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Thursday, 19 May 2011

MENA stock markets close - May 19, 2011

ExchangeStatus IndexChange
TASI (Saudi Stock Market)
DFM (Dubai Financial Market)
ADX (Abudhabi Securities Exchange)
KSE (Kuwait Stock Exchange)
BSE (Bahrain Stock Exchange)
MSM (Muscat Securities Market)
QE (Qatar Exchange)
LSE (Beirut Stock Exchange)
EGX 30 (Egypt Exchange)
ASE (Amman Stock Exchange)
TUNINDEX (Tunisia Stock Exchange)
CB (Casablanca Stock Exchange)
PSE (Palestine Securities Exchange)

Dubai port firm DP World consolidates shares - Maktoob News

Dubai port operator DP World has completed a consolidation of its shares that effectively raised its stock price ahead of a planned listing in London.

The consolidation Thursday gave investors one share in exchange for every 20 they own, boosting the stock price by 20 times.

DP World has said the move gives it an earnings-per-share ratio that better reflects the value of the company. It plans to launch an additional listing for its shares on the London Stock Exchange this year.

Oman Shares Rise, Snap Nine-Day Retreat, on Speculation Decline Overdone - Bloomberg

Oman shares advanced the most in more than two weeks, rising for the first time in 10 days, on bets a drop prompted by lower first-quarter earnings was overdone.

Renaissance Services SAOG (RNSS), an Omani provider of services to the oil and gas industry, climbed as much as 0.8 percent. Oman Telecommunications Co. (OTEL), the Persian Gulf country’s biggest telephone company, gained the most in more than a week. The MSM30 Index (MSM30) rose 0.3 percent to 6,048.33, the most since May 2, at the 1 p.m. close in Muscat, trimming its drop for the week to 1.8 percent. Kuwait’s measure lost 0.2 percent and Dubai’s DFM General Index (DFMGI) fell 0.4 percent.

“Institutional buying interest is seen at the current lower levels,” said Kanaga Sundar, senior manager of research at Gulf Baader Capital Markets SAOC in Muscat. The market had dropped “in the negative zone on lower volumes with the added impact of disappointing first-quarter earnings of some index heavyweights.”

Dubai's Emirates NBD to test investor appetite with debt swap - The National

Emirates NBD is preparing to test investor appetite with a debt swap, as the banking sector begins a round of refinancing that could set the tone for the financial sector's fund-raising efforts for the rest of the year.

The Dubai-based bank, the largest in the UAE by total assets, will offer longer dated notes due in 2018 to holders of its existing subordinated debts, due in 2016. Those notes have a total of $514 million (Dh1.88 billion) outstanding.

The notes will be priced at 1.5 per cent above three-month US dollar London Interbank Offered Rate (Libor), according to a filing to the Nasdaq Dubai exchange. Investor demand for the swap will be revealed after the offer closes on 26 May.

Emaar profit seen hit by Dubai Bank write-off | Reuters

Emaar Properties (EMAR.DU) said it will write off its investment in Dubai Bank, valued at about 172 million dirhams ($46.8 million), a move expected to further erode the company's profits in the short-term, analysts said.

The decision comes after the Dubai government announced on Monday that it would take over the troubled Islamic lender, thereby completely diluting the holdings of Dubai Bank's current shareholders.

"We view this clean-up act as positive although pressuring the second-quarter bottom line and share price performance in the near term," said a note from CAPM Investment.

Abu Dhabi to rein in state firms' bond binge, UAE Economy - Maktoob News

Abu Dhabi plans to curtail bond sales by state companies and review the investments they hold to ease through the sale of sovereign bonds and ensure the firms' actions benefit the economy.

The plan to centralise fundraising and crack down on undisciplined issuance in the biggest of the seven United Arab Emirates has been in the works for at least six months and may take another year to complete, several people familiar with official discussions told Reuters.

Top officials are keen to improve accountability and discipline in state-owned firms, some of which have been described as "mini-fiefdoms".

Japan, non-oil Middle East and Portugal back in recession « ArabianMoney

The double-dip recession has arrived for Japan, the non-oil Middle East and Portugal. And while the March 11th earthquake deepened the latest quarter’s economic decline in Japan, it does not explain the revision of Q4 GDP last year to minus three per cent.

Portugal has collapsed under the weight of austerity measures to meet debt reduction commitments. In the non-oil Middle East the recession is worst of all with political instability bringing key economic sectors like tourism grinding to a halt and also hitting almost everything else.

gulfnews : GCC expansion requires serious thought In Theory

Even though adding new members to any economic or political bloc usually strengths that bloc, the views of analysts and observers on Jordan and Morocco joining the Gulf Cooperation Council (GCC) have varied widely.

GCC leaders welcomed Jordan, who asked to join, and invited Morocco during their summit in Riyadh on May 10.

This strengthening is possible particularly in the economic sphere, when the appropriate conditions exist, such as harmonious relations between members.

