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Tuesday, 28 January 2014

Tehran Stock Exchange plunges, baffling investors - Al-Monitor: the Pulse of the Middle East

Tehran Stock Exchange plunges, baffling investors - Al-Monitor: the Pulse of the Middle East:
An Iranian official works at her desk in the main hall of the Tehran Stock Exchange, Aug. 3, 2010. (photo by REUTERS/Morteza Nikoubazl)

The Tehran Stock Exchange (TSE) is making news in Iran for all the wrong reasons. It's falling, and fast. Its main index peaked at 89,500 points on Jan. 5 of this year. Then it started to fall. By Jan. 26, it had fallen to 81,905 points. At one point, its dive was described as "historic."
A loss of 7,595 points within three weeks (almost 7%) is a lot for any stock exchange, especially the TSE, one of the fastest rising in the world. In mid-August 2010, it crossed the 16,000 points threshold and that was considered major news. Now, despite the recent falls, its value is almost 400% higher than then.
What has been particularly amazing about the TSE is that over the last several years its rise has defied many laws of economic gravity.
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UPDATE 2-Bahrain's Batelco profits fall, buys back bond | Reuters

UPDATE 2-Bahrain's Batelco profits fall, buys back bond | Reuters:

"Telecom operator Batelco , which is battling a sustained profit slump, reported a 61 percent drop in fourth-quarter earnings on Tuesday and the Bahrain-based group said it had begun buying back a $650 million bond, taking advantage of a fall in its value.

Bahrain is one of the Gulf's most competitive telecom markets, with three mobile operators, including Kuwait's Zain and about 10 internet providers vying for business among its 1.3 million people.

Declining domestic income pushed Batelco to expand abroad which led to a deal with Cable & Wireless Communications in April to buy its Monaco and Islands Division for $570 million.

But some aspects of the deal ran into regulatory problems and as a result CWC returned the $100 million Batelco paid for a stake in a holding company that ultimately owned part of Monaco Telecom."

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Emaar Remains The Best Play on Dubai Property Recovery, Say Analysts - Middle East Real Time - WSJ

Emaar Remains The Best Play on Dubai Property Recovery, Say Analysts - Middle East Real Time - WSJ:

"For a bellwether, Emaar Properties — builder of the world’s tallest tower — has done quite well for itself in the past year: reflecting Dubai’s meteoric real estate sector recovery with a 104% gain in 2013 that underpinned the stock market’s stellar performance.

On Tuesday, Emaar’s stock rallied another 6.3% to 8.24 dirhams ($2.25) – its highest closing level since early September 2008, when Dubai’s much celebrated property story went from boom to bust in the wake of the global financial crisis.
Emmar shares are trading at levels last seen in September 2008.


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UAE island rises from sand

UAE island rises from sand:

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S&P lowers Ukraine’s rating | ForexLive #EuroMaidan

S&P lowers Ukraine’s rating | ForexLive:

"S&P cuts Ukraine to CCC+ from B- with a negative outlook.

The situation appears to be stabilizing there but the risks are high."

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Russian Economic Power And The Ongoing Protests In Ukraine Amid EU-Russia Summit - Eurasia Review

Eurasia Review:

"On December 17th, Kiev obtained important concessions from Moscow through an agreement between Ukraine and Russia. Accordingly, the parties have reached a consensus on certain economic issues. One of these compromises is that Ukrainian companies experiencing difficulties in exporting to Russia will create collaborative working areas with Russian companies for high-tech products, and thus develop trade. Apart from this there were two further fundamental matters of importance for Ukraine."

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EM stocks tumble into bear territory -

EM stocks tumble into bear territory -

"Emerging market stocks have tumbled back into bear market territory after days of turmoil in currencies as central banks stepped up efforts to limit the slide and head off the threat of sharply higher inflation.

The MSCI EM gauge – the most widely followed emerging market index – has fallen by just over 22 per cent from a previous cyclical peak hit in early 2011 that marked a rebound for emerging markets from the lows reached during the global financial crisis."

