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Thursday, 30 April 2015

MIDEAST STOCKS-Gulf markets mixed despite strong oil; Egypt extends rebound | News by Country | Reuters

MIDEAST STOCKS-Gulf markets mixed despite strong oil; Egypt extends rebound | News by Country | Reuters:



"Gulf stock markets were narrowly mixed on Thursday after some companies reported mediocre first-quarter earnings, offsetting the positive impact of higher oil prices. Egypt rebounded further on hopes that new tax rules would be amended. 




Oil's recovery this month, which looks likely to be the strongest since a sell-off that began last June, has boosted the sentiment of Middle East fund managers who are on balance once again moderately bullish on Gulf equities, according to a monthly Reuters survey published on Thursday.



The main Saudi index edged up 0.2 percent to 9,834 points and petrochemicals giant Saudi Basic Industries (SABIC), which is poised to benefit from oil's recovery, was the main support, climbing 1.8 percent."



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UPDATE 2-MIDEAST STOCKS-Saudi Arabia, Egypt extend gains | Reuters

UPDATE 2-MIDEAST STOCKS-Saudi Arabia, Egypt extend gains | Reuters:



"Strong oil prices supported Saudi Arabia's bourse in early trade on Thursday, while Egypt's market extended its rebound on hopes for a compromise on taxation of capital gains and dividends.



The main Saudi index edged up 0.6 percent to 9,872 points and petrochemicals giant Saudi Basic Industries (SABIC), which is poised to benefit from oil's recovery, was the main support, climbing 2.0 percent. 




Brent oil rose to a five-month high of $66.72 per barrel on Wednesday and traded above $66 on Thursday after the first crude stock drawdown in five months at the U.S. Cushing, Oklahoma hub suggested an oil glut might be starting to ease."



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Dubai developer Nakheel doubles first-quarter profit to Dh1.35bn | The National

Dubai developer Nakheel doubles first-quarter profit to Dh1.35bn | The National:



"Nakheel’s first-quarter profit more than doubled to Dh1.35 billion, the company reported yesterday.



The developer, owned by the Dubai government, said that net profit for the first three months of the year rose more than 114 per cent from the Dh629 million reported during the same period the previous year.



Despite a slowdown in the Dubai housing market, Nakheel attributed the profit growth to “a strong performance by the development business, with ongoing handovers of properties to customers”."



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Saudi oil policy not expected to be affected by leadership shuffle | The National

Saudi oil policy not expected to be affected by leadership shuffle | The National:



"A reshuffle of the leadership in Saudi Arabia and at its state-run energy firm is unlikely to change the oil policy of the world’s biggest crude exporter, analysts said yesterday.



King Salman, who became ruler in January following the death of King Abdullah, yesterday appointed the interior minister Mohammed bin Nayef as the new crown prince, replacing the king’s half brother Prince Muqrin and gave Adel Fakeih, the labour minister, the economy and planning portfolio.



King Salman also announced the appointment of the Saudi Aramco chief executive and president Khalid Al Falih as the country’s health minister. He also replaced the veteran oil minister Ali Al Naimi as Aramco’s chairman."



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Gulf economies’ growth forecasts cut as oil stays low | GulfNews.com

Gulf economies’ growth forecasts cut as oil stays low | GulfNews.com:



"The outlook for most of the Gulf Arab economies has dimmed for this year and next as oil prices have remained relatively low, according to a Reuters poll published on Wednesday that showed economists cutting their forecasts.



This year’s growth forecast for the United Arab Emirates, which is less reliant on oil because of Dubai’s diverse economy, has been cut to 3.4 per cent from 3.8 per cent, and next year’s to 3.7 per cent from 3.9 per cent.



Qatar is expected to be by far the best-performing of the six Gulf Cooperation Council economies, as the world’s top natural gas exporter steps up a vast infrastructure building programme. Qatari GDP is projected to grow 6.7 per cent this year and 6.4 per cent next year."



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UPDATE 1-MIDEAST STOCKS-Gulf mostly flat after some Q1 results disappoint | Reuters

UPDATE 1-MIDEAST STOCKS-Gulf mostly flat after some Q1 results disappoint | Reuters:



"Most Gulf stock markets were flat in early trade on Thursday after some companies in the region reported poor first-quarter earnings, offsetting the positive impact of high oil prices.



Dubai's index rose initially but then struggled with major technical resistance at its 200-day average of 4,250 points and was nearly flat by 0655 GMT.



However, Emaar Malls Group (EMG), a unit of Dubai's biggest listed developer Emaar Properties, climbed 1.0 percent after reporting a 32 percent rise in first-quarter net profit on Wednesday."



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Are emerging markets stocks cheap? - FT.com

Are emerging markets stocks cheap? - FT.com:



"Are emerging market (EM) stocks cheap by historical standards? The valuation gap between developed market (DM) and EM equities might suggest so.



The chart below shows that the valuation premium for DM stocks over EM peers is at its highest since June 30 2004, according to data from Unigestion, an investment management company. It measured valuations using price-to-book ratios, which are calculated by dividing a stock’s price by the latest quarter’s book value per share.



“The emerging markets are underperforming,” said Bruno Taillardat, executive director at Unigestion. “What we are seeing is that there is a discount in EM valuations right now. It is such a big gap, we think it will converge.”

"



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What the Saudi shake-up means - YouTube

What the Saudi shake-up means - YouTube: ""



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Down with the dollar - YouTube

Down with the dollar - YouTube: ""



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Five Reasons an Oil Shock Is Coming - Bloomberg Business

Five Reasons an Oil Shock Is Coming - Bloomberg Business: ""




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Russian Debt-Sale Success Shows Investors Bracing for Rate Cuts - Bloomberg Business

Russian Debt-Sale Success Shows Investors Bracing for Rate Cuts - Bloomberg Business:



"Russia sold all the bonds offered at a debt auction for a fourth straight week, signaling investors are seeking to lock in higher yields as they brace for further reductions in central bank borrowing costs.



The Finance Ministry received bids amounting to three times the 20 billion rubles ($389 million) of floating-coupon notes tendered on Wednesday. That’s the most Russia has raised from the sale of floaters since reintroducing the instrument in January to try to drum up demand for local debt. Government bonds gained for the first time in four days, while the ruble strengthened, extending the biggest monthly rally since 1993.



The coupon paid on Russian floaters is based on interbank market rates for the previous six months, which should amount to around 15 percent by July, according to Dmitry Dudkin, head of fixed income research at UralSib Capital. The Bank of Russia, which raised its key rate by 650 basis points in December to 17 percent, has since brought borrowing costs down to 14 percent -- with another point cut projected on Thursday."



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The Oil Slump is Emptying the Stores and Streets of Dubai - Bloomberg Business

The Oil Slump is Emptying the Stores and Streets of Dubai - Bloomberg Business:



"The historic Dubai marketplace that calls itself the City of Gold is glittering less these days.



Under streets and alleys covered by roofs to protect window shoppers from the intense desert sun, more than 300 stores peddle everything from ingots to Bedouin jewelry. The Dubai Gold Souk had become one of the largest such marketplaces, offering tax-free precious metal, as Persian Gulf oil wealth ballooned in the past few decades.



Now, with the plunge in crude throttling economies across the Middle East, gold buyers are harder to find. Demand for the metal is slowing in the region and Dubai has seen a drop-off in some visitors. Shopkeepers say sales are declining because tourists from Saudi Arabia and Russia have less cash to spend. Sellers offer discounts for gold that two years ago fetched a premium."



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