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Sunday, 25 November 2012

Egypt: shares plunge as investors assess economic impact of protests | beyondbrics

Investors have punished Egyptian president Mohamed Morsi for his power grab. Egypt’s benchmark equity index plunged 9.6 per cent on Sunday, the first trading day since Morsi’s decision to award himself sweeping new powers prompted nationwide demonstrations.

That still leaves Egyptian shares over 35 per cent up on the year. But it won’t take long to lose more of those gains if there is any doubt about the implementation of the International Monetary Fund programme announced last week. Without it, Egypt will face an immediate financial crisis.

While the US, which wields still wields great influence at the Fund, may be prepared to carry on backing Morsi as the best guarantor of Egypt’s future, other potential supporters will wince at the sight of a new wave of street protests – notably the Gulf states.

Iraq again on the front lines of energy - The National

Nearly a decade ago, Iraq was in flames as the United States staged its second invasion of the country.

The war not only toppled Saddam Hussein, it also led to a gradual rebirth of the country's oil and gas sector, which was crippled by conflict and sanctions.

Now, after years of rebuilding its energy infrastructure, the Opec member is emerging at the heart of a changing global oil market.

Opec refineries outlook is expensive |

The recently issued World Oil Outlook report by Opec comes at a time when the oil refining industry is passing through many changes around the world.
While the refinery distillation capacity is stagnant in the US, it is faced with sale or closure of in Europe but more than compensated by an enormous expansion in Asia and the Middle East.
Oil demand in the US is down or stagnant at best while a reduction in oil demand is already a fact in Europe. Therefore, between 2008 and 2011 two million barrels a day (mbd) of refining capacity is closed for good and only in 2011 and so far in 2012, 1.7mbd is closed in Europe alone. The relatively low capacity refineries and those without adequate conversion capacity are those destined for closure as their economy becomes untenable and to allow other refineries to operate at higher utilisation rates to improve their profit margin.

Mashreq completes 100% Emiratisation across branch manager level |

In line with its Emiratisation strategy to provide career placements for UAE National staff, Mashreq bank announced a 100 per cent nationalisation of its branch managers across its branch network. The move demonstrates the bank’s continuous efforts towards Emiratisation initiatives and career growth opportunities within the organisation.
The Chief Executive Officer of Mashreq Bank, Abdul Aziz Al Ghurair, congratulated all branch managers, encouraging them to reflect the bank’s customer focus in all interactions. Farhad Irani, Head of Retail Banking Group at Mashreq attended the ceremony along with senior executives.
Mariam Al Ali, Manager, UAE National Recruitment & Development, Mashreq, said, “We are very pleased to have completed Emiratisation across branch managers’ level. This is indeed a reflection of Mashreq’s commitment to continue achieving outstanding results in nationalising managerial positions across the bank.”

Hugh Hendry: ‘We’re in the death spiral of mercantilism’ | tks @Ian_Fraser

Hugh Hendry, founder and chief investment officer of London-based Eclectica Asset Management, gave this interview to the Economist’s Philip Coggan at the Economist’s Buttonwood Gathering on October 25.
The Scots-born hedge fund manager admits to having “a history of contentious posturing,” where investment decision-making is concerned adding that, sometimes, “I hear these voices in my head” (often based on historical perspectives of the world which run counter to the conventional wisdom of the day). He said he became a “Gold bug” about 10-12 years ago but a “Treasury bond bug” about six years ago.
Hendry, who started his investment career at Edinburgh-based Baillie Gifford and then Odey Asset Management before co-founding Eclectica in 2005, said that that he and his investment colleagues at Eclectica like to “exist outside the accepted belief system”. Hendry also said that “we are at a point where we are in the death spiral of mercantilism” and that “I am an existentialist, I am here to tell you that God is dead”.

Unrest fears spark Egyptian share sell-off -

Egypt’s benchmark index shed almost a tenth of its value as the country appeared headed into a new phase of political and economic turbulence after the president issued a decree awarding himself almost unchecked powers.
As the EGX-30 index lost some $5bn and opposition parties prepared for big demonstrations this week, Mohamed Morsi’s office on Sunday emphasised “the temporary nature” of his new powers and called for dialogue.
The president issued an edict on Thursday which placed beyond legal challenge all his decisions for an indeterminate period of time to end when a new parliament has been elected, probably towards the middle of next year.

