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Tuesday, May 24, 2022

Dubai shares rally as DEWA more than doubles IPO size; Saudi slips

Dubai shares rally as DEWA more than doubles IPO size; Saudi slips

Dubai's main share index rallied for a seventh consecutive session on Wednesday, after state utility DEWA increased its initial public offering (IPO) size to raise as much as $5.7 billion, while Saudi Arabian stocks edged lower.
Dubai Electricity and Water Authority (DEWA) said it had raised its IPO size to 17% from 6.5%, which could make it the biggest public share-sale for the region since Saudi Aramco's (2222.SE) record $29.4 billion issue in 2019.

Dubai's index (.DFMGI) rose 0.8%, boosted by real estate and financial stocks. Emaar Properties (EMAR.DU) climbed 2%.

Financial investment services provider Shuaa Capital (SHUA.DU) advanced 2% after it said it will buy Allianz Marine And Logistics Services Holding.

Global markets gained, amid hopes for a negotiated end to the Ukraine conflict, while bond markets signalled concerns about the U.S. economy overnight after 10-year yields briefly dipped below two-year rates.

Oil prices advanced to $111.09 a barrel, while prospects of new Western sanctions against Russia grew despite signs of progress in peace talks with Ukraine.

Russia promised on Tuesday to scale down military operations around Kyiv and another city but the United States warned the threat was not over as Ukraine proposed adopting a neutral status in a sign of progress at face-to-face negotiations.

Saudi Arabia's benchmark index (.TASI) inched lower, dragged down by financials.

Shares of Bindawood Holding (4161.SE) fell 3% after the company posted a lower fourth-quarter profit.

The Abu Dhabi index (.FTFADGI) fell marginally, pausing its six-day spree of gains.

The Qatari index (.QSI) also edged lower, with industrial stocks leading the losses.

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