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Sunday, 11 October 2015

Saudi regulator suspends Mobily shares for second time this year | The National

Saudi regulator suspends Mobily shares for second time this year | The National:

"Saudi Arabia’s market regulator yesterday suspended shares of the telecoms operator Etihad Etisalat for the second time this year.

The watchdog said it was waiting to hear from the company, also known as Mobily, about compensation for shareholders after earnings were misstated last year. More than US$5 billion has been wiped off the company’s market value since last year.

“This suspension is pending a clarification from Mobily about the preliminary decisions issued by the Committee for the Resolution of Securities Disputes on the lawsuits filed by some investors regarding compensation for the losses they suffered as a result of the financial statements released by the company,” said the Capital Market Authority in Riyadh."



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Kuwait sovereign fund may sell assets to cover deficit - report | Reuters

Kuwait sovereign fund may sell assets to cover deficit - report | Reuters:

"Kuwait's sovereign wealth fund, one of the world's largest, is considering selling assets to cover a state budget deficit caused by low oil prices, the country's al-Anba newspaper reported on Sunday, quoting unnamed sources.

The Kuwait Investment Authority (KIA), which is estimated to have more than $500 billion of assets, is studying whether to liquidate assets that generate annual returns of below 9 percent, the newspaper said.

The KIA's money is invested across the world, from the United States to Europe to China, in various asset classes including bonds, equities and real estate. The newspaper did not specify which asset classes might be sold."



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Tough outlook for UAE banks as liquidity squeeze hits earnings | GulfNews.com

Tough outlook for UAE banks as liquidity squeeze hits earnings | GulfNews.com:

"After reporting robust growth in assets and profits in the first two quarters of this year, the UAE banks are expected to face strong headwinds on both these fronts from the fourth quarter as liquidity tightens.

With the third-quarter results set to be announced starting this week, analysts do not expect in a sharp deceleration in both asset growth and asset quality, but say there could be early signs of fatigue as the knock-on effects of lower oil prices on growth will be reflected in credit growth and a gradual reversal in the declining trend in credit losses over the past several quarters.

Declining asset prices, particularly the volatility in the stock markets and a drop in real estate transactions in the UAE, are also seen holding back asset growth and asset quality in a few quarters ahead."



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Saudi Arabia oil: No gain without pain - FT.com

Saudi Arabia oil: No gain without pain - FT.com:

"Any idea that Saudi Arabia was about to abandon its effort to turn the oil market on its head was dashed earlier this month when the country’s top energy official said it would do something few other industry players want to do right now: invest.
The oil price collapse over the past 16 months has forced the world’s biggest energy companies to cut hundreds of billions of dollars in future spending to bolster their balance sheets. But Ali al-Naimi — oil minister and architect of the Saudi strategy to maintain output and keep prices low to hobble its rivals — voiced a commitment to press on with investments in exploration, production and refining."



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The golden age of central banks is at an end – is it time for tax and spend? | Business | The Guardian

The golden age of central banks is at an end – is it time for tax and spend? | Business | The Guardian:

"Turn those machines back on. So demands the unscrupulous banker, Mortimer Duke, when he finds he and his brother Randolph have been ruined by their speculative scam in the film Trading Places. Having lost all his money betting wrongly on orange juice futures, Mortimer demands that trading be restarted so that he can win it back.

It’s not known whether Christine Lagarde is a secret fan of John Landis movies. As a French citizen, François Truffaut might be more her taste. There is, though, more than a hint of Trading Places about the advice being handed out by Lagarde’s International Monetary Fund to global policymakers.

To Europe and Japan, the message is to print some more money. Keep those machines turned on, in other words. To the US and the UK, there was a warning that raising interest – something central banks in both countries are contemplating – could have nasty spillover effects around the rest of the world. Think long and hard before turning those machines off because you may have to turn them back on again before very long, Lagarde is saying, because the big risk to the global economy is not that six years of unprecedented stimulus has caused inflation but that the recovery is faltering."



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IMF: keep interest rates low or risk another crash | Business | The Guardian

IMF: keep interest rates low or risk another crash | Business | The Guardian:

"The International Monetary Fund concluded its annual meeting in Lima with a warning to central bankers that the world economy risks another crash unless they continue to support growth with low interest rates.

