Dubai shares soared, Kuwait Banks rising: Inside EM

Photographer: Christopher Pike / Bloomberg

Dubai’s main index has suffered losses in the Middle East following a new set of restrictions to curb coronavirus transmission while things continue to rise. Banks in Kuwait have spoken out about a possible share resumption.

The General Index of DFM fell as much as 1.6% on Sunday, adding to a 2% fall on Thursday. The benchmark in Abu Dhabi, Saudi Arabia and Qatar also traded lower, with the main benchmark in Kuwait rising the most.

Stocks in Dubai have gone up in recent weeks on better opportunities for tourism and as a vaccine program in the United Arab Emirates. But in the latest release, the emirate announce over the weekend that attendance at weddings, social events and private parties will be limited to 10 people, immediately after ordering hotels and restaurants to suspend entertainment activity late last week.

In Kuwait, lenders including Kuwait National Bank SAKP, Kuwait Financial House KSCP and Gulf Bank KSCP came out ahead of the central bank allow lenders to distribute cash profits based on their 2020 financial results.

EASTERN MIDDLE MARKETS:

• Dubai’s DFM index is down 0.8% as it was at 11:27 am local time, trimming gains this year to 8.9%
  • Emaar Properties Declines 1.2%, Du -1.5%, Emirates NBD -0.4%, Damac Properties -2.9%, Emaar Malls -1%
• Kuwait Main Market Index will climb 0.6%, after rising 0.3% last week
  • The “encouraging news” from the central bank is seen building confidence and leading to gains in the banking index soon, says Junaid Ansari, vice president of investment strategy and research at Kamco Investment Company
    • “We believe that shares for 2020 are already reflected in the share prices of Kuwaiti banks, although the share rate would be critical for shareholders.”
    • “With 2020 profits expected to be significantly lower than 2019, we expect this to be reflected in share announcements. ”
  • In 2020, restrictions were imposed “if the banks leverage into liquidity and capital rest provided by the central bank,” said Jaap Meijer, head of equity research at Arqaam Capital
    • If the lenders did not use any support, “they would be able to pay shares.”
    • “Qatari banks have also been able to allocate shares, although disbursements have been modeled. ”
• Equivalence gases in Oman and Bahrain will rise by as much as 0.3%, while those in Saudi Arabia, Abu Dhabi and Qatar will lose as much as 0.3%

EARNINGS INFORMATION:

• Almarai (ALMARAI AB) MY Profit 1.98b Riyals, + 9.5% Y / y; Est. 2.04b
• Saudi Telecom (STC AB) FY Profit 11.09b Riyals, + 3.9% Y / y; Est. 11.01b
• Sabic Agri-Nutrients (SAFCO AB) FY Profit 1.29b Riyals, -12% Y / y; Est. 1.38b
• Saudi Kayan (KAYAN AB) Call FY 784.7m Riyals, + 23% Y / y; Est. Call 833.1m
• Herfy Food (HERFY AB) FY Profit 53.6m Riyals, -73% Y / y; Est. 75.8m

– Supported by Farah Elbahrawy