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Monday, 31 August 2015

Saudi Stocks Cap Worst Month in Seven Years as Oil Resumes Slide - Bloomberg Business

Saudi Stocks Cap Worst Month in Seven Years as Oil Resumes Slide - Bloomberg Business:



"Saudi Arabian stocks fell in the worst month in almost seven years after Brent crude resumed its decline.



The Tadawul All Share Index fell 2.2 percent on Monday, the most among the Middle East’s major equity gauges, to 7,522.47. That extends the Tadawul’s drop to 17 percent in August, the most in a month since October 2008, according to data compiled by Bloomberg. Brent, the benchmark for half the world’s oil, headed for its fourth monthly decline.



Saudi Arabia’s index is the worst-performing in the world this month after the Athens Stock Exchange General Index, following a slump in the price of oil, which accounts for about 90 percent of the country’s income. The government is already reviewing capital spending plans for next year, and may delay or downsize some infrastructure projects to save money, according to two people familiar with the matter."



'via Blog this'

MIDEAST STOCKS-Gulf markets fall on oil; Egypt jumps after gas find | Reuters

MIDEAST STOCKS-Gulf markets fall on oil; Egypt jumps after gas find | Reuters:



"Most Gulf stock markets fell on
Monday, tracking volatile oil prices, while Egypt's bourse
jumped after energy major Eni announced a potentially huge
natural gas discovery off the country's coast.



The main Saudi Arabian stock index dropped 2.2
percent, closing August with a 17.3 percent loss, its biggest
monthly drop since October 2008. Like other Gulf markets, it
swung wildly during the month in response to oil price changes;
at its bottom on Aug. 24, the benchmark was 30.9 percent down
month-to-date.



All sectors fell on Monday as Brent oil dipped back below
$49 a barrel, pressured by a supply glut and renewed concern
about a hard landing for China's economy."



'via Blog this'

Mideast funds more positive on stocks as valuations improve -survey | Reuters

Mideast funds more positive on stocks as valuations improve -survey | Reuters:



"Middle East fund managers have
turned more positive towards equities in the region after a
plunge in markets reduced valuations and oil prices rebounded, a
monthly Reuters survey shows.



The survey of 15 leading investment firms, conducted over
the past several days, shows 20 percent expect to raise their
equity allocations to the Middle East in the next three months,
while 7 percent expect to reduce them.



That is not a particularly bullish ratio by historical
standards, but it is a positive shift from last month's survey,
when only 13 percent expected to increase equity allocations and
20 percent to cut them."



'via Blog this'

MIDEAST STOCKS-Saudi Arabia, Egypt join regional pull-back | Reuters

MIDEAST STOCKS-Saudi Arabia, Egypt join regional pull-back | Reuters:



"Stock markets in Saudi Arabia and Egypt fell in early trade on Monday after oil prices dropped and emerging market equities in Asia slipped.



The main Saudi stock index fell 1.6 percent, with petrochemicals heavyweight Saudi Basic Industries (SABIC) the main drag. It slid 2.2 percent, in line with the price of oil, which affects the industry's profit margins.



Brent crude futures for October delivery have dropped more than $1 or 2 percent on Monday as traders book profits after last week's rally, which saw the biggest two-day rise in six years."



'via Blog this'

Bahrain’s Investcorp says market volatility won’t hit business | The National

Bahrain’s Investcorp says market volatility won’t hit business | The National:



"Investcorp expects its business to sail through the volatility in global and local markets, its co-chief executive said on Sunday after the alternative investment fund posted a 13 per cent increase in full-year net income.



Gulf investors are still looking to deploy their existing wealth into new investments, especially to diversify outside of the region, Rishi Kapoor told reporters on a conference call.



“We have had similar situations in the past, either led by oil price declines or regional geopolitical tensions, but Investcorp has positioned itself as a conduit for investors to allocate a position of their current wealth to attractive investment opportunities in the US and Europe."



'via Blog this'

Iran oil contracts model to be finalised in weeks - minister | Reuters

Iran oil contracts model to be finalised in weeks - minister | Reuters:



"Iran expects to finalise the wording for a new model for international oil contracts in the next three weeks, the oil minister said on Monday, as Tehran seeks to boost recovery from its fields with the help of foreign companies.



The ministry is expected to present the new oil contracts to investors at a conference in London in December, ahead of a likely lifting of international sanctions in 2016.



"Iran has put together a new model for oil contacts that allows access to regional and international markets and paves the way for long-term strategic cooperation with major companies," Oil Minister Bijan Zanganeh was quoted as saying by the Shana news agency."



'via Blog this'

UAE markets fall as oil declines back below $50 | The National

UAE markets fall as oil declines back below $50 | The National:



"UAE equities opened down on Monday against a background of falling oil prices and mixed Asian bourses.



The Dubai Financial Market General Index opened the day down 1.5 per cent. Emaar Properties, the index’s heaviest weighted stock, reached a fall of 3 per cent early in the day.



Abu Dhabi’s headline index opened off 0.7 per cent. Shares in NBAD fell 6.7 per cent in early trading, with Aldar and Etisalat also down."



'via Blog this'

Oman Said to Consider Importing LNG as Domestic Gas Use Surges - Bloomberg Business

Oman Said to Consider Importing LNG as Domestic Gas Use Surges - Bloomberg Business:



"Oman may start importing liquefied natural gas to meet surging domestic energy demand, according to two people with knowledge of the matter, a shift in trade that would make it the fourth Arab country in the oil-rich Persian Gulf to buy LNG.



Oman currently exports liquefied gas under long-term contracts to Spain and several Asian countries including Japan and South Korea. It’s now studying options to import LNG as well, to help generate power and for other uses, said the two people, who asked not to be identified because the plan isn’t public. Potential imports would arrive at the port of Sohar north of the capital city Muscat. Oman’s Ministry of Oil and Gas didn’t respond to calls for comment on Sunday.



LNG trade is expanding in the Middle East due to the growing regional use of electricity and the lack of cross-border pipelines for transporting natural gas. Combined imports of LNG by Kuwait and the United Arab Emirates increased 47 percent in 2014 from the previous year, according to the International Group of Liquefied Natural Gas Importers. Bahrain is building a receiving terminal for the fuel, while Jordan, Egypt, Morocco and Pakistan also plan to buy LNG."



'via Blog this'

Italy's Eni discovers huge gas field off Egyptian coast - BBC News

Italy's Eni discovers huge gas field off Egyptian coast - BBC News:



"Italian energy group Eni says it has found one of the world's largest natural gas fields off Egypt's coast.



The company said the area was 1,450m (4,757 feet) beneath the surface and covered 100 sq km (39 sq miles).



It could hold as much as 30 trillion cubic feet of gas, or 5.5 billion barrels of oil equivalent, Eni said."



'via Blog this'

Sunday, 30 August 2015

MIDEAST STOCKS-Markets rise but oil-driven rally losing steam | Reuters

MIDEAST STOCKS-Markets rise but oil-driven rally losing steam | Reuters:



"Most Middle East stock markets
rose but closed well off their intra-day highs on Sunday and
some edged lower as investors started selling into the region's
rally, indicating sentiment was still shaky even after oil
prices rebounded.



Saudi Arabia's main index, which surged as much as
4.6 percent early in the day, closed just 1.1 percent higher.
That left the index up 11 percent from a 29-month low hit last
Monday, but still 15 percent below its level at the end of last
month. 



The petrochemical sector, up 3.2 percent, was the
main support on Sunday after Brent oil climbed above $50
per barrel on Friday. The sector's margins are directly affected
by oil prices and leading petrochemical producer Saudi Basic
Industries surged 4.0 percent."



'via Blog this'

Why $40 oil is killing Iraq, Venezuela and others, but not Russia

Why $40 oil is killing Iraq, Venezuela and others, but not Russia:



"It’s not the economy, stupid. At least it isn’t where hearts are warmed by the fiercer flame of nationalism, rather than rising living standards.



Oil prices as low as $40 a barrel are separating the oil haves from the oil have-nots. The oil producers happily rode a wave of high oil prices for years, buying popularity with increased state spending while excusing themselves from the hard pounding of legitimate economic reform. The oil-buyers — like India and Egypt — now enjoy prices as low as a third of those they paid as recently as two years ago and can cut fuel subsidies, saving spending or redirecting it to broader social uses.



