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Saturday, 14 July 2012

Low trade volumes expected in regional markets - Zawya

The regional markets are expected to trade sideways on low volumes this week, tracking broader investor sentiments on the global financial markets. With the beginning of the local earnings season that could provide markets with a local catalyst still some days away, investors would tread with cautious optimism, say analysts.

However, international oil prices, which continue to be at elevated levels, would limit the downside risks as several countries within the region are major oil exporters and revenue from crude exports form major source of governments’ income.

The global markets have been disappointed with the US Federal Reserve, which has put further quantitative easing on hold until economic situation in the world’s largest economy further deteriorates. With growth in China, India and Europe slowing, the markets fear there may soon be profit warnings from listed companies as global consumer spending and consumption patterns take a turn for the worse.

Korean advertising agency Cheil displays its faith in Emirates - The National

The largest advertising agency in South Korea has more than doubled its staff in the Middle East, as ties between the UAE and Asian country grow.

Cheil Worldwide, which is listed on the Korea Stock Exchange,operates in Saudi Arabia and Jordan and now has 53 employees at its regional headquarters in Dubai, up from 28 a year ago.

Its focus on the Middle East comes as economic ties between the UAE and South Korea grow closer after a deal for nuclear energy was agreed in 2009.

Egypt's Sawiris in $500m bid for Canada gold miner - The National

The Egyptian billionaire Naguib Sawiris has made an audacious US$500 million (Dh1.83 billion) offer to buy a Canadian gold mining company.

The move comes amid growing market talk of a resurgence in the price of the yellow metal.

The businessman, based in Cairo, plans to buy the Montreal mining group La Mancha Resources in what analysts said marked a radical departure in his investment strategy.

gulfnews : Oil cannot be hostage to political tensions

Any disruption in the supply of oil — which is essential to the effective functioning of the modern, global economy — has an immediate, often damaging effect on international trade and markets.
Not only does the resulting higher cost of oil often feed through to the price of other goods and services, but the volatility it causes on world markets is dangerously destabilising to the already fragile international economy.
Most frustrating to those companies and traders who are trying to build a business, rather than make a quick buck off speculation, is that the volatility in the oil price often has nothing to do with supply and demand, but is a result of political tension. The stand-off between Iran and the US and others over the Middle-Eastern country’s nuclear ambitions is but one example of this. Iranian and American sabre-rattling is seen as a threat to the flow of oil to world markets through the Strait of Hormuz.

gulfnews : Oman continues to impress

Plenty of evidence suggests that Oman’s economy is doing well. The notable aspects are a healthy fiscal surplus, positive external balances, solid economic growth rates, steady rise in oil output, and gains notched on numerous international indexes, to name a few.
The fiscal surplus in 2011 was equivalent to around 7 per cent of the country’s gross domestic product (GDP). Also, the sultanate posted a current account surplus in the region of 14 per cent of GDP in 2011. A good share of the credit for this healthy performance goes to steady oil prices.
In fact, the statistics could only improve if and when Oman starts capitalising the $10-billion (Dh36.72 billion) Gulf Development Fund. In 2011, the GCC as a group agreed to provide financial assistance in the form of $1 billion annually over a span of 10 years to both Bahrain and Oman as a means of addressing socio-economic issues that reflected in protests in both countries.

gulfnews : Habshan pipeline to be inaugurated on Sunday

In a landmark development, the 1.5 million-barrel-perday Abu Dhabi crude oil pipeline that runs from Habshan in Abu Dhabi to Fujairah, will be inaugurated on Sunday, a senior oil industry executive familiar with the developments told Gulf News.
“The pipeline will be inaugurated on Sunday at Fujairah,” said the executive, who asked not to be identified. The $3.3 billion (Dh12.12 billion), 370-kilometre Habshan- Fujairah pipeline will allow the UAE to have direct access to the Indian Ocean for its crude oil exports.

The pipeline also provides an option to bypass the Strait of Hormuz, through which nearly a fifth of the world’s seaborne oil passes.

