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Tuesday, 19 July 2011

MENA stock markets close - July 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 Aerospace signs 4-year credit facility | Reuters

Majority state-owned Dubai Aerospace Enterprise said on Tuesday it had reached an agreement with banks for a four-year credit facility to replace an existing one that matures July 23.

DAE, whose leasing unit cancelled billions in aircraft orders this month, did not state the size of the credit facility nor any other terms.

Citi , Deutsche Bank (DBKGn.DE), Emirates NBD and Lloyds were bookrunners for an existing $800 million loan, maturing in July, and Noor Islamic Bank was mandated arranger, according to Thomson Reuters data.

Saudi Soft Patch - Zawya

After riding on the crest of high oil prices earlier in the years, Saudi economy appears to be cooling off during the hot summer months. The initial euphoria surrounding the domestic stimulus initiated by the government has given way to concerns over global economic growth, and consequently oil prices.

Still, businesses and consumers are comforted that the government will continue to pump tranches of the announced $130-billion stimulus package over time and the trickle-down effect it will have on the rest of the economy will encourage growth.

However, this ebullient mood could be dampened if oil prices fall further and regional turmoil escalates or new flashpoints emerge."

Surge in Saudi oil burn adds new demand twist -

Saudi Arabia is best known as the world’s largest oil producer and exporter and last month pumped 9.7m barrels a day, the second highest level in three decades, but the country could soon become one of the world’s top oil consumers.

The emergence of Saudi Arabia as an important consumer sets a critical new trend that could have profound implications for oil prices over the next few years. As the kingdom’s oil demand surges, the exportable surplus narrows, tightening global oil markets.

The country is on course to consume an average of 2.81m barrels a day of oil this year, making it the world’s sixth-largest oil consumer behind the US, China, Japan, India and Russia. On a per capita basis, its oil consumption is sky high. This year, its consumption is set to jump by 5.6 per cent, way above the global average of 1.4 per cent.

Kuwait bourse suffers highest losses of $17.7b in H1

A report prepared by KAMCO Research that analyzes the performance of the 7 GCC Equity Markets during June-2011 in addition to assessing the latest key economic and market developments and their effect on the performance of each stock market.
— Editor

GCC bourses have come under significant negative pressure during the month of June due to the continued political unrest in the Arab World as well as the announcement from the US Federal Reserve about expectation for slower world economic growth along with its implications on the global bourses. A weak global economy would lead to a retread in world demand for oil and petrochemical products which represents a key moving factor for the GCC markets. The negative performance and evident weakening liquidity reflects the absence of any new market catalysts and also indicates investors’ concerns over the semi-annual results of GCC corporates that preferred to book profits ahead of the earnings season. Equity markets in the GCC region retreated during 1H-11 following international markets which also slumped amid rising fears that Greece’s sovereign debt crisis will spread and slow the global economic recovery. During 1H-11, GCC Markets lost around USD 28.2 bn with the Kuwaiti bourse suffering the highest losses of USD 17.7 bn.

Developments surrounding the MSCI upgrade for Qatar and UAE equity markets represented another negative factor suppressing the performance of the stock exchanges as the Index provider extended the review period for the potential reclassification to “Emerging Markets” status to December of this year in order to give additional time for market participants to assess recent enhancements on both exchange platforms. The Index Company currently categorizes both countries as “Frontier Markets”. An upgrade could attract new liquidity to regional bourses and drive up foreign direct investments (FDI), which has declined in the past couple of years. The GCC region has been plagued with weak trading due to the absence of any fundamental catalysts and the persistence of negative market sentiment that are keeping major investors on the sidelines waiting for the dust to settle.

Kuwait gives funds til March to cap stock ownership levels | Reuters

Kuwait's newly formed regulator Capital Markets Authority (CMA) has given investment funds until March 2012 to impose a cap on their ownership in individual financial securities, the state news agency said on Monday.

According to the CMA bylaws, which came into effect in March but are still not fully implemented, an investment fund operating in Kuwait cannot own more than ten percent in a single security.

'The CMA's decision comes from its responsibility towards the national economy and after following economic developments and the situation of Kuwait's stock market,' KUNA cited a CMA statement late on Monday.

Why The United Arab Emirates Did Not Have an Arab Spring - TIME

To understand why the Arab Spring has largely passed by the United Arab Emirates, take a moment to listen to Naser Al Hammadi. "What more do we need?" says the 30-year-old electrical engineer. "Here, everything is taken care of. Our education. Our health care. We have free housing."

