Monday, 21 March 2011
Ninety-three percent of nearly 200 professionals from CFA charters in nine Middle Eastern countries said a single UAE bourse would improve liquidity levels, the poll found.
The UAE’s three exchanges have been dogged by low liquidity and declining turnover in recent years. The country’s first IPO in two years was completed in March.
Over the past week, the oil price appears to have moved in sync with events in Libya. When Gaddafi looked close to quashing the revolution, prices dropped with the expectation that Libyan oil would start flowing again. Every time the rebels have been given a boost, oil prices have gone back up.
So last Tuesday, as pro-Gaddafi forces neared Benghazi, oil dropped 3.9 per cent. But when UN Resolution 1973 was passed on Thursday, it went up 3.5 per cent. It fell again after Gaddafi announced a ceasfire, but rose as evidence came in of his attacks on rebel-held towns. Today, asmarkets react to the concerted bombing campaign over the weekend, oil has continued to rise, taking Brent back over $115 a barrel.
Amid this turmoil, the question remains, why is oil moving at all? Of course, Libya is in the top dozen oil exporting countries, but it still only exports about 2 per cent of world oil supply, and what has been lost in the last few weeks has largely been accounted for by increased Opec production.
|TASI (Saudi Stock Market)||6357.37||0.21%|
|DFM (Dubai Financial Market)||1506.37||-0.23%|
|ADX (Abudhabi Securities Exchange)||2614.01||0.45%|
|KSE (Kuwait Stock Exchange)||6313.4||0.99%|
|BSE (Bahrain Stock Exchange)||1401||0.66%|
|MSM (Muscat Securities Market)||6365.52||0.19%|
|QE (Qatar Exchange)||8340.97||-0.64%|
|LSE (Beirut Stock Exchange)||1416.86||-0.36%|
|EGX 30 (Egypt Exchange)||5646.5||-10.52%|
|ASE (Amman Stock Exchange)||2215.12||0.06%|
|TUNINDEX (Tunisia Stock Exchange)||4404.86||1.55%|
|CB (Casablanca Stock Exchange)||12627.9||-0.27%|
|PSE (Palestine Securities Exchange)||496.31||-0.05%|
Saudi Arabia's index .TASI, the largest Gulf Arab market, rose 0.2 percent, having surged 4.5 percent on Sunday, with regional markets rallying after the kingdom offered $93 billion in social handouts in a bid to neuter dissent. [ID:nLDE72H0ZC]
"I think we will have a day or two more to go, but then questions will start to come about the time frame for the Saudi stimulus and the costs associated to waste at the bureaucratic level," said Robert McKinnon, ASAS Capital chief investment officer. "Much of the stimulus is going to the people that are happy and have jobs, or own companies and land. I don't see any intent at actual reform. So it seems to me this is a PR stunt."
In this article, we look at statutory basis for the jurisdiction of the DIFC Courts and discuss some recent DIFC Court cases that have considered the extent of that jurisdiction.
The exchange has been closed for more than seven weeks because of the unrest that ousted Hosni Mubarak.
MSCI has warned Egypt it risked exclusion from its emerging markets index if the exchange it did not reopen by March 24.
Coalition forces over Libya are not trying to kill Gaddafi, or to co-ordinate air strikes with the rebels, the Pentagon said on Sunday.
Assuming that’s true…
We could get a long war. In that case, FT Alphaville will go back to something weasked before. Between Gaddafi and the rebel forces, who could get enough cash to build a military advantage and retain loyalty — and where could they get it from?
Right now, we reckon the question could be about to affect the oil market’s view of Libya’s lost production even more.
Dubai International Capital said Monday it paid $126 million for the 45 percent stake when it acquired it in September 2008.
KEF makes valves and steel castings for the oil and gas sector and other industries.
The $6bn deal ends an acrimonious, nine-month boardroom battle between Fridman and VimpelCom’s other controlling shareholder, Telenor of Norway – marking the latest in a string of defeats for those that have stood in the way of Fridman’s vision.
Telenor said 60.2 per cent of the unaffiliated VimpelCom shareholders voted against the merger deal, but Altimo – the Fridman vehicle which controls the telecom assets of his Alfa Group – managed to win a narrow majority of voting shares. Despite its defeat Telenor said it would soldier on inside VimpelCom.
Any buyer will also miss telecoms operator Zain's $3.1 billion dividend payout, so would likely bid below Etisalat's (ETEL.AD) 1.7 dinars-per-share offer for a 46 percent controlling stake, which the UAE firm withdrew on Saturday.
Zain shareholder, the Kharafi group, was the architect of the Etisalat deal, but rival shareholders were unhappy Kharafi would net all brokerage fees and exclude them from the sale.
The kingdom has been and will continue to be a calming influence on global oil markets particularly at times of high turbulence. We have substantial spare capacity to make sure… oil supply goes forward.
The yen extended losses, with speculators wary of more coordinated action by the Group of Seven countries after their first joint intervention in over a decade last week.
Brent crude for May was up $2.02 at $115.95 a barrel by 1115 GMT, while U.S. crude for April gained $1.91 to $102.98 after the U.N.-mandated attacks on Libya to protect civilians caught up in a one-month-old revolt against Muammar Gaddafi's forces.
Despite being weighed down by U.S. sanctions and conflict that have deterred investment in other sectors, Sudan's mobile phone market has boomed in recent years and the country has emerged as a lucrative African market for telecoms players.
