The Middle East’s benchmark equity indexes all advanced on Sunday, tracking a global stock rally on optimism that a Democratic sweep in the U.S. will boost fiscal spending in the world’s largest economy.
Egypt’s EGX 30 Index climbed for a third day to lead regional gains as the government reported declining inflation. Meantime, Saudi shares increased, hovering at their highest since July 2019.
This year “looks to favor 2020 laggards in the Middle East and North Africa as business activity continues to recover,” Citigroup Inc. analysts including Mumbai-based Rahul Bajaj wrote in a report. The speed of vaccine distribution as well as a normalisation in travel and logistics will particularly benefit stocks from the UAE, they said.
Middle East market:
- Dubai stocks rise 2.0 percent
- Dubai Islamic Bank +3.2 percent; Emaar Properties +3.2 percent; Emirates NBD +0.9 percent
- Top picks for Citigroup in the UAE include Aramex on margin recovery and inbound travel normalisation as well as Emirates NBD on strong provisioning
- The Tadawul All Share Index advances 1.1 percent
- Most of benchmark members rise, led by consumer stocks
- Egyptian stocks rise 2.2 percent
- Al Khalij Commercial Bank PQSC shares surge after it agreed with Masraf Al Rayan QSC for a share-swap combination that will create Qatar’s second-largest lender
- Equities in Abu Dhabi, Kuwait, Oman and Bahrain also advance
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