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Sunday, 21 October 2012

MIDEAST STOCKS-Kuwait sinks 3.1 pct before protest; Gulf mostly down - Yahoo! News Maktoob

Kuwait's bourse tumbled 3.1 percent on Sunday, its biggest daily drop since July 2009, ahead of a demonstration called by opposition leaders to protest against planned changes to the electoral law.
Market participants said they believed state-linked funds were buying blue chips in an effort to support the market, as they have done during some periods of weakness in the past. But selling pressure was very heavy in small-capital stocks favoured by retail traders, who cut their exposure because they feared a confrontation between police and protesters on Sunday evening.
"The government was trying to stabilise the market today through the National Portfolio Fund, but the sell-flow was heavy," said a Kuwait-based trader who asked not to be identified. "There's only so much selling they can absorb."

New draft UAE insurance intermediary regulations: an opportunity missed? - bi-me.com

In May 2012, the UAE Insurance Authority (the Authority) issued a consultation document outlining a new regime for the regulation of insurance intermediaries (the Draft Regulations), which would replace the current regulations that date back to December 2006.

Few would disagree with the need for regulatory overhaul of the distribution channels and roles played by insurance intermediaries, but do the new Draft Regulations meet the need for the UAE insurance industry? This article looks at some of the industry requirements and whether the new Draft Regulations measure up.

Qatar Telecom Third-Quarter Net Rises 74% After Indonesia Deal - Bloomberg

Qatar Telecom QSC (QTEL), the country’s biggest company by revenue, reported a 74 percent increase in third-quarter profit after its Indonesian unit completed a one- time sale of telecommunication towers.
Net income for the quarter rose 1.07 billion riyals ($290 million) from 616 million riyals a year earlier, according to an e-mailed release today from the company. EFG-Hermes forecast net income of 670 million riyals on Sept. 27, according to data compiled by Bloomberg. Revenue gained 6.2 percent to 8.63 billion riyals and the number of customers increased by 8.3 percent to 89.2 million.
Qtel, as the company is known, is expanding overseas amid competition in its home market from Vodafone Qatar (VFQS), which began operations three years ago. Earlier this month, the company said it raised its stake in Kuwait’s National Mobile Telecommunications Co. to 92 percent from 53 percent.

BRIEF-Kuwait Zain 9-mth net profit 201.6 mln dinars vs 210.2 mln dinars a yr ago | Reuters

Kuwait telco Zain 9-month net profit 201.6 million dinars versus 210.2 million dinars a year ago - statement

Dubai on track to repay a $10b loan | GulfNews.com

Dubai is on track to repay a $10 billion loan from Abu Dhabi as the emirate’s economy continues to recover, according to a senior Dubai government official.
The UAE central bank and the Abu Dhabi government gave $20 billion in loans to Dubai in late 2009 with a multi-billion-dollar debt restructuring at one of its flagship conglomerates.
Dubai had drawn on about $8.45 billion of the $10 billion Abu Dhabi facility due to mature in 2014, according to the Dubai government’s bond prospectus dated June 2011.

MENA stock markets close - October 21, 2012

 ExchangeStatus IndexChange  
 
 TASI (Saudi Stock Market)
 
6780-0.43%  
 
 DFM (Dubai Financial Market)
 
1649.69-0.29%  
 
 ADX (Abudhabi Securities Exchange)
 
2652.450.00%  
 
 KSE (Kuwait Stock Exchange)
 
5729.38-3.05%  
 
 BSE (Bahrain Stock Exchange)
 
1062.62-0.40%  
 
 MSM (Muscat Securities Market)
 
5709.17-0.08%  
 
 QE (Qatar Exchange)
 
8538.21-0.05%  
 
 LSE (Beirut Stock Exchange)
 
1117.070.32%  
 
 EGX 30 (Egypt Exchange)
 
5716.79-1.49%  
 
 ASE (Amman Stock Exchange)
 
1908.72-0.02%  
 
 TUNINDEX (Tunisia Stock Exchange)
 
4800.31-0.37%  
 
 CB (Casablanca Stock Exchange)
 
9095.13-0.44%  
 
 PSE (Palestine Securities Exchange)
 
451.851.68%  


STOCKS NEWS MIDEAST-Saudi extends decline; banks weigh - Yahoo! News Maktoob

Saudi Arabia's bourse declines for a second session from last Wednesday's 10-day high as investors cut risk
with the approach of a long holiday.
Banks are lower with the sector's index down 0.4 percent. Heavyweight Al Rajhi Bank sheds 0.4 percent,
Arab National Bank falls 1.2 percent and Bank Albilad loses 1.8 percent.
Saudi Telecom Co (STC) weighs on the market with a 3.5 percent drop after missing third-quarter profit estimates. "We believe higher operating expenses, particularly outside of Saudi, and a poor performance on the non-operating line led to the net income miss," NBC Capital says in a note.

