Saudi Bank Stocks Rise to Record Amid Mideast Gains

Saudi Arabia’s bank stocks led gains on the benchmark Tadawul All Share Index as rising crude prices and the prospect of faster growth fanned investor confidence ahead of first-half earnings season.

  • The Tadawul Banks sub-index rises to a record high
    • Al Rajhi Bank +1.6%; Banque Saudi Fransi +4.1%; Alinma Bank +2.4% at 11 a.m. in Riyadh
    • “Saudi banks’ price-to-book valuation multiples are edging up” versus Gulf peers this year “driven by a higher oil price and solid growth prospects,” said Bloomberg Intelligence analyst Edmond Christou
    • “However, the market looks optimistic on lower provisioning this year but we stay cautious,” he said
    • NOTE: Midyear Outlook: Gulf, South Africa Financials
  • ADX General Index rises as much as 1.2%
  • Dubai Financial Market General Index is the only losing gauge in the Middle East on Sunday
    • Emirates NBD -0.8%; Dubai Investments -1.8%; Emaar Properties -0.5% at 11:58 a.m. local time
  • Kuwaiti stocks advance for the fifth day in past six
  • MSCI Emerging Markets Index fell 1.8% last week, the most since mid-May

Markets snapshot as of 12:01 p.m. in Dubai:

  • Tadawul All Share Index +0.5%
  • Dubai Financial Market General Index -0.4%
  • ADX General Index +0.5%
  • Kuwait Premier Market +0.2%
  • QE Index +0.2%
  • Bahrain Bourse All Share Index flat
  • MSM 30 Index +0.4%
  • EGX 30 Index +0.1%
  • TA-35 Index +0.3%

Key News:

  • A high-stakes game of oil diplomacy pits Saudi Arabia against long-time ally Abu Dhabi. And the result of their fight will shape not just the price of oil for the next year, but the future of the global energy industry
  • The United Arab Emirates has overtaken Seychelles to become the world’s most vaccinated nation, according to Bloomberg tracking data

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