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MENA markets outperformed international equity markets despite both indices ending lower on the month. The MSCI Arabian Markets Index lost 0.5% compared to a drop of 3.9% for international markets as measured by the MSCI World Index. On a YTD basis, the region continues to fare better than international markets up 1.5% compared to a YTD decline of 7.5% for international markets.
United Arab Emirates
• Indices reversed last month's positive trends as both the DFM and ADX lost 1.9% on the month, on a YTD basis, the DFM and ADX are still 17.7% and 8.9% in the red, respectively.• In the real estate sector Emaar, sold a commercial property for Dhs331.7m and incurred a loss of Dhs38.5m from the sale of Hamptons Group's operations in Europe, U.K. and Asia to Countrywide. The stock ended the month flat.
• The issuer rating for Aldar Properties was downgraded by Moody's to Ba3 from Ba1 and the stock dropped 8.9%.
• In the financial sector, Emirates NBD raised USD 221mn from the Middle East's first issue of securities backed by auto loans. The stock lost 2.8% in August. Dubai Islamic Bank led the losses, dropping 5.1% and its Q2 net profit dropped 33.1% from a year earlier to Dhs301m.
• In telecoms, Du posted a Q2 net profit of Dhs137.4m compared with Dhs57.6m in the year-earlier period. The stock gained 2.5% on the month. Meanwhile, ADX heavyweight, Etisalat, lost 1.0% in August.
• Dubai's budget deficit this year may be lower than anticipated at possibly less than 2% of GDP forecast. Inflation in the UAE eased for the first time in five months as the cost of housing remained unchanged and food prices rose at a slower pace. The inflation rate declined to 0.9% in July from 1.0% a month earlier.
Saudi Arabia
• The Tadawul Index lost 2.8% in August after gaining 3.1% in July. On a YTD basis, the index is now down 0.3%.• Saudi Arabia's July M1 money supply rose 20.6% compared to last year while July M2 money rose 5.1%.
• Saudi Arabia approved a five-year SR1.44 trillion development plan that includes human resources, education, housing and transportation infrastructure.
• Non-oil June exports gained 22% to SR10.7bn.
Kuwait
• The KSE Index finished the month up 0.5%. The index is still 4.5% in the red since the beginning of the year.• Kuwait's central bank sold KD100m 1-year treasury bonds with a coupon rate of 1.25%.
• Moody's upgraded the outlook on Kuwait's Aa2 sovereign ratings to stable from negative.
• Kuwait recorded a budget surplus of KD6.44bn in the fiscal year that ended March 31 after oil revenue was more than double the forecast.
• Kuwait's inflation rate rose to 2.9% in May compared to 2.8% in April.
Qatar
• The DSM 20 Index continued to be the top performer among the GCC indices, rising another 2.8% to reach a three-month high and bringing the year-to-date gain to 3.8%.• The Qatari Central Bank cut the overnight deposit rate by 50 basis points to 1.5%.
• Qatar consumer prices fell 2.9% in July compared to a year earlier and 0.5% compared to June. It was the seventh consecutive month of falling consumer prices due to lower housing and fuel costs.
Oman
• The MSM Index reversed last month's upward trend losing 0.6% in August and is 1.8% in the red on a YTD basis.• Oman Central Bank sold OR200m 0.11% 1-month certificates of deposit.
• Oman's June oil output fell to 25.3mn barrels of oil compared to 27.18mn barrels of oil in May.
• Oman's June M1 money supply increased 13.8% from 10.9% in May while M2 money supply grew 8% in June from 6.2% in May.
Egypt
• The EGX gained for a second consecutive month, up 1.5% in August. On a YTD basis, the index is 3.2% in the green.• Suez Canal revenue rose to $406.2m in July, up 6.1% from a year earlier.
• The World Bank will lend Egypt $3.2bn as financing for 18 economic development projects.
Posted by Rana Mesbah
