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Thursday, 12 April 2012

MENA stock markets close - April 12, 2012

 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 Group restarts $10 billion debt talks: sources | Reuters

Dubai Group, part of the investment vehicle headed by Dubai's ruler, has proposed a new solution to its $10 billion debt problem, sources said, reviving talks that stalled more than two months ago.

The company wants to pay as little as 1 percent interest for an extension of its debt of up to 12 years, sources told Reuters on Thursday.

The proposal, sent to lenders on the two creditor committees earlier this week and which will be put to all banks at a meeting on April 16, is the first time Dubai Group has offered a solution since the government walked away from talks at the end of January.

Dubai Shares Gain as Arabtec Nominates Aabar Directors to Board - Businessweek

Dubai shares rose to the highest in a week after Arabtec Holding Co. (ARTC) nominated to its board four executives of the Abu Dhabi company that raised its stake in the Dubai builder.

Arabtec, the United Arab Emirates’ biggest construction company, rose for the third time in four days. Dubai Islamic Bank PJSC (DIB), the U.A.E. biggest bank complying with Shariah rules, advanced 1.5 percent. The DFM General Index (DFMGI) climbed 0.4 percent to 1,678.74, the highest since April 5, at the 2 p.m. close in Dubai, trimming the drop this week to 0.5 percent. The Bloomberg GCC 200 Index (BGCC200) increased 0.2 percent.

Dubai-based Arabtec, a builder of the world’s tallest skyscraper, nominated Aabar Investments PJSC (AABAR)’s Chairman Khadem Alqubaisi and Chief Executive Officer Mohamed Al-Husseiny to its board. Abu Dhabi state-owned Aabar, which holds stakes in Daimler AG (DAI) and UniCredit SpA (UCG), raised its stake in Arabtec to 10.45 percent this year.

QNB Talks to Buy Dexia’s Denizbank Stall Over Price - Bloomberg

Qatar National Bank SAQ (QNBK)’s talks to acquire Denizbank AS (DENIZ), the Turkish lender put up for sale by Dexia SA (DEXB), remain stalled over price as other potential buyers, including Russia’s OAO Sberbank, express renewed interest, according to three people familiar with the situation.
QNB is still seeking a price close to Denizbank’s book value, which stood at about $2.5 billion at the end of last year, while Dexia is seeking more than 1.5 times book value, two of the people said, declining to be identified as the talks are private. Dexia is in discussions with buyers who had earlier considered bidding for Denizbank, the people added, including Sberbank, whose deputy chief executive officer said yesterday that his bank was looking seriously at a potential deal.
European banks are seeking to sell assets, loan portfolios and entire units to raise cash amid the region’s debt crisis and to meet tougher capital requirements. Lenders including Deutsche Bank AG (DB) and France’s Societe Generale SA (GLE) have announced plans to shed more than $1 trillion in assets, according to Bloomberg data.

TEXT-Fitch affirms Bank of Sharjah at 'BBB+' - Yahoo! News UK

Fitch Ratings has affirmed Bank of Sharjah's (BOS) Long-term Issuer Default Rating (IDR) at 'BBB+' and Viability Rating (VR) at 'bb+'. The Outlook on the Long-term IDR is Stable. A full list of rating actions
is at the end of this release.
BOS's Long- and Short-term IDRs reflect Fitch's belief that there is a high probability that support would be forthcoming from the UAE authorities in case of need, given the strong history of support in the UAE and the government of Sharjah's 15% stake in the bank. A change in Fitch's view of the willingness or ability of the UAE authorities to provide sovereign support for BOS could change the bank's IDRs.
The VR reflects the bank's strong capitalisation and good liquidity position, but also its small franchise, high lending concentrations, weakening asset quality and some concerns over related party transactions, although not uncommon in the region.

INTERVIEW-Dubai Holding arm confident on debt repayment goal - Yahoo! News UK

Dubai International Capital (DIC), the private equity arm of Dubai Holding, is confident that it will pay off its $2.5 billion pile of restructured debt in five years, its chief executive said, seeking to reassure investors.
The company aims to raise more than $150 million from asset sales this year, including a partial exit from luxury retailer Rivoli, which it will use to help pay down debt.
"We're 100 percent confident that we'll meet our commitments and we wouldn't have proposed this solution if we weren't confident. The last thing anybody wants is a restructuring of a restructuring," David Smoot told Reuters in an interview on Wednesday.