Fund file: wait and see in Tunisia | beyondbrics

Just when things were getting better for investors in Tunisia they got worse again, according to a report in Monday’s FTfm.

Rather than spook investors, the 2011 Jasmine revolution had the perhaps unexpected effect of convincing investors that their investments would be safe from confiscation by the former ruling family.

“After the revolution we expected investors to hide money, but exactly the opposite happened,” says Issam Ayari, director at the broker Tunisie Valeurs. “We had large deposits in our funds. Investors believed things would get better.”

Trading in alizz islamic bank shares from December 3 | Oman Observer

alizz islamic bank, one of Oman’s first Islamic banks, recently hosted its Constitutive General Meeting, where the Bank’s first board of directors was elected.
The board constitutes experienced directors with extensive expertise in financial services. Trading of the Bank’s shares on the Muscat Securities Market is expected to commence on December 3, 2012. More than 87 per cent of shareholders voted in person or by proxy at the CGM to elect the first board, which includes His Highness Sayyid Taimur bin Asaad bin Tareq al Said, Ahmed al Khonji, Shabib Mohamed al Darmaki, Mohamed Badawy al Husseiny, Mohammed al Fahim, Mohamed Ghanem and Khalifa al Mehairi.

MENA stock markets close - November 25, 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)

MIDEAST STOCKS-Saudi hits 10-mth low as Egypt's crisis weighs; Gulf mixed - Yahoo! News Maktoob

Saudi Arabia's shares slumped on Sunday, dragging the market down to a 10-month low as political turmoil in Egypt sparked by President Mursi's new powers spooked regional investors, while other Gulf markets closed mixed.
Egypt President Mohamed Mursi decree issued on Thursday that defends his decisions from judicial review, set off street violence and unravelled efforts to restore stability after last year's revolution. Cairo's index plunged 9.6 percent.
Investors are concerned Egypt's political unrest could have widespread implications for the Middle East.

GCC in a better place to reform |

Influenced by the Arab spring, the six Arab Gulf states are in a better position to seize the opportunity and start introducing reforms, an elite figure from the region said in an exclusive interview.
Speaking to Gulf News from Doha, Qatari Shaikh Mohammad Ahmad Jasem Al Thani, in his late 40s, explained that while the states need to take measures to activate the civil society’s institution and further motivate the private sector, the citizens of the region have also a role to play; they need to change their perception to the role of the state.
“According to the formula in my book, I say the best time for change now. It is when you are powerful and you don’t wait for [others] to state their demands and pressure you,” Shaikh Mohammad, former minister of economy and commerce, said.

BBC News - Aston Martin owner denies receiving two offers for firm

The owner of Aston Martin, Kuwait's Investment Dar, has denied reports it has received competing bids for a 50% stake in the luxury British car brand.

Italian private equity fund Investindustrial is widely reported to have made an offer of nearly £250m ($400m) for Aston Martin.

India's Mahindra and Mahindra is understood to have made a higher offer.

BBC News - Egypt Mursi crisis prompts shares dive

Stones were thrown at police on Sunday as clashes resumed near Tahrir Square
Shares on Egypt's stock market plunged almost 10% on Sunday, days after President Mohammed Mursi granted himself sweeping new powers.

Protests against the president's decision have continued in Cairo, while the Muslim Brotherhood is planning rallies backing him later.

Trading was suspended for 30 minutes as shares slumped in the first session since the president's announcement.

STOCKS NEWS MIDEAST-Saudi slumps to 10-mth low on Egypt worries - Yahoo! News Maktoob

Saudi Arabia's bourse slumps to a 10-month closing low as political turmoil in Egypt spooks investors. Saudi's heavyweight sectors - petrochemicals and banking - are the main drag.
Saudi Basic Industries Corp (SABIC), the world's largest chemicals producer falls 2.3 percent. Al Rajhi Bank
drops 1.2 percent and Samba Financial Group sheds 2.2 percent.
The kingdom's index drops 2.1 percent to 6,524 points, its lowest close since Jan. 25.