As a result, most of the oil-producers are now in a troubling position.  Venezuela’s President Nicolas Maduro faces parliamentary elections in December with falling popularity and a poll showing Venezuelans will vote for the opposition rather than his Socialist Party by a factor of two to one. Maduro lacks the charismatic populism of his predecessor, Hugo Chavez — a popularity based on the former president’s insistence that the high oil revenues were benefitting the poor (they did) and making the nation great, while sticking it to the Americans."



'via Blog this'

MIDEAST STOCKS-Saudi Arabia surges, boosted by stronger oil | Reuters

MIDEAST STOCKS-Saudi Arabia surges, boosted by stronger oil | Reuters:



"Saudi Arabia's stock market continued its sharp rebound in early trade on Sunday as stronger oil prices lifted shares in the petrochemical sector.



The kingdom's main stock index jumped 4.2 percent in the opening minutes and petrochemicals giant Saudi Basic Industries (SABIC) rose 6.5 percent. The petrochemical sector index added 5.7 percent.



Other sectors were also strong although lagging behind petrochemicals, for whom stronger oil translates into higher margins. National Commercial Bank, Saudi Arabia's largest lender, surged 4.2 percent."



'via Blog this'

Dubai Financial Market jumps on oil price surge | The National

Dubai Financial Market jumps on oil price surge | The National:



"The Dubai Financial Market rose 3 per cent in early trade on Sunday on the back of a sharp spike in oil prices.



Property stocks led the way, with Emaar Properties up 4.29 per cent in the opening half an hour, while Damac was up 4.46 per cent and the Dubai contractor Arabtec 2.49 per cent.



The Abu Dhabi Securities Exchange General Index was up 1.46 per cent."



'via Blog this'

Why sukuk may prove a haven amid sell-off | GulfNews.com

Why sukuk may prove a haven amid sell-off | GulfNews.com:



"Investors seeking a refuge amid the emerging-market rout could do worse than consider Middle East Islamic bonds. 




The average yield on Middle Eastern Sharia-compliant bonds, which pay a return on assets to adhere to Islam’s ban on interest, was 4.56 per cent on Wednesday, compared with 6.66 per cent for emerging-market debt. That’s near the widest such spread since March and 13 basis points from the widest since 2004.



“Sukuk are held in more stable hands and they’re not as panicky as the rest of emerging markets,” Robert Hahm, an investment manager at Mashreq Capital DIFC Ltd. in Dubai, which runs the Middle East and Africa’s best-performing Sharia- compliant fixed-income fund this year, said by phone on Aug. 25. “The investor base is more long-term oriented, more dedicated.”"



'via Blog this'

Saturday, 29 August 2015

Saudi Arabia can circumvent its challenges | GulfNews.com

Saudi Arabia can circumvent its challenges | GulfNews.com:



"Saudi Arabia’s economy has the necessary financial wherewithal to overcome its several ongoing challenges, which has intensified due to steady dip in oil prices. The challenges include a widening fiscal imbalance, a drop in the Saudi bourse’s index and rising youth joblessness.



The SWF (Sovereign Wealth Fund) Institute puts the value the of Saudi Arabia’s sovereign wealth fund at $677 billion, the fourth highest in the world. The June number represents some 9.4 per cent of total SWFs in the world and the second largest within the Gulf after the UAE.



Saudi Arabia continues to enjoy notable credit ratings such as an AA- from Standard & Poor’s and AA from Fitch Ratings, providing a certain level of comfort for institutional investors interested in purchasing Saudi bonds. Nevertheless, both agencies opted to revise the outlook from stable to negative considering the adverse effects from the plunge oil prices and increased government spending. S&P made the move in February while Fitch followed suit this month."



'via Blog this'

Dubai’s realty market in the grip of a bear hug | GulfNews.com

Dubai’s realty market in the grip of a bear hug | GulfNews.com:



"The UAE’s real estate sector is caught in a tight bear hug. And it’s not limited to what has been happening to property and construction stocks listed on the local bourses.



With a few exceptions, the first-half financials for the property majors have ranged from indifferent to abysmal. Union Properties saw a precipitous decline in revenues by 55 per cent in the first six months of the year from a year ago, while its net profit took a 93 per cent dive.



Deyaar, meanwhile, took a 72 per cent hit on its revenue numbers, but profit got a 24 per cent boost from one-off write-back of provisions."



'via Blog this'

China's black Monday — fallout and Fed | FT Markets - YouTube

China's black Monday — fallout and Fed | FT Markets - YouTube: ""



'via Blog this'

Friday, 28 August 2015

Are market bears just cuddly pandas | Short View - YouTube

Are market bears just cuddly pandas | Short View - YouTube: ""



'via Blog this'

GCC corporate earnings drop 7% on weak oil, strong dollar | GulfNews.com

GCC corporate earnings drop 7% on weak oil, strong dollar | GulfNews.com:



"Many companies in the Gulf Cooperation Council (GCC) region could be feeling the impact of declining oil prices and strengthening of the US dollar, with overall corporate earnings falling by seven per cent in the first half of the year.



The latest report from Kuwait Financial Centre “Markaz” showed that among the hardest hit are businesses in the financial services, construction, commodities and telecommunications sectors, as well as conglomerates.



Company profits declined across the region, except in Qatar. The ones that suffered the most were businesses and multinationals in the oil-rich Saudi Arabia and Kuwait."



'via Blog this'

Thursday, 27 August 2015

Ukraine agrees 'win-win' debt restructuring deal | World news | The Guardian

Ukraine agrees 'win-win' debt restructuring deal | World news | The Guardian:



"Ukraine has secured a 20% writedown on $18bn (£11.6bn) of its foreign debts in a deal its finance minister described as win-win for the war-torn country. Kiev’s agreement with its largest creditors is an attempt to stabilise government finances after more than a year of fighting on its eastern border that has brought the country to the edge of bankruptcy.



The hedge funds holding Ukrainian debt will write off around $4bn in return for securities that will pay holders a percentage of Ukraine’s economic growth from 2021. But in a move that is likely to dismay many MPs in the Kiev parliament, the government conceded that it must pay a higher interest rate on the remaining debts.



The deal, which still needs to be approved by creditors outside the group, includes a four-year extension on repayments to give Ukraine breathing space. But the interest rate on the bonds will rise 0.5 percentage points to 7.75%. It ended months of tense negotiations aimed at helping to keep the country on track with its International Monetary Fund-led bailout programme, plugging a funding gap and preventing a unilateral debt default."



'via Blog this'

MIDEAST STOCKS-Gulf up on stronger global trend, long-term outlook still murky | Reuters

MIDEAST STOCKS-Gulf up on stronger global trend, long-term outlook still murky | Reuters:



"Major Gulf stock markets rose
sharply on Thursday, suggesting they had established short-term
floors after several weeks of heavy selling, but their long-term
outlook remained murky because of unstable oil prices.



The Saudi Arabian stock index climbed 3.0 percent to
7,604 points. It has now rebounded 10 percent from a 29-month
low of 6,921 points hit on Monday, but remains 16 percent below
its level at the end of last month.



Shares in petrochemical firms, their profit margins closely
linked to oil prices, surged as Brent crude rose nearly
4 percent to almost $45 a barrel. The petrochemical sector index
jumped 5.3 percent as the biggest company, Saudi Basic
Industries Corp, gained 4.8 percent."



'via Blog this'

Markets rebound, Walmart drops rifles | FirstFT - YouTube

Markets rebound, Walmart drops rifles | FirstFT - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Saudi stock market surges, petchems climb on oil rebound | Reuters

MIDEAST STOCKS-Saudi stock market surges, petchems climb on oil rebound | Reuters:



"Saudi Arabia's stock market rose sharply in heavy turnover during early trade on Thursday as petrochemical shares in particular surged in response to a rebound of global oil prices, to which petrochemical profit margins are linked.



The main Saudi stock index jumped 4.5 percent in the opening minutes as petrochemical blue chip Saudi Basic Industries (SABIC) gained 5.8 percent. The petrochemical sector index added 6.1 percent.



The rise of SABIC and other blue chips such as miner Ma'aden , up 6.0 percent, suggested institutional investors were back in the market after cutting positions in recent weeks and months."



