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Tuesday, 24 May 2011

MENA stock markets close - May 24, 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)

U.A.E.’s Shares Retreat on Speculation Markets May Miss MSCI June Upgrade - Bloomberg

United Arab Emirates shares dropped, with Abu Dhabi’s measure dropping to the lowest level in more than six weeks, on speculation the nation won’t be upgraded by index provider MSCI Inc. (MSCI) to emerging market status next month.

Abu Dhabi Commercial Bank PJSC (ADCB), the U.A.E.’s third-biggest lender by assets, declined 2.5 percent. In Dubai, Dubai Islamic Bank PJSC (DIB) retreated to the lowest level since March. Abu Dhabi’s ADX General Index (ADSMI) dropped 0.6 percent to 2,616.29, the lowest since April 10. Dubai’s DFM General Index (DFMGI) slipped 0.2 percent to the lowest since April 5. The gauge gained 5 percent in April and Abu Dhabi’s advanced 3.4 percent in the same period on bets the U.A.E. will be raised from frontier market status at MSCI.

“The lack of strong international investor activity could indicate there are doubts the U.A.E. will be promoted at MSCI,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC (NBAD), the country’s second-largest lender by assets.

Daimler’s Largest Shareholder Aabar May Reduce Stake With Bond Offering - Bloomberg

Aabar Investments PJSC, the Abu Dhabi sovereign-wealth fund that’s Daimler AG (DAI)’s largest shareholder, may reduce its stake in the maker of Mercedes-Benz cars by issuing a bond exchangeable into the manufacturer’s shares.

Aabar plans to raise 1.25 billion euros ($1.76 billion) in the transaction, a person involved in the deal said today. The Abu Dhabi government investment unit initially sought to raise 750 million euros by issuing an exchangeable bond, it said today in a statement. The original issue could reduce Aabar’s holding to 8 percent from 9.1 percent when the bond matures in 2016.

“It sends the signal that there’s limited upside” for the company, when a large shareholder starts to monetize its holding, said Daniel Schwarz, a Frankfurt-based analyst at Commerzbank AG. “I doubt that Aabar wants to completely exit Daimler, but it can’t be ruled out.”

Dubai firm trusts in Turkish real estate market - Hurriyet Daily

Emaar, United Arab Emirates’ biggest property developer by market value, has invested $700 million in a luxurious project on the European side of Istanbul. The company is now planning to build some 2,100 residences on the Asian side of the city this year, said Ümit Türüdü Şen, vice general manager of the Turkey branch of the company, during a press meeting Tuesday.

“The Turkish real estate market has been the shining star in its region,” Şen told the Hürriyet Daily News on the sidelines of the meeting.

Comparing the local property market with Dubai, the homeland of the investor, Şen said, “The Turkish property market has been driven by domestic demand, which stabilizes constant growth and attracts foreign investors as well.”

UAE, Qatar markets extend losses -

UAE and Qatar benchmarks slumped to their lowest closes in at least six weeks amid muted buying interest.

Dubai's index DFM fell 0.2 percent to 1,544 points, its lowest close since April 5. The benchmark recovered most of its early-session losses, but declined for a fourth straight session.

District cooling firm Tabreed dropped 3.2 percent, taking its losses to 13.5 percent since saying on Sunday it had issued 416 million new shares to repay a bond.

Moody's awaits Dubai Bank clarity before rating action - Maktoob News

Ratings agency Moody's wants more clarity on the Dubai government's bailout of struggling Islamic lender Dubai Bank before taking ratings action, it said in a statement.

The ratings agency put the troubled lender on review with direction uncertain after Dubai's government took control of the lender and said it would give it a capital injection. "The standalone ratings could still be lowered if the loan portfolio cleanup and recapitalisation is not concluded in the immediate future," Khalid Howladar, Moody's senior credit officer in Dubai, said in the statement.

"Or if Moody's considers DB's post-rescue creditworthiness to be better-reflected in a lower rating."

India court rejects bail for Etisalat India exec in telecoms case - Maktoob News

An Indian court on Tuesday rejected for the second time the bail application of Shahid Balwa, the vice chairman of Etisalat's Indian arm, who is charged in the country's biggest corruption scandal.

Balwa is accused, along with others, of rigging a 2007/08 grant of lucrative telecoms licences, causing a loss of as much as $39 billion to the state coffers, a sum equivalent to the defence budget.

"Bail applications are without merit and the same are dismissed," Judge O.P. Saini said in his order.

WAM | Abu Dhabi's Invest AD and Japan's SBI Holdings to invest $100 million in Turkish private equity

INVEST AD, the Abu Dhabi Investment Company and Japan's SBI Holdings, Inc. are investing in a new joint private equity fund worth $100 million and focused on acquisitions in Turkey.

