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Wednesday, 14 May 2014

MIDEAST STOCKS-Earnings, technicals lift Egypt; MSCI trio pull back | News by Country | Reuters

MIDEAST STOCKS-Earnings, technicals lift Egypt; MSCI trio pull back | News by Country | Reuters:



"Strong company earnings helped lift Egypt's stock market on Wednesday, while bourses in the United Arab Emirates and Qatar slipped ahead of an announcement from index compiler MSCI detailing their upgrade to emerging market status. 




Egypt's benchmark climbed 1.9 percent to 8,467 points, its highest close since late March.



Talaat Moustafa jumped 5.5 percent after the property developer posted a 15-percent rise in first-quarter after-tax profit.



Ezz Steel gained 5.8 percent after the firm said its 2013 profit was 134 million Egyptian pounds ($19 million), up from 8 million pounds in 2012."



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UAE's Etisalat completes $5.7 billion Maroc Tel stake buy from Vivendi | Reuters

UAE's Etisalat completes $5.7 billion Maroc Tel stake buy from Vivendi | Reuters:



"Etisalat ETEL.AD has completed its purchase of a 53 percent stake in Maroc Telecom from Paris-listed Vivendi (VIV.PA) for 4.14 billion euros ($5.67 billion), the United Arab Emirates operator said in a statement on Wednesday.



Etisalat has bought into Maroc Telecom (IAM.CS) through a separate legal entity, Etisalat International North Africa (EINA). Etisalat owns 91.3 percent of EINA, with Abu Dhabi Fund for Development holding the remainder.



The latter is an Abu Dhabi government-owned institution that provides concessionary loans and grants for projects in other countries, according to its website.



Earlier this month, Etisalat said it expected to close the deal on May 14."



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UAE's Etisalat completes $5.7 billion Maroc Tel stake buy from Vivendi | Reuters

UAE's Etisalat completes $5.7 billion Maroc Tel stake buy from Vivendi | Reuters:



"Etisalat ETEL.AD has completed its purchase of a 53 percent stake in Maroc Telecom from Paris-listed Vivendi (VIV.PA) for 4.14 billion euros ($5.67 billion), the United Arab Emirates operator said in a statement on Wednesday.



Etisalat has bought into Maroc Telecom (IAM.CS) through a separate legal entity, Etisalat International North Africa (EINA). Etisalat owns 91.3 percent of EINA, with Abu Dhabi Fund for Development holding the remainder.



The latter is an Abu Dhabi government-owned institution that provides concessionary loans and grants for projects in other countries, according to its website.



Earlier this month, Etisalat said it expected to close the deal on May 14."



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Abu Dhabi’s international energy and water investment company Taqa posts 158% Q1 profit hike as portfolio grows « ArabianMoney

Abu Dhabi’s international energy and water investment company Taqa posts 158% Q1 profit hike as portfolio grows « ArabianMoney:



"Abu Dhabi’s international energy and water investment company Taqa, one of its smaller sovereign wealth funds, posted a net profit of $75 million for the first quarter, up 158 per cent on a year earlier on revenues ahead 34 per cent to $2 billion. It cited a recovery in UK North Sea oil output, stronger natural gas prices in North America and higher technical availability in the international power fleet. There was plenty of progress across Taqa’s global portfolio.



Hydrocarbon production in the UK North Sea increased by 118 per cent to 62.9 thousand barrels of oil equivalent a day after the restoration of production of the Cormorant Alpha platform in the UK North Sea, the integration of new assets in the central North Sea and a successful drilling programme at North Cormorant."



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Ukraine, Gazprom, and the full faith and credit | FT Alphaville #EuroMaidan

Ukraine, Gazprom, and the full faith and credit | FT Alphaville:



"How many sovereign debtors get to be both in hock to the Russians, and using the United States’ full faith and credit to borrow fresh money?



Though we suppose Ukraine’s a special case:



The loan guarantee will apply to sums borrowed during a period beginning on the date that the Loan Guarantee Agreement enters into force and ending thirty days after such date, not exceeding an aggregate total of one billion United States Dollars ($1,000,000,000) in principal amount… The full faith and credit of the United States of America is pledged for the full payment and performance of such guarantee obligations. 


That’s the key snippet from a US loan guarantee issued on Monday — which by Wednesday the Ukrainian government was in the market to turn into eurobonds with a yield not above 2.9 per cent. Egypt, Israel, Tunisia and Jordan have all issued debt under similar US guarantees before, so this part isn’t new."



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Q&A with Dubai Bourse Chairman Essa Kazim on UAE’s Emerging Market Promotion - Middle East Real Time - WSJ

Q&A with Dubai Bourse Chairman Essa Kazim on UAE’s Emerging Market Promotion - Middle East Real Time - WSJ:



"It’s the only listed stock exchange in the Middle East. And since early 2013, among the world’s top performers: the Dubai Financial Market’s benchmark stocks gauge has more than tripled in value since early 2013 as investors cheer a sharp rebound in the emirate’s economy.



Confidence is high, also boosted by the Persian Gulf state winning the right to host the World Expo in 2020, and locals are increasingly optimistic that the United Arab Emirates’ promotion by index compiler MSCI to emerging market status this week will further enhance its investment credentials.



