Sunday, 14 August 2011
Competitive pricing for Saudi crude next month is eroding demand for alternative spot cargoes of Qatari al-Shaheen and Oman crude in October, traders said on Thursday, adding pressure on price differentials to regional benchmarks. The Saudis have unilaterally raised crude production to near 10 million barrels per day (bpd) over the summer to meet increasing demand in the third quarter and help lower high prices that threaten the global economy.
Members of the Organisation of the Petroleum Exporting Countries so far have voiced little concern about a drop of about $10 in Brent prices this month, while the International Energy Agency on Wednesday warned about slower growth in oil demand if economic growth falters.
'While sources said that the move has been talked about for some time, they admitted that the unrest which affected the country earlier this year did have some impact on the decision,' said IFR, a Thomson Reuters service.
'However, while there have been rumours of potential departures, until now, the flow of financial institutions away from the island has been minimal at most,' IFR said in a briefing, adding that Credit Agricole did not respond to a request for comment.
Net profit in the three months to June 30 was 7.83 million dinars ($28.7 million), the company said in a statement, down from 18.09 million dinars a year earlier.
Two analysts had forecast in a Reuters survey that Agility's second-quarter earnings would fall to an average of 7.4 million dinars.
The Paris-based International Energy Agency (IEA) last Wednesday lowered its global oil demand forecast by 60,000 barrels per day (bpd) for 2011.
'Overall, global oil demand is expected to average 89.5m bpd in 2011, 1.4pc higher year on year,' the IEA said.
|TASI (Saudi Stock Market)||6115.19||-0.66%|
|DFM (Dubai Financial Market)||1478.67||1.00%|
|ADX (Abudhabi Securities Exchange)||2600.48||0.46%|
|KSE (Kuwait Stock Exchange)||5819.5||-0.53%|
|BSE (Bahrain Stock Exchange)||1267.1||0.06%|
|MSM (Muscat Securities Market)||5479.18||0.97%|
|QE (Qatar Exchange)||8116.15||0.11%|
|LSE (Beirut Stock Exchange)||1305.73||0.34%|
|EGX 30 (Egypt Exchange)||4626||0.73%|
|ASE (Amman Stock Exchange)||2026||0.32%|
|TUNINDEX (Tunisia Stock Exchange)||4371.06||0.08%|
|CB (Casablanca Stock Exchange)||11366.6||3.00%|
|PSE (Palestine Securities Exchange)||489.5||0.09%|
Emaar Properties PJSC (EMAAR), the developer of the world’s tallest skyscraper, gained 2.2 percent and Dubai Islamic Bank PJSC (DIB) rose to the highest in more than a week. The DFM General Index (DFMGI) climbed 1 percent to 1,478.67, the highest since Aug. 7, at the 2 p.m. close in Dubai. Egypt’s EGX 30 Index (EGX30) climbed 0.7 percent in Cairo and Israel’s TA-25 Index surged 2.8 percent, the most since May 2010.
Gains in local markets were prompted “by a strong international lead from the U.S. over the weekend due to better than expected jobless claims,” said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai. “Investors want to see the open of international markets tomorrow” and the Islamic holy month of Ramadan is keeping volumes low, he said.
Uncertainty created by the market volatility combined with the traditional summer slowdown is likely to deter new sales, say analysts. 'It's sentiment driven,' said Nida Raza, the senior vice president of capital markets at Unicorn Investment Bank of Bahrain. 'Banks are pricing yields higher as they look at bond markets as a whole and are seeing the cost of risk going up.'
Islamic bonds in Dubai have dropped as investors flee lower credit-rated assets linked to concerns about an escalation of the US and European debt woes.
Net profit fell to 79 million Egyptian pounds from 97 million pounds in the second quarter of 2010, it said in an emailed statement.
Political turmoil in Arab countries hit the region's investment banks by depressing stock markets and drying appetite for fresh capital. Analysts say the outlook remains grim.
