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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."



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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."



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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."



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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."



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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.”"



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