Saudi Arabian Shares Lead Gulf Gains on Oil, Earnings: Inside EM

Saudi Arabia’s main equities index led advances in the Gulf on Sunday, catching up with gains in oil and emerging-market stocks last week.

The Tadawul gauge also got a boost by earnings from Bank AlBilad and United International Transport that were higher than estimates. Saudi Arabian Mining Co. extended gains after the company said it plans to focus on deleveraging this year.

Abu Dhabi’s main index ended higher after the exchange said it’ll reduce trading fees on all transactions. Stock gauges in Kuwait, Qatar and Bahrain also advanced. The benchmark in Dubai extended losses for the third session, and Oman’s also fell.

Last week, oil futures rallied to a one-year high as Chinese consumption surpassed pre-virus levels, the vaccine rollout restored confidence and the OPEC cartel kept a tight leash on supply. Also, stocks in developing countries posted their best week in three months as U.S. President Joe Biden’s push for a $1.9 trillion pandemic-relief package revived the reflation trade.

As higher oil prices support government revenue and stimulus, stocks in the United Arab Emirates with “higher yields and lower valuations” look “poised for a breakout,” Emirates NBD analysts led by Chief Investment Officer Maurice Gravier wrote in a note.

  • The MSCI Emerging Markets Index rose 5% last week, the biggest weekly increase since Nov. 6.
  • Brent crude gained 6.2% to $59.34/barrel last week, climbing to the highest level in over one year. Read more about oil’s rebound.
  • EM REVIEW: Stocks Rise Most Since November on Reflation Trade


  • Saudi Arabia’s Tadawul All Share Index rose 0.8%
    • Bank Albilad and United International Transport gained 5.6% and 4%, respectively
    • Other stocks climbing: Al Rajhi Bank +1.4%, Banque Saudi Fransi +2.1%, Saudi Aramco +0.4%
    • READ: Saudi Miner Maaden Targets Deleveraging This Year, CEO Says
  • Dubai’s DFM General Index fell 0.2%, down 2.1% in the past three sessions
  • Qatar’s QE Index, Kuwait’s Premier Markets Index and Bahrain’s benchmark climb between 0.1% and 0.6%
  • In Egypt, Juhayna Food Industries slumps as much as 17% after the company confirmed its chief executive officer and deputy board chairman has been detained by authorities
    • The EGX 30 was little changed


  • Bank AlBilad FY Profit Beats Estimates
  • United International Transport FY Profit Beats Estimates

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