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Saturday, 4 June 2011

Saudi Shares Slide as U.S. Jobs Report Sparks Concern Oil Demand May Ease - Bloomberg

Saudi Arabian shares tumbled the most in almost a month, led by petrochemical companies, after a smaller-than-forecast increase in U.S. payrolls heightened concern that a slower economic recovery will curb oil demand.

Saudi Basic Industries Corp. (SABIC), the world’s biggest petrochemicals maker, and National Industrialization Co. (NIC) fell more than 1.5 percent. Al Rajhi Bank (RJHI), the kingdom’s largest publicly traded lender by market value, led declines.

The 146-member Tadawul All Share Index (SASEIDX) fell 1.5 percent to 6,639.23 at 1:49 p.m. in Riyadh, the biggest intraday loss since May 7. Fourteen of 15 industry groups dropped.

SIB launched sukuk at the right time | Sharjah Islamic Bank

Sharjah Islamic Bank (SIB) last week closed its second sukuk (Islamic bonds) worth $400 million. The sukuk due in 2016 was closed at a pricing of five-year US dollar mid-swap + 2.70 per cent translating into an annual profit rate of 4.715 per cent.

The issue was in massive demand with orders of $3.62 billion or 9.03x. With roadshows taking place in Abu Dhabi, Dubai, Singapore, Kuala Lumpur, ?Hong Kong and London, we saw enormous interest from institutional ?investors. Investors belonging to sovereign wealth funds, multilateral financial institutions, pension funds, fixed income funds, investment banks, hedge funds etc listened to the story SIB had to tell and then showed their interest in being a sukuk holder. In the end the number of orders received was more than 200. Allocating was a tough task where a delicate balance had to be struck between regional and international investors.

The process of launching this sukuk was a unique experience.

gulfnews : MGM China shares up on first day of trading

Macau casino operator MGM China Holdings Ltd. rose up to six per cent on its Hong Kong stock exchange debut yesterday, highlighting strong investor interest in the world's biggest gambling market.

Shares in MGM China, which is controlled by Las Vegas-based MGM Resorts international, rose 92 cents to HK$16.26 (Dh7.67) after trading began yesterday morning, before easing back to HK$15.84.

The benchmark Hang Seng Index, meanwhile, dipped about 0.3 per cent.

gulfnews : UAE aviation sector keeps flying high

If there was ever any doubt about the significance of the aviation sector in the growth of the UAE, then look no further than a far-reaching report released on Thursday by Dubai Airports.

The aviation sector will account for 32 per cent of Dubai's gross domestic product (GDP) by the end of the decade.

The report was carried out independently by Oxford Economics, a global research firm. The company estimated that the sector would be worth $44.5 billion (Dh163.4 billion) to the emirate by 2020.

Gulf Carriers to Outpace Old Europe With Cargo Expansion: Freight Markets - Bloomberg

Qatar Airways Ltd. and Emirates, already luring passengers from British Airways and Air France, will extend the contest to the $68 billion air-freight market by turning their bases into global cargo hubs.

Emirates, the world’s biggest airline by international passenger traffic, aims to add as many as 18 cargo planes in Dubai, while Doha-based Qatar Air is converting 15 passenger jets to freighters and buying 33 percent of Cargolux Airlines International SA, Europe’s biggest freight-only carrier.

The plans are sounding alarm bells at companies already under pressure as Emirates builds a fleet of 90 superjumbos and Qatar awaits delivery of 200 jets worth $35 billion as part of a bid to persuade travelers to fly via the Gulf instead of London, Paris and Frankfurt. SkyTeam Cargo, which includes the freight arm of Air France-KLM Group, is concerned about the expansion.