'via Blog this'

MIDEAST STOCKS-Gulf rises on improved global backdrop | Agricultural Commodities | Reuters

MIDEAST STOCKS-Gulf rises on improved global backdrop | Agricultural Commodities | Reuters:



"Gulf stock markets rose in early trade on Thursday in response to gains on Wall Street and by Asian bourses, and as Brent crude oil climbed 2.9 percent to $44.40 a barrel in Asian trade.



The better global backdrop encouraged investors who were convinced by Tuesday's strong rebound of Gulf markets that stocks had established a floor for at least the short term - though not necessarily in the longer run.



Dubai's index gained 2.9 percent, with Emaar Properties up 3.1 percent and DAMAC Properties climbing 2.9 percent. Some volatile stocks favoured by local retail investors soared, with Amlak Finance jumping 9.6 percent."



'via Blog this'

Funding costs of Omani banks to rise after Fitch downgrade, analysts say | The National

Funding costs of Omani banks to rise after Fitch downgrade, analysts say | The National:



"Five Omani banks downgraded by a credit ratings agency will not suffer an immediate impact, but their future funding costs would rise, analysts said yesterday.



Fitch on Monday downgraded the long-term issuer default rating for Bank Muscat, National Bank of Oman, Bank Dhofar, Bank Sohar and Ahli Bank because of low oil prices and their impact on Oman’s fiscal ­position.



The agency maintained its rating for HSBC Bank Oman, thanks to the support of its parent, HSBC Holdings."



'via Blog this'

DP World reports $405 million in profits for 6 months | GulfNews.com

DP World reports $405 million in profits for 6 months | GulfNews.com:



"DP World, one of the world’s largest port operators, reported on Thursday a 21.9 per cent increase in first half profit.



The port operator made $405 million over the six months to June 30, 2015 compared to $332 million a year ago, it said in a statement on the Nasdaq Dubai. Revenue for the first half rose 14.5 per cent to $1.9 billion.



DP World Chairman Sultan Ahmad Bin Sulayem stated the company was pleased with its first half performance it achieved amid “uncertain market conditions.”"



'via Blog this'

Correction foretold | Authers' Note - YouTube

Correction foretold | Authers' Note - YouTube: ""



'via Blog this'

Fed rise: this year, next year, sometime? | Short View - YouTube

Fed rise: this year, next year, sometime? | Short View - YouTube: ""



'via Blog this'

World Bank's IFC to meet investors on sukuk issue | Reuters

World Bank's IFC to meet investors on sukuk issue | Reuters:



"International Finance Corp (IFC), a unit of the World Bank, plans to meet fixed income investors starting on Monday ahead of a potential issue of U.S. dollar-denominated sukuk, a document from lead arrangers showed on Thursday.



IFC, rated Aaa/AAA by international rating agencies, has picked Dubai Islamic Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank to arrange the investor meetings.



The meetings will be held in the Middle East, with a possible sukuk issue to follow subject to market conditions, the document showed. The document gave no indication of the size of the issue or maturity."



'via Blog this'

Saudis Appeal for Royal Guidance on Economy After Stocks Sink - Bloomberg Business

Saudis Appeal for Royal Guidance on Economy After Stocks Sink - Bloomberg Business:



"Saudi plastic surgeon and stock-market investor Sami al-Harki is looking for help.



Al-Harki already lost 40 percent on his shares, but doesn’t want to sell before the Saudi government tells him how it plans to address the Gulf nation’s biggest economic challenge for years. An official said this month’s 19 percent plunge in the benchmark Tadawul index, which has lost about $87 billion and entered a bear market, is just following a global trend. Preparations for the annual hajj pilgrimage topped the agenda of Monday’s cabinet meeting.
 



“How can I make any decisions amid this silence?” al-Harki, 42, said by phone from Riyadh. “As an investor, silence is a sign that something is wrong.”"



'via Blog this'

Wednesday, 26 August 2015

The Dow leaps 619 points after two days of China woes - live | Business | The Guardian

The Dow leaps 619 points after two days of China woes - live | Business | The Guardian:



'via Blog this'

Iran to offer 3 gas fields for investment at London conference | Reuters

Iran to offer 3 gas fields for investment at London conference | Reuters:



" Iran will offer three gas fields to foreign investors at a conference in London later this year, an Iranian official said on Wednesday.



Development of North Pars, Golshan and Ferdowsi gas fields will be offered to investors at the upcoming London conference where Iran is due to unveil its new contract model, managing director of Pars Oil and Gas Company (POGC) said, according to Shana, the oil ministry's news agency.



North Pars off-shore gas field covers an area of 25 square km and holds 57.1 trillion cubic metres of sour gas, while Golshan gas field is located south of Iran and is expected to produce 2 billion cubic feet of gas once it is fully developed, Shana said. Ferdowsi is also off-shore gas field."



'via Blog this'

MIDEAST STOCKS-Gulf pulls back as global markets stay fragile; foreigners buy Egypt | Reuters

MIDEAST STOCKS-Gulf pulls back as global markets stay fragile; foreigners buy Egypt | Reuters:



"Gulf stock markets fell back
on Wednesday as the region consolidated after a strong rebound
on Tuesday, while foreign investors' bargain-hunting in blue
chips lifted Egypt.



The Gulf's bounce on Tuesday, after several days of sharp
falls, created a sense that markets in the region have found at
least short-term floors. Some institutional investors came back
into the markets to buy selected stocks with valuations that
they now saw as reasonable.



But with global oil prices and equities still unstable and
the economic outlook for China unclear, fund managers do not
have any confidence that Gulf bourses have bottomed for the
longer term."



'via Blog this'

MIDEAST STOCKS-Saudi stocks pull back, Egypt stalls | Reuters

MIDEAST STOCKS-Saudi stocks pull back, Egypt stalls | Reuters:



"Saudi Arabia's stock market pulled back in early trade on Wednesday as buying in blue chips petered out, while Egypt's market stalled.



The Saudi index had surged 7.4 percent on Tuesday in the highest trading volume since May 2014, rebounding after losing 23 percent in the month of August.



With global oil prices and equities still shaky, however, there was little follow-through buying on Wednesday morning and the index was down 1.7 percent in the opening minutes."



'via Blog this'

Oil plunge: Saudi Arabia may need sharper fiscal adjustments | GulfNews.com

Oil plunge: Saudi Arabia may need sharper fiscal adjustments | GulfNews.com:



"With another bout of extreme volatility witnessed in oil prices, countries in the Gulf Cooperation Council may continue to post budget deficits for a few more years, forcing them to raise more debt, until stability returns to oil market.



“We expect all of the large rated GCC economies, except Kuwait, to post general government deficits in 2015 and 2016,” Trevor Cullinan, Director and sovereign analyst with Standard & Poor’s told Gulf News.



Most of the countries in the GCC are already in deficit, following a more than 60 per cent decline in prices of oil, from which it derives most of its revenues."



'via Blog this'

An ex cat bounce | Authers' Note - YouTube

An ex cat bounce | Authers' Note - YouTube: ""



'via Blog this'

China's sherbet lemon economy | Short View - YouTube

China's sherbet lemon economy | Short View - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Markets to slow, some bargain-hunting may continue | Reuters

MIDEAST STOCKS-Markets to slow, some bargain-hunting may continue | Reuters:



"A recovery of Middle East stock markets looks set to lose steam on Wednesday though some bargain-hunting may continue because of a sense that markets have found at least short-term bottoms.



Tuesday's surge of Gulf bourses - Saudi Arabia rocketed 7.4 percent in its highest trading volume since May 2014, while Dubai jumped 4.6 percent - indicated valuations had dropped low enough for institutional investors to see reasonable value in the markets.



For this reason, selective buying in sectors such as Saudi banks and Dubai property firms may continue on Wednesday."



'via Blog this'

Middle East Brings Solace to Oil Services Companies Amid Rout - Bloomberg Business

Middle East Brings Solace to Oil Services Companies Amid Rout - Bloomberg Business:



"Demand for oil services is rising in the Middle East even as the rout in crude prices forces major producers to shelve costly projects elsewhere in the world.



Demand from the region is “better than ever” on increasing production by clients, Duncan Anderson, chief executive officer at Abu Dhabi-based Gulf Marine Services Plc, said Tuesday. The company provides support vessels for offshore oil production projects. London-based Petrofac Plc, another oil-services provider, said it too got a boost from industry investment in the Middle East.



