Abu Dhabi Three-Way Merger Turns Focus on `Last Bank Standing' - Bloomberg:
A potential three-way bank merger in the United Arab Emirates is boosting the stock of a lender that’s not even involved in the deal: Abu Dhabi Islamic Bank PJSC.
ADIB’s shares climbed in high volumes as investors speculate that it will be the next to join the race to consolidate. The stock lagged behind only the two local competitors that might be soon announcing a deal to create the fifth-largest bank in the six-nation Gulf Cooperation Council.
“ADIB is the last bank standing, and there still remains some hope that it would be joining hands with someone else,” said Joice Mathew, the head of equity research at United Securities in Muscat. “Moreover, the merger news is taking the valuations of Abu Dhabi banks to higher levels, and ADIB is likely to play catch up here.”
Tuesday 4 September 2018
UAE stocks gain $2bln following potential bank merger reports | ZAWYA MENA Edition
UAE stocks gain $2bln following potential bank merger reports | ZAWYA MENA Edition:
The UAE stock exchanges gained AED7.5 billion in market cap Tuesday following reports purporting initial negotiations on potential mergers between Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank.
The shares of the ADX-listed ADCB and Union National Bank therefore closed high at AED8.00 and AED4.34 respectively, following robust demand by investment agencies and individuals. The development created positive sentiments that pushed ADX General Index high by 0.94 percent to 4983 points, with DFM following suit by 0.27 percent up to close at 2837 points.
The reported potential merger, if materialised, would be the third of its kind across the country over the past 10 years after the merger of NBAD and First Gulf Bank into First Abu Dhabi Bank and the merger of the Emirates Bank International and the National Bank of Dubai into Emirates NBD.
The UAE stock exchanges gained AED7.5 billion in market cap Tuesday following reports purporting initial negotiations on potential mergers between Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank.
The shares of the ADX-listed ADCB and Union National Bank therefore closed high at AED8.00 and AED4.34 respectively, following robust demand by investment agencies and individuals. The development created positive sentiments that pushed ADX General Index high by 0.94 percent to 4983 points, with DFM following suit by 0.27 percent up to close at 2837 points.
The reported potential merger, if materialised, would be the third of its kind across the country over the past 10 years after the merger of NBAD and First Gulf Bank into First Abu Dhabi Bank and the merger of the Emirates Bank International and the National Bank of Dubai into Emirates NBD.
UAE's Brooge Petroleum aims for London listing before year end- sources | Reuters
UAE's Brooge Petroleum aims for London listing before year end- sources | Reuters:
UAE-based Brooge Petroleum and Gas Investment Co (BPGIC) plans to raise $400 million (311.69 million pounds) in an initial public offering in London, which could be potentially launched before the end of this year, three sources familiar with the deal said.
The aim of listing the company, engaged in oil products and crude storage infrastructure in the United Arab Emirates, abroad, choosing London as a potential venue, is to have a more diversified investor base, said the sources, who declined to be named due to commercial sensitivities.
The IPO plan comes as the company plans to boost storage capacity for crude and oil products in the Fujairah oil hub in the UAE.
UAE-based Brooge Petroleum and Gas Investment Co (BPGIC) plans to raise $400 million (311.69 million pounds) in an initial public offering in London, which could be potentially launched before the end of this year, three sources familiar with the deal said.
The aim of listing the company, engaged in oil products and crude storage infrastructure in the United Arab Emirates, abroad, choosing London as a potential venue, is to have a more diversified investor base, said the sources, who declined to be named due to commercial sensitivities.
The IPO plan comes as the company plans to boost storage capacity for crude and oil products in the Fujairah oil hub in the UAE.
Oil steady ahead of Storm Gordon; weighed by dollar, Cushing build | Reuters
Oil steady ahead of Storm Gordon; weighed by dollar, Cushing build | Reuters:
Oil prices were little changed on Tuesday, as energy infrastructure on the U.S. Gulf Coast braced for a hurricane, but gains were capped as a stronger dollar and report of rising stockpiles at the Cushing, Oklahoma hub weighed.
U.S. West Texas Intermediate (WTI) crude futures rose 7 cents to settle at $69.87 a barrel after earlier hitting a session high of $71.40. U.S. markets were closed on Monday for Labor Day.
Brent crude, which traded on Monday, was ended 2 cents firmer to settle at $78.17 a barrel, down from a session high of $79.72.
Oil prices were little changed on Tuesday, as energy infrastructure on the U.S. Gulf Coast braced for a hurricane, but gains were capped as a stronger dollar and report of rising stockpiles at the Cushing, Oklahoma hub weighed.
U.S. West Texas Intermediate (WTI) crude futures rose 7 cents to settle at $69.87 a barrel after earlier hitting a session high of $71.40. U.S. markets were closed on Monday for Labor Day.
Brent crude, which traded on Monday, was ended 2 cents firmer to settle at $78.17 a barrel, down from a session high of $79.72.
Qatar Airways rethinks Indian plans due to foreign ownership rules | Reuters
Qatar Airways rethinks Indian plans due to foreign ownership rules | Reuters:
Qatar Airways is reviewing plans for its own domestic Indian airline due to “confusing” foreign ownership rules and could opt to could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday.