Hammadi's sentiment was repeated by a group of about 150 men gathered outside the Federal Supreme Court in Abu Dhabi in a rare public demonstration Monday morning. In the 110-degree heat, the government supporters rallied in a park across the street from court, chanting in support of the U.A.E.'s ruler, Sheikh Khalifa bin Zayed al Nahyan, and passing out national flags and scarves featuring the ruler and the crown prince, Sheikh Mohammed bin Zayed al Nahyan. Inside, five Emirati intellectuals, jailed since April, were appearing for their second day in court, fighting charges that they were "perpetrating acts that pose a threat to state security, [by] undermining the public order, opposing the government system and insulting" the U.A.E.'s rulers. "We Emiratis rarely speak to the media but we have come here to enhance our voices," says Khaled Al Hosani, another Emirati who joined the gathering. "They [the accused] are not allowed to speak on behalf of us."

The U.A.E.'s wealth shields it from the sort of economic pressures that have sparked unrest in Egypt and Tunisia. The country has one of the highest incomes per capita in the world, and fat government coffers make sure the needs of locals are met, including free housing, health care and education, and heavily subsidized energy. A relatively small and close-knit citizenry with close ties to the ruling families has also staved off mass discontent with how ordinary Emiratis are governed.

gulfnews : Fat cat bankers must feel the iron fist of regulation

It's no wonder that ordinary people all over the world, who have lost homes, businesses, jobs or pensions or who are now facing massive government cuts, have come out on the streets to vent their anger against government policies in response to the ongoing global financial crisis largely caused by 'casino banking practices'.

Many are furious that governments are forcing them to pay the price while the fat cats running major banks and financial institutions are getting richer. This year alone there were major public rallies against banks in Britain, the US, Italy and Spain.

Even during these cash-strapped times when would-be homeowners can't get on the housing ladder and business people are prevented from injecting new finance into their companies due to tight lending restrictions, bankers are still paying themselves fat bonuses.

gulfnews : In the Pipeline: Entering the golden age of natural gas

Last week I discussed The International Energy Agency's (IEA) report 'Are we entering a golden age of gas?' where natural gas demand outlook was presented.

On the supply side, the OECD region's supplies are likely to increase from 1,157 billon cubic metres (bcm) in 2008 to 1,404 bcm in 2035 with a decline in the production of Western Europe. The non-OECD region supply growth is expected to be from 2010 bcm in 2008 to 3,728 bcm in 2035.

The Middle East supply is likely to grow from 393 bcm in 2008 to 917 bcm in 2035. This is not surprising considering the great oil and gas potential of the region. While conventional gas is expected to contribute an additional 1.1 trillion cubic metres (tcm) to gas supplies in 2035, non-conventional is expected to contribute 0.8 tcm.

Value of DIFC activity rises 5.2% - The National

The value of business conducted in the Dubai International Financial Centre rose 5.2 per cent last year to US$2.92 billion (Dh10.72bn) compared with the previous year, officials say.

An increasing influx of companies from emerging markets and the emirate's status as a haven from unrest elsewhere are expected to further boost the financial free zone's performance this year.

The Dubai International Financial Centre (DIFC) accounted for 3.6 per cent of the emirate's GDP last year and 1 per cent of national GDP, the free zone said. The UAE's economy grew 3.2 per cent last year, the IMF estimates.

UPDATE 1-Kuwait worried about economic imbalances; stocks drop | Reuters

OPEC member Kuwait needs to correct imbalances in its economy, the country's central bank governor said in comments which raised investor concerns, prompting a sharp drop in the Gulf state's stock market on Monday.

'Sheikh Salem Abdul-Aziz al-Sabah spoke about the economic situation in Kuwait and about the imbalances it witnesses which could lead to a lot of risks at various levels,' state news agency KUNA quoted the central bank governor as saying late on Sunday. Sheikh Salem was speaking at a cabinet meeting, it said.

Sheikh Salem said that such concerns should be addressed by corrections to avoid any negative implications that they might have on the future of Kuwait, KUNA added.

Will The Dubai World Special Tribunal Retain Jurisdiction Over Nakheel? - United Arab Emirates

Adrian Chadwick briefs us on the uncertainty of the Special Tribunal's jurisdiction over claims brought by or against Nakheel and its subsidiaries once it is carved out of Dubai World.

In Brief:

  • The Special Tribunal was granted jurisdiction in relation to disputes brought against or by Dubai world and its subsidiaries.
  • It is questionable whether the Special Tribunal will still retain jurisdiction for claims related to Nakheel, which will soon no longer be a Dubai World subsidiary.
  • In light of this predicament, there are various jurisdictional possibilities that should be considered.

Dubai Investments secures Dh300m loan from DIB

Dubai Investments has secured only a quarter so far of the Dh1.2 billion ($326.7 million) loan it wanted to raise, its chief executive said, and the conglomerate’s manufacturing business faces setbacks due to regional 

Khalid bin Kalban said political unrest in Libya, Syria and Yemen had made normal operations difficult for its manufacturing segment.

“We are facing temporary setbacks in the manufacturing side of business,” Kalban told Reuters.