While the collapse in oil prices by more than half since last year has prompted producers to fire thousands of workers and cancel costly investment projects around the world, the Organization of the Petroleum Exporting Countries’ biggest members have continued to pump near record levels to defend their market share against lower-cost producers."



'via Blog this'

Saudi Arabia Breaks Gulf Silence on Dollar Peg Seen Here to Stay - Bloomberg Business

Saudi Arabia Breaks Gulf Silence on Dollar Peg Seen Here to Stay - Bloomberg Business:



"Saudi Arabia’s pledge to maintain its dollar currency peg, amid oil’s slump to a seven-year low, is likely to be followed by its smaller Gulf neighbors.



Ahmed Alkholifey, the Saudi central bank’s deputy governor for research and international affairs, told Al Arabiya television Tuesday that authorities will maintain the peg at 3.75 riyals per dollar. One-year forward contracts for the riyal, which have surged this month on speculation it may be devalued, fell after his remarks.



Investors have increased bets that the six Gulf Cooperation Council countries will be next to abandon their pegs after China devalued the yuan and Kazakhstan allowed its currency to float. The trade’s premise? The region has about 30 percent of the world’s proven crude reserves and its governments depend on oil revenue to fund much of their spending."



'via Blog this'

Tuesday, 25 August 2015

MIDEAST STOCKS-Saudi surges 7.4 pct in heavy trade as region rebounds | Reuters

MIDEAST STOCKS-Saudi surges 7.4 pct in heavy trade as region rebounds | Reuters:



"Arabia's stock market surged
7.4 percent on Tuesday as the region rebounded from several days
of heavy selling, encouraged by stronger oil prices and rising
global bourses.



The main Saudi stock index's leap to 7,543 points
was accompanied by the highest trading volume since May 2014, a
positive technical signal. It followed a slide which had taken
the index down 23 percent in August, erasing over $100 billion
of market value.



The bourse's rebound, which accelerated in late trade,
partly eased concern about pressure on the Saudi riyal's peg to
the U.S. dollar. One-year dollar/riyal forwards fell 15
percent and five-year Saudi credit default swaps
, used to insure against a sovereign debt
default, dropped to 100 basis points from 120."



'via Blog this'

MIDEAST STOCKS-Saudi, Egyptian stocks rebound modestly in early trade | Reuters

MIDEAST STOCKS-Saudi, Egyptian stocks rebound modestly in early trade | Reuters:



"Saudi Arabian and Egyptian stocks rebounded modestly in early trade on Tuesday as more stable oil prices and Asian bourses prompted some investors to buy back shares after several days of steep declines.



The Saudi stock index, which had plunged 5.9 percent on Monday to bring its losses this month to 23 percent, edged up 0.8 percent in the opening minutes of Tuesday.



Buying focused on blue chips, suggesting institutional investors were active. Petrochemicals giant Saudi Basic Industries (SABIC) rose 3.1 percent, miner Ma'aden climbed 3.5 percent and Alinma Bank gained 3.7 percent."



'via Blog this'

China's chronic lack of information | FT Markets - YouTube

China's chronic lack of information | FT Markets - YouTube: ""



'via Blog this'

Europe recovers from Shanghai fall, RSA deal eyed | FirstFT - YouTube

Europe recovers from Shanghai fall, RSA deal eyed | FirstFT - YouTube: ""



'via Blog this'

How GCC states’ break-even oil prices stack up | The National

How GCC states’ break-even oil prices stack up | The National:



"The fiscal break-even price of oil is the price that balances an oil-exporting country’s budget.



Different institutions and assessors provide varying estimates of the BEP (break-even price), leading to confusion in the minds of many who track the metric.



The metric, at its core, is simple in terms of calculation. So why, then, the plethora of estimates?"



'via Blog this'

Emerging markets veteran Mark Mobius stays upbeat on long-term outlook amid sell-off | The National

Emerging markets veteran Mark Mobius stays upbeat on long-term outlook amid sell-off | The National:



"Mark Mobius, the fund manager who popularised investment in emerging markets, is far from throwing in the towel, even as the asset class he made his name in is heading towards its biggest annual decline since the global financial crisis of 2008.



“The long-term outlook is very good for two important reasons,” he said.



“First, at the present time many investors are underweight in emerging markets. Secondly, emerging markets continue to experience more than double the growth of developed markets.”"



'via Blog this'

Abu Dhabi, Dubai stocks stabilise after rout | GulfNews.com

Abu Dhabi, Dubai stocks stabilise after rout | GulfNews.com:



"Abu Dhabi and Dubai index stabilised with Asian peers on Tuesday, a day after world stocks wiped out $2.7 trillion off global indices.



Abu Dhabi Securities Exchange General Index was 1.24 per cent lower at 4,211.71, while the Dubai index was up 1.17 per cent to be at 3,441.49.



Amlak Finance was up 1.13 per cent at Dh1.79, while Emaar Properties was 0.16 per cent to be at Dh6.13."



'via Blog this'

Oil slides to 6-year low as commodities tumble - FT.com

Oil slides to 6-year low as commodities tumble - FT.com:



"Oil plummeted more than 6 per cent to levels last seen during the financial crisis and a broad index of commodity prices slid to the lowest point of this century as economic doubts gathered over China, the engine room of demand growth over the past decade.



China is the world’s largest importer of raw materials and the biggest energy consumer globally. Mounting signs of a sputtering economy, including a plunge in the Shanghai equity market Monday, have raised the prospect of softer demand for oil and other commodities, removing another support for prices laid low by plentiful supply.



Paul Gait, an analyst at Bernstein, said: “There’s panic and people are selling everything that sniffs of China.”"



'via Blog this'

Grey Monday - Authers' Note - Markets & Investing Video - FT.com

Grey Monday - Authers' Note - Markets & Investing Video - FT.com:





'via Blog this'

China crash v capitulation | Short View - YouTube

China crash v capitulation | Short View - YouTube: ""



'via Blog this'

MIDEAST STOCKS-UAE markets firm after oil, Asian bourses stabilise | Reuters

MIDEAST STOCKS-UAE markets firm after oil, Asian bourses stabilise | Reuters:



"United Arab Emirates stock markets were firm in early trade on Tuesday after oil prices and Asian bourses stabilised at least temporarily, encouraging UAE retail investors to buy back property shares in particular.



Dubai's index, which had tumbled over 8 percent in the past two days, climbed 2.3 percent in the opening minutes. Leading real estate developer Emaar Properties gained 2.1 percent and DAMAC Properties rose 3.7 percent.



Abu Dhabi's market edged up 0.1 percent as Aldar Properties gained 0.9 percent. Kuwait was 0.4 percent higher, though Oman slipped 0.3 percent."



'via Blog this'

Monday, 24 August 2015

Rosneft Lines Up U.A.E. Investor to Help Fund East Siberian Oil - Bloomberg Business

Rosneft Lines Up U.A.E. Investor to Help Fund East Siberian Oil - Bloomberg Business:



"OAO Rosneft, Russia’s largest oil producer, is in talks to bring in Middle Eastern energy investor Mubadala Petroleum LLC at its East Siberian fields to boost funding.



They’re discussing developing the Srednebotuobinskoye and Verkhnechonsk deposits, the Russian government said today in a statement before a meeting between President Vladimir Putin and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan.



Rosneft needs to bolster funding for Siberian projects as its debt burden -- the largest among Russian companies -- and slumping oil prices erode finances. This year it agreed to sell 20 percent of its Taas-Yuryakh Neftegazdobycha unit, which owns Srednebotuobinskoye, to BP Plc. It may also sell a stake in that unit to Skyland Petroleum, a firm backed by Chinese investors."



'via Blog this'

Abraaj Group Raises $375 Million for North Africa Investments - Bloomberg Business

Abraaj Group Raises $375 Million for North Africa Investments - Bloomberg Business:



"Abraaj Group Ltd., the Dubai-based emerging markets buyout firm, raised $375 million for its North Africa private equity fund as investor appetite for the region gains.



The closing of the new fund brings the amount that Abraaj has raised for African investments to $1.4 billion this year, the company said today in an e-mailed statement. Abraaj raised $990 million for its third sub-Saharan Africa fund in April. The North Africa fund will make investments in mid-market businesses in Algeria, Morocco and Tunisia in industries including health care, education, consumer goods and logistics.



