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Monday, 3 November 2014

MIDEAST STOCKS-Region outperforms as MSCI hopes aid Qatar, IPO boosts Saudi | Reuters

MIDEAST STOCKS-Region outperforms as MSCI hopes aid Qatar, IPO boosts Saudi | Reuters:



"Most Middle Eastern stock markets rose on Monday, outperforming weak Asian and European bourses, as hopes for a bigger weighting in MSCI's indexes buoyed Qatar and a successful initial public offer supported Saudi Arabia.



The Qatari index climbed 1.2 percent as Industries Qatar surged 3.2 percent. When it upgraded Qatar and the United Arab Emirates to emerging markets in May, MSCI applied an "adjustment factor" of 0.5 to stocks there, citing "accessibility issues to international institutional investors"; in August, it said it might consider at a November review whether to raise Qatar's adjustment factor to 1.



MSCI is to announce the results of the review on Thursday evening and some analysts think Qatar's weighting is likely to be raised, which could attract some $200 million of fresh, passive funds to the market. As a leading blue chip, Industries Qatar would be a major beneficiary."



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Middle East sovereign funds increasing allocation to home markets | GulfNews.com

Middle East sovereign funds increasing allocation to home markets | GulfNews.com:



"Middle East sovereign investors who account for $1.4 trillion of assets managed globally are allocating significantly high portion of their assets to home markets, but increasingly these funds are expanding their allocation to emerging markets and alternate asset classes according Invesco Asset Management.



The findings are from the Invesco Asset Management Study. The Middle East study, the fifth annual survey of its kind, was based on 52 interviews with employees at sovereign wealth funds.



Home market allocations by Middle East sovereign investors are about 42 per cent on average. Sovereign investors are broadly categorised into 4 categories based on their objectives such as investment, development, liquidity and liability. Overall the Middle East is weighted to development and investment sovereigns compared to the global average. However, in terms of assets, the Middle East is strongly weighted to investment sovereigns."



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Hedge Funds finding foothold in the region | GulfNews.com

Hedge Funds finding foothold in the region | GulfNews.com:



"Hedge Fund investing is gaining momentum in the UAE and the Middle East region, thanks to the growing sophistication level among high networth investors in the region and the global regulatory standards in the Dubai International Financial Centre (DIFC).



“Historically, the hedge fund industry has developed in clusters like the Grand Connecticut, Barclays Square are of London, Luxembourg, Singapore and some in Hong Kong. They are yet to cluster here. There are several reasons one of the reasons is the relatively low level of understanding of industry in this part of the world. But the market is changing,” said Howard Leedham, CEO of Dalma Capital, one of the pioneers of hedge fund management in the UAE.



Dalma Capital Management Limited is an Asset (Hedge Fund) Manager that is based in the DIFC Centre and regulated by the Dubai Financial Services Authority (DFSA). It currently manages the Dalma Unified Return Fund, domiciled in Malat, open only to institutional and qualified high net worth investors."



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Russian ADRs Post Monthly Decline on Ukraine Outlook - Bloomberg

Russian ADRs Post Monthly Decline on Ukraine Outlook - Bloomberg:



"Russian stocks posted a second straight monthly decline in New York amid speculation the Ukraine crisis may escalate and as the central bank’s interest-rate increase failed to stem the ruble’s decline.



Oil producer OAO Surgutneftegas (SGTPY) ended a six-day advance, erasing its gain for the month as Brent crude fell. The Bloomberg Russia-US Equity Index dropped 4.4 percent in October to 75.37. The ruble weakened 7.7 percent, the most among emerging-market currencies, even after Russia’s central bank increased its benchmark interest rate more than forecast by economists. 




The index of U.S.-traded Russian stocks dropped in October amid wide price swings as traders reacted to developments in Ukraine. The gauge’s 90-day historical volatility rose to a two-month high of 22 percent last week. The U.S. and the European Union have imposed sanctions to punish President Vladimir Putin for instigating the rebellion in the former Soviet republic, a claim he denies. Russia’s foreign minister said last week that the country will recognize separatist elections."



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JPMorgan, EFG-Hermes Said to Be Working With Emaar on Egypt IPO - Bloomberg

JPMorgan, EFG-Hermes Said to Be Working With Emaar on Egypt IPO - Bloomberg:



"Emaar Properties PJSC (EMAAR) is hiring JPMorgan Chase & Co. (JPM) and EFG-Hermes Holding SAE to sell shares in its Egyptian business, two people with knowledge of the matter said.



Engagement letters are due to be signed with the banks this week to run the initial public offering of Emaar Misr, the people said, asking not to be identified as the information is private. The IPO is scheduled for the second quarter of 2015. 




Emaar, the U.A.E. developer that raised $1.6 billion from an initial public offering of its malls unit in September, will probably sell the unit in June next year, Chairman Mohamed Alabbar said at a conference in Dubai on Oct. 2. The developer also plans to sell shares in its hotel business, Alabbar has said separately."



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Telecom Egypt Said to Seek Advisers for Sale of Vodafone Stake - Bloomberg

Telecom Egypt Said to Seek Advisers for Sale of Vodafone Stake - Bloomberg:



"Telecom Egypt plans to hire financial advisers for the potential sale of a 45 percent stake in Vodafone Group Plc (VOD)’s local unit, a company official said. 




The monopoly fixed-line phone company, majority-owned by the government, has sent requests for proposals to local and international banks seeking to value the unit, the official said, asking not to be identified as the information is private. Banks will also help identify potential buyers for the stake, a second person said, also asking not to be identified.



Telecom Egypt will sell its holding in Vodafone Egypt by the end of 2015, the government said in September. Officials have also approved the issuance of a license that allows Telecom Egypt to become the country’s fourth mobile services provider and permits the local units of Vodafone, Orange SA (ORA) and Emirates Telecommunications Corp. (ETISALAT) to sell land lines."



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MIDEAST STOCKS-Markets climb on strong global backdrop, corporate news | Reuters

MIDEAST STOCKS-Markets climb on strong global backdrop, corporate news | Reuters:



"Most Middle Eastern stock markets rose on Sunday as an improved global environment encouraged local retail investors to buy and positive corporate news in Qatar, Saudi Arabia and Egypt buoyed shares in those countries.



Major foreign stock markets surged over 1 percent on Friday, partly because the Bank of Japan surprised markets by ramping up its economic stimulus programme. Although the long-term outlook for oil prices remains uncertain, Brent crude has stabilised around $85 a barrel in recent days.



That was enough to spur gains across the Gulf, although markets closed off their highs. Dubai's index rose 1.6 percent to end at 4,616 points, off the day's peak of 4,671."



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