UPDATE 1-Abu Dhabi's Mubadala sees lower investments in 2012 | Reuters

Mubadala, the Abu Dhabi government's investment vehicle, expects its investment outlay in 2012 to be slightly lower than last year's after saying its overall annual loss surged due to volatile global markets.

The state-owned fund, which has stakes in General Electric and private equity firm Carlyle, made an overall loss of 4.2 billion dirhams ($1.14 billon) in 2011, compared with a loss of 338 million dirhams in 2010, it said in a statement.

Mubadala, which set a capital and investment expenditure of $16.3 billion for 2011, said that amount is expected to be lower in the current year.

UPDATE 1-Egypt finmin expects to get IMF loan by end-June - Yahoo! News UK

Egypt's government expects to seal a loan from the International Monetary Fund by May 15, allowing the money to be disbursed before a new president is sworn in at the end of June, the country's Finance Minister
Mumtaz al-Saeed said on Thursday.
"We expect to get approval of the IMF loan before May 15," Saeed told reporters in Cairo. "God willing, we will take the loan before a president for Egypt is in place."
Egypt has sought a $3.2 billion IMF financing arrangement to ease strains on an economy laid low by the turmoil that followed last year's overthrow of leader Hosni Mubarak.

STOCKS NEWS MIDEAST-Oman at 9-mth high; Kuwait extends gains - Yahoo! News UK

Oman's bourse rallies to a nine-month closing high as investors bet industrial stocks with report bullish earnings.
The index rises 1.3 percent to 5,981 points, its highest finish since July 17.
Raysut Cement jumps 6 percent, Al Anwar Holding climbs 4.8 percent and Al Jazeera Steel Products adds 3.5 percent.
"The market's underlying strength was intact and though we didn't see it perform well in Q1, earnings expectations are a trigger," says Kanaga Sundar, Gulf Baader Capital Markets head of research.

Abu Dhabi fund Mubadala's 2011 loss soars to $1.14 bln - Yahoo! News UK

Mubadala, the Abu Dhabi government's investment vehicle, on Thursday reported an overall loss for 2011 of $1.14 billion as volatile global markets led to a sharp drop in the value of its financial investments and real estate portfolio.
The state-owned fund, which has stakes in General Electric and private equity firm Carlyle, made an overall
loss of 4.2 billion dirhams ($1.14 billon) in 2011, compared with a loss of 338 million dirhams in 2010, it said in a statement.
"While our financial investments' performance was impacted by the volatility in the global market place during 2011, we continue to maintain a long-term financial investment perspective," Khaldoon al Mubarak, chief executive and managing director said in the statement.

Abu Dhabi’s Aabar Set to Have Four Seats on Arabtec Board - Bloomberg

Aabar Investments PJSC (AABAR), which dropped a $1.74 billion offer for Arabtec Holding PJSC (ARTC) two years ago, is set to have four seats on the Dubai builder’s board as it raises its stake in the company.
Aabar Chairman Khadem Alqubaisi, Chief Executive Officer Mohamed Badawy Al-Husseiny, and board members Mohamed Al Fahim and Mohamed Al Mehairi were nominated to Arabtec’s board, according to a statement on the Dubai bourse today. Aabar, through its units, holds 10.45 percent of Arabtec, the latest filings on the stock exchange show.
Aabar’s “consolidation to increased ownership was definite, which is translating to the expected control” of Arabtec, said Yazan Abdeen, who helps oversee about $250 million as a fund manager at ING Investment Management in Dubai.

Dubai may sell assets to repay $80b debt: Times of Oman

Dubai, the Gulf emirate that own stakes in London Stock Exchange and Nasdaq OMX, may have to sell assets to help fund about $80 billion of debt maturing in the next five years.

The emirate home to the world’s tallest skyscraper may also step up bond sales to refinance debt after the United Arab Emirates central bank enacted rules forcing domestic banks to curtail loan exposure to government-related enterprises known as GREs, according to economists at Bank of America Merill Lynch and National Commercial Bank of Saudi Arabia.

In its pursuit to transform into a tourism, trade and transport hub, Dubai amassed publicly held debt amounting to 149 per cent of economic output in 2011, Bank of America Merill Lynch estimates show. Even after successful debt restructurings in the past year, including a deal on $25 billion of Dubai World debt, Dubai’s liabilities through 2017 may spur asset sales to lessen the burden, said Sergey Dergachev, who helps manage $8.5 billion of emerging-market assets at Union Investment Privatfonds.