Funds raised in the Middle East and North Africa rose last year to $1.23 billion, the highest level since 2008, according to a report by the MENA Private Equity Association earlier this month. Rising asset values have helped boost buyout activity in the region, with Abraaj last year losing a bidding war for Egyptian snack-maker Bisco Misr to Kellogg Co."



'via Blog this'

MIDEAST STOCKS-Saudi plunges 5.9 pct as region continues slide | Reuters

MIDEAST STOCKS-Saudi plunges 5.9 pct as region continues slide | Reuters:



"Saudi Arabia's stock market
plunged 5.9 percent on Monday, leading another day of losses
across the Middle East as the region reacted to sliding oil
prices and a deteriorating global environment.



"Markets in the Gulf are changing their expectations and
looking at the possibility of different conditions in future:
lower oil prices, perhaps lower government spending," said Adel
Merheb, director of equity capital markets at Dubai's Shuaa
Capital.



For that reason, the sell-off in the Gulf may have further
to run, despite valuations that have become considerably cheaper
in the last few days, he added."



'via Blog this'

China's stock market rout - YouTube

China's stock market rout - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Saudi, Egyptian stocks fall moderately in early trade | Reuters

MIDEAST STOCKS-Saudi, Egyptian stocks fall moderately in early trade | Reuters:



"Saudi Arabian and Egyptian stocks fell in early trade on Monday but the drops were much more moderate than losses in the previous session, suggesting investors were starting to bargain-hunt on dips.



The main Saudi index slipped 0.6 percent in the opening minutes, after tumbling 6.9 percent on Sunday. Some beaten-down blue chips such as miner Ma'aden rose; Ma'aden gained 1.8 percent.



However petrochemical firm Saudi Basic Industries, its earnings directly sensitive to falling oil prices, lost a further 1.8 percent."



'via Blog this'

European shares fall, Trump’s hedge attack | FirstFT - YouTube

European shares fall, Trump’s hedge attack | FirstFT - YouTube: ""



'via Blog this'

Gulf markets hit by fear of more turmoil - FT.com

Gulf markets hit by fear of more turmoil - FT.com:



"Gulf stock markets have plunged after digesting last week’s global turmoil, and futures indicate another foul day ahead for investors as bourses reopen after the weekend respite.



Arab equity markets are for the most part open only on Sunday to Thursday to reflect the Muslim week, and were spared the carnage that capped last week’s global stock rout. But they reopened again on Sunday with a bang, with all major bourses declining sharply.



Saudi Arabia’s Tadawul, the biggest and most actively traded in the Middle East, slid 6.9 per cent to the lowest since the nadir touched in the first round of the oil price crash last December. The Dubai Financial Market slumped 7 per cent, and the Kuwaiti stock market dipped to its lowest since December 2012."



'via Blog this'

Mideast Stocks Extend Drop as Dubai Index Heads for Bear Market - Bloomberg Business

Mideast Stocks Extend Drop as Dubai Index Heads for Bear Market - Bloomberg Business:



"Dubai stocks headed for a bear market as Middle East markets extended declines amid a global equity rout and as Brent crude fell below $45 per barrel for the first time since 2009.



The DFM General Index decreased 4.4 percent to 3,298.28 at 10:44 a.m. local time, taking its retreat from an April peak to 22 percent. Abu Dhabi’s ADX General Index slid to its lowest level since December and was down 15 percent from a recent high in July. Qatar’s QE Index lost for a seventh day, poised for the longest losing streak since April 2013. Brent sank 2.6 percent to $44.28 a barrel.



Dubai’s gauge will be the second in the six-nation Gulf Cooperation Council in two days to enter a bear market after Saudi Arabia’s Tadawul All Share Index tumbled the most this year on Sunday. The slide in Brent to the lowest in more than six years is piling pressure on Gulf states, which rely on oil income to fund government spending. The GCC is home to about 30 percent of the world’s proven crude reserves."



'via Blog this'

Sunday, 23 August 2015

Iran says an OPEC emergency meeting may stop oil price slide: Shana | Reuters

Iran says an OPEC emergency meeting may stop oil price slide: Shana | Reuters:



"Iran's Oil Minister, Bijan Zanganeh, said on Sunday that holding an emergency OPEC meeting may be "effective" in stabilizing the oil price, Iran's oil ministry news agency Shana reported.



Algeria said earlier this month that the Organization of Petroleum Exporting Countries could hold an emergency meeting to discuss the drop in oil prices but other OPEC delegates said no meeting was planned.



"Iran endorses an emergency OPEC meeting and would not disagree with it," Zanganeh told reporters in Tehran, according to Shana."



'via Blog this'

Arabian Gulf markets lose $58 billion as weak oil and global equity rout spark sell-off | The National

Arabian Gulf markets lose $58 billion as weak oil and global equity rout spark sell-off | The National:



"Billions of dirhams were wiped off the value of Dubai shares yesterday, as stock markets across the Arabian Gulf lost US$58 billion on a day of calamitous trading.




The sharp sell-offs came in the wake of sliding oil prices and a global equity rout on Friday, spurred by fears of a slowdown in China’s economic expansion, a key engine of global growth.



Dubai’s stock market led losses in the Middle East yesterday. The Dubai Financial Market General Index fell as much as 7.2 per cent on the day, before closing down 6.9 per cent at 3,451.48, its lowest level since the end of March."



'via Blog this'

Mood sours among Saudi businessmen as oil slides | GulfNews.com

Mood sours among Saudi businessmen as oil slides | GulfNews.com:



"Saudi Arabian entrepreneur Essam Al-Zamel has overcome many obstacles to found a string of technology companies in the past decade, but he thinks sliding oil prices will be hard to handle.



“A black economic cloud is covering the skies of Saudi Arabia,” Zamel tweeted last week, warning that prices might not recover for five or 10 years.



Oil’s drop to six-year lows, less than half mid-2014 levels, is beginning to sour the business mood in the world’s top oil exporting nation."



'via Blog this'

Property buyers turn scarce in Dubai | GulfNews.com

Property buyers turn scarce in Dubai | GulfNews.com:



"Prospective buyers are seemingly in no hurry to pick up property in Dubai — this disinterest is pushing prices even further into soft territory. Based on estimates by the consultancy ValuStrat, apartment prices in Business Bay saw a drop of 6 per cent in the second quarter of the year compared to what they were in the first three months.



Other clusters that saw drops during this period were International, Sports City and Discovery Gardens, all three by an average 4 per cent. Across the 26 locations tracked by ValuStrat, Dubai apartment and villa markets recorded declines by 2.5 per cent and 2.1 per cent quarter-on-quarter respectively. The median value for an apartment in Dubai is now Dh1,324 a square foot, while for villas it is Dh1,368 a square foot.



If the current level of declines were to continue through the rest of the year, that might be a prompt for undecided investors to finally get into the market. As things stand now, the pricing dynamic is very much in the buyers’ favour, with sellers expected to become even more generous with payment terms and incentives to buoy demand."



'via Blog this'

Israel turns to Kurds for three-quarters of its oil supplies - FT.com

Israel turns to Kurds for three-quarters of its oil supplies - FT.com:



"Israel has imported as much as three-quarters of its oil from Iraq’s semi-autonomous Kurdish north in recent months, providing a vital source of funds to the cash-strapped region as it fights militants of the Islamic State of Iraq and the Levant (Isis).



The sales are a sign of Iraqi Kurdistan’s growing assertiveness and the further fraying of ties between Erbil and Baghdad, which has long harboured fears that the Kurds’ ultimate objective is full-scale independence from Iraq.



The imports highlight the significant inroads that oil from Iraqi Kurdistan is making into world markets, with Italy, France and Greece also emerging as big buyers. It is a trade conducted through secretive pre-pay deals brokered by some of the world’s largest oil trading companies, including Vitol and Trafigura."



'via Blog this'

MIDEAST STOCKS-Plunge on oil price drop, Fitch cut to Saudi outlook | Reuters

MIDEAST STOCKS-Plunge on oil price drop, Fitch cut to Saudi outlook | Reuters:



"Major Middle Eastern stock markets
plunged in relentless selling on Sunday because of sliding oil
prices, a decision by Fitch Ratings to cut its outlook for Saudi
Arabia's debt, and Friday's sharp losses on Wall Street.



