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Thursday, 19 November 2015

GCC equity valuations look attractive | GulfNews.com

GCC equity valuations look attractive | GulfNews.com:

"GCC equity markets are looking increasingly attractive after the broad-based sell off since the summer and these markets represent a buying opportunity, particularly with appealing stock valuations and stronger earnings momentum, according to Bank of America Merrill Lynch.

“There are broad-based buying opportunities, but stock selection is becoming the key. We retain our bias for markets with robust macro, attractive valuations, consistent earnings delivery and/or superior earnings growth. These factors make the UAE our most preferred Mena [Middle East and North Africa] market and Kuwait as our preferred GCC Frontier market,” said Hootan Yazhari, Head of Mena & Frontier Markets Equity Research.

The sharp correction across frontier markets since the summer has also yielded strong opportunities across many other markets, including Saudi Arabia. In this context, Yazhari said stock selection (rather than market selection) is becoming more crucial and advocate a focus on quality and mispriced opportunities."



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Dubai Holding estimates 2015 net profit at Dh5.5b | GulfNews.com

Dubai Holding estimates 2015 net profit at Dh5.5b | GulfNews.com:

"Dubai Holding said on Thursday it estimates 2015 net profit at Dh5.5 billion with a total assets of Dh130 billion, even as it expects the UAE economy to maintain its stability despite the global economic turmoil with a 5 per cent growth this year.

The investment company’s successes have been largely due to its resilience and diversity. The group with total assets exceeding Dh130 billion, follows a long-term strategy that is closely aligned with Dubai’s overall outlook and strategy, it said in a statement on Thursday.

Dubai Holding also affirmed that the company is committed to fulfilling its financial obligations, the last of which is a £500 million (Dh2.78 billion) loan that matures by January 2017."



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Soft landing projected for the UAE amid declining revenues | GulfNews.com

Soft landing projected for the UAE amid declining revenues | GulfNews.com:

"A decline in oil prices for more than 17 months have resulted in a sharp contraction in government revenues across the GCC, with many countries facing the prospect of economic slowdown and rising fiscal deficits, according to Bank of America Merrill Lynch.

But the degree of impact varies from country to country, the bank added. In the region, the UAE is better positioned to deal with the current situation as it holds substantial reserves and the economy is relatively more diversified than its GCC peers, said Jean-Michel Saliba, Mena (Middle East and North Africa) economist, Bank of America Merrill Lynch.

“In our view, the UAE economy is likely to soft land this year. The near-term direct impact of lower oil prices on UAE is more muted than for GCC peers. However, the indirect impact through lower regional and domestic liquidity, real estate, external sector and indebtedness would be more pronounced if oil prices remain low for long,” said Saliba."



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Dubai's Limitless debt deal held up by minority creditors | Reuters

Dubai's Limitless debt deal held up by minority creditors | Reuters:

"A minority of creditors are resisting attempts by Dubai government-owned property developer Limitless to seal a restructuring on around 1.9 billion dirhams ($517 million) in bank debt, three banking sources said.

The company needs complete creditor approval in order to push through any deal, with the absence of an agreement raising uncertainty about its future prospects at a time of weakness in the United Arab Emirates' property market.

In June, the company said it had won the approval of almost 90 percent of banks to a repayment plan involving 1.9 billion dirhams of bank debt. In return, Limitless is asking its 18 creditor banks to agree to extend the term of its debt by two years to December 2018."



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MIDEAST STOCKS-Saudi'S Ma'aden helps lift index after loan, most mkts rise | Reuters

MIDEAST STOCKS-Saudi'S Ma'aden helps lift index after loan, most mkts rise | Reuters:

"Saudi Arabian Mining Co (Ma'aden) jumped to a three-month high on Thursday after the company secured a major loan, while most Middle East shares firmed as a steady oil price encouraged bargain hunters.

Ma'aden shares were up 5.5 percent after local, regional and international banks committed to a 11.5 billion riyal ($3.1 billion) loan for its phosphate business, replacing existing debt on more favourable terms.

Riyadh's Tadawul index rose 1.2 percent in its third session of gains in the four days since it hit a two-year low on Sunday."



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Brunei struggling to wean itself off oil - FT.com

Brunei struggling to wean itself off oil - FT.com:

"Brunei has narrowly escaped a second recession in two years but its recovery will be slow and erratic. The oil-dependent sultanate — one of the few countries in the world with an absolute ruler — is struggling to diversify its economy. Its neighbour Malaysia — itself badly hurt by collapsing oil prices — is unlikely to be much help.
The energy sector supplies about 60 per cent of Brunei’s economic output and led the country into a prolonged recession in 2013 and 2014, making it the only Asean economy to contract during the period."



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Dollar strength destroying global growth | FT Markets - YouTube

Dollar strength destroying global growth | FT Markets - YouTube: ""



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UPDATE 1-MIDEAST STOCKS-Gulf markets rise, Egypt buoyed by World Bank loan promise | Reuters

UPDATE 1-MIDEAST STOCKS-Gulf markets rise, Egypt buoyed by World Bank loan promise | Reuters:

"Middle East stockmarkets firmed on Thursday, with Saudi Arabian Mining Co (Ma'aden) rising on news of a major loan and Egyptian shares climbing on the prospect of Cairo receiving $1 billion from the World Bank.

Ma'aden were up 3.9 percent by 0943 GMT after local, regional and international banks committed to a 11.5 billion riyal ($3.1 billion) loan for its phosphate business, replacing existing debt on more favourable terms.

Riyadh's Tadawul index rose 1.1 percent to 7,032.70 points, heading for a third session of gains in the four days since it hit a two-year low on Sunday."



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