Saudi Arabian stocks lift Gulf markets after Eid

Saudi Arabia and Dubai led Gulf stocks higher on Sunday as regional markets resumed trade after last week’s holidays, lifted by positive sentiment on global stocks. (Reuters)
Updated 10 June 2019

Saudi Arabian stocks lift Gulf markets after Eid

  • The Saudi index rose by 2.2 percent to finish at 8,699 points, its best close since May 9
  • The Dubai index also rose, firming by 1.2 percent as property stocks registered strong gains

DUBAI: Saudi Arabia and Dubai led Gulf stocks higher on Sunday as regional markets resumed trade after last week’s holidays, lifted by positive sentiment on global stocks and expected foreign fund inflows into the Riyadh market.
The Saudi index rose by 2.2 percent to finish at 8,699 points, its best close since May 9.
“The market is bouncing back after the correction experienced in the past few weeks,” said Riyad Capital’s Muhammad Faisal Potrik.
Global stock markets advanced and US Treasury yields tumbled on Friday after a slowdown in job growth fueled hopes of a cut to US interest rates while there were also hints of progress in Washington’s trade battles.
Al Rajhi Bank rose 3.2 percent, Saudi Telecom was up 3.4 percent and Saudi Basic Industries, the index’s biggest stock, gained 2.9 percent.
Late last month the Saudi equity market joined the MSCI Emerging Market index, which is expected to trigger billions of dollars of foreign fund inflows.
A third tranche of the FTSE Russell emerging market index will kick in this month after Saudi stocks were included in two tranches in March and April.
The Dubai index also rose, firming by 1.2 percent as property stocks registered strong gains. Damac Properties was up 9.3 percent and Union Properties rose 4.3 percent. Market heavyweight Emaar Properties was up by a more modest 0.7 percent.
Global Telecom was up 1.5 percent after the company announced it has postponed its shareholder meeting to provide more time for investors to consider the mandatory tender
offer submitted by major share-holder VEON.
Abu Dhabi’s index dropped 0.95 percent, on weakness in First Abu Dhabi Bank, which eased by 1.2 percent.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 40 min 28 sec ago

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”