Dubai suffered its biggest one-day fall since last December,
with its main index tumbling 7.0 percent to 3,451
points, its lowest close since March 30. The index finished just
off the intra-day low and close to major technical support on
the March low of 3,233 points.



Saudi Arabia's benchmark lost 6.9 percent to 7,463
points, nearing support on its December low of 7,226 points.
That brought its losses so far this month to 18 percent - a drop
which has erased some $75 billion of market value."



'via Blog this'

Swiss launch criminal inquiry related to Malaysia’s 1MDB - FT.com

Swiss launch criminal inquiry related to Malaysia’s 1MDB - FT.com:



"Attempts by Najib Razak, Malaysia’s embattled prime minister, to contain a financial scandal have taken a knock after Swiss authorities said they had opened criminal proceedings related to the state development fund at the centre of the affair.



Switzerland’s Office of the Attorney-general said its case involved “suspected corruption of public foreign officials, dishonest management of public interests and money laundering”.



Its confirmation of proceedings involving 1Malaysia Development Berhad, or 1MDB, which has $11bn in debt, marks the potential internationalisation of a case that has so far received mainly domestic scrutiny. The fund, established in 2009 by Malaysia’s finance ministry, is supervised by an advisory board chaired by the prime minister."



'via Blog this'

MIDEAST STOCKS-Weak oil, Saudi credit outlook cut to weigh on markets | Reuters

MIDEAST STOCKS-Weak oil, Saudi credit outlook cut to weigh on markets | Reuters:



"Further weakness in oil prices and the decision by Fitch Ratings to cut its outlook for Saudi Arabia's debt look set to weigh on Middle East stock markets on Sunday.



U.S. oil traded below $40 a barrel on Friday for the first time since the 2009 financial crisis, while Brent crude ended 2.5 percent lower at $45.46 a barrel. With no clear indication of where oil will bottom out, sentiment among Gulf equity investors is likely to stay fragile.



Meanwhile, Fitch lowered its outlook for Saudi Arabia to "negative" from "stable"; Standard & Poor's took this action in February while the third major rating agency, Moody's, has not so far done so."



'via Blog this'

Saturday, 22 August 2015

Emerging market turmoil | Short View - YouTube

Emerging market turmoil | Short View - YouTube: ""



'via Blog this'

How Much Longer Can Saudi Arabia's Economy Hold Out Against Cheap Oil? - Bloomberg Business

How Much Longer Can Saudi Arabia's Economy Hold Out Against Cheap Oil? - Bloomberg Business:



"The oil price was near its lowest in more than a decade, cash reserves were being depleted, emerging markets were in turmoil and Saudi Arabia was beginning to panic.



“It was a very scary moment,” said Khalid Alsweilem, former head of investment at the Saudi Arabian Monetary Agency, the country’s central bank. “And luckily at that point, oil prices started going up. Not by design, by good luck.”



That was 1998, and now Saudi Arabia’s fortunes threaten to turn again. This time, luck might not be enough as the government tries to protect the wealth of a nation whose economy has swelled by five times since then. The bastion of conservative Sunni Islam also is paying for an expanding role in regional conflicts in the face of a resurgent Iran and Islamic State extremists who have bombed Saudi mosques."



'via Blog this'

Thursday, 20 August 2015

MIDEAST STOCKS-Gulf markets drop on oil but Saudi bounces from 8-month low | Reuters

MIDEAST STOCKS-Gulf markets drop on oil but Saudi bounces from 8-month low | Reuters:



"Most Middle East stock markets
fell on Thursday as oil prices and global emerging market
equities extended their slump, but Saudi Arabia bounced off an
eight-month low and edged up after dropping for seven sessions
in a row.



The main Saudi stock index closed 0.3 percent
higher, having tumbled as much as 3.5 percent earlier in the
day. Most local stocks turned positive by the end of the
session, after heavy losses this month which saw the bourse lose
$50 billion in market capitalisation.



The market, which had shrugged off oil's weakness in June
and July, finally began to adjust to it this month, and is down
11.9 percent so far in August."



'via Blog this'

Federal Reserve and fraud in the City of London | FirstFT - YouTube

Federal Reserve and fraud in the City of London | FirstFT - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Dubai tumbles 2.7 pct after oil hits new low | Reuters

MIDEAST STOCKS-

ubai tumbles 2.7 pct after oil hits new low | Reuters:



"Dubai's stock market led losses in the Gulf early on Thursday after oil prices in the United States tumbled to their lowest level since 2009.



U.S. crude slumped over 4 percent on Wednesday as a huge, unexpected stockpile build in the United States reinforced concerns about a growing global oil glut. The European Brent crude benchmark dropped 3.4 percent on Wednesday. Both U.S. oil and Brent have edged down 0.6 percent in Asian trade on Thursday morning. 




Dubai's main equities index dropped 2.7 percent to a four-month low of 3,730 points as nearly all stocks fell. Technically, a triple top formed by the peaks since April and triggered this week points down to the 3,600-point area."



'via Blog this'

Oman faces larger than expected budget deficit this year amid ongoing oil slump | The National

Oman faces larger than expected budget deficit this year amid ongoing oil slump | The National:



"Oman is on course to run a bigger than expected budget deficit this year, as declining global energy prices hit the country’s finances.



The country planned its budget for this year based on its expectation of an oil price of $75 per barrel, but average prices this year have been about $55 per barrel.


Oman ran a US$4.98 billion deficit in the first half of the year, equivalent to about 6.1 per cent of its GDP, according to data from its finance ministry."



'via Blog this'

Iran’s a multi-year opportunity in the making | GulfNews.com

Iran’s a multi-year opportunity in the making | GulfNews.com:



"After years of negotiations, there has been a recent breakthrough between Iran, the US and other world powers about Iran’s nuclear programme.



While the deal certainly was controversial, and is still under debate in the US, strictly from an investment standpoint, we think it represents an exciting development not only for Iran, but for the Middle East/North Africa (MENA) region. Many investors in the region are excited about the potential for this new market to fully emerge.



Development of Iran’s capital market and potential opening to investors around the world should contribute to economic development not only in Iran, but also in the region, and could help lower political tensions."



'via Blog this'

No voting rights for foreign investors says Etisalat | GulfNews.com

No voting rights for foreign investors says Etisalat | GulfNews.com:



"Etisalat said on Wednesday foreign investors (FIs) will be allowed to hold up to 20 per cent of its shares, but these investors won’t have any voting rights.



So far, Etisalat, the largest company in terms market value in the country, allows only local investors to own 40 per cent in the company, the remaining 60 per cent is held by the Emirates Investment Authority (EIA).



But in June, the company ended the monopoly of the local investors over the stock, by allowing foreigners to hold 20 per cent stake, and approved of more details after the amendments to its Articles of Association."



'via Blog this'

Dubai index tumbles over 3% with oil | GulfNews.com

Dubai index tumbles over 3% with oil | GulfNews.com:



"Dubai index tumbled more than 3 per cent as crude  continued with its southward journey.



The Dubai Financial Market (DFM) General index fell  3.27 per cent to be at 3,707.87, after hitting a low of 3,7.10.27.



Oil prices slid to a fresh six and a half year low in Asia Thursday, approaching the key $40 a barrel level after a surprise rise in US inventories added to concerns of a supply glut."



'via Blog this'

The world should fear an emerging market rout - FT.com

The world should fear an emerging market rout - FT.com:



"Capital is cascading out of emerging markets as investors, companies and financial institutions lose confidence in developing countries. The outflows, which have risen towards $1tn over the past 13 months, hold a significance that extends well beyond the frailties of the countries themselves. The dynamism of developing nations helped restore the world to growth in the aftermath of the 2008-09 financial crisis. It is now dissipating fast.



Their vitality is being sapped by a vicious circle of cause and effect. Capital outflows add to pressures on emerging market currencies to weaken against the US dollar, thus inhibiting import demand, damping economic growth and spurring further outflows. If the cycle cannot be arrested, the risk is that a growth slump in developing countries — which account for 52 per cent of global gross domestic product in purchasing power parity terms — could pull the wider world into recession.



The resilience of emerging markets may be critical. But the prognosis is poor. To an extent, the growth model that generated rapid economic expansion over the past three decades appears to be broken. David Lubin, head of emerging market economics at Citi, says three key engines of GDP growth — exports, public domestic spending and private domestic spending — are all sputtering."



