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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."



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

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



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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."



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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."



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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."



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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."



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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."



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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."



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The Renminbi Rumba | FT Markets - YouTube

The Renminbi Rumba | FT Markets - YouTube: ""



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

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



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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."



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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."



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