|TASI (Saudi Stock Market)||6124.4||1.04%|
|DFM (Dubai Financial Market)||1480.6||-0.50%|
|ADX (Abudhabi Securities Exchange)||2599.64||-0.05%|
|KSE (Kuwait Stock Exchange)||5962.5||0.92%|
|BSE (Bahrain Stock Exchange)||1271.43||0.65%|
|MSM (Muscat Securities Market)||5736.77||0.30%|
|QE (Qatar Exchange)||8366.39||-0.38%|
|LSE (Beirut Stock Exchange)||1282.49||1.24%|
|EGX 30 (Egypt Exchange)||4754.56||0.57%|
|ASE (Amman Stock Exchange)||2052.06||0.14%|
|TUNINDEX (Tunisia Stock Exchange)||4535.3||0.19%|
|CB (Casablanca Stock Exchange)||11771.7||-0.23%|
|PSE (Palestine Securities Exchange)||489.08||0.12%|
Thursday, 8 September 2011
Zain climbed to at its highest value since Aug. 4 after market talk it was making progress in selling its 25 percent stake in its Saudi affiliate.
"Market rumours have started again that they (Zain) have made progress in selling their stake in Zain Saudi," said Shahid Hameed, Global Investment House regional asset management head.
Another survey, another glowing review of Qatar. The World Economic Forum's Global Competitiveness Index 2011-12 finds the gas-rich state the region's most competitive and emerging as the 14th most business-friendly country in the world.
"Its strong performance in terms of competitiveness rests on solid foundations made up of a high-quality institutional framework where it ranks 14th overall, a stable macroeconomic environment (5th), and an efficient goods market (17th)," notes WEF in glowing assessment of the country.
Qatar National Bank SAQ (QNBK), the Persian Gulf country’s biggest lender by assets, retreated 1 percent. Commercial Bank of Qatar QSC fell a second time this week. The QE Index (DSM) decreased 0.4 percent, the most since Sept. 5, to 8,366.39 at the 1 p.m. close in Doha, trimming the gain for the week to 0.2 percent. The index advanced 1.1 percent the previous two trading days. The Bloomberg GCC 200 Index (BGCC200) of regional shares climbed 0.1 percent.
“The Qatari market is losing a bit of steam after two days of relatively good performance on the back of the government decision to increase government employees salaries and military salaries,” said Samer Darwiche, a financial analyst at Gulfmena Investments in Dubai. The move “is beneficial for retail; for banks with high retail exposure.”
The outlook expresses Moody's expectations for the fundamental credit conditions in this sector over the next 12-18 months.
"We forecast that Oman's real GDP will likely to expand by 2.9% in 2011, fueled by high oil prices and increased oil production, whilst accelerated public spending will also stimulate economic growth outside the oil sector," explains Elena Panayiotou, a Moody's analyst and author of the report.
Kuwaiti group Zain in March agreed to sell its 25-percent stake in Zain Saudi to Batelco and Saudi billionaire Prince Alwaleed bin Talal's Kingdom Holding .
In July, Batelco estimated the deal would be completed within eight weeks.
August was a particularly bad month, even after seasonal adjustments for the summer and Ramadan, and the PMI score fell to 50.9, its lowest level in 14 months. Regional chief economist Simon Williams commented: You can’t help feeling the slowdown across developed and emerging markets is evident here’.
For Saudi Arabia its PMI score slipped by two points to 58, the lowest reading in 18 months, reflecting a slowdown in output and new orders.
The extra yield investors demand to hold Dubai government’s 6.7 percent bond due 2015 over the Emirates’ note widened to 16 basis points yesterday from a discount of 22 basis points on Aug. 4, according to data compiled by Bloomberg. The yield on the Dubai-owned airline’s 5.125 percent bond due 2016 fell 21 basis points, or 0.21 of a percentage point, to 5.28 percent yesterday since reaching a record 5.49 percent on Aug. 11.