Abraaj Capital unit nabs Indian remittance firm, eyes more buys - Yahoo! News Maktoob

Card payment processor Network International, which is owned by Abraaj Capital and Dubai's largest bank, said on Sunday it has bought a majority stake in an online remittance firm held by a unit of India's biggest
media group.
Network International Chief Executive Bhairav Trivedi said the purchase of a stake in TimesofMoney, a unit of India's Times Group, was a prelude to further acquisitions by the Dubai-based firm.
He declined to give the exact size of the stake nor financial terms of the deal but said it was within the industry
average of 10-15 times earnings before interest, tax, depreciation and amortisation (EBITDA).

Dubai, Abu Dhabi markets move in opposite direction |

The Dubai Financial Market (DFM) index rose by almost one-third of a per cent on Sunday led by a surge in real estate major Emaar and construction company Arabtec’s shares after it was announced a new mega-city named Mohammad Bin Rashid City would be built in Dubai focused on the emirate’s key growth sectors which include retail, tourism and exhibitions.
The DFM index regained the critical 1,600 support level, an indication that the market may rally in the days ahead, should the global macro-economic indicators not worsen.
Around 131.12 million shares, cumulatively worth about Dh205.29 million were traded on the Dubai stock market. As many as 30.34 million shares of Emaar cumulatively valued at around Dh113.47 million were traded, its stock closing 2.19 per cent higher at Dh3.73. Construction major Arabtec’s shares, jumped 1.31 per cent to close at Dh2.32.

Salam Ya Seghar سلام يا صغار #Palestine #Children

Salam Ya Seghar سلام يا صغار #Palestine #Children

Kuwait's Global gets approval to restructure bonds

Kuwait’s Global Investment Housesaid on Sunday that it had secured the approval of creditors to restructure two bonds worth 95 million dinars ($337 million) as part of the company's second debt overhaul in three years.

Bond holders have approved the restructuring of a 50 million dinar bond maturing in 2013 and of a 45 million dinar bond maturing in 2012, according to filings on the Kuwait stock exchange.

Global, which has suffered from a real estate slump and market turbulence, lost 14.9 million dinars ($52.8 million) in the three months to Sept. 30 versus a 15.5 million dinars loss for the same period of 2011.

STOCKS NEWS MIDEAST-Saudi Mobily falls; index resumes decline - Yahoo! News Maktoob

Shares in Saudi Arabia's telcom operator Etihad Etisalat (Mobily) weigh on the kingdom's bourse after the firm said the regulator suspended sale of new prepaid cards until it meets the service's provisioning requirements.
Mobily falls 1.7 percent, despite the company saying financial impact from the move will be "insignificant,"
according to a bourse filing.
Shares in Abu Dhabi listed Etisalat are flat. The government of UAE is a major shareholder in both the telcos.
Petrochemical stocks lose ground, giving back some of Saturday's gains. The sector's index dips 0.8 percent.

STOCKS NEWS MIDEAST-Property stocks lift Dubai; Abu Dhabi up - Yahoo! News Maktoob

Dubai's property-related stocks rise after the emirate's ruler announced plans for a new master project, lifting the share index to a week-high.
Emaar Properties, the largest listed company on the Dubai bourse, rises 4.7 percent, while builder Arabtec
adds 3.5 percent and developer Deyaar climbs 1.5 percent.
Property stocks are among the most liquid and so tend to exaggerate market moves.

RPT/Dana Gas offers bondholders sweetened debt deal - Yahoo! News Maktoob

Dana Gas, in talks to restructure a $920 million Islamic bond, is offering bondholders cash and an average 8 percent coupon on two new sukuks to replace the existing one, two sources said.
The natural gas producer became the first United Arab Emirates company to miss a bond redemption when the sukuk matured on Oct. 31. Dana reached the restructuring deal on Nov. 7, potentially averting the seizure of its Egyptian assets.
Bondholders will be paid between $80 million and $90 million in cash and the new bonds will be equally split between a sukuk and a convertible bond, one person familiar with the matter said.

BRIEF-Kuwait's Global says gets approval to restructure 50 million dinars bond | Reuters

Global Investment House KSCC :
* Kuwait's Global Investment house says gets approval to restructure