Wednesday, 29 June 2011
The firm reduced its share-price target for Etisalat to Dh12.1 from Dh13.6. "[The] failure to cement Zain bid, increasing domestic pressures domestically and problems in India all weigh on [the] investment case," it said.
It also reduced its price target for Zain to 1.04 Kuwaiti dinars from 1.22. It attributed this to a special dividend paid by the company, adding that the business is "self sustaining but [its] strategic direction [is] unclear."
The International Energy Agency's (IEA) attempts to bring down the oil price have sparked a war of words with Opec, the 12-country cartel that produces 40pc of the world's crude ouput.
Opec is also divided between groups of members such as Saudi Arabia and Kuwait which would be happy with lower prices, and others such as Iran and Venezuela, which do not want to raise production and dampen prices.
Yesterday, Brent crude increased by $2.20 (£1.38) to $108.19, amid concerns about tensions in the oil market and a falling dollar.
The political turmoil sweeping the Arab world has dealt a harsh blow to the Jordanian economy, deepening the kingdom’s budget crisis and forcing the country to rely increas-ingly on financial support from the US and the Gulf.
Jordan’s resource-starved economy has been under pressure since the start of the year, pounded by the twin forces of regional instability and the sharp rise in commodity prices. The government hopes to limit this year’s budget deficit to 5.5 per cent of GDP, but warns that it will need more foreign aid to reach that target.
“Today, with the Arab spring, we in Jordan do have a crisis, but it is an economic crisis not a political crisis,” said Jafar Hassan, minister for planning and international co-operation. Jordan, he added, was in talks with G8 countries as well as Arab states to provide further grants to cover the funding gaps.
Amid global worries over a Greek default, growing investor skittishness about emerging markets is a worrisome development for Turkey.
A comparative star in the sluggish global financial scene, Turkey in 2010 posted a Gross Domestic Product growth rate of 8.9 percent; growth this year is estimated at 5.5 percent, according to a recent expectations survey carried out by the Central Bank. By comparison, the European Union faces a projected 2011 growth rate of 1.8 percent.
Despite the sheen of economic health generated by the growth projections, Turkey is grappling with substantial economic challenges, especially unemployment. According to Turkstat, Turkey’s government statistics agency, unemployment decreased to 10.8 percent in March, down 2.9 percent from the same period in 2010. A recent report from the left-leaning Confederation of Progressive Trade Unions, however, argues that the real unemployment rate is much higher, 17.68 percent.