Bahrain's GFH to modify $1.4bn Morocco project - Real Estate - ArabianBusiness.com

Bahrain-based investment bank Gulf Finance House on Sunday said that it was making "critical modifications" to its $1.4bn project in Morocco.
The company said in a statement that its Royal Ranches Marrakech was to change to meet new market conditions in Marrakech.
The residential part of the project is set to "shift from luxury large scale villas, to small to medium-size apartments", the statement said.

BRIEF-Dubai developer Nakheel nine-month profit nearly doubles- statement - Yahoo! News Maktoob

Nakheel Developments :
* Dubai developer Nakheel 9-month net profit 1.1 billion dirhams versus 600 million dirhams a year ago - statement
* Co says 9-month revenue 4.5 bln dirhams vs 2 billion dirhams in prior-year period.

Dubai's Emicool signs $216 mln Islamic loan - Yahoo! News Maktoob

Dubai-based Emirates District Cooling (Emicool), a joint venture between Dubai Investments and
Union Properties, signed a 793 million dirham ($216 million) Islamic loan guaranteed by both parents, a
statement said on Sunday.
Structured in a sharia-compliant manner, the facility runs for ten years, according to the statement from Mashreq, one of the banks providing finance.
The cash will be used to refinance a 668 million dirham bridge loan and other facilities raised with banks on an
individual basis, which funded construction of cooling plants in the Motor City and Dubai Investment Park areas of the emirate.

STOCKS NEWS MIDEAST-Kuwait ends at 9-week low; Dubai slips - Yahoo! News Maktoob

Kuwait's bourse makes its biggest daily drop since July 2009 and ends at a nine-week low as planned protest
by the opposition leaders against changes to electoral law spook retail traders.
The benchmark index slumps 3 percent to 5,729 points, its lowest close since Aug. 16.
Selling pressure is focused on small-cap stocks, the usual target of retail traders looking for short-term gains.

Dubai Stocks Retreat on Oil Drop, Result Outlook; Kuwait Tumbles - Bloomberg

Dubai’s benchmark stock index fell the most in a week after oil declined and on investor concern companies in the emirate may report lower third-quarter results. Kuwait shares tumbled the most in more than two years.
Dubai Islamic Bank (DIB), the United Arab Emirates’ biggest shariah-compliant lender, slipped 0.5 percent. Construction company Arabtec Holding Co. (ARTC) was set for the biggest drop in almost two weeks. Dubai’s DFM General Index (DFMGI) retreated 0.7 percent, the most since Oct. 14, to 1,642.71 at 12:12 p.m. in the emirate. Kuwait’s benchmark slumped the most since May 2010 after the emir requested changes to the electoral system.
Companies in the U.A.E,. including DIB, are due to report third-quarter results this month. Arabtec, which has the fourth- heaviest weighting on Dubai’s gauge, may post a 58 percent drop in profit for the three months ended Sept. 30 according to the mean estimate of five analysts compiled by Bloomberg. Saudi Arabia (SABIC)’s Al Rajhi Bank (RJHI) and Saudi Basic Industries Corp. reported profit declines of 3 percent and 23 percent respectively.

FGB Price Estimate Raised at JPMorgan on Dividend Expectation - Bloomberg

Investors should buy First Gulf Bank PJSC (FGB) shares before year end as the lender controlled by Abu Dhabi’s ruling family will offer a 7 percent dividend yield, JPMorgan Chase & Co. (JPM) said, raising its price estimate.
JPMorgan, which has a buy rating on the stock, increased its price forecast for the Abu Dhabi-based lender’s shares to 13.5 dirhams from 13 dirhams, analysts including Naresh Bilandani said in a report dated Oct. 19. That represents a 36 percent upside from last week’s closing price.
The analysts’ projected dividend yield for First Gulf Bank exceeds the 4.6 percent average for banks traded on the benchmark ADX General Index (ADSMI), according to data compiled by Bloomberg. Shares of First Gulf Bank have rallied 29 percent this year through Oct. 18, compared with a 10 percent advance for the Abu Dhabi gauge and a 13 percent gain for the ADX Banks Index. (ADBF) First Gulf Bank trades at 7.7 times earnings compared with 9.3 times for Abu Dhabi’s measure.