“The fundamental drivers for Emirates have improved,” Ahmad Alanani, the Dubai-based head of fixed-income sales for the Middle East at investment bank Exotix Ltd., said in an interview. “The number of travelers going through Dubai Airport have hit a record high” and oil prices have dropped, he said.
"We expect to spend an additional total of Dh110 million on enhancing the health sector," Al Tayer said.
In July, the federal government announced an increase of Dh540 million to the 2011 budget, including Dh100 million for the health sector.
And this time many governments, waist-deep in debt themselves, would be more hard-pressed to provide bailouts and stimulus spending. So a new crisis could be more severe than the one triggered by the collapse of Lehman Brothers three years ago next week.
European and US political leaders have been staring at this growing credit crisis for months like deer mesmerised by headlights, grudgingly making only minimal moves toward solving the problem.
HSBC's headline purchasing managers' index (PMI) in the UAE fell the most since the survey began in August 2009. Output, employment and new orders all slowed. In Saudi Arabia, the index dropped to an 18-month low.
The bank said, however, that seasonal factors such as Ramadan and the summer holiday may mean the decline has been overstated.
The Global Competitiveness Report 2011-12, released Wednesday by the World Economic Forum (WEF), put Saudi Arabia at No. 17 from No. 21 in 2010-11. Qatar (14th) solidifies its place in the top 20, followed by the United Arab Emirates (27th), Kuwait (34th) and Bahrain (37th).
Commenting on the improvement in Saudi Arabia's ranking, Jarmo T. Kotilaine, chief economist at the National Commercial Bank (NCB), said: "The ranking highlights the payoff of years of prudent policymaking and regulatory overhaul. At a time when the global storm clouds are gathering, Saudi Arabia as well as Qatar are consolidating their positions as attractive places to do business. This underscores the value of the strategic approach these Gulf economies have adopted in their policymaking.
Private-sector activity was down sharply last month, new data showed. HSBC's headline purchasing managers index (PMI) score slid the most since the survey began in August 2009.
Another gloomy set of data showed the UAE fell two notches in an index of the most competitive countries in the world.
Now the tables have turned. The European debt crisis has re-emerged to send those same markets into the doldrums. The CAC40, the main French index, and the Iberian Ibex are down 20 per cent and 17 per cent year-to-date respectively, according to Abu Dhabi-based CAPM Investment.
“Since the beginning of July, with the eurozone crisis and the US debt drama, developed markets have corrected severely and the GCC [Gulf Co-operation Council] markets are now over-performing,” says Mahdi Mattar, head of research at CAPM Investment.
Carlyle’s IPO filing exposes Mubadala’s pain. The Abu Dhabi fund may have lost up to half the value of its $1.85 billion signature investment into the US private equity firm, despite clawing back some of the losses last year on its original 2007 punt. The final valuation will remain unclear until Carlyle prices its shares, but the outcome is unlikely to spare the emirate’s blushes.
Mubadala initially bought a 7.5 percent stake in Carlyle for $1.35 billion at the top of the cycle four years ago. Public valuations of the sector have since plummeted. And when Abu Dhabi invested a further $500 million into Carlyle last year, the emirate managed to extract a 10-year convertible bond with the same face value, paying an annual 7.25 percent coupon, as well as 2 percent equity interest — essentially thrown in for free.
But Carlyle might only be worth around $7.5 billion, according to a Breakingviews calculation based on the market capitalisation of rival Blackstone. Abu Dhabi would need to end up with about 25 percent of the entire Carlyle group to break even on its investment. Yet the IPO filing states that Mubadala will not be able to own more than 19.9 percent of the firm on a fully diluted basis.
In May, western and Arab countries and multilateral agencies said they would provide $20bn to support economic reform in Egypt and Tunisia through 2013. The funds were part of a $40bn package including $10bn of bilateral support from western governments and $10bn from Gulf states.
“As of today, [we have received] nothing,” Jalloul Ayed, Tunisia’s finance minister, said during a meeting of Arab finance ministers on Wednesday. Mr Ayed will press for the funds to be disbursed at this weekend’s G7 meeting in Marseilles.