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Sunday, 6 November 2016

The Egyptian economy is running on empty as it awaits a recharge of energy strategy | The National

The Egyptian economy is running on empty as it awaits a recharge of energy strategy | The National:

"Long queues stretched around Cairo petrol stations on Thursday evening as motorists rushed to beat rising fuel prices. In tandem with the sharp devaluation of the Egyptian pound, the government has cut subsidies again. But with the country’s indicators blinking on zero, Egypt badly needs to recharge its energy strategy.

The Egyptian pound fell by almost a third as the central bank said on Thursday that it was letting the currency float. Devaluation had become inevitable as a requirement for securing an essential IMF loan and easing a drought of foreign currency that had led to shortages of sugar.


Problems with energy have been an important part of undermining Egypt’s budget and trade balance. Even after cuts earlier this year, subsidies account for nearly half the forecast budget deficit of 9.8 per cent for the 2016-17 fiscal year. The drop in subsidies was mostly because of falling global oil and gas prices, not internal reforms. The price of gas has gone up, but electricity tariffs have not been raised proportionately, shifting the subsidy burden rather than removing it."



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Dubai's Emaar Malls Q3 net profit rises 16 pct - statement | Reuters

Dubai's Emaar Malls Q3 net profit rises 16 pct - statement | Reuters:

"Emaar Malls, a unit of Emaar Properties, reported a 16 percent rise in third-quarter net profit on Sunday.

* Net profit of 435 million dirhams ($118.4 million) in the three months to Sept. 30, it said in a bourse statement, compared with a profit of 376 million dirhams in the same period a year earlier.

* EFG Hermes forecast: 421.8 mln dirhams

* Quarterly revenue was 774 million dirhams, up 8 percent on a year earlier."



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MIDEAST STOCKS-Egyptian shares up for second day on currency float; Saudi climbs | Reuters

MIDEAST STOCKS-Egyptian shares up for second day on currency float; Saudi climbs | Reuters:

"Egyptian blue chips jumped for a second straight day on Sunday after the central bank floated its currency last week, raising hopes for new inflows of funds, while Saudi Arabia gained as last month's successful international bond issue continued to spur buying.

The Egyptian blue chip index added 6.1 percent in heavy trade to reach its highest level since April 2015. It was the index's biggest rise since March this year. The broader EGX100 index gained 3.8 percent.

Commercial International Bank (CIB) soared its 10 percent daily limit. As the country's largest listed bank, CIB is expected to benefit from an increase in trade and financial flows if the currency devaluation succeeds and foreign exchange business returns to banks from the black market."



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Equity crowdfunding platform opens at DIFC | GulfNews.com

Equity crowdfunding platform opens at DIFC | GulfNews.com:

"Equity crowd funding platform Eureeca.it has started operations from the Dubai International Financial Centre (DIFC).
The multi-regulated platform, has more than 12,000 investors from 42 countries. The firm’s investor network, that ranges from small scale and angel investors, to institutional investors and corporates, can access new investment opportunities from multiple countries globally allowing them to buy shares and make equity investments in these companies.
“Eureeca, the first ever equity crowdfunding platform in the region, will help link these high growth businesses with much needed and underserved capital. It is a testament to the regulatory infrastructure we have put in place that they have chosen DIFC as their regional hub, with firms like these a crucial part of our plan for our 2024 Growth Strategy,” said Arif Amiri, CEO of DIFC Authority."



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Egypt Stocks Rally Most in Mideast on Bets Float to Appease IMF - Bloomberg

Egypt Stocks Rally Most in Mideast on Bets Float to Appease IMF - Bloomberg:

"Egyptian stocks rallied a seventh day on bets an unprecedented decision to float its currency will help cement a $12 billion loan from the International Monetary Fund.
The EGX 30 Index climbed 2.8 percent at 10:22 a.m. in Cairo, poised for the longest winning streak since March. Members of the benchmark gauge traded at the most expensive in 17 months based on future earnings, as the measure’s 14-day relative index rose further into overbought territory. Shares in Dubai fell 0.6 percent, while those in Saudi Arabia added 0.4 percent.
The pound has slumped more than 40 percent to 15.5 per dollar since it was floated on Thursday, according to quotes from National Bank of Egypt, as part of efforts to reform one of Africa’s biggest economies and seal the IMF lifeline. Officials say the loan will help restore investor confidence, which never fully recovered following a series of uprisings that toppled two leaders in less than six years."



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Saudi Markets Are in Recovery Mode as Bond Debut Sparks Euphoria - Bloomberg

Saudi Markets Are in Recovery Mode as Bond Debut Sparks Euphoria - Bloomberg:

"Stocks just chalked up their longest rally since 2014, default risk is tumbling and the cash squeeze in the nation’s banking system is suddenly dissipating.
Such is the optimism reverberating through Saudi Arabia’s markets since the nation, the world’s biggest oil exporter, made good on a promise to sell its first international bonds that its markets are in their best phase for months. October’s $17.5 billion offering, the largest from an emerging-market nation, was part of the kingdom’s plan to cope with falling crude prices and develop its $646 billion economy away from oil.
“Not only do investors now believe the nation is committed to economic reform, but it now has cash to sort out some issues, such as arrears to contractors,” said Richard Segal, a senior analyst at Manulife Asset Management in London."



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MIDEAST STOCKS-Profit-taking hits Gulf equities after oil tumbles | Reuters

MIDEAST STOCKS-Profit-taking hits Gulf equities after oil tumbles | Reuters:

"Profit-taking hit major equity markets across the Gulf in early trade on Sunday after crude oil suffered its biggest weekly percentage decline since January.

Petrochemical shares were the main drag on Saudi Arabia's index, which was down 0.4 percent after 25 minutes. Heavyweight Saudi Basic Industries lost 0.3 percent after Brent oil closed at $45.58 a barrel on Friday, the lowest since Aug. 11.

Banking shares were also weak after enjoying two weeks of strong gains, with the sub-index down 0.3 percent."



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Kuwait launches foreign bond sale to finance deficit | GulfNews.com

Kuwait launches foreign bond sale to finance deficit | GulfNews.com:

"Kuwait will issue billions of dollars worth of bonds in international markets to finance a budget deficit resulting from low oil prices, a report said Saturday.
Finance Minister Anas Al Saleh said Kuwait will issue US dollar-denominated sovereign bonds of up to $9.6 billion (Dh35.23 billion) during the 2016/2017 fiscal year that ends March 31, Al Qabas newspaper reported.
This comes on top of a $6.6 billion domestic debt programme which is already underway."



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Sovereign funds improving transparency, many still fall short -study | Reuters

Sovereign funds improving transparency, many still fall short -study | Reuters:

"Sovereign wealth funds (SWFs) have made progress in transparency and accountability since 2007, but many still fall short of what the citizens of their country or the international community should expect, according to a think-tank study.

The paper, authored by Sarah Stone and Edwin Truman under the auspices of the Washington-based Peterson Institute for International Economics, assessed 60 funds and nine government pension funds, then scored them on elements such as governance, structure, transparency, accountability and behaviour.

The average score for the 60 SWFs was 62 percent while the government pension fund average score was 87 percent, according to the study, whose results were released on Friday."



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