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Dubai excited as investment appetite returns |

Dubai excited as investment appetite returns |

"The Dubai International Financial Centre’s (DIFC) chief executive, Jeffrey Singer, is taking the view that Dubai and the DIFC are poised to make rapid strides in the coming years, benefiting from the superior returns of stock markets, high level of debt issuance and various projects lined up in the country and the region.

Singer said this is going to lead to more creative financial products and services by professionals based in the centre.

He cites numbers that point to the return of high investment appetite and strong investor sentiment to buttress his argument in order to make a case that the DIFC will reap the benefits of outsized returns that are expected of Dubai.

In 2013, the Dubai Financial Market (DFM) stock market had a staggering return of almost 108 per cent and is seeing current trading of almost Dh2 billion daily."

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MIDEAST STOCKS-Egypt surges after Sisi cleared for presidency vote; UAE mkts rebound | Reuters

MIDEAST STOCKS-Egypt surges after Sisi cleared for presidency vote; UAE mkts rebound | Reuters:

"* Egypt market shrugs off killing of senior official

* Index rises above January 2011 peak

* EFG-Hermes jumps after saying it's arranging IPOs

* Dubai bounces 3.2 pct, back near 5-year high

* Emaar soars after upgrade by EFG-Hermes

 By Nadia Saleem

DUBAI, Jan 28 (Reuters) -

Egypt's stock market climbed to a 44-month high on Tuesday after the army chief was given the green light to run for president, while markets in the United Arab Emirates snapped a two-session decline.

The Supreme Council of the Armed Forces cleared Field Marshal Abdel Fattah al-Sisi to run in upcoming elections, which he looks sure to win. Many Egyptians see him as the best chance for political stability.

"Sisi still didn't officially announce his bid for presidency, but all roads are leading in that direction because of popular demand," said Mohamed Radwan, director of international sales at Pharos Securities in Cairo."

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If Iran is able to revive oil exports, could gas be next?

If Iran is able to revive oil exports, could gas be next?:

"The appearance by Iranian President Hassan Rouhani at the World Economic Forum has raised this intriguing possibility: that the country that sits astride the world's second-largest pool of natural gas will emerge from diplomatic and economic purgatory to begin tapping this largely neglected resource.

Rouhani was the first Iranian leader to address the annual business summit in the Swiss resort of Davos in a decade. It came three days after the United States and the European Union began a rollback of economic sanctions in exchange for Iran's halt in high-level uranium enrichment and international inspections of its nuclear facilities.

The president's public message was: Iran has no intention of building nuclear weapons, and it wants a comprehensive deal that will permanently lift crippling economic sanctions."

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Exclusive: Abu Dhabi investor seeks to exit Mongolia bank after governance row | Reuters

Exclusive: Abu Dhabi investor seeks to exit Mongolia bank after governance row | Reuters:

"A foreign investor has moved to sever ties with Mongolia's largest private lender, Golomt Bank, because of its concerns over the lender's weak corporate governance standards, according to documents and a source familiar with the matter.

The Abu Dhabi Investment Council (ADIC), which lent Golomt $25 million in 2010, is seeking to call in the loan after a turbulent 15 months inside the bank, in which auditors identified serious management failings, according to the source and an external audit report reviewed by Reuters.

ADIC and Golomt are currently in dispute over whether the sovereign investor can redeem its five-year loan before maturity and the matter has gone to confidential arbitration proceedings in London, the source said, declining to give details.

ADIC's accusations of mismanagement inside Golomt, which holds a quarter of Mongolia's deposits, underline wider concerns voiced by credit rating agencies and the World Bank in recent months about poor corporate governance among the nation's banks."

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Money talks: Crude awakenings

A new outlook for mining in the UK

Emirates set to fly A380 superjumbos into India |

Emirates set to fly A380 superjumbos into India |

"Emirates looks set to deploy part of its Airbus A380 fleet into India following the removal of a ban restricting the aircraft from flying into the country.