MIDEAST WEEKAHEAD-Official displeasure may slow, not end Saudi stock rally | Reuters

Stock market trading in Saudi Arabia could slow in coming weeks because of the risk that authorities may crack down on rampant speculation, but the market's long-term uptrend is unlikely to be reversed, fund managers and analysts say.

King Abdullah has ordered the Capital Market Authority (CMA)to take action against manipulation of the market, insisting that members of the extended royal family - which has thousands of members - should not be spared if they are implicated, the daily Alsharq newspaper reported on Monday.

"With the current return of investors to the stock market, there has been a return of some violations that require investigation and accountability, requiring violators' cases to be looked at by the specialised legal authority," the newspaper quoted the king as saying in an unusual message to the CMA.

gulfnews : Lack of harmony impacts investment flow

Effective investment policies represent one of the most important pillars of development for any country. These policies and their implementation reflect significantly on the growth rates and lead to an improvement in living standards and the creation of jobs.
While the approach to investment in the Gulf has varied from one country to another, the increased coordination between the Gulf Cooperation Council (GCC) countries since the launch of the common market in 2008 have brought these policies closer.
At present, despite differences in implementation, speed of reform and infrastructure, these policies are similar throughout the GCC. But some elements need to be reconsidered to make the most of the private sector and bring in more foreign direct investment (FDI).

gulfnews : Emirates sukuk yield maybe below that of region

Emirates may pay less than other Arabian Gulf corporate issuers to sell Islamic bonds after global borrowing costs declined and as the world's biggest international carrier benefits from passenger growth.
The airline, which is considering refinancing $550 million (Dh2 billion) of sukuk maturing in June, may pay 339 basis points over similar maturity midswap rates, or about 4.55 per cent, according to the average estimate of four analysts.
The forecast is below the 4.62 per cent average yield on the eight corporate Gulf Islamic bonds included in the HSBC/Nasdaq Dubai GCC Corporate US Dollar Sukuk Index.

IMF says consensus needed for $3.2bn Egypt loan - The National

The IMF will remain in close contact with Egyptian authorities in the coming weeks as they try to establish political backing for an economic plan linked to a US$3.2 billion (Dh11.7bn) loan.

The Washington-based organisation also reminded policymakers that Egypt's receiving the assistance was dependent on broad political support for the plan.

"In discussions with a wide spectrum of political parties in the People's Assembly, there was a shared understanding on the need to address short-term challenges facing the economy and to promote reforms that can help achieve higher and more inclusive growth going forward," the IMF mission said in a statement after concluding a trip to Cairo this week.

Business : Nakheel plans Dh4.8b sukuk

Nakheel is all set for the second tranche of Dh4.8 billion Islamic bond, or sukuk, to be issued to its trade creditors by the end of April, chairman Ali Rashid Lootah said on Wednesday.
The developer of palm-shaped island issued the first tranche of the five-year sukuk worth Dh3.8 billion to its trade creditors in the last week of August and the asset-backed Islamic bond carries a profit rate of 10 per cent.

“The second tranche... will be launched at the end of this month, it will be on the same terms and listing will be done as soon as possible,” Lootah told reporters at the ground-breaking of the company’s new Palma Residences project in Dubai.

Gulf Daily News » Oman's economy sees 5pc growth

Oman's economy is robust and expected to grow by five per cent this year, the Gulf country's central bank head Hamood Sangour Al Zadjali said yesterday, adding that the country may issue sovereign debt of 200 million rials ($518m).

"The local economy is in an excellent condition. We expect growth of 5pc this year. Inflation is under control, somewhere between 3.5pc to 4pc," the sultanate's top banker said.

"We have plans to issue 200m rials in sovereign bonds this year. It's in the budget. We're waiting for the right time."

PH, Qatar plan $1-billion investment fund | ABS-CBN News

The Philippines and Qatar are planning to put up a $1-billion joint investment fund as Qatar expressed keen interest to do more business in Manila, particularly in tourism, energy and infrastructure.

Presidential spokesman Edwin Lacierda said yesterday there had been a fruitful dialogue between President Aquino and the Emir of Qatar Shiek Hamad bin Khalifa Al Thani, who cut short his two-day state visit in the country  after spending four hours in Manila.

Lacierda said there was a memorandum of understanding signed by the Department of Trade and Industry and Qatar Holding Limited Liability Corp. where a provision was included that “parties would explore investment opportunities in the Philippines” in various sectors including natural resources, commodities, energy, agriculture, infrastructure and to study the establishment of the fund whose authorized capital would be in the range of $1 billion.