In a joint statement issued in Abu Dhabi and Tokyo today, the two companies said that the fund, to be jointly managed by the two companies through an office in Istanbul, will supply growth capital and employ its international networks and expertise to help promising companies to improve economies of scale, grow market share and expand overseas.

Invest AD and SBI will invest equally in the fund, which is looking at opportunities in several sectors, including consumer goods, food, retail, services and pharmaceuticals and healthcare. The partners may consider taking on other investors for specific deals.

Dubai Debt Burden - UAE - Zawya

Dubai's debt problems refuse to go away, as the IMF warns that the emirate's debt will rise to 53% of GDP by 2016 if it does not act. Plus, sanctions on Iran could shave as much as 0.7% of UAE's GDP.

Dubai's debt may become unsustainable in the absence of policy change, according to the International Monetary Fund (IMF) in its periodic report on the UAE.

The IMF blames debt piled on by government-related entities (GREs) for raising Dubai' fiscal vulnerability.

Middle East IPOs down 95%, raised US$21.7 million in first quarter 2011 -

According to Ernst & Young's Middle East IPO Update, regional capital markets raised US$21.7 million in the first quarter of 2011, down 94.8% from the US$420.4 million raised in the first quarter of 2010.

The regional markets raised only 0.45% of global IPO funds in Q1 2011.

Nine IPOs expected to raised around US$4.7 Bn altogether were postponed or withdrawn in the Europe, Middle East and Africa region during March 2011, the largest monthly estimated volume since October 2008.

U.A.E.’s Shares Retreat on Speculation Markets May Miss MSCI June Upgrade - Bloomberg

United Arab Emirates shares dropped, with Dubai’s index retreating to the lowest level in seven weeks, on speculation the nation won’t be upgraded by MSCI Inc. (MSCI) to emerging market status next month.

In Dubai, Emaar Properties PJSC (EMAAR), slid for a fourth day. Abu Dhabi Commercial Bank PJSC (ADCB), the U.A.E.’s third-biggest lender by assets, declined 2.1 percent. Dubai’s DFM General Index (DFMGI) slipped 1 percent to 1,530.69, the lowest intraday level since April 6 at 11:40 a.m. in the emirate. Abu Dhabi’s ADX General Index (ADSMI) dropped 0.6 percent. The gauge gained 3.4 percent in April and Dubai’s advanced 5 percent in the same period on bets the U.A.E. will be raised from frontier market status at MSCI.

“The lack of strong international investor activity could indicate there are doubts the U.A.E. will be promoted at MSCI,” said Ziad Dabbas, a financial analyst at National Bank of Abu Dhabi PJSC (NBAD), the country’s second-largest lender by assets.

Aabar eyes 750 mln euro Daimler exchangeable bond - Maktoob News

Abu Dhabi's Aabar Investments plans to issue a 750 million euro ($1.06 billion) bond exchangeable into Daimler shares , of which the sovereign fund owns 9 percent, a document showed on Tuesday.

The five-year bond will carry a coupon indicated at 3.5-4.0 percent. Bank of America Merrill Lynch , Deutsche Bank and Morgan Stanley are banks mandated on the sale, a source familiar with the matter said.

The bonds will be listed in Frankfurt.

Stanchart sees upto 20 Gulf bonds in next 6 mths - CEO, UAE Industries - Maktoob News

The Gulf Arab region could see up to 20 bond issues over the next six months, Standard Chartered's top executive for the region said on Monday, buoyed by global demand for emerging market debt.

After a slow start to the year, primary issuance from the Gulf region is showing signs of a pick up, with Sharjah Islamic Bank (SIB) and Islamic Development Bank (IDB) both printing Islamic paper last week.

Emirates, the Arab world's largest carrier, kicked off investor meetings on Monday which could be followed by a potential dollar-bond.

Saudi billionaire invests $400M in Glencore - Maktoob News

Saudi billionaire Prince Alwaleed bin Talal and his investment company have invested $400 million into commodities giant Glencore International PLC.

Kingdom Holding Co., which is chaired by Alwaeleed, said Monday that its investment represented 3.6 percent of Glencore's initial public offering. The commodities giant said recently it successfully placed one-sixth of its planned IPO volume to institutional investors.

KHC holds a major stake in Citigroup, as well as investments in a variety of other Western giants, including News Corp. and Apple Inc.

Egypt Yields Signal Higher Cost for $1 Billion Bond Sale as Economy Rocked - Bloomberg

Egypt, struggling to raise funds at local government debt auctions, is turning to international markets for the first time since a popular revolt in February ended the three-decade rule of President Hosni Mubarak.

