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Monday, 7 July 2014

MidEast Shares Mixed, Saudi Arabia Firms on Positive Earnings - NASDAQ.com

MidEast Shares Mixed, Saudi Arabia Firms on Positive Earnings - NASDAQ.com:



"Middle East stocks were mixed, with Saudi Arabia finding support from earnings. 




Saudi Hollandi Bank and Riyad Bank each reported Q2 profit topped analysts' forecasts.



Kuwait slipped after police dispersed a fresh political protest."



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EconoMonitor : EconoMonitor » Oil Production Numbers Keep Going Down

EconoMonitor : EconoMonitor » Oil Production Numbers Keep Going Down:

By Dave Summers: One problem with defining a peak in global oil production is that it is only really evident sometime after the event, when one can look in the rear view mirror and see the transition from a growing oil supply to one that is now declining. Before that relatively absolute point, there will likely come a time when global supply can no longer match the global demand for oil that exists at that price. We are beginning to approach the latter of these two conditions, with the former being increasingly probable in the non-too distant future. Rising prices continually change this latter condition, and may initially disguise the arrival of the peak, but it is becoming inevitable.
Over the past two years there has been a steady growth in demand, which OPEC expects to continue at around the 1 mbd range, as has been the recent pattern. The challenge, on a global scale, has been to identify where the matching growth in supply will come from, given the declining production from older oilfields and the decline rate of most of the horizontal fracked wells in shale.
Growth in global demand for oil
Figure 1. Growth in global demand for oil (OPEC MOMR)
At present the United States is sitting with folk being relatively complacent, anticipating that global oil supplies will remain sufficient, and that the availability of enough oil in the global market to supply that reducing volume of oil that the US cannot produce for itself will continue to exist.
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Abu Dhabi Investment Authority sells Kotak Bank shares worth Rs 420 crore - The Economic Times

Abu Dhabi Investment Authority sells Kotak Bank shares worth Rs 420 crore - The Economic Times:



"Abu Dhabi Investment Authority (ADIA), one of the world's biggest sovereign wealth funds, today offloaded over 48 lakh shares of Kotak Mahindra Bank for an estimated Rs 420 crore.



According to information available with the stock exchanges, Abu Dhabi Investment Authority sold a total of 48,09,184 shares of the bank through open market route.



The shares were offloaded on an average price of Rs 874.55 valuing the transaction at Rs 420.58 crore. "



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U.A.E. to Mull Rule Changes After Reviewing June Market Turmoil - Bloomberg

U.A.E. to Mull Rule Changes After Reviewing June Market Turmoil - Bloomberg:



"The United Arab Emirates may amend rules governing bank lending against shares after reviewing June’s stock price swings in Dubai and Abu Dhabi, the market regulator said today.



Representatives of the Securities & Commodities Authority, the central bank and the country’s two main stock exchanges met in Abu Dhabi to consider the volatility, and will make changes to lending regulations if necessary, the SCA said in an e-mailed statement today. The parties also agreed to set up a joint permanent committee to monitor trades and ensure the “absence of any suspicion of manipulation of securities’ price,” according to the statement.



Dubai’s benchmark share index plunged 22 percent in June, its biggest monthly decline since November 2008, fueled by investor concerns over changes in ownership and management at Arabtec Holding Co. (ARTC), the country’s largest publicly traded construction company. The decline may have been amplified by so-called margin calls, attempts by banks and brokerages to offload stocks to pay back some borrowed money that was used to buy them, brokers and analysts said at the time."



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UAE Regulators Step-up Market Surveillance After June’s Gyrations - Middle East Real Time - WSJ

UAE Regulators Step-up Market Surveillance After June’s Gyrations - Middle East Real Time - WSJ:



"What does it take to bring all the heavyweights overseeing stock markets in the United Arab Emirates together? A  share price crash did the job this time around. 




