Middle East stocks rise following US Democratic sweep

Middle East stocks rise following US Democratic sweep

Region's benchmark equity indexes all advance, in line with global stock rally

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