But South Sudan, which is expected to become Africa's newest nation in July after voting to secede earlier this year, is expected to prove a tougher market to tap.
This week we will find out what else is to come, although who knows who is holed below the waterline.
After the much discussed Kobe earthquake of 1995 it took some months for Nick Leeson’s scandal to emerge which collapsed the venerable of Barings Bank. Losses after the Kobe earthquake turned his trading position from serious to fatal for the bank.
Political turmoil in the Middle East and rising commodity prices have brought unwelcome memories from the end of 2008 when equities slumped and liquidity started to dry up.
Since the start of this year Saudi Arabia's market, the biggest in the Arab world, has shed 8.3 per cent of its value, while Dubai has lost 9.7 per cent and Kuwait has fallen almost 10 per cent. There have been losses in all regional markets.
Last week Cepsa won a contract in the Rhourde Rouni area of eastern Algeria's Berkine basin in the Sahara, in which Russia's Gazprom last year discovered oil and gas.
The Rhourde Rouni contract was the only one in the licensing round to attract multiple bids, according to Al Naft, the Algerian national hydrocarbon resources agency. Cepsa beat rival offers from Oman's Petrogas and the Malaysian state-owned Petronas to find and develop oil and gas resources in the licence area.
How to create sufficient jobs for the millions of young nationals joining the workforce was among the most taxing issues on the agenda yesterday for business leaders and politicians who gathered for the first day of the Jeddah Economic Forum.
The event at the Red Sea resort takes place against heightened international focus on the Mena region as tensions persist from Tripoli to Manama.
Oil rose to a two-year high during the month-long conflict between government forces and rebels. Brent crude in London gained as much as 2 percent today after the U.S., U.K. and France launched missiles and airstrikes at targets in Libya.
Libyan oil output has fallen to less than 400,000 barrels a day, about a quarter of the production before the crisis, and may stop, Shokri Ghanem, chairman of Libya’s National Oil Co., said on March 19. Italy’s Eni SpA (ENI), the biggest foreign oil company in Libya, evacuated the last of its expatriate staff after the United Nations authorized military action against Qaddafi.
The details of the "long form term-sheet, which sets out the mechanics of the proposed restructuring plan, were agreed" in meeting on March 16, Kuwait-based Investment Dar said in an e-mailed statement today. The plan is under review by a Kuwaiti court, which holds its next hearing on April 7, it said.
Investment Dar said last month it agreed with creditors to a revised plan to pay 1 billion dinars ($3.6 billion) of Islamic bonds and loans over as long as eight years. The company’s creditors include more than 100 banks and investors.
Mr Mobius said: “It is very unlikely that a Libyan-style uprising would take place in Saudi Arabia.
“However, I do see a high likelihood for smaller protests, as well as an increased level of negative news streaming out of Saudi Arabia and the greater Mena region over the coming weeks and months.”
The 20 billion-riyal Musheireb project includes the construction of four government buildings in one of the oldest parts of Doha as well as shops, a hospital and a heritage center. It will be built in six phases, with the first completed in 2012 and the last in 2016.
“We are looking at providing our own financing” after the first two phases are finished, CEO Issa Al Mohannadi said in an interview. “There are many options we are considering now and it could be a combination of a number of things,” such as bonds or loans, he said.
In an interview with Qatar News Agency, the minister said: “We are always looking for optimum ways and markets that satisfy our goals and conditions, investing in heavy industries such as LNG (liquefied natural gas) receiving stations or in petrochemicals and fertilizers”.
Argentina and Jordan have announced that they have constructed LNG receiving facilities and al-Sada said Qatar would consider investing in LNG receiving stations in targeted markets to increase the country’s LNG exports.
The telecommunications company, listed in Kuwait, closed at 1.3 dinars yesterday, down 4.4 per cent, on the first day of trading after the collapse of a proposed US$12 billion bid by Etisalat.
In a statement to the Abu Dhabi Securities Exchange (ADX) on Saturday, Etisalat said the offer of 1.7 Kuwaiti dinars per Zain share was "no longer viable", citing several reasons for ending the talks. These included regional unrest and disagreement among Zain shareholders.
Global, one of Kuwait's biggest investment firms, reported a full-year net loss of KD73.2m in 2010, compared with a net loss of KD148.8m in 2009, it said in a statement.
The fourth-quarter figure compares with a net loss of KD44.6m in the same period in 2009, according to Reuters data.
The global financial crisis shelved projects worth billions of dollars in Dubai, a trade-focused member of the United Arab Emirates known for artificial palm-shaped islands. Its economy was further hit by debt troubles in state-owned firms last year.
But recovery in trade flows and tourism was seen helping lift 2010 growth of the oil-wealth lacking emirate, which accounts for almost a third of the UAE's gross domestic product.
Staff from international banks, law firms and other companies have relocated to Dubai and parts of Europe as a blockade prevented access to the financial centre, which is estimated to account for a quarter of Bahrain's economy.
This has put pressure on the dinar as office workers convert cash to their home currencies and withdraw it from local accounts.
Futures advanced as much as 2.3 percent after Libyan leader Muammar Qaddafi vowed to repel allied forces pounding military installations. Ninety percent of Bahrain Petroleum Co.’s employees went on strike last week in response to a police crackdown on anti-government demonstrations, while Yemen declared a state of emergency on March 18.
“Bahrain is more of the hotspot rather than Libya,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. “The focus will have to be on Saudi Arabia and Iran, that is where the powder keg is at the moment and it’s based on Bahrain.”