The decision to allow airlines to fly the double decker superjumbo to India was announced in a statement on Monday by Ajit Singh, India’s Union Minister for Civil Aviation.

But Emirates won’t be adding capacity to the route anytime soon as the A380 services will be subject to traffic entitlements within bilateral agreements."

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S&P agency says credit rating interest is growing among UAE firms | The National

S&P agency says credit rating interest is growing among UAE firms | The National:

"Standard & Poor’s is seeing an uptick in interest from UAE companies in gaining a credit rating as new caps on bank lending encourage government-linked firms to turn to bond markets.

Separate draft rules on debt issuance by the Securities and Commodities Authority (SCA) were also encouraging companies to consider bond sales, said Stuart Anderson, the managing director and regional head of the Middle East at S&P.

“We are seeing a strong level of inquiry from previously unrated corporates,” he said yesterday. “Markets are positive in terms of trajectory, there appear to be strong interest from existing and potential issuers.”"

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Arabian Gulf’s oil exporters should embrace hedging | The National

Arabian Gulf’s oil exporters should embrace hedging | The National:

"Is it better for countries to plunge and soar with the oscillations of global markets? Or to buckle themselves in as they ride the roller coaster?

Both oil exporters and importers are now taking the second option – and trying to protect their massive energy revenues and expenditures. But is it time for major oil sellers in the Arabian Gulf to consider hedging their exposure?

Oil makes up about 70 per cent of the Qatari government budget, 90 per cent of Saudi Arabia’s, and 95 per cent of Iraq’s."

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Iraq to welcome two foreign banks | The National

Iraq to welcome two foreign banks | The National:

"Iraq’s central bank will be approving licences for two foreign banks to operate in the country.

The bank has received “several applications” but so far only two have been approved.

“We are going to give approval for two, they are from the region but not the Gulf. One of them will immediately open seven branches,” said Abdul Bassit Turki, the governor of the Central Bank of Iraq and chairman of the Federal Board of Supreme Audit."

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Nabiullina Says No ‘Black List’ of Russian Banks - Bloomberg

Nabiullina Says No ‘Black List’ of Russian Banks - Bloomberg:

"Bank Rossii Governor Elvira Nabiullina said she doesn’t have a “black list” of Russian banks she aims to shut down after closing 30 small lenders in her first seven months on the job.

“There is no black list of Russian banks; it’s nonsense,” Nabiullina said in an interview with Russia’s Channel One TV yesterday. “Withdrawing a license is always a measure of last resort for the central bank. We will always work with a bank first.”

Since taking office as Bank Rossii governor on July 1, Nabiullina has stepped up efforts to tighten regulation of banks and curtail net capital outflows that were forecast at about $55 billion last year. The central bank canceled the licenses of AKB Novokuznetsk Municipal Bank OAO earlier this month, saying the Siberian lender made high-risk loans and allowed its owners to borrow from the company. Master-Bank had its license revoked in November for money-laundering violations."

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Lira Leads Emerging Currency Gain; India Moves on Rates - Bloomberg

Lira Leads Emerging Currency Gain; India Moves on Rates - Bloomberg:

"The Turkish lira and South Korean won led a rebound in emerging-market currencies, while U.S. stock-index futures advanced before the Federal Reserve reviews its record stimulus. Indian shares erased their gain after the central bank unexpectedly raised its benchmark interest rate.

The lira rallied 0.6 percent to 2.27 per dollar as of 2:50 p.m. in Tokyo, advancing for a second day from an all-time low. The won rose 0.3 percent to 1,080.80 per dollar from a four-month low. Standard & Poor’s 500 Index (SPX) futures added 0.3 percent as the MSCI Asia Pacific Index of stocks fell 0.2 percent. India’s S&P BSE Sensex erased a 0.4 percent advance. Silver increased from the lowest level in more than two weeks as copper rose 0.3 percent"

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