Egypt’s 10-year dollar bonds, sold in April 2010 at a yield of 5.75 percent, fell yesterday, pushing up rates five basis points to 5.92 percent after Finance Minister Samir Radwan said the government plans to “quickly” raise $1 billion through foreign notes. Radwan cited the need to diversify financing sources as the government sold 51 percent of the amount offered at a local auction and average yields on 252-day bills rose to 12.869 percent, the highest level since November 2008.

The government probably will pay more to borrow overseas than in 2010, said Win Thin, the head of emerging-market strategy at Brown Brothers Harriman & Co. The budget deficit may grow to the widest in more than a decade in 2012 after Mubarak’s fall led tourists to flee and agencies to cut the country’s credit ratings, according to the Ministry of Finance.

Syria revolt hits Qatari investments

Qatari investments worth $6bn are at risk in Syria as Damascus, apparently furious over Al Jazeera’s coverage of the unrest there, has suspended key projects of mainly Qatari Diar and Qatar Electricity and Water Company (QEWC).

Syrian social networking sites report that the decision has been taken by the Syrian regime as retaliation for Al Jazeera’s footages of the upheaval in the country.

Ironically though, many viewers are still not quite happy with Al Jazeera’s coverage of the Syrian events and describe it as half-hearted. However, a top QEWC official told a Doha-based Arabic daily that the power generation projects his company was planning to launch in Syria are in a limbo because the Syrian partner of the joint venture was not cooperating.

HSBC Amanah to close in Qatar - The National

HSBC Amanah, the Islamic unit of the global banking giant, is to cease operations in Qatar at the end of the year.

The move to close the bank's Sharia-compliant operations in the country follows a circular from Qatar Central Bankordering conventional banks to sell their Islamic units, which HSBC had hoped to negotiate.

"The central bank's directions are pretty clear: they're not open to interpretation and they don't appear to be open to flexibility," said Steve Bottomley, the regional head of strategy and planning for HSBC Middle East.

Gulf Times – BNY Mellon sees 2 Qatar GDR listings in London this year

Bank of New York Mellon Corp expects two more Qatari companies to complete global depositary receipt, or GDR, listings in London in the second half of the year, a senior bank executive said yesterday.

“We think there is the propensity for another two in the latter half of Q3, heading into Q4,” Bank of New York Mellon vice president of depositary receipts Peter Gotke told Zawya Dow Jones at a conference in Doha. Gotke said the lender is in discussions with both Qatari companies mulling GDR listings but declined to say what sectors the firms are involved in.

Qatari conglomerate Aamal Co said last Wednesday it would raise its free float from 0.3% to around 24% by offering GDRs in London-a move it hopes will boost liquidity and exposure to foreign institutional investors.

Dubai Aerospace revenue climbs to Dh5.92b

Dubai Aerospace Enterprise Limited, or DAE, on Monday said its full-year net income, excluding non-recurring items, rose sevenfold to Dh 142.6 million ($38.8 million) in 2010. Net Income for full year 2010 was 
$10.3 million.

The revenue of the aircraft maintenance and leasing company increased to Dh5.92 billion ($1.6 billion) last year from Dh5.81 billion ($1.58 billion) 
in 2009.

“I am pleased with the way in which DAE responded to market conditions during the downturn to emerge in 2010 as a profitable company,” Shaikh Ahmed bin Saeed Al Maktoum, DAE Chairman, said in an email statement to Khaleej Times on Monday.

IMF says emirates' recovery faces political risks | Reuters

Economic recovery in oil-rich United Arab Emirates is gaining strength but still faces risks from political uncertainty in the region, the International Monetary Fund said on Monday.

"Risks to the recovery remain, including from possible economic spillovers of regional events," the IMF said. "In particular, the current re-pricing of geopolitical risk in the region could lead to more challenging market conditions."

Government-related entities, or GREs, are carrying a debt load of more than 100 percent of gross domestic product in Dubai and will have hefty rollover needs for some time, posing fiscal and financial risks for the UAE overall the IMF said.

gulfnews : Gulf General defaults on Dh489m loan repayments

Gulf General Investment Co, a Dubai-based investment company, defaulted on Dh489.2 million in repayments of bank loans as of March 31 amid debt restructuring.

The loan agreement "stipulates repayment of whole remaining balance of the facilities become immediately payable to the banks", the company said in its audited financial statement posted on the Dubai bourse website.

"The non-current portion of the defaulted loans as of March 31 amounting to Dh685.9 million was reclassified in the condensed consolidated financial statements as current liabilities."