The Washington-based lender of last resort said in its final communiqué that uncertainty and financial market volatility have increased, and medium-term growth prospects have weakened.

“In many advanced economies, the main risk remains a decline of already low growth,” it said, and this needed to be supported with “continued accommodative monetary policies, and improved financial stability”."



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Qatar's Energy Minister Says Oil Prices Have Bottomed Out - Bloomberg Business

Qatar's Energy Minister Says Oil Prices Have Bottomed Out - Bloomberg Business:

"Global oil prices have bottomed out, with signs of a recovery seen in 2016, Qatar’s Energy Minister Mohammed Al Sada said.
Growth in non-OPEC crude oil supply slowed “substantially” this year and is likely to remain flat or turn negative in the next, Al Sada said in an e-mailed statement on Sunday. “Call on OPEC oil is expected to become healthier,” to 30.5 million barrels a day in 2016 from 29.3 million in 2015, he said, citing increasing demand from both developed and emerging markets.
Current low prices have “caused oil companies to reduce their capital expenditure by almost 20 percent this year from $650 billion in 2014,” he said. “This trend of reducing investment in the oil industry could result in production shortfalls down the line.”"



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Lufthansa Sees Growth Opportunities in Saudi Arabia, Muscat - Bloomberg Business

Lufthansa Sees Growth Opportunities in Saudi Arabia, Muscat - Bloomberg Business:

"Deutsche Lufthansa AG sees Saudi Arabia, Muscat and post-sanction Iran as potential growth opportunities in the Middle East as it introduces new products and services across the region.
The German carrier will offer its new premium economy class on flights to Dubai and the Gulf region starting Oct. 25, and a restaurant-style service on its Gulf routes, Karsten Zang, regional director for the Gulf, Iran, Afghanistan and Pakistan, told reporters in Dubai. “Our new products will help us definitely to be more competitive here in the Gulf region.”
The company has invested 3 billion euros ($3.4 billion) in new offerings and lounges as part of a restructuring drive as it seeks a Skytrax five-star rating to help it compete with Gulf rivals including Emirates, Etihad Airways and Qatar Airways. It has also called for a level playing field, accusing its competitors of taking state subsidies."



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MIDEAST STOCKS-Petrochemicals boost Saudi; other markets sluggish | Reuters

MIDEAST STOCKS-Petrochemicals boost Saudi; other markets sluggish | Reuters:

"Saudi Arabia's main share market
index rose on Sunday as investors continued to buy beaten-down
petrochemical shares on hopes that oil prices may have bottomed
out, while most other regional bourses were sluggish.

Brent oil's strong recovery above $50 a barrel last
week made investors more comfortable with petrochemical
stocks. Sector leader Saudi Basic Industries (SABIC)
climbed 3.2 percent to 89.25 riyals on Sunday, while four other
stocks in sector were also among the 10 most-traded stocks and
saw their prices surge. 

Although the outlook for oil and therefore petrochemical
prices remains unclear, equity valuations are now seen low
enough to interest investors. Analysts' median target price for
SABIC is 106 riyals, according to Thomson Reuters data."



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NMC Health of Abu Dhabi approaches Al Noor about counteroffer | The National

NMC Health of Abu Dhabi approaches Al Noor about counteroffer | The National:

"NMC Health, the UAE health-care company, made an approach to Al Noor Hospitals Group about a possible offer that would challenge an earlier proposal by South Africa’s Mediclinic International.

NMC Health, the first Abu Dhabi-based company to list on the premium segment of the London Stock Exchange, has until November 6 to make a firm offer, Al Noor, which is also based in Abu Dhabi, said in a statement on Friday. Bloomberg News earlier reported the approach. Al Noor is leaning toward accepting the Mediclinic proposal, according to a person familiar with the matter, who asked not to be identified as the company’s deliberations are private.

Al Noor shares reversed losses and advanced 1.9 per cent to 998.5 pence as of 2.43pm in London, valuing the company at £1.2 billion (Dh6.75bn). NMC declined 2.4 per cent. Mediclinic reversed gains, and traded 2.2 per cent lower at 117 (Dh32.17) rand as of 3.41pm. in Johannesburg, valuing the company at 115 billion rand.

