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Saturday, 11 June 2011

Saudi Stock Market close - June 11, 2011

General Index
Intraday 3 month
Daily Statistics
General Index6509.48
Change (%)-0.48%
T. Volume170339359
T. Companies 149

Saudi Shares Slide to Lowest Since March as Crude, Global Markets Retreat - Bloomberg

Saudi Arabian shares plunged to the lowest level since March after data from the U.S., India and China fueled concern that global economic growth is slowing.

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, led the decline. National Industrialization Co. (NIC) fell for a fourth straight day.

The 146-member Tadawul All Share Index (SASEIDX) fell 1.2 percent to 6,463.38 at 2:21 p.m. in Riyadh, the lowest since March 26, bringing its three-day retreat to 2.9 percent. All 15 industry groups tumbled.

Saudi Arabia's economy to grow 5 per cent in 2011 - The Economic Times

Saudi Arabia's economy is likely to grow five per cent this year, up from an earlier forecast of 3.9 per cent, as a result of the recent economic stimulus measures launched by the government.

The country's plan to spend a further USD 93 billion will boost the country's real GDP performance in 2011, Business Monitor International said.

In a new forecast of the country's economy, BMI analysts said, "the increase in public spending has led us to revise our forecasts for Saudi Arabia's fiscal position, forecasting a drop in deficit of one percent".

Abu Dhabi's IPIC plans investor meetings next week | Reuters

Abu Dhabi's International Petroleum Investment Co (IPIC) has picked banks to arrange fixed income meetings with investors in London next week. BNP Paribas , Goldman Sachs, Societe Generale and UBS were hired to arrange the fixed income meetings in London on Tuesday and Wednesday, arranging banks said in a document seen by Reuters.

A global conference call with fixed income investors is expected to be held on June 14. The investment firm is fully owned by the government of Abu Dhabi.

IPIC, whose current investments include major stakes in Austrian oil group OMV and Spain's Cepsa , has embarked on an aggressive acquisition drive in the hydrocarbons sector in recent years.

UAE economy to grow 4% in 2011 - Emirates 24/7

Higher crude production will ally with an increasing in public spending and better performance in Dubai’s non-oil sectors to boost the UAE’s economy by nearly four per cent in 2011, a key Saudi bank said on Saturday.

The forecast growth by Saudi American Bank Group (Samba) is higher than the 3.5 per cent rate projected by the International Monetary Fund, which itself had revised up its previous 3.3 per cent growth level.

“While still weak real estate sectors and debt problems in Dubai are providing stiff headwinds, real GDP growth is now projected to rise to four per cent this year, moderating to 3.6 per cent in 2012,” Samba said in a study.

Norways sovereign fund worlds largest Study |

Norways state pension fund has topped the United Arab Emirates Abu Dhabi Investment Authority (ADIA) to become the largest sovereign wealth fund in the world, a US consultancy said.

The fund, which contains nearly all state revenues from the oil sector in Norway, was worth $560.5 billion (387.1 billion euros) against the $342 billion for Abu Dhabis fund, consulting firm Monitor Group said in a report dated June 7.

Comparisons between funds remain complicated as the ADIA does not give regular performance reports while the Norwegian fund publishes its results quarterly.

Oman’s maiden private equity fund raises RO12m: Times of Oman

Oman’s first private equity fund –Fincorp Oman Private Equity Fund – has raised RO12 million, preparing to invest in select mid-cap companies within the country and those Gulf-based companies that have cross border linkages.

The issue, launched by the Financial Corporation (Fincorp) on February 20, closed its first subscription on May 12.

The fund’s initial closing date was earlier extended to May 12 from March 30, in view of the fact that some investors have asked for extra time for completing certain procedures, sources familiar with the deal said.

Banks fare well on better economic performance: Times of Oman

Oman’s banking sector continued to perform well in 2011 so far, consistent with the recovery of the real economy. Credit growth remained buoyant during the first four months of 2011, reflecting rising demand due to sustained economic growth.

The annual bulletin issued by the Central Bank of Oman (CBO) pointed out that the total assets of commercial banks increased by 6.8 per cent to RO 15,779.6 million in April 2011, compared to RO14,770.1 million in April 2010.

Cash on hand and deposits of commercial banks with the CBO stood higher at RO977.1 million at the end of April 2011 compared to RO791.6 million in April 2010.

Dubai Total Government Debt At AED115.4B, 38% Of GDP -

The total outstanding external term borrowings of the Government of Dubai stood at 115.4 billion U.A.E. dirhams ($31.4 billion) as on May 20, 2011, in addition to which the government also has financial contingencies and extended guarantees, according to an investor presentation made Friday by the emirate's department of finance.

On Thursday, the debt-laden emirate said it plans to test credit-market sentiment again and issue a dollar-denominated, benchmark-sized bond, amid signs that confidence in Dubai's economic fundamentals is slowly returning.

Dubai's department of finance has appointed UBS AG, Royal Bank of Scotland Group PLC and Emirates NBD for a dollar-bond issue under its EMTN program. Proceeds will be used for general budgetary purposes.

A series of meetings with fixed-income investors will take place in London on Monday and Tuesday, with the bond expected to launch and price thereafter, subject to market conditions, according to a banker familiar with the matter.

Dubai's nominal GDP was AED300.8 billion in 2010 and its total direct debt/nominal GDP ratio equates to about 38%, according to the presentation, which was seen by Zawya Dow Jones Friday.

The Government of Dubai has provided outstanding AED7.6 billion of guarantees in relation to the financial obligations of Dubai Electricity & Water Co. and AED6.53 billion guarantee exposure to the DURL Consortium with respect to Dubai Metro, the presentation said.

The Dubai government has also provided contingent obligations of AED1.84 billion outstanding in relation to the financial obligations incurred by Salik One SPC Ltd., and its obligations under the shortfall guarantee relating to the restructuring of Dubai World is at $2.19 billion, the presentation added.

Bahrain Central Bank Governor Rebuts Moody's Downgrade -

Bahrain's central bank governor has rebutted concerns expressed by ratings agency Moody's Investors Service about Bahrain's financial sector, stressing that the country's retail banks have seen "no major outflows."

Discussing Moody's recent move to downgrade Bahrain's sovereign credit rating to Baa1 from A3, Rasheed Al-Maraj told Dow Jones Newswires and The Wall Street Journal that the Gulf country's economy is sound.

He added that its financial resilience is reinforced by the backing of its regional neighbors, most notably Saudi Arabia, which along with member GCC states threw Bahrain a $10 billion lifeline earlier this year as political unrest spread through the country. - Siemens uncovers bribery case at Kuwait unit / Companies / Industrial Goods - Siemens uncovers bribery case at Kuwait unit: Siemens has uncovered a bribery case at its Kuwait unit, triggering investigations against several former managers and stirring up memories of the largest corruption case in Germany’s corporate history.

Prosecutors in Munich said they were investigating allegations of bribery and had detained several former managers.

People close to the situation said the former managers had attempted to bribe officials of Kuwait’s energy and water ministry with €1.25m ($1.8m) for a future project.