'via Blog this'

The Renminbi Rumba | FT Markets - YouTube

The Renminbi Rumba | FT Markets - YouTube: ""



'via Blog this'

Emerging Markets outflows near $1tn | FT Markets - YouTube

Emerging Markets outflows near $1tn | FT Markets - YouTube: ""



'via Blog this'

Talk of Weaning Off Oil Is Cheap as Gulf Stocks Mirror Crude - Bloomberg Business

Talk of Weaning Off Oil Is Cheap as Gulf Stocks Mirror Crude - Bloomberg Business:



"Pledges by Gulf states to diversify their economies away from a dependence on oil are winning few believers in the stock market.



The correlation between the price of Brent and the biggest equities in the six-nation Gulf Cooperation Council that make up the Bloomberg GCC 200 Index has increased to the strongest in five years and is almost as strong as any time since 2006. By contrast, the oil correlation for Russia’s benchmark Micex Index has almost disappeared, even though the nation produces almost as much oil as Saudi Arabia.


Investors in the GCC’s $1 trillion equity markets are concerned that the drop of more than 50 percent in oil prices will force governments to cut spending, a key driver of economic growth. Officials have pledged to shield their economies from the swings in crude prices by boosting investment in non-oil industries. While the United Arab Emirates has reduced its reliance on energy, Saudi Arabia, OPEC’s biggest exporter, still depends on oil for almost all its revenue."



'via Blog this'

Apple Said to Plan Dubai Stores After Winning Exemptions - Bloomberg Business

Apple Said to Plan Dubai Stores After Winning Exemptions - Bloomberg Business:



"Apple Inc. has been granted an exemption from foreign ownership laws in the United Arab Emirates that will allow it 100 percent control of operations in the country, according to two people with knowledge of the matter.



The dispensation was a condition for the world’s largest listed company to set up in the U.A.E., the people said, asking not to be identified as the plans are private. Apple will open its first Middle East store in Dubai this year and then Abu Dhabi after securing the privileges, according to the people.



Under local regulations, all businesses operating in the U.A.E. must be 51 percent owned by Emiratis or a company wholly owned by them unless they are based in free-zones. The government is working on a new foreign investment law that would allow 100 percent foreign ownership in some industries, Minister of Economy Sultan Al Mansoori said in March."



'via Blog this'

Wednesday, 19 August 2015

MIDEAST STOCKS-Saudi sinks 2.5 pct, Egypt drops; valuations support UAE | Reuters

MIDEAST STOCKS-Saudi sinks 2.5 pct, Egypt drops; valuations support UAE | Reuters:



"Most major Middle East stock
markets fell on Wednesday in response to weak oil prices, while
panic selling again gripped Saudi Arabia, causing its index
to slide 2.5 percent and bringing its losses this month
to 12.2 percent.



About $50 billion of market capitalisation has been
destroyed in Saudi Arabia so far this month as local retail
investors dump stocks.



Although the economy is still growing strongly, buoyed by
heavy government spending, cheap oil is hurting state finances
and the government began this month to sell bonds to banks to
cover its budget deficit. Some investors worry this could
tighten liquidity in the private sector over the long run."



'via Blog this'

#UAE arrest prominent economist and pro-democracy activist | Middle East Eye

UAE arrest prominent economist and pro-democracy activist | Middle East Eye:



"The United Arab Emirates on Tuesday arrested a prominent Emirati economist who has previously supported calls for democratic reform in the oil-rich Gulf state.


State security arrested Nasser bin Ghaith at 2pm local time (1000 GMT) at his work in Abu Dhabi, activists told Middle East Eye on condition of anonymity.



He was taken to Dubai where security service agents searched his home for over four and a half hours. At 8.30pm (1630 GMT) he was taken to an unknown location by security services, where he remained as of Wednesday morning."



'via Blog this'

Abu Dhabi Financial Group boosts equity in troubled Gulf Navigation | The National

Abu Dhabi Financial Group boosts equity in troubled Gulf Navigation | The National:



"Abu Dhabi Financial Group has lifted its stake in Gulf Navigation to 5.19 per cent and plans to hold turnaround talks with the troubled Dubai-based shipping company.



Integrated Capital, the capital markets unit of the alternative investment firm with US$3 billion in assets, bought more than 28.61 million shares.



It did not disclose the size of its equity in Gulf Navigation before the latest investment."



'via Blog this'

Riyadh needs multi-year fiscal adjustments — IMF | GulfNews.com

Riyadh needs multi-year fiscal adjustments — IMF | GulfNews.com:



"The International Monetary Fund (IMF) has urged Saudi Arabia, which derives 90 per cent of its revenues from oil and gas, to undertake a “multi-year fiscal adjustment” to fight another round of correction in crude oil prices.



Brent crude has shed more than half of its value in the past one year, making the budgets of the GCC states more vulnerable, and the IMF feels this has increased the importance of structural reforms to switch the focus of growth to the private sector.



Over the medium term, due to continued expenditure growth, Saudi Arabia could witness a very large fiscal deficit this year and over the medium term, eroding the country’s fiscal buffers."



'via Blog this'

Low oil prices push GCC to consider VAT | GulfNews.com

Low oil prices push GCC to consider VAT | GulfNews.com:



"The proposal by the Ministry of Finance to introduce Value Added Tax (VAT) stemmed from the fact that revenue from crude oil and other hydrocarbon products had gone down because of low oil prices, an analyst told Gulf News. 




Sanyalaksna Manibandhu, Head of Research, NBAD Securities, said the decision was expected and the next step would be potentially corporate tax and income tax.



“The revenue from crude oil and other hydrocarbon products had gone down because of the declining oil prices. Depending on how VAT and corporate tax is introduced that would obviously increase the revenue and reduce the fiscal deficit.”"



'via Blog this'

Come and see for yourself, Iran’s Ambassador tells foreign investors | GulfNews.com

Come and see for yourself, Iran’s Ambassador tells foreign investors | GulfNews.com:



"Iran will offer foreign investors guarantees in a move to sure up economic growth when years of sanctions are expected to be lifted early next year.



“Everything is ready for investment and joint ventures … We’re capable of cooperation and [of] giving guarantees to foreign investments,” Mohammad Reza Fayyaz, the Ambassador of the Islamic Republic of Iran to the United Arab Emirates, said in an interview at the Embassy in Abu Dhabi on Monday.



Iran reached an agreement in July with six world powers to limit its nuclear programme in exchange for the removal of sanctions that have crippled its economy. The agreement still needs to be approved by the United States Congress and Iranian Parliament but sanctions are expected to be removed in early 2016."



'via Blog this'

Tuesday, 18 August 2015

Saudi Stocks Sink Into Death Cross as IMF Sees Growth Slowing - Bloomberg Business

Saudi Stocks Sink Into Death Cross as IMF Sees Growth Slowing - Bloomberg Business:



"Investors sold Saudi Arabian stocks after an International Monetary Fund warning of slowing growth in the Middle East’s biggest economy tipped the equity index into a so-called death cross. Dubai’s shares also slumped.



The Tadawul All Share Index slid for a sixth day, closing 2.9 percent lower at 8,197.02, the weakest level in more than seven months. That dragged its 50-day moving average below the 200-day moving average, a signal to some investors that further declines are in store. Al Rajhi Bank’s 2.9 percent decrease was the biggest contributer to the loss. Dubai’s DFM General Index slipped 2.5 percent to the lowest close since April 13.



The Tadawul’s drop comes two months after Saudi Arabia opened its stock market to direct foreign investment for the first time to help diversify its economy away from oil. It puts into focus the deepening concern that King Salman is pushing ahead with a multi-billion dollar spending program at a time when crude, which accounts for 90 percent of government revenue, is trading near the lowest in six years."



'via Blog this'

MIDEAST STOCKS-Markets sell off after China hits oil; Saudis down 2.9 pct | Reuters

MIDEAST STOCKS-Markets sell off after China hits oil; Saudis down 2.9 pct | Reuters:



"Major Middle East stock markets
plunged on Tuesday after tumbling Chinese equities put pressure
on global oil and commodity prices.



Chinese stocks fell more than 6 percent on Tuesday as the
yuan weakened against the dollar, raising fears that Beijing may
further devalue its currency. That could decrease China's
consumption and imports.



Saudi Arabia's main stock index fell 2.9 percent to
a seven-month closing low of 8,197 points."



