Saudi Shares Lead Gulf Gains While Israel Slumps: Inside EM
Saudi Arabia led gains in the Gulf as the earnings season started in the kingdom with a positive tone. In Israel, the main index fell for the first time in five sessions amid fears of a second wave of coronavirus.
Saudi Arabia’s Tadawul All Share Index ended 1% higher. Food producer Almarai Co. JSC, the first Saudi company to deliver second-quarter numbers, gained as much as 2% after posting an 11% increase in profit.
As more company results for the period are published, “we expect the recovery to be gradual and believe that the theme that would play out is, the large companies getting larger at the behest of the smaller ones,” Al Rajhi Capital analysts wrote a note.
Benchmarks in in Dubai and Abu Dhabi were mixed after non-oil private sector activity in the UAE improved in June for the first time in six months and reached the strongest since October 2019, according to IHS Markit data released on Sunday. Gauges in Kuwait and Bahrain climbed, while those in Qatar and Oman fell.
In Israel, the TA-35 retreated as much as 3.3% after Prime Minister Benjamin Netanyahu said the country is in a state of emergency due to a resurgent coronavirus outbreak, and additional steps are needed to try to stem its spread.
MIDDLE EASTERN MARKETS:
- The Tadawul All Share Index is still down 12% for the year
- Almarai registered a record SAR4.08b in revenue for the quarter
- Zain Saudi and Mobily climbed 0.3% and 1.1%, respectively, after the companies said they are in talks to create a joint business that would buy their telecommunications towers
- Dubai’s DFM General Index rises less than 0.1% while Abu Dhabi’s ADX General falls 0.2%
- Damac Properties +5.5%; Emaar Properties +0.4%; First Abu Dhabi Bank +0.2%
- In Kuwait, the Premier Market rises 0.4% higher
- READ, on July 2: Kuwait to Inject 240 Million Dinars to Support Private Sector
- Israel’s TA-35 extends loss this year to 19%
- Bank Hapoalim -4.1%; Bank Leumi -4%, Israel Discount Bank -4.4%; Bank Mizrahi Tefahot -4.4%
- MORE: Bank of Israel May Issue Dovish Guidance on Cutting Rates: Leumi
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