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Sunday, 1 February 2015

Dubai Stocks Rise Most in 6 Weeks on Oil; Saudi Jumps on Payout - Bloomberg Business

Dubai Stocks Rise Most in 6 Weeks on Oil; Saudi Jumps on Payout - Bloomberg Business:



"Dubai stocks advanced the most in six weeks after oil rallied on signs a price slump will curb output. Saudi Arabia’s benchmark rose after the new king ordered a bonus of two months’ salary for government workers.



The DFM General Index added 4.5 percent, the most since Dec. 21, to close at 3,840.22. Abu Dhabi’s ADX General Index climbed 2.2 percent, its first increase in five days, and Qatar’s QE Index gained 1.4 percent, the strongest close since Jan. 8. Saudi Arabia’s Tadawul All Share Index advanced 3.7 percent at 1:23 p.m. in Riyadh.



Brent crude, the benchmark for more than half the world’s oil, surged the most in almost six years on Jan. 30 after Baker Hughes Inc. reported that the U.S. rig count fell to a three-year low. The Organization of Petroleum Exporting Countries, of which four of six Gulf Cooperation Council states are members, has maintained output amid the lowest prices since 2009, challenging the growth in U.S. production."



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Oil prices find traction, but huge glut remains | The National

Oil prices find traction, but huge glut remains | The National:



"The oil market took some solace from signs that the glut that has weighed on it for the past few months may get some relief down the road, but there were other indicators that it will take considerable time to soak up the massive overhang.



On Friday, the world benchmark North Sea Brent posted one of its biggest daily gains in months, ending US$3.86 higher at $53.99 a barrel, as traders focused on some bullish developments, including renewed fighting between Iraqi government forces and radical insurgents around the important oil town of Kirkuk.



Similarly allied radical insurgents in Libya also ratcheted up their violence last week, bombing a hotel in Tripoli and killing a number of western diplomats."



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Dubai Investments soars on DFM after plans to acquire 60% of Al Mal Capital | The National

Dubai Investments soars on DFM after plans to acquire 60% of Al Mal Capital | The National:



"Dubai Investments jumped more than 7 per cent after the publicly listed conglomerate revealed plans to acquire 60 per cent of the Dubai investment bank Al Mal Capital.



DIC, whose largest shareholder is state owned Investment Corporation of Dubai, rose 7.3 per cent to Dh2.34.



“The board further discussed and approved acquisition of 60 per cent of the share capital of Al Mal Capital,” DIC said in a regulatory disclosure on the Dubai bourse website."



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Massar’s Abu Dhabi public offering likely to be put on hold | The National

Massar’s Abu Dhabi public offering likely to be put on hold | The National:



"The planned initial public offering of Massar Solutions is likely to be put on hold after a disappointing take-up of shares against the backdrop of volatility in regional capital markets and falling oil prices.



The subscription period for the offering closed a week ago, and allotments were due to be decided this weekend ahead of a listing on Abu Dhabi Securities Exchange later this month.



But an advisory source familiar with the situation has revealed that significantly less than half of the shares in the Dh576 million IPO were taken up by the Emirati retail and institutional investors for whom they were reserved."



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Banks see new challenges ahead as profits hit new highs | GulfNews.com

Banks see new challenges ahead as profits hit new highs | GulfNews.com:



"As anticipated most UAE banks have reported strong income and profit growth in 2014 and have entered the first quarter of the year with the apprehension if they can repeat the results in the year ahead.



“It was tough last year, competition was stiff, but there was growth, very, very good growth. But we are headed for average growth in the face of tough competition,” said Alex Thursby, CEO of National Bank of Abu Dhabi (NBAD) reflecting the overall mood of banking sector.



NBAD beat analyst forecasts as it reported a 27.6 per cent rise in fourth-quarter net profit and its full year net profit was up 18 per cent at Dh5.57 billion compared to the previous year. The bank said its growth last year was driven primarily by strong fee income growth across all lines of business, solid loan growth, increases in deposits and CASA [current and savings accounts] as a per cent of deposits, and solid gains in the investment portfolio."



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UAE property companies unlikely to face financing problems | GulfNews.com

UAE property companies unlikely to face financing problems | GulfNews.com:



"Property companies, especially the rated entities in the UAE will have no difficulty in funding their ongoing and planned future projects the context of falling oil prices and its impact on economic growth, Franck Delage and Gregg Lemos-Stein, regional property analysts for S&P told Gulf News in an interview.



S&P analysts said they are anticipating a slowdown in property prices in the UAE which they see as a relatively short term challenge for the sector.



“We do factor some softening in the real estate prices in the next 12 to 15 months. There are some short term challenges one of which is the oil price decline. Oil prices could have an impact on corporate sentiment which could be reflected in the office real estate prices. On the retail segment too there could be some impact if consumption spending is impacted. On the residential side, weakening macroeconomic situation could dampen investor demand,” said Delage."



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MIDEAST STOCKS-Big Saudi payout, stronger oil to boost Gulf | Reuters

MIDEAST STOCKS-Big Saudi payout, stronger oil to boost Gulf | Reuters:



"Gulf equity markets are set to rise sharply on Sunday after Saudi Arabia's new King Salman ordered a lavish payout to state employees and oil prices surged on news of a record weekly decline in U.S. oil drilling activity.



Late on Thursday, Salman ordered the immediate payment of two months of bonus salary to all state employees and pension to retired government workers, as well as payments to students.



The payout could be worth up to 70 billion riyals ($18.6 billion) - about 8 percent of the original state budget for 2015, or 2.5 percent of last year's gross domestic product. Additional state spending was allocated to students, civic and professional associations around the country, and upgrading electricity and water services."



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