Banks boost Saudi stock market, Qatar hit by sell-off

The Saudi index increased 1.66 percent, with Al Rajhi Bank adding 2.2 percent and Saudi Basic Industries up 3.3 percent. (Reuters)
Updated 21 May 2019

Banks boost Saudi stock market, Qatar hit by sell-off

  • MSCI last week said it would include MSCI Saudi Arabia in its emerging-markets index
  • Qatar’s index was down 2 percent, with 17 of its 20 stocks sliding

BENGALURU: Saudi Arabia’s stock market rose sharply on Tuesday, leading gains in most major Gulf bourses amid a global rally after Washington temporarily eased trade restrictions imposed last week on China’s Huawei. Qatar dropped due to a wide sell-off.
The Saudi index increased 1.66 percent, with Al Rajhi Bank adding 2.2 percent and Saudi Basic Industries up 3.3 percent.
The “Middle East today is following the positive lead from global markets. Local sentiment is also better as evidenced by the strong moves in small cap stocks,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
“We expect Saudi Arabia to continue its upward trend until at least the MSCI effective date May 28,” added Vrajesh. “Thereafter, investors need to be selective and follow a bottom up-approach. Overall, we find better value in UAE and Egypt.”
MSCI last week said it would include MSCI Saudi Arabia in its emerging-markets index, effective May 28, a move that could draw billions of dollars into the market.
Saudi International Petrochemical closed 3.4 percent higher. The firm completed the merger of equals with Sahara Petrochemical, which delisted on May 20.
Qatar’s index was down 2 percent, with 17 of its 20 stocks sliding.

The Middle East’s largest lender, Qatar National Bank, dropped 2.4 percent, while Mesaieed Petrochemical Holding plunged 10 percent, snapping a six-day winning streak triggered by the stock inclusion in MSCI’s index.
Egypt’s blue-chip index gained 1.7 percent as most of its stocks rose, with Market heavyweight Commercial International Bank gaining 0.9 percent.
El Sewedy Electric jumped 5.9 percent after it partnered with General Authority For Suez Canal Economic Zone to establish a new company with issued capital of 1 billion Egyptian pounds ($58.82 million), in which the firm will own 49 percent.
Abu Dhabi’s index closed 1.1 percent higher, led by a 1.3 percent increase in the country’s largest lender, First Abu Dhabi Bank.
Dana Gas jumped 4.1 percent after the energy firm said it had started drilling operations at Merak-1 well, offshore Egypt.
National Marine Dredging soared 13.9 percent after last week reporting a higher first-quarter earnings.
The Dubai index rose 1 percent as all but one of its real estate stocks rose.
Emaar Properties, Dubai’s largest listed-developer, increased 2.9 percent while its units Emaar Malls and Emaar Development were up 2.3 percent and 3 percent respectively.
The UAE said on Tuesday that it will grant 6,800 foreign investors permanent residency under a new “Golden Card” system after they invested a combined 100 billion dirhams ($27.23 billion) in the Gulf state.
National Cement Company was up 1.7 percent after news it had bought ARM Cement’s Kenyan assets for $50 million.
Arabtec Holding rebounded 2.1 percent, snapping four straight sessions of losses on weak first-quarter earnings.


Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

Updated 01 June 2020

Arab News recording exposes Nissan lawyer’s lie on IMF bailout for Lebanon

LONDON: Arab News has published the recording of an interview with a Nissan lawyer after he denied saying that a bailout of Lebanon by the International Monetary Fund (IMF) was linked to the extradition of fugitive tycoon Carlos Ghosn.

The former Nissan chairman fled to Beirut in December from Japan, where he faced charges of financial wrongdoing.

In a story published in Arab News Japan on Saturday, Sakher El Hachem, Nissan’s legal representative in Lebanon, said the multibillion-dollar IMF bailout was contingent on Ghosn being handed back to Japan. 

The lawyer said IMF support for Lebanon required Japan’s agreement. Lebanese officials had told him: “Japan will assist Lebanon if Ghosn gets extradited,” the lawyer said

“For Japan to agree on that they want the Lebanese authorities to extradite Ghosn, otherwise they won’t provide Lebanon with financial assistance. Japan is one of the IMF’s major contributors … if Japan vetoes Lebanon then the IMF won’t give Lebanon money, except after deporting Ghosn.”

On Sunday, El Hachem denied making the comments. “The only thing I told the newspaper was that there should have been a court hearing on April 30 in Lebanon, but it was postponed because of the pandemic,” he said. In response, Arab News published the recording of the interview, in which he can be clearly heard making the statements attributed to him. 

Japan issued an arrest warrant after Ghosn, 66, escaped house arrest and fled the country.

Now listen to the recording: