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Thursday, 15 July 2010

Qatar Shares Slide on Earnings, Fed Outlook; Dubai Advances - BusinessWeek

Qatar shares declined after Qatar Islamic Bank posted a 35 percent decline in second-quarter profit and the Federal Reserve trimmed the growth forecast for the world’s biggest economy.

Qatar’s QE Index slipped 0.8 percent to 6,963.53, paring its gain for the week to 0.8 percent. Qatar Islamic Bank, the Gulf state’s biggest lender complying with Islamic finance rules, retreated 3.7 percent as earnings fell short of analyst estimates. Commercial Bank of Qatar slid the most since July 1. The Bloomberg GCC 200 Index lost 0.2 percent, while Dubai’s DFM General Index advanced 1 percent to 1,520.2, the highest level this month.

“On the downside, Gulf markets are highly correlated with global markets,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC in Abu Dhabi. “Investors are waiting for more second-quarter earnings.”

The Kuwait SE Issues Will Solve Themselves? « Alpha Dinar- talking GCC finance

Proponents of the “invisible hand” theory coined by Adam Smith will respond with a screaming “Yes” to the notion that the market issues will eventually resolve themselves. I was reading Al-Qabas daily today when I stumbled upon another proponent of the invisible hand theory; It isn’t Milton Friedman, but our Deputy Prime Minister for Financial Affairs. He too proposes that the Kuwait Stock Exchange cleanse itself. I personally oppose such a stance not only because my nickname is Keynesian and I advocate a more prominent government role especially in a market failure situation, but also because I believe our stock market doesn’t have the necessary structural elements to cleanse itself. For example, there are no bankruptcy laws and we don’t have a Capital Market Authority yet.

Iran May Switch to U.A.E. Dirhams From Euro for Oil Sales, Oil Daily Says - Bloomberg

Iran is considering switching to the United Arab Emirates’ dirham from the euro for its oil sales to Europe to limit the impact of new sanctions, International Oil Daily reported, citing two unidentified industry executives.

National Iranian Oil Co. has been communicating with European customers about the change without making a final decision, the newsletter said. The country currently prices its exports in U.S. dollars, the Oil Daily said.

Iran may not be able to persuade European customers to make the switch because of unfamiliarity with the dirham, which is pegged to the U.S. dollar, the publication said.

Nakheel Bonds Show Confidence in Dubai Debt Restructuring: Islamic Finance - Bloomberg

The Islamic bond market is showing that Dubai is regaining investor confidence after a group of creditors agreed to restructure Nakheel PJSC’s debt.

The average yield on sukuk sold by Gulf Cooperation Council borrowers fell eight basis points yesterday to 7.23 percent, according to the HSBC/NASDAQ Dubai GCC US Dollar Sukuk Index. It reached 8.76 percent on Dec. 11 after Dubai investment companies announced plans to restructure debt in November. The yield on Nakheel’s 2.75 percent $750 million fixed-rate Islamic notes due in January 2011 has fallen 17 basis points this month to 15.30 percent, according to prices compiled by Bloomberg.

Creditor banks “unanimously supported” a proposal on altering the terms on $10.5 billion of loans and unpaid bills, Nakheel, the Dubai World-owned property developer, said yesterday. The yield difference on GCC sukuk and the London interbank offered rate narrowed six basis points yesterday to 535 basis points from as wide as 647 at the end of November.

Dubai's DFSA Funds Regime revised to create more competitive financial hub - Business Intelligence Middle East - - News, analysis, reports

The Dubai International Financial Centre Authority (DIFCA) today welcomed a series of regulatory changes to the DIFC’s Collective Investment Funds regime (the Funds Regime).

The changes were made following recommendations made by a panel of market practitioners and implemented by the Dubai Financial Services Authority (DFSA) on 11 July 2010.

The most significant changes to the Funds Regime are accessed through title line.

Hotel Union Square Mezz 1 Files Chapter 11 Bankruptcy Liquidation Plan - Bloomberg

Hotels Union Square Mezz 1 LLC and Hotels Union Square Mezz 2 filed a joint liquidation plan today that would wind up the bankruptcy cases relating to the W New York Union Square hotel.

The New York hotel, which features Rande Gerber’s Underbar, is operated by a unit of White Plains, New York-based Starwood Hotels & Resorts Worldwide Inc., the third-largest U.S. lodging company. Under the terms of the plan, W Hotel Management Inc. will continue to manage the hotel under its existing agreement.

Hotels Union Square Mezz 1 was put into bankruptcy in March by junior mezzanine lender LEM that took over ownership of the Manhattan luxury property in December from Dubai World.