Oman's Bank Dhofar third-quarter profit down, misses estimates | Reuters

Bank Dhofar BDOF.OM, Oman's third-largest bank by market capitalization, posted a 10.7-percent drop in third-quarter net profit on Sunday, missing analysts' expectations, Reuters calculations show.

The lender made a profit of 9.2 million rials ($23.9 million) in the three months to Sept 30, Reuters calculated, compared with a profit of 10.3 million rials in the prior-year period.

Analysts polled by Reuters had estimated an average quarterly profit of 10.1 million rials.

How ‘social’ was GITEX 2012? | Middle East Public Relations | Spot On PR | Communications | Marketing | Media | Social Media

The Middle East’s largest technology trade show, GITEX, took place at Dubai World Trade Centre last week, bringing an estimated 3,500 exhibitors from around the world together with more than 100,000 businessmen and IT professionals (estimates vary). That’s equivalent to about 20,000 visitors per day, plus more than 10,000 company representatives on stands each of the five days of the exhibition, and we can assume nearly all were carrying some kind of smart connected device. So, with all that connectivity, one might expect GITEX to have dominated social media conversations.

Gulf equities to take a big tumble along with global stock markets, will real estate also follow? « ArabianMoney

Sell in May and go away was not good advice for Gulf equities this year. Instead local equities carried on upwards. The Abu Dhabi Securities Exchange General Index is up 10.4 per cent since January, and the Dubai Financial Market General Index is up 22.2 per cent.

Global stock markets have shown similar levels of optimism but not for good reason. The global economic climate has been deteriorating, except for a few green shoots of recovery in the election-year US. Q3 profits from the likes of Google, Microsoft, IBM, Alcoa, General Electric and MacDonalds bare witness to the impact of the global slowdown.

Hot money set to make a return to Middle East - The National

Middle East stock markets are poised to attract billions of dollars of funding as equity investors scour the globe for companies paying high dividends, a report from Deutsche Bank said.

As a result of falling yields on stocks and bonds in developed and emerging markets alike, exchanges that had looked unattractive because of poor liquidity or high levels of political or legal risk are now being seen in a new light by fund managers using dividend strategies.

"These strategies have seen over US$40 billion [Dh146.92bn] of net inflows over the past year, despite an outflow of an equal magnitude from equity funds in general," the report said. "The superior yields should persist and those investors seeking income could find the Mena [Middle East and North Africa] region rewarding."

High scores for Qatar’s gas sector | GulfNews.com

Qatar’s economy keeps scoring high marks in matters related to the gas sector in general and liquefied natural gas (LNG) in particular. Suffice to say that Qatar is the world’s largest exporter of LNG by boosting a record 77 million tonnes per year in 2011.
According to BP’s Statistical Review of World Energy, Qatar’s LNG output accounts for 35 per cent of the total capacity in the world. Still, the same source suggests that LNG business grew by a hefty 10 per cent in 2011. Much to its credit, Qatar accounted for almost 88 per cent of global LNG growth in 2011.
Qatar’s gas industry is supported by some hard statistics. According to BP’s publication, Qatar’s share of natural gas reserves stands at 25 trillion cubic metres or 12 per cent that of the world. Only Russia and Iran possess more gas reserves than Qatar by virtue of accounting for 21.4 per cent and 15.9 per cent of the world’s share respectively.

Gulf Islamic banks ready to step in as HSBC pulls back | GulfNews.com

Four days after HSBC Holdings said it would shrink its global Islamic banking operations, National Bank of Abu Dhabi revealed very different plans: it aims to triple the contribution of its Sharia-compliant operations over the next eight years.
The contrast suggests that rather than being a sign of weakness in the Islamic finance sector, HSBC’s decision reflected its own business priorities — and to the extent that the British bank pulls back from the industry, local banks will gain an opportunity to expand.
HSBC announced early this month that except for wholesale banking operations, it would no longer offer Islamic products in Britain, the UAE, Bahrain, Bangladesh, Singapore and Mauritius.

Business - UAE able to weather economic storms

The UAE economy is immune from external economic shocks, according to Hani Al Hamli, secretary-general of the Dubai Economic Council, or DEC.
The council constantly monitors developments in the European debt crisis and its repercussions on the GCC economy, Al Hamli said in a statement.
He stressed that there are no direct effects of this crisis on the UAE and many countries in the region because banks operating in the country are not exposed to European credit markets.