'via Blog this'

MIDEAST STOCKS-Saudi Arabia tumbles after China depresses commodities - Yahoo Maktoob News

MIDEAST STOCKS-Saudi Arabia tumbles after China depresses commodities - Yahoo Maktoob News:



"Saudi Arabia's stock market fell sharply on Tuesday after U.S. oil prices dropped near six-year lows and equities in China tumbled.



Chinese stock prices sank 6 percent as the yuan weakened against the dollar, raising fears that Beijing might further devalue its currency, which could decrease its consumption and imports of oil and other commodities.



The main Saudi stock index tumbled 3.6 percent by mid-afternoon to a seven-month low of 8,134 points with nearly all stocks deep in negative territory."



'via Blog this'

MIDEAST STOCKS-Saudi, Egypt fall as U.S. oil hits fresh 6-1/2-year low | News by Country | Reuters

MIDEAST STOCKS-Saudi, Egypt fall as U.S. oil hits fresh 6-1/2-year low | News by Country | Reuters:



"Bourses in Saudi Arabia and Egypt fell in early trade on Tuesday after oil prices extended losses, dampening the mood across the Middle East.



U.S. oil futures fell to their lowest in more than six years as traders braced for lower refinery consumption after the U.S. summer, while Asia's weakening economies and high global production stoked concerns about oversupply.



Saudi Arabia's stock index fell 1.7 percent, with all but a handful of stocks in the red. The petrochemical sector index, the most sensitive to oil prices, lost 1.9 percent."



'via Blog this'

How indexers perform - S&P Dow Jones | Authers' Note - YouTube

How indexers perform - S&P Dow Jones | Authers' Note - YouTube: ""



'via Blog this'

MIDEAST STOCKS-Dubai extends rebound; other Gulf markets flat - Yahoo Maktoob News

MIDEAST STOCKS-Dubai extends rebound; other Gulf markets flat - Yahoo Maktoob News:



"Most Gulf stock markets were little changed in early trade on Tuesday as oil prices slipped further, though Dubai's bourse edged up, extending gains after it bounced off technical support in the previous session.



The Dubai index edged up 0.4 percent to 3,944 points with most stocks positive. The benchmark had turned around on Monday after hitting an intra-day low of 3,911 points, close to chart support at its May low of 3,913 points.



Builder Arabtec was the most traded stock and rose 1.4 percent, recovering further from a sharp drop earlier this week when the firm posted its third quarterly loss in a row."



'via Blog this'

UAE economy set for ‘soft landing’ this year, analysts say | The National

UAE economy set for ‘soft landing’ this year, analysts say | The National:



"The UAE economy is set for a “soft landing” this year, as growth slows to its lowest rate in six years, say analysts from Bank of America Merrill Lynch.



“Soft landing” is an industry term for a slowdown in economic growth that does not worsen inflation and unemployment.



“Economic activity [in the UAE] has started to show signs of weakness,” wrote Jean-Michel Saliba, an economist at the bank, in a research note."



'via Blog this'

The US’ unfamiliar role as oil’s swing producer | GulfNews.com

The US’ unfamiliar role as oil’s swing producer | GulfNews.com:



"Oil prices have been heading south again, with a barrel of US crude recently falling below $42 — the lowest level since March 2009, the nadir of the global financial crisis. And, while last year’s sharp price drop was heavily influenced by two large supply shocks, the current decline also has an important demand dimension.



At the same time, oil markets are discovering what it is like to operate under the regime of a new swing producer: the US. As a result, the price formation process is much clumsier nowadays, with considerably longer adjustment lags.



The dynamics of the energy markets changed notably as shale-oil production came on-stream at a market-moving scale in 2013-14. With this new source meeting more of world energy demand, particularly in the US, energy users were no longer as dependent on Opec and other oil producers. In the process, they also became less vulnerable to geopolitical concerns."



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MIDEAST STOCKS-Background remains gloomy for Gulf markets | Reuters

MIDEAST STOCKS-Background remains gloomy for Gulf markets | Reuters:



"Gulf stock markets may face more pressure on Tuesday after oil prices fell again and global equities slipped.



Brent oil futures hit a six-month closing low of $48.74 per barrel on Monday, hurt by news of an April-June economic contraction in Japan, the world's third biggest consumer of oil. On Tuesday, Brent has slipped 0.3 percent in Asian trade.



MSCI's indexes of Asia-Pacific shares outside Japan and emerging markets have edged down 0.5 and 0.3 percent respectively."



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Bad summer for emerging market equities | lex - YouTube

Bad summer for emerging market equities | lex - YouTube: ""



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Monday, 17 August 2015

MIDEAST STOCKS-Markets fall but Dubai, Egypt hold above chart support | Reuters

MIDEAST STOCKS-Markets fall but Dubai, Egypt hold above chart support | Reuters:



"Most Middle East stock markets
fell on Monday as oil prices remained weak, but some shares in
Dubai, Saudi Arabia and Egypt rebounded after particularly steep
drops in the previous session.



Saudi Arabia's main index edged down 0.3 percent to
8,437 points but closed well off its intra-day low of 8,381
points.



Oil shipper Bahri was one of main supports,
jumping 2.5 percent. The stock had tumbled 8.3 percent in the
previous session after tanker freight rates from the Gulf to
Japan dropped to their lowest in more than 10 months."



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Emerging market stocks gauge falls to 4 year low - fastFT: Market-moving news and views, 24 hours a day - FT.com

Emerging market stocks gauge falls to 4 year low - fastFT: Market-moving news and views, 24 hours a day - FT.com:



"The MSCI Emerging Markets Index has fallen to a four year low according to Bloomberg, as large outflows from EM funds continue amid fears that EM equities will keep sliding along with currencies and economic growth.



Emerging markets have been struggling on several fronts this year, as currencies fall to multi year lows, growth stagnates, stock markets wobble and now bonds are showing the first signs of pressure, Joel Lewin writes.



Last week outflows from emerging market equity funds continued for a fifth week, pushing the total outflow for the year to $31.9bn."



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MIDEAST STOCKS-Most Gulf markets edge down after oil falls | Reuters

MIDEAST STOCKS-Most Gulf markets edge down after oil falls | Reuters:



"Most Gulf stock markets edged down early on Monday after oil prices fell again on concern about Japan's economy and a growing rig count in the United States, but Dubai rose slightly, bouncing off technical support.



Dubai's index edged up 0.4 percent after hitting an intra-day low of 3,911 points, close to chart support at its May low of 3,913 points.



Builder Arabtec rose 2.8 percent after tumbling 5.4 percent in the previous session on poor second-quarter results. The firm posted its third quarterly loss in a row, while analysts had expected a profit."



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Russia recession poses financial dilemma for companies - FT.com

Russia recession poses financial dilemma for companies - FT.com:



"When Chris van Riet showed visitors around South Gate Industrial Park, south of Moscow, he used to lay out long-term plans for expansion.



Funded with a $200m loan from Sberbank, Russia’s largest lender, Mr Van Riet’s company has built one of the most cutting-edge warehousing and logistics centres in Russia, designed to help modernise an economy plagued by antiquated infrastructure and years of under-investment.



But just as the park ramped up and companies were moving in, Russia got hit by western sanctions and dropping oil prices."



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Saudi Arabia’s hard choices on oil and regional influence - FT.com

Saudi Arabia’s hard choices on oil and regional influence - FT.com:



"The year 2015 is not going well for Saudi Arabia. The attempts of King Salman bin Abdulaziz al-Saud and his son Prince Mohammed bin Salman — who, not quite 30, is not just deputy crown prince and chief of the Royal Court but also defence minister and chairman of the supreme council of state oil company Aramco — to assert their authority in the region and in the oil market are failing.



Barack Obama, US president, pointedly overrode Saudi concerns to reach­ a deal with Iran that is already transforming the regional balance of power. Concerns about Iranian influence led Saudi Arabia to intervene in Yemen, but the ill-conceived air campaign has achieved little beyond demonstrating the limitations of the Saudi military. The result is a humanitarian disaster with Houthi forces still in control of much of the north of Yemen.



Worst of all, perhaps, the US shale industry has not followed the script by obediently cutting back production as prices have fallen. On the contrary, costs have been cut and production this year will be higher than in 2014. Elsewhere, other producers have increased oil output to raise revenue. The price is back to $50 a barrel and falling."



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