AMEinfo EXPERTS

Higher dividends may aid Gulf bourses

February 20, 2017 10:44 am

Dubai International Financial Centre at night, Dubai, United Arab Emirates. (Image: Alamy)

* MSCI’s broadest index of Asia-Pacific shares outside Japan is up 0.1 per cent

* Brent oil futures have barely moved, trading at $55.84 a barrel

* Dubai courier Aramex’s board recommended paying a cash dividend of 16 per cent of the company’s paid-up capital for 2016

 

Higher dividend payout recommendations from two major companies in the Gulf may help to support stock markets in the region on Monday in the absence of direction from global markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan is up 0.1 per cent while Brent oil futures have barely moved, trading at $55.84 a barrel.

Dubai courier Aramex’s board recommended paying a cash dividend of 16 per cent of the company’s paid-up capital for 2016. That is up from 15 percent in 2015. Last month, Aramex reported a more than doubling in fourth-quarter net profit.

 

Around GCC

Kuwait’s telecommunications operator Zain recommended a cash dividend of 35 fils per share for 2016, up from 30 fils for 2015.

 

(Kuwait’s Zain approaches Egypt telecom regulator on 4G licence)

 

Zain’s net profit for the three months to December 31 came in at 32 million dinars ($105 million), a decrease of 11 per cent from a year earlier.

Saudi banks with large exposure to the construction sector may have further upside after Reuters reported on Sunday afternoon, citing banking sources, that major builder Saudi Binladin Group had received hundreds of millions of dollars from the government to settle debts since the start of this year.

 

(Saudi bourse aims to extend trading settlement time before MSCI’s June review)

 

“The news will definitely push investors to buy banking shares because one of the greatest concerns for that sector is higher provisioning,” said a Riyadh-based analyst.

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Reuters
By Reuters
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