The bourse itself has worked along with U.A.E. regulators to build better market infrastructure ahead of the reclassification. DFM’s Chairman Essa Kazim has helped lead many of these changes, putting to use his experience dealing with global exchange groups such as Nasdaq OMX and the London Stock Exchange. After all, Borse Dubai – also headed by Mr. Kazim – is the majority owner of DFM and holds substantial stakes in both the international bourses."



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Understanding the Risks of Sanctioning Russian Oil - Carnegie Moscow Center #EuroMaidan

Understanding the Risks of Sanctioning Russian Oil - Carnegie Moscow Center:



"With secessionist events in Ukraine unfolding, further U.S. and EU sanctions against Russia remain a policy option.



Russia’s oil sector fuels roughly forty percent of the country’s current budget, so finding an effective way to sanction it is an obvious target for the United States and its western allies. Before sanctioning Russian oil, however, it is essential to answer one key question: how will markets respond to eliminating exports from today’s largest global oil producer? The answer to this question is not reassuring—neither for Russia, nor the West. Any steps to sanction crude therefore should be considered with extreme caution."



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Mitigating the pension crisis - YouTube

Mitigating the pension crisis - YouTube: ""



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More kangaroo bond deals from Middle East banks in pipeline, says HSBC | The National

More kangaroo bond deals from Middle East banks in pipeline, says HSBC | The National:



"Middle East borrowers are increasingly weighing Australian-dollar bonds as they seek to tap one of the world’s biggest sources of pension funds, according to HSBC.



Three regional lenders including National Bank of Abu Dhabi sold A$1.05 billion (Dh3.61bn) of debt this year, known as Kangaroo bonds, compared with two sales in 2013 for A$475 million, according to data compiled by Bloomberg.



“We expect to see further transactions from Middle Eastern issuers,” Mustafa Aziz Ata, HSBC’s head of debt capital markets for the Middle East and North Africa, said this week. HSBC anticipates working on another three kangaroo-bond deals for clients in the region, he said, declining to identify the issuers."



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Clean sweep needed across the board on money laundering | The National

Clean sweep needed across the board on money laundering | The National:



"According to estimates by KPMG, more than US$500 billion is laundered worldwide annually by organised criminals. Given the staggering figure, there is a growing political will to combat this disturbing trend. Governments, law enforcement and regulators across the world have increased their scrutiny of anti-money laundering (AML) processes and controls, investing more in forensic practices and taking direct action involving fines or even imprisonment against individuals and firms who fail to comply with minimum standards.



This is in stark contrast to the situation during the financial crisis, when senior management interest in AML compliance dropped down the agenda at board meetings."



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Russian Slowdown to Shield Europe From Ukraine Gas Cuts - Bloomberg

Russian Slowdown to Shield Europe From Ukraine Gas Cuts - Bloomberg:



"European natural gas traders are betting Russia’s economy can’t afford to lose more than $100 billion if the crisis in Ukraine escalates, reducing the odds of a long-lasting supply cut to the former Soviet nation.



Gas futures in the U.K., Europe’s biggest market, declined 19 percent since Russia invaded Crimea in February and tumbled last week to the lowest since 2010. An escalation of the conflict with Ukraine could cost Russia $115 billion on average in 2015, or more than 3 percent of its gross domestic product, according to IHS Inc.



Expanding sanctions from the U.S. and European Union threaten Russia’s economy, which the International Monetary Fund says is entering a recession. The world’s biggest energy exporter is struggling to raise investments to stimulate growth as ties with the U.S. and the EU deteriorate, sparking capital flight and a selloff of ruble assets."



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Ukraine Crisis Weighs on East Europe as EBRD Meets - Bloomberg

Ukraine Crisis Weighs on East Europe as EBRD Meets - Bloomberg:



"Russia, the biggest recipient of European Bank for Reconstruction and Development cash, may choke off eastern Europe’s recovery should sanctions meant to end the bloody standoff in Ukraine send it into recession. 




The London-based EBRD, which invests about 9 billion euros ($14 billion) a year from Mongolia to Morocco, will discuss investment strategies 25 years after the Iron Curtain fell during its annual meeting today in Warsaw.



Eastern Europe is recovering after a debt-crisis roiled the euro region and western European banks curbed financing amid tighter capital rules. The rebound is at peril as Russia, the region’s largest economy and its main energy supplier, is punished by the European Union and the U.S. for President Vladimir Putin’s actions in neighboring Ukraine.

"



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Egyptian Banks See More IPOs Following Arabian Cement Share Sale - Bloomberg

Egyptian Banks See More IPOs Following Arabian Cement Share Sale - Bloomberg:



"Egyptian investment banks expect at least two companies to sell shares to the public in the next 12 months after Arabian Cement Co. ended an almost four-year drought.



EFG-Hermes Holding SAE, Egypt’s biggest publicly traded investment bank, and CI Capital Holding, a unit of the largest listed lender Commercial International Bank Egypt SAE, each said they expect to help two companies offer stock. It wasn’t immediately clear if their mandates overlapped. The two served as joint global coordinators and book runners in the $110 million initial public offering of Arabian Cement.



The benchmark EGX 30 Index for equities has rallied more than 65 percent since the military ousted Islamist President Mohamed Mursi in July even as the economy struggles to recover from the worst slowdown in two decades. The country holds presidential elections this month, with former Defense Minister Abdel-Fattah Al-Seesi seen as the favorite to win the top job."



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