Full: Reasons for success lie on many planes - The National

One of the most difficult things to explain in the airline business is the runaway success of Emirates Airline.

At a time when the developed world is still reeling from the global downturn, the airline made US$1.5 billion (Dh5.5bn) in profits for the past financial year.

How did it do this when Middle East airlines overall were forecast to collectively make only $700 million? And how did it manage this feat when the other large Gulf carriers have not publicly disclosed any annual profits?

ExxonMobil predicts huge rise in global gas demand - The National

Natural gas, not renewable energy, will supply the major share of incremental global energy requirements between now and 2030, the world's biggest private-sector petroleum company forecasts.

Rob Gardner, the manager of the economics and energy division of the corporate strategic planning department at ExxonMobil said the US oil and chemicals group had identified gas as a "particular area" for future business development.

"We're making big investments in gas," he said at a briefing in Dubai on the company's latest long-term energy outlook, extending to 2030.

Qatar Luxury Group buys stake in French fashion group

Qatar Luxury Group S.P.C. (QLG), through its 100 percent owned subsidiary Qatar Luxury Group – Fashion S.P.C., acquired all the capital shares of Le Tanneur & Cie, namely a total of 2,326,171 securities titles representing 52.73 percent of capital and 52.60 percent of the voting rights (on a fully diluted basis) from the family group Descottes, the D&P PME IV shares and Saint Germain Participations’ shares.

It is worth mentioning that the family group Descottes, the D&P PME IV and the Saint Germain Participations are not acting together.

The acquisition price for those three entities has been set at €6.51 per share. This agreement came after the positive opinion given by representative bodies of Le Tanneur & Cie, said Qatar Luxury Group in a news release yesterday.

AIG's Re-IPO Draws Interest From Singapore, Kuwait Funds -

Sovereign-wealth funds from Singapore and Kuwait have submitted indications of interest in the $9 billion stock offering by American International Group Inc. and the U.S. Treasury, according to people familiar with matter.

The indications by the Government of Singapore Investment Corp., known as GIC, and the Kuwait Investment Authority, or KIA, were conveyed before the start of a 10-day roadshow promoting that offering, one of the people said. The indications aren't binding.

The roadshow for the "re-IPO," which began about a week ago, includes stops in Boston on Wednesday and California and Texas on Thursday and Friday; it concludes with Minneapolis, Kansas City and Chicago next Monday and Tuesday. The 300-million-share issue, due to be priced around May 24, would reduce the U.S. Treasury stake in AIG from 92.1% to roughly 80%.

The government took control of AIG in the fall of 2008 as part of efforts to forestall a meltdown of the financial system. The U.S., which paid an average of $28.70 for its shares, hopes to sell down the entire stake at a profit over the next year or more.

Dubai Holding unit battles to restore Tunisie Telecom IPO - The National

A Dubai Holding unit is battling to reinstate an initial public offering of Tunisie Telecom, in which it bought a US$2.25 billion (Dh8.26bn) stake in 2006.

Emirates International Telecommunications (EIT), an investment company that holds a 35 per cent stake in the Tunisian telecoms company, says a planned share sale was cancelled without its approval.

EIT wants the initial public offering (IPO) to be reinstated but is being opposed by Tunisia's new government, as well as a local union. / Comment - Dubai Bank bail-out reassures investors

Dubai’s decision to bail out one of its smaller commercial banks was cheered by investors this week, who saw the move as confirmation that the emirate was still willing, and able, to rescue troubled state-linked companies.

On Tuesday, the first day of trading after Dubai Bank was taken over by the government to protect depositors, the local market gained 1 per cent, followed by a more modest 0.7 per cent gain on Wednesday.

“Investors are happy because it wasn’t news that the bank was in trouble, and it signalled that Dubai wouldn’t let a bank fail,” says Fadi al-Said, head of equities at ING Investment Management Middle East. - Bahrain prince seeks to burnish image

Bahrain’s crown prince is launching a charm offensive in a bid to revive the island’s tarnished image, as a harsh security crackdown on anti-government protesters continues.

Sheikh Salman bin Hamad Al Khalifa, who has maintained a low-profile since the crackdown was launched in mid-March, is meeting policymakers and opinion formers in the UK. This may extend to France and the US, people aware of the matter say.

Sheikh Salman, who was educated in the UK, will meet David Cameron, prime minister, today to outline planned steps towards reconciliation with the majority Shia.

Sukuk bonds still in demand | beyondbrics –

An oversubscribed bond offering from a small Emirati bank shows that although the Gulf bond market remains subdued, there’s still demand out there, particularly for sharia-compliant investments.

Sharjah Islamic Bank had announced in March that it would seek capital to fund an expansion of the business. Initial reports suggested demand for the issue was strong.

Issuance in the GCC so far this year have been largely limited to sovereigns or sovereign-backed entities, partially because unrest in the Middle East raised yields, although yields have since fallen back to pre-crisis levels. Of corporate issuers, only highly-rated issuers are said to be looking at the market.