fourth day
  • Aramco is among top three gainers by points on the gauge, closing 0.4% higher
  • Meanwhile, Saudi National Bank -1.1%; Sabic -1.7%; and Sipchem -4.1% drag index lower
• Abu Dhabi’s ADX General Index gains falls 0.1%, led by losses in Alpha Dhabi
• Dubai Financial Market drops up 0.1%
  • Damac Properties surges 10% after Hussain Sajwani raised the offer price to buy the rest of the company
    • READ: Dubai Billionaire Sajwani Ups Damac Offer Amid Investor Backlash
• Kuwait’s Premier Market Index climbs 0.2%
  • Kuwait Finance House +0.5%: Boursa Kuwait +5.9%; Zain +0.5%
• Qatar’s QE Index falls 0.4%
  • Mesaieed Petrochemical -8.3%; Qatar Islamic Bank -1.2%; Masraf Al Rayan -1.6%
• Egypt’s EGX 30 falls 0.8%
  • Fertilizer and steel companies are falling after the government hiked natural gas prices for the industries they operate in, among others
    • Ezz Steel -12%; Abou Kir -6.1%; Sidi Kerir -5.5%; Misr Fertilizers Production -2.9%
  • “Hiking natural gas prices for industries, especially those that are considered energy-intensive, will surely pressure operating margins,” Prime Securities analyst Mohamed Saad wrote in a note

Key News:

• Saudi Arabia has started moving earth and tunneling through mountains to build a futuristic linear city that officials hope will host its first residents in 2024
• Saudi Arabia intends to bid to hold the 2030 World Expo in Riyadh, the year that’s supposed to mark the culmination of its program to diversify the economy away from oil
• U.S. President Joe Biden and the leaders of Germany, France, and the U.K. said they still see a chance to revive a deal with Iran over its nuclear program, but that Tehran must change course before any relief on sanctions

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