Mideast Stocks Climb, Track Global Peers and Oil Gain: Inside EM

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 19.

This year “looks to favor 020 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 normalization in travel and logistics will particularly benefit stocks from the United Arab Emirates, they said.

HIGHLIGHTS:
  • The MSCI Emerging Markets Index gained 2.4% on , extending its increase for the week ending Jan. 8 to nearly 5%
  • Brent crude rose almost 3% on Friday to $56 per barrel, its highest since Feb. 2020
  • EM Review: Blue Wave Spurs Stocks Rally as U.S. Yields Soar
  • READ: Saudi Prince Hits a New Year Reset by Making Allies Not Enemies

MIDDLE EAST MARKETS:

  • Dubai stocks rise 2.0%
    • Dubai Islamic Bank +3.2%; Emaar Properties +3.2%; Emirates NBD +0.9%
    • Top picks for Citigroup in the UAE include Aramex on margin recovery and inbound travel normalization as well as Emirates NBD on strong provisioning
    • Most of benchmark members rise, led by consumer stocks

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