"



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Jobs growth in Dubai’s non-oil private sector slows to three-and-a-half year low | The National

Jobs growth in Dubai’s non-oil private sector slows to three-and-a-half year low | The National:

"A measure of Dubai’s non-oil private business growth slowed in September as new hires grew at the slowest pace in three and half years amid cooling economic growth in the aftermath of the biggest drop in oil prices since the financial crash.

The UAE purchasing managers’ index (PMI) fell to 56 last month from 57.6 in August, Emirates NBD said. The Dubai-based bank sponsors the monthly survey of business conditions in the UAE’s non-oil private sector by Markit, a financial information services company.

“The slight slowdown in the pace of expansion in Dubai’s non-oil economy is consistent with the slowdown across the UAE in September,” said Tim Fox, chief economist at Emirates NBD."



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Leadership battle at Libya’s sovereign wealth fund heats up | GulfNews.com

Leadership battle at Libya’s sovereign wealth fund heats up | GulfNews.com:

"The tussle for control of Libya’s $67 billion (Dh245.89 billion) wealth fund, the Libyan Investment Authority (LIA), between two executives both claiming to the legitimate chairman, is escalating in a war of words.

AbdulMagid Breish and Hassan Ahmad Bouhadi have been exchanging words through the media and lawyers this year as they both state their case to be the recognised chairman.

“We have unfortunately a rogue … board claiming to be the rightful board but they don’t control anything,” Breish said in an interview in a Dubai hotel on Saturday."



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MIDEAST STOCKS-Saudi continues rebound on petchems; Egypt up | Reuters

MIDEAST STOCKS-Saudi continues rebound on petchems; Egypt up | Reuters:

"Saudi Arabia's stock market rebounded early on Sunday as beaten-down petrochemical shares were bought on hopes that oil prices may have bottomed, while merger activity in the financial sector supported Egypt.

Brent oil's strong recovery above $50 a barrel last week made many investors more comfortable with petrochemical stocks. Sector leader Saudi Basic Industries (SABIC) climbed 3.8 percent to 89.75 riyals on Sunday.

Two other petchems were among the 10 most traded stocks and their prices also surged."



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MIDEAST STOCKS-Gulf markets edge up on positive global environment | Reuters

MIDEAST STOCKS-Gulf markets edge up on positive global environment | Reuters:

"Gulf stock markets edged higher on Sunday in response to firm oil prices and global equities although trading volumes remained moderate.

Brent oil closed at $52.65 on Friday, slightly above its level when Gulf markets last traded on Thursday. The MSCI all-country world equity index climbed 0.7 percent for its eighth daily gain. It was up 4.4 percent for the week, its biggest weekly advance since December.

This was enough to prompt broad-based buying in Dubai, where the most heavily traded stock, GFH Financial, added 3.0 percent. At the end of last week Fitch Ratings affirmed the company's long-term rating at B-minus with a stable outlook."



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Israel Stocks Buck Mideast Rally on Violence; Saudi Shares Climb - Bloomberg Business

Israel Stocks Buck Mideast Rally on Violence; Saudi Shares Climb - Bloomberg Business:

"Israel stocks were among the few equities in the Middle East to decline as days of confrontations with Palestinians intensified. Saudi Arabian stocks rallied led by one of the world’s biggest petrochemicals makers, which is restructuring to tackle “challenges" facing the company.
Israel’s TA-25 Index climbed as much as 0.2 percent at the start of trading before retreating 0.2 percent at 11:33 a.m. local time. The nation’s air force struck the Gaza Strip on Sunday in retaliation for rocket fire, and a car bomb was directed against an Israeli policeman outside Jerusalem. Tensions have flared over contesting claims to a Jerusalem shrine holy to Jews and Muslims.
The index is “underperforming global markets with the ongoing wave of terror attacks on investors’ minds,” Saar Golan, a trader at Bank of Jerusalem Ltd. in Tel Aviv, said by e-mail. “We don’t believe we are yet over this wave of violence, and the uncertainty is keeping buyers away.”"



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