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Thursday, 30 September 2010

Dubai Shares Fall, Trimming Gains in Best Quarter in a Year; Kuwait Gains - Bloomberg

Dubai shares declined the most in a week on speculation gains this quarter are overdone given growth prospects and after Emaar Properties PJSC raised $450 million of convertible bonds. Kuwaiti shares advanced.

Emaar, the builder of the world’s tallest tower and the company with the heaviest weighting in the emirate’s benchmark index, retreated 1.8 percent. Aramex PJSC, the Middle East’s biggest courier company, fell the most since April. The DFM General Index slipped 1.1 percent, the most since Sept. 22, to 1,683.69 at the 2 p.m. close in Dubai. That trimmed the gain this quarter to 15 percent. Kuwait’s measure rose 0.8 percent today.

“Being the end of the best performing quarter year-to- date, it is only natural to expect some profit taking,” said Saad al-Chalabi, an institutional trader at Al Ramz Securities in Abu Dhabi. Dubai’s equity benchmark soared 23 percent in the third quarter of 2009.

Kuwait Shares Advances to 4-Month High as Zain Receives Bid from Etisalat - Bloomberg

Kuwait stocks rose to the highest in four months as Zain, the country’s largest mobile-phone company, got a purchase offer for a 46 percent stake, boosting investor sentiment. Emaar Properties PJSC fell in Dubai.

Gulf Cable and Electrical Industries Co., the Kuwaiti maker of electrical equipment, soared to the highest in a year and Kuwait Food Co. jumped 6.3 percent. Zain shares were suspended from trading pending clarification on the offer from Abu Dhabi- based Emirates Telecommunications Corp. The Kuwait SE Price Index increased 0.8 percent to 6,985, the highest since May 24, at the close in Kuwait City. The index rose 6.8 percent in the past three months, its biggest quarterly gain since the one ended March.

The gains are a “spillover from Zain’s news,” said Jasem Al Zeraei, head of institutional sales at NBK Capital in Kuwait.

Qatar Telecom Appoints Six Banks as Lead Managers for Sale of Dollar Bonds - Bloomberg

Qatar Telecom QSC hired six banks to help organize meetings with credit investors next month ahead of a planned dollar bond sale, according to an e-mailed statement from the company.

The meetings will run Oct. 4 to Oct. 6, with three teams covering Singapore, Hong Kong, Los Angeles, New York, Boston, Dubai and London, a person familiar with the matter said, asking not to be identified as he isn’t authorized to discuss the details.

A revival of investor confidence in the region has sparked a wave of sales this month, helping to push Gulf issuance to more than $9 billion in the third quarter, the most since the $16 billion raised in the final three months of 2009, according to data compiled by Bloomberg.

UPDATE 1-Major Zain shareholder says Etisalat offer suitable | Reuters

Emirates Telecommunications Corp's (ETEL.AD) offer to buy the Kharafi Group's stake in Zain (ZAIN.KW) is 'suitable and good for both parties,' the head of the Kharafi Group, said in a Kuwaiti newspaper on Thursday.

The UAE telco, known as Etisalat, said a day earlier that it had made a conditional offer for a 46-percent stake in Zain. [ID:nLDE68S0YC]

The offer of 1.7 dinars ($5.97) a share -- which values the stake at nearly $12 billion -- was made to the Kharafi Group, a major Zain shareholder keen to offload its position for more than a year."

Dubai's Emaar Properties Raises $450 Million From Convertible Notes Sale - Bloomberg

Emaar Properties PJSC, the biggest publicly traded real-estate developer in the United Arab Emirates, said it successfully placed a convertible bond issue of up to $500 million. The bond will pay an annual interest rate of 7.5 percent and has an initial conversion price of $1.293 a share, Emaar said in an e-mailed statement today.

The issue was increased to $450 million from $375 million and has an over-allotment option of $50 million. Settlement is expected to take place on or around Dec. 20.

MIDEAST MARKETS WEEKAHEAD-Debt issues, IPOs revive capital mkts | Reuters

Investors: breathe a sigh of relief. A spate of debt issues and initial public offerings is set to inject new life into Middle East capital markets in the final quarter of what has otherwise been a lacklustre year.

Debt and equity capital market activity suffered in the first half of 2010 as a waning global recovery and debt worries in the European Union kept skittish investors stuck to safe-haven assets like gold and U.S. treasury notes.

The traditional summer lull, coupled with the Muslim holy month of Ramadan, a period when business activity typically slows in the mostly-Muslim Middle East, did little to help."

Qatar's QIB bond price talk 262.5 bps midswaps- sources | Reuters

Qatar Islamic Bank's QISB.QA (QIB) benchmark five-year Islamic bond, is said to yield around 262.5 basis points over midswaps, or just over 4 percent, three sources, including a lead arranger, said on Wednesday.

QIB wants to raise a minimum of $500 million from the A-rated bond, but two sources said the Islamic lender could raise as much as $750 million.

HSBC, Credit Suisse and QInvest are joint lead managers and bookrunners on the deal. Roadshows conclude in Europe on Thursday."

Dubai bourse's new rules aimed at emerging mkt tag- CEO | Reuters

Bourse operator Dubai Financial Market DFM.DU will switch to a 'delivery versus payment' (DVP) system by the first-quarter of 2011, in a bid by the United Arab Emirates to get emerging market status from index compiler MSCI.

The DFM is working with the UAE regulator, the Securities and Commodities Authority (SCA), as well as the Abu Dhabi Securities Exchange (ADX) to bring in the new rules, Essa Kazim, DFM's chief executive, told Reuters on Wednesday.

'We are aiming for the first quarter of 2011, but if things go very smoothly it could be sooner than that,' said Kazim."