Feb 22 2021, 1:15 AM
February 21 2021, 2:19 PM
February 22 2021, 1:15 AM
(Bloomberg)
(Bloomberg)
Middle East equities rose as optimism surrounding the acceleration in global coronavirus vaccinations outweighed a rise in U.S. yields that may signal the return of inflation.
Israelâs TA-35 climbed as much as 1.2%, while benchmark stock indexes in Saudi Arabia, Bahrain, Abu Dhabi and Egypt also made gains.
âWe see higher inflation expectation as positive for the cyclical parts of emerging markets, such as the MENA region, especially when these expectations are driven by a rebound in the global economic growth which should propel earnings growth,â said Divye Arora, money manager at Daman Investments Psc in Dubai. âHowever, we are also watchful of the pace of increase of 10-year US treasury yields.â
Vaccine Rollout Lifts Dubai Shares to Top of the Equity Pile
Bloomberg 1/21/2021 Farah Elbahrawy and Srinivasan Sivabalan
(Bloomberg) One of the world’s fastest vaccine rollouts is fueling one of its best stock rallies.
As the United Arab Emirates pushes its inoculation program, the Dubai Financial Market General Index has climbed 12% this year, reversing its 10% slump in 2020. Only two major markets are performing better. MSCI Inc.’s gauge of developing-nation stocks has advanced 8.6%.
“Vaccines are a prime reason for this,” said Divye Arora, a money manager at Daman Investments Psc in Dubai. “We have seen a move globally away from growth and defensive toward value and cyclical. Dubai offers both value and cyclical exposure.”