It emerged recently that the unrest caused economic damage of up to $2 billion (Dh7.3 billion). This is a sizable amount by virtue of equalling 9.5 per cent of gross domestic product (GDP). Bahrain has a nominal GDP of $21 billion. The comments came from a qualified person, namely Esam Fakhro, chairman of the Bahrain Chamber of Commerce and Industry (BCCI). The Chamber looks after private sector interests.
Ostensibly, the econ-omic costs relate to damage occurring to some economic sectors notably retail, hospitality and events. Reflecting the uncertainty, some locals have chosen to limit their spending to essentials, and where possible delay purchases of durable goods.
“The region has shown admirable growth in the past decade, yet that growth represents the efforts of six individual states, rather than a coherent and aligned group operating as an integrated economic entity,” said Richard Shediac, Senior Partner, Booz & Company. “More comprehensive integration has the potential to boost the region’s economy much as it did for the EU. In short, there is an opportunity cost to not integrating further.”
Booz & Company evaluated the region’s level of economic integration based on five core dimensions: the monetary union, customs and borders, intra-regional investment, joint infrastructure and knowledge cooperation. These five criteria were selected to highlight areas that GCC members declared to be priority, and in which action has already been taken, with ratings determined based on the following:
1 = Major setback to the goal or stagnation of process
2 = Minimal progress toward goal since last action
3 = Some indication of effort and progress toward the goal
4 = Substantial momentum generated toward the goal
5 = Accomplishment or near completion of the goal.
Property stocks, which attracted the most retail attention, led gains with bellwether Emaar Properties climbing 2.2 percent.
Drake $ Scull rose 1.7 percent after posting second-quarter net profit of AED55m on Thursday, marginally beating an analysts average forecast of AED52.8m.
But while Iran has benefited from high oil prices, lack of major investments in the country's energy sector could hamper growth and continue to handicap the country's economic prosperity. Add to this dynamic, is Tehran's controversial nuclear programme and its divisive role in regional politics, which makes it a target for many countries around the region that are eager to hurt Iran's economy.
Iran's energy exports are set to cross more than $100-billion this year for the first time and could well hit $150-billion by 2016-17 as the country strengthens its position as a key energy player in the world despite sanctions.
The company reported a second-quarter profit of 673 million Qatar riyals ($184.8 million), compared with 571 million riyals a year ago, it said in a statement on Sunday.
Two analysts polled by Reuters forecast second-quarter net profit of 673.3 million riyals and 773.4 million riyals respectively.
The source disclosed the government is studying the possibility of imposing income and value added taxes. He said the government has sought assistance from the World Bank on tax-related issues, mechanism for tax collection, and ways to include taxes in next year’s financial plan.
The source added the World Bank has started conducting training courses for the concerned workers at the Ministry of Finance in preparation for the approval of the tax draft bill. The government will also launch media campaigns to raise awareness on tax collection and focus on obtaining support from the majority in the Parliament to push for the ratification of the bill. However, the source did not mention other details, such as the target date of implementation and the categories of people or firms which will be required to pay the income tax.
You can see the ‘oil expense indicator’ as a tax on business and consumers. You can see it as a natural break on consumption because oil supply is not infinite. Whatever, it means a recession.
Revenues from sale of apartments were 265.6 million dirhams ($72.3 million)in the second quarter, compared with 1.7 billion dirhams in the same period in 2010, Emaar said in a detailed financial statement posted on the Dubai bourse on Sunday.
The builder of the world's largest tower, the Burj Khalifa, reported a 69 percent drop in second quarter net profit last month.
'While Asian demand will be significantly stronger than in other parts of the world, we do not believe this will be sufficient to avoid declines,' says Ross Strachan, the commodities economist at Capital Economics in London.
With the shock from the August 5 US credit rating downgrade behind them, investors will focus on signs that European policymakers may be able to contain the euro-zone debt crisis. The signs will come from a varying palette, including the quarterly releases of regional publicly listed companies, euro-zone data and a court hearing in the trial of Hosni Mubarak, Egypt's former president.
But getting to that stability may require the market finding a floor.