The bigwigs of capital markets met this week in Abu Dhabi: Sultan Bin Saeed Al Mansouri, the country’s economy minister and chairman of the Securities & Commodities Authority (SCA); Sultan Bin Nasser Al Suwaidi, the central bank governor; Abdullah Salem Al Turifi, the chief executive at the market regulator; and the two bourse chiefs – Essa Kazim of Dubai Financial Market and Rashed Al Baloushi of the Abu Dhabi Securities Exchange.



An unusual meeting at an unusual time, some would say. After all, it’s the summer months and Ramadan – a period when most locals work fewer hours, while some also take their vacations to escape the desert sun."



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#Ukraine’s gas debt to hit $5.26 bn, if no June payment — RT Business

Ukraine’s gas debt to hit $5.26 bn, if no June payment — RT Business:



"Ukraine’s gas debt will increase to $5.26 billion on Monday, if it doesn’t pay its bill for June by the July 7 deadline. This bill is calculated on gas delivered before Russia’s Gazprom switched Ukraine’s Naftogaz to a prepayment system.



In the first 15 days of June before the prepayment plan was introduced Russia supplied 1.56 billion cubic meters of gas to Ukraine.



If the bill is not paid by July 7 the debt will rise to $5.26 billion, based on the new price of $485 per thousand cubic meters that came into effect in April."



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Dubai mega projects are back but will they get built this time? « ArabianMoney

Dubai mega projects are back but will they get built this time? « ArabianMoney:



"

It’s only eight years ago that Dubai Holding rolled out its Bawadi plan for a 10-kilometre long boulevard in the Dubailand desert zone with 51 hotels providing more than 60,000 rooms, including the Asia-Asia Hotel to be the largest hotel in the world with more than 6,500 rooms.



There was therefore a certain sense of deja vu when the same developer announced the Mall of the World at the weekend, this time positioned more centrally on the Sheikh Zayed Road opposite the highly successful Mall of the Emirates."



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Abu Dhabi’s Mubadala considers purchase of historic London property – report - Banking & Finance - ArabianBusiness.com

Abu Dhabi’s Mubadala considers purchase of historic London property – report - Banking & Finance - ArabianBusiness.com:



"Mubadala, the Abu Dhabi state-owned investment vehicle, is eyeing up the purchase of a historic six acre site in Knightsbridge, according to a report in the UK.



The Sunday Telegraph reports that Hyde Park Barracks, the historic home of the Household Cavalry, is attracting the interest of Mubadala Development Company.



The UK Ministry of Defence is looking at options to sell the property, located in London’s West End, on the southern edge of Hyde Park. The estimated price quoted in recent media reports was £600m ($1.029bn)."



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Trader profile: taking a stable outlook after last month’s market drama | The National

Trader profile: taking a stable outlook after last month’s market drama | The National:



"Karam Aldabbagh is an equity trader at Al Ramz Securities in Abu Dhabi.



What is the asset class and geography you are focused on?



I only deal with equities. I am focused on the entire Mena region, specifically now on the UAE markets. Most portfolios I deal with are weighted 50/50 towards long-term and short-term trading. I try to stay with the most liquid stocks which, these days, are the real estate or property stocks."



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Arabtec recovery pays off for Dubai Financial Market | The National

Arabtec recovery pays off for Dubai Financial Market | The National:



"The Dubai Financial Market rose for the fourth day in a row on yesterday, as investor confidence in the construction company Arabtec continued to revive.



However fund managers warned that the market is likely to remain volatile in the near future, with little in the way of fundamental catalysts to drive the market much higher.



The Dubai Financial Market DFM was yesterday’s best performing bourse worldwide, with a rise of 4.4 per cent, closing up 193.93 points at 4,593.57. The bourse has risen 16.5 per cent so far this month, clawing back some of the territory lost in June."



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Market volatility shows a lot still needs doing | GulfNews.com

Market volatility shows a lot still needs doing | GulfNews.com:



"There was so much hype about the inclusion of the UAE and Qatar in the MSCI index for emerging markets that everyone started to feel fatigue much before the decision actually took effect. The extent of fund flows into these markets that their new categorisation would bring about was one of the key talking points.



