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Sunday, 17 June 2012

Business - UAE corporates have ample cash cushions

The non-financial corporate sector in the UAE is showing signs of fiscal improvement, albeit stress testing indicates continued vulnerabilities to global financial conditions, particularly in the real estate sector, the International Monetary Fund, or IMF, said.
The Washington-based fund said in its country report on the UAE, that the corporate-financial link is important for the Emirates.
Total assets of 53 listed non-financial corporates decreased slightly to $127 billion in the third quarter 2011 from $128 billion in the same period a year earlier in spite of the worldwide financial meltdown.

Baroque charm masks concern for the Opec - The National

The former rulers of the Habsburg dynasty stare down from their portraits high on the walls of Hofburg Palace, reminders of the power that once emanated from these marble halls.

Six centuries after their rise to reign, this baroque monument houses a conference centre that every two years hosts Opec and its followers - a centre of power in its own right.

As recently as January last year, Opec's linchpin Saudi Arabia was targeting an oil price of US$75 a barrel, and watched in amazement as futures markets soared above $100.

gulfnews : Opec reluctance may prove costly

As expected the 161st Opec conference which was held in Vienna on Thursday, ended without making substantial decisions regarding membercountries’ production collectively or individually.
The conference decided to rollover Opec’s production ceiling of 30 million barrels a day (mbd), which was agreed upon last December but never actually followed as Opec production kept rising to reach 31.87 mbd in May, according to IEA. The decision is perhaps a compromise between those who wanted to raise the ceiling and those who wanted to lower it.
The conference press release noted that the “heightened price volatility witnessed during the early part of the year 2012 was a reflection of geopolitical tensions and increased levels of speculation in the commodities markets, rather than solely a consequence of supply/demand fundamentals” but this does not exonerate Opec’s over-production.

MENA stock markets close - June 17, 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)

Saudi Electric to buy back 5 bln riyal sukuk Asharq Alawsat Newspaper (English)

Saudi Electricity Co (SEC) said on Sunday it would buy back its 5 billion riyal ($1.3 billion) debut sukuk issued in 2007, in accordance with the terms of that issue.

The sukuk is due to expire in 2027 but under the terms, SEC must offer to repurchase it every five years, at a price which decreases over time.

The paper will no longer trade on the Saudi stock exchange from June 17, and payments will be made to bondholders by July 15, SEC said.

Upturn in Dubai jobs market is reducing commuters to Abu Dhabi - The National

A growing number of people are ditching the daily Dubai to Abu Dhabi commute in favour of jobs closer to home or a move to the capital where rents are now cheaper.

Two years ago, as the financial crisis took hold and thousands of people lost their jobs in Dubai, the road to the capital saw a huge increase in traffic as Abu Dhabi firms took on new staff.

Now, as the jobs market in Dubai picks up again, more people are starting to taking advantage.

Abu Dhabi Fund Interested in Eni’s Snam Stake, Il Sole Reports - Bloomberg

The Abu Dhabi Investment Authority and other Mideast sovereign-wealth funds have shown interest in buying Eni SpA (ENI)’s remaining stake in Snam SpA (SRG), newspaper Il Sole 24-Ore reported, without saying where it got the information.
Italy’s biggest oil company plans to sell its remaining 20 percent holding and may break it into 5 percent portions, Il Sole reported.

Jordan begs IMF for loan after Saudi snub | Al Akhbar English

Jordan has entered talks with the International Monetary Fund to borrow up to $1.4 billion, Finance Minister Suleiman al-Hafez said on Saturday, to ease strained public finances in the absence of help from its richer Arab neighbors.

The request for funds comes as austerity policies are prompting street protests by citizens concerned about subsidy cuts and price hikes – a threat to stability in a kingdom that saw months of protests from early last year inspired by the "Arab Spring" uprisings.

Hafez told reporters Jordan would draw the funds from a new IMF lending instrument known as the "Precautionary and Liquidity Line," launched last November to give countries with economic policies the IMF deems relatively good a short-term liquidity window.

Israel Stocks Rise Most in a Week on Europe as Saudi Advances - Businessweek

Israel shares rose the most in more than a week on speculation central banks will take steps to bolster global growth as investors await the result of Greek elections. Saudi Arabia’s benchmark stock index also gained.

Perrigo Co. (PRGO) (PRGO) advanced to a record following a rally in its U.S. shares on bets a drop in imports and slowing job growth in the U.S. will push consumers to save money and buy the generic drugmaker’s cheaper products. Mellanox Technologies Ltd. (MLNX) (MLNX), an Israeli developer of technology used to transfer and store data, jumped 5.3 percent. The TA-25 (TA-25) climbed 1.6 percent, the most since June 7, to 1,065.85, at 1:22 p.m. in Tel Aviv. In the Persian Gulf, Saudi Arabia’s Tadawul All Share Index (SASEIDX) advanced 0.3 percent after retreating as much yesterday.

“There is optimism in the market,” said Daniel Rapoport, head of equity and derivatives at Bank Leumi Le-Israel (LUMI) Ltd. “The Greeks are going to vote. This is lowering uncertainty about foreign markets and this is good for Tel Aviv.”