Ethical oil cartoon used by Enbridge showed scowling Persian Gulf gas pump |

A presentation by energy firm Enbridge Inc. at a private conference included a drawing of a scowling cartoon gas pump that labelled Saudi Arabia, Kuwait and other Persian Gulf countries as unethical oil sources.
However, the company says it wasn't singling out those countries for allegedly producing less ethical oil than the Alberta oilsands.
An Enbridge executive presented the illustration at an aboriginal business conference in Calgary in November of 2010 on a slide with the subheading "Who would you prefer to buy your oil from?"

The Times of Oman: Oman's crude production declines

Monthly report released by the Oil and Gas Ministry pointed out that the Sultanate's crude oil and condensates production in June 2012 declined by 4.1 per cent to reach 27,700,176 barrels compared to 28,890,608 barrels during May 2012.

The report added that the average daily production of the Sultanate's oil and condensates amounted to 923,339 barrels in June 2012 compared to 931,955 barrels, constituting a 0.92 per cent decline.

The total exported crude oil in June 2012 amounted to 23,324,489 barrels, an average of 777,483 barrels per day (bpd) compared to 22,065,149 barrels or 711,779bpd in average.

Saudi Stock Market close - July 14, 2012

 General Index
Intraday  3 month  
 Daily Statistics
 General Index6701.09
 Change (%)0.62%
 T. Volume309078348
 T. Companies 158

Saudi Shares Snap 4-Day Losing Streak on Oil; Dar Al Arkan Jumps - Bloomberg

Saudi Arabian shares snapped a four- day losing streak after oil prices gained and Dar Al Arkan Real Estate Development Co. (ALARKAN) said holders of its $1 billion Islamic bonds will be repaid July 16.
Dar Al Arkan, which plunged 20 percent last week, advanced the most since March 24. Mobile Telecommunications Co. Saudi Arabia (ZAINKSA), the mobile-phone company known as Zain Saudi, surged 5.2 percent. The benchmark Tadawul All Share Index (SASEIDX) rose 0.6 percent, the most since July 3, to 6,701.09 at the close in Riyadh.
U.S. stocks rose for the week and oil prices advanced 3.1 percent last week to $87.10 a barrel amid investor speculation China, the world’s second-largest economy, may take more measures to stimulate growth. Saudi Arabia is the world’s biggest exporter of crude oil.

Abu Dhabi facing oversupply of hotels with new developments - Select Property

There has already been a decrease in the occupancy of hotel rooms which could further decrease with the addition of new developments.
Around 20 new hotels are expected to open in and around Abu Dhabi over the next few years according to TRI Hospitality Consulting.

There is expected to be at least five hotels of the Marriott chain as well as five by Rotana however, there is said to be an oversupply of rooms available, which analysts expect will continue until the demand starts to catch up.

Xstrata Profit Slide Hurts Qatari Push for Higher Glencore Bid - Businessweek

Qatar is demanding another $4.2 billion from Glencore (GLEN) International Plc for Xstrata Plc at the same time that analysts are reducing profit estimates for the Swiss mining company faster than its peers.

Xstrata, due to report first-half earnings on Aug. 7, will post a 39 percent drop in net income for 2012 to $3.5 billion, according to the average of seven estimates compiled by Bloomberg in the past month. The analysts have cut their projections by an average 25 percent, or $1.2 billion, in the last 28 days. Glencore’s profit will fall 2.7 percent for the year, according to six analyst estimates made in that period.

Glencore’s 17 billion-pound ($26 billion) all-share offer was derailed when Qatar’s sovereign wealth fund, the second- largest holder, said last month it wanted the bid raised by 16 percent. Xstrata is the biggest exporter of utility-grade coal. Prices for the fuel “collapsed” in the second quarter, according to Credit Suisse Group AG, slumping about 17 percent.

Dar al-Arkan repays $1 billion sukuk on Monday: statement | Reuters

Saudi builder Dar al-Arkan Real Estate Co 4300.SE has transferred $1 billion to Deutsche Bank to repay its Islamic bond, or sukuk, the firm said in a bourse statement on Saturday.

"Dar al-Arkan transferred the total principal sum to Deutsche Bank, the principal paying agents, on Thursday and the sukuk account holders will receive the funds on Monday," the firm said in the statement.

Dar al-Arkan, the kingdom's largest property developer, has issued three international sukuks and one domestic in the past five years, raising a total of $2.25 billion, the firm said in the statement.