Saturday, 14 May 2011
Saudi Basic Industries Corp. (SABIC), the world’s biggest petrochemicals maker and Al Rajhi Bank (RJHI), the kingdom’s largest publicly traded lender by market value, paced the losses.
The 146-member Tadawul All Share Index (SASEIDX) declined 0.35 percent, the measure’s largest intra-day loss since May 7, to 6,698.79 at 12:13 p.m. in Riyadh. Seven shares dropped for every six stocks that gained.
It’s that time of year again. Every year financial journalists dust off the old canard : ‘Sell in May and go away!’ The statistically inclined can rustle up a case for and against. Some try to argue that ‘it’s different this time’, another stock markert cliche.
The argument propounded by brokers in Gulf News today revolved around hopes that the UAE bourse may join the MSCI emerging markets index in June, thereby forcing foreign fund managers to buy the blue chips.
Unlike previous years, when large number of retail investors exited, this summer could be different, according to some market observers.
With the local markets stabilising from the lows of March and the possibility of the UAE being upgraded to the MSCI (Morgan Stanley Capital International) emerging markets index, investors may do well to stay put, according to those who harbour a positive outlook.
Egypt has turned to the International Monetary Fund to help see it through a gap in financing that has loomed larger and larger since the revolution that toppled the regime of former president Hosni Mubarak.
But Samir Radwan, finance minister (pictured), said the hoped-for $10bn-$12bn package from the IMF and other lenders would provide only temporary relief. “I need support for six months to a year, but after that I need investment,” he commented after the IMF said on Thursday it would send a team to Cairo soon to examine the request.
The IMF statement came hours after Radwan detailed in Cairo the losses to the economy sparked by the political turmoil of recent months.
Sales of Islamic bonds from the six-member Gulf Cooperation Council (GCC) slumped 58 per cent to $964 million so far this year, compared with the same period of 2010, data compiled by Bloomberg show.
The Sharjah-based bank, which has a $225 million floating-rate sukuk due in October, said in March it hired HSBC Holdings and Standard Chartered for a sale of five-year sukuk in the second quarter.