In the din and excitement about the new prospects, some basic issues got pushed into the background. These are now coming home to roost.



The ignominy suffered by Arabtec in the post-MSCI period, in fact, brings out the pitfalls of a market getting the upgrade before it is ready for the elevation. Apart from the possible impact of a real estate market that is beginning to suffer from a variety of problems, including overheating, the company suffered its worst drubbing at the hands of investors, who also pounded down the overall market by a quarter of its value in the space of a few trading sessions."



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Russia Cuts Gazprom Dividend Forecast as Pipeline Spending Rises - Bloomberg

Russia Cuts Gazprom Dividend Forecast as Pipeline Spending Rises - Bloomberg:



"OAO Gazprom, Russia’s state-run gas producer, will pay a lower dividend than expected in 2016 as investments in export pipelines soar, according to a document prepared for a government meeting last week.



The Finance Ministry expects to receive 84.4 billion ($2.5 billion) from Gazprom dividends in 2016, 32 percent less than an earlier forecast of 124.7 billion rubles, according to the document, obtained by Bloomberg News. The new figure equates to 9.3 rubles per share, data compiled by Bloomberg show.



The government’s lower forecast for dividends may reflect Gazprom’s investment plans. The world’s largest gas exporter decided in May to spend $55 billion in next decade to build a gas pipeline to China and develop East Siberian fields. It must also finance the $22 billion South Stream pipeline project to the European Union."



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Lagarde Hints at Global Forecast Cut Even as U.S. Rebounds - Bloomberg

Lagarde Hints at Global Forecast Cut Even as U.S. Rebounds - Bloomberg:



"International Monetary Fund Managing Director Christine Lagarde signaled a cut in the institution’s global growth forecasts, saying investment is still weak and that risks remain in the U.S. even as its rebound accelerates.



“The global economy is gathering speed, though the pace may be a bit less than we previously predicted because the growth potential is lower and investment” spending remains lackluster, Lagarde told the Cercle des Economistes conference in Aix-en-Provence, France.



The remarks underline the threats to global economic growth at a time when the U.S. Federal Reserve is trimming stimulus and the European Central Bank is fighting inflation that is less than half its targeted level. The IMF is preparing to update its economic forecasts this month after predicting April 8 that the global economy will expand 3.6 percent this year and 3.9 percent in 2015."



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Dubai Mulls New Rules to Limit Off-Plan Property Sales, IMF Says - Bloomberg

Dubai Mulls New Rules to Limit Off-Plan Property Sales, IMF Says - Bloomberg:



"Dubai is considering regulations to limit the sale of properties before they are built to address one of the main causes of the 2008 property crash, according to the International Monetary Fund.



“The Dubai authorities are completing a review of the off-plan transaction market, and will issue additional regulations, which could slow down real-estate sector price growth, in the coming months,” the IMF said its Article IV consultation dated July 3.



Dubai’s recovery from the verge of default in 2009 fueled a 35 percent-increase in real estate prices last year, according to broker Knight Frank LLP, sparking concerns the emirate is at risk of a bubble in the real-estate market. That prompted authorities to double property transaction fees to 4 percent last year and the United Arab Emirates’ central bank to impose mortgage caps."



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HSBC Said to Close Libyan Operations as It Reviews Businesses - Bloomberg

HSBC Said to Close Libyan Operations as It Reviews Businesses - Bloomberg:



"HSBC Holdings Plc (HSBA), Europe’s biggest bank, is planning to close its Libyan operations, according to a person familiar with the matter.



The representative office in Tripoli, which employs less than 10 people, failed to pass a set of criteria drawn up by the lender to determine which businesses it should exit, the person said, asking not to be identified as the plans aren’t public. In June last year the bank said it planned to sell its Iraqi operations for similar reasons, according to the person.



Chief Executive Officer Stuart Gulliver is seeking to simplify the bank’s structure and boost returns by selling assets and focusing on growing economies in which the bank has the greatest market share. HSBC has already sold off units around the world including its Japanese private bank, Russian retail bank and several Latin American businesses."



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