Saudi Stocks Rise, Peers Fall With Earnings in Focus: Inside EM

Saudi stocks climbed on Sunday while most Middle East markets fell as investors weighed earnings after shares in developing economies rose to a record high last week.

Saudi Arabia’s Tadawul All Share Index advanced 1%, with Al Rajhi Bank and Saudi Telecom contributing the most to the increase. Benchmarks in the United Arab Emirates, Oman, Qatar and Egypt fell as much as 0.4%, while the index in Israel rose.

Shares in Saudi Arabia advanced in the wake of the MSCI Emerging Markets Index touching its highest level on optimism over fiscal stimulus in the U.S. and coronavirus vaccine rollouts. Oil in London also climbed for a fourth straight week amid supply cuts by major producers and a recovery in U.S. demand.

In Dubai, Damac Properties PJSC fell close to 5% and dragged down the main index after posting a loss in 2020. The company’s chairman said it’ll take at least one to two years for the UAE real estate market to get out of its downturn.

After the market closed, Emaar Properties PJSC reported a 58% slump in profit, while Abu Dhabi-based Aldar Properties PJS posted a profit that was almost unchanged from a year ago.

HIGHLIGHTS
  • The MSCI Emerging Markets Index rose 2.4% last week, second consecutive weekly advance
  • EM REVIEW: Recovery Wagers Send Stocks on Record-Breaking Run
  • READ: Lebanese Inflation Hits Record High as Food Prices Soar 400%

MIDDLE EASTERN MARKETS:

  • Saudi Arabia’s main gauge extends gains for a seventh session, the longest winning streak since Nov.
    • Fast-food restaurants operator Herfy Food Services falls as much as 1.2% after Saudi Arabia extended curbs on dining in cafes and restaurants for 20 days as the number of coronavirus cases grows
    • READ: Saudi Utility Alkhorayef Sets IPO Price at Top End of Range
  • Qatar’s QE Index falls 0.1%, while the gauge in Kuwait and Bahrain were little changed
  • Egypt’s EGX 30 retreated 0.3%

FINANCIAL RESULTS:

  • ADIB FY Net Income Beats Estimates
  • Aldar FY Net Income Beats Estimates
  • Emaar Properties FY Net Income Misses Estimates
  • Damac FY Loss 1.04b Dirhams vs Loss of 37m Y/y; Est. Loss of 904m
  • Yanbu Cement FY Profit Misses Estimates
  • Leejam Sports FY Loss Misses Estimates
  • Mabanee FY Net Income 21.6M Dinars Vs. 56.4M Dinars Y/y
  • Burgan Bank FY Net Income Beats Estimates
  • Al Ahli Bank Of Kuwait FY Net Loss 69.7M Dinars
  • Waha Capital FY Profit 231m Dirhams Vs. Loss 616.3m Y/y
    • Div.: 0.06 Fils/Share for 2020
  • Alinma Bank FY Profit 1.97b Riyals, -30% Y/y; Est. 2.07b
  • Amlak Finance FY Loss 438m Dirhams, +37% Y/y

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