The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector.
“We are really very interested to launch an airline in India, but the regulation is a little bit confusing to us,” Qatar Airways CEO Akbar al-Baker told reporters in New Delhi.
Qatar Airways is reviewing plans for its own domestic Indian airline due to “confusing” foreign ownership rules and could opt to could work with a partner in India or take a stake in IndiGo instead, its chief executive said on Tuesday.
The state-owned Gulf carrier has long coveted the Indian aviation market, which is the fastest growing in the world, and in 2017 said it would set up a domestic airline, a year after India eased foreign investment rules for the sector.
“We are really very interested to launch an airline in India, but the regulation is a little bit confusing to us,” Qatar Airways CEO Akbar al-Baker told reporters in New Delhi.
MSCI to launch tradeable index with Saudi exchange in Q4 | Reuters
MSCI to launch tradeable index with Saudi exchange in Q4 | Reuters:
Global index provider MSCI said on Tuesday it had signed an agreement with the Saudi Stock Exchange Co (Tadawul) to jointly launch a tradeable index later this year in a move that could spur the growth of derivatives and exchange-traded funds.
Tadawul said in a separate statement it would introduce exchange-traded derivatives in the first half of 2019.
The moves come after MSCI classified Saudi Arabian equity market as an emerging market in June, which is expected to attract billions of dollars of passive funds.
Global index provider MSCI said on Tuesday it had signed an agreement with the Saudi Stock Exchange Co (Tadawul) to jointly launch a tradeable index later this year in a move that could spur the growth of derivatives and exchange-traded funds.
Tadawul said in a separate statement it would introduce exchange-traded derivatives in the first half of 2019.
The moves come after MSCI classified Saudi Arabian equity market as an emerging market in June, which is expected to attract billions of dollars of passive funds.
Saudi’s PIF to sign US$11bn loan next week | Reuters
Saudi’s PIF to sign US$11bn loan next week | Reuters:
Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is set to sign a US$11bn syndicated loan next week, according to bankers close to the deal, which will help to fund the kingdom’s economic transformation plans.
The deal will be the first commercial loan for PIF, which is tasked with helping to deliver Saudi Arabia’s Vision 2030 reform plan, as the country reduces its reliance on oil exports. The loan will have a five-year maturity and is structured as a club loan with 14-16 banks making commitments of up to US$1bn at three different levels.
“I anticipate we will receive signing instructions next week,” one banker said.
Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is set to sign a US$11bn syndicated loan next week, according to bankers close to the deal, which will help to fund the kingdom’s economic transformation plans.
The deal will be the first commercial loan for PIF, which is tasked with helping to deliver Saudi Arabia’s Vision 2030 reform plan, as the country reduces its reliance on oil exports. The loan will have a five-year maturity and is structured as a club loan with 14-16 banks making commitments of up to US$1bn at three different levels.
“I anticipate we will receive signing instructions next week,” one banker said.
MIDEAST STOCKS-Abu Dhabi up on bank merger, U.S. trade disputes weigh elsewhere | Reuters
MIDEAST STOCKS-Abu Dhabi up on bank merger, U.S. trade disputes weigh elsewhere | Reuters:
Abu Dhabi shares rallied on Tuesday after Abu Dhabi Commercial Bank (ADCB) said it was exploring potential merger talks with two other lenders, while regional markets were muted amid continued U.S. trade disputes with other countries.
ADCB said on Monday it was in early merger talks with Union National Bank (UNB) and Al Hilal Bank that could potentially form a lender with $113 billion in assets.
“Investors are reacting to the positive news of the potential merger of ADCB and UNB and possibly Al Hilal Bank,” said Tariq Qaqish, managing director of the asset-management division at Mena Corp. Financial Services in Dubai.
Abu Dhabi shares rallied on Tuesday after Abu Dhabi Commercial Bank (ADCB) said it was exploring potential merger talks with two other lenders, while regional markets were muted amid continued U.S. trade disputes with other countries.
ADCB said on Monday it was in early merger talks with Union National Bank (UNB) and Al Hilal Bank that could potentially form a lender with $113 billion in assets.
“Investors are reacting to the positive news of the potential merger of ADCB and UNB and possibly Al Hilal Bank,” said Tariq Qaqish, managing director of the asset-management division at Mena Corp. Financial Services in Dubai.
MIDEAST STOCKS-Abu Dhabi shares up, eyeing bank merger, U.S. trade disputes weigh elsewhere | Reuters
MIDEAST STOCKS-Abu Dhabi shares up, eyeing bank merger, U.S. trade disputes weigh elsewhere | Reuters:
Abu Dhabi shares rose at the open on Tuesday after Abu Dhabi Commercial Bank (ADCB) said it was exploring potential merger talks with two other lenders, while regional markets were muted amid continued U.S. trade disputes with other countries.
ADCB on Monday said it was in early merger talks with Union National Bank (UNB) and Al Hilal Bank, which could potentially form a lender with $113 billion in assets.
“Investors are reacting to the positive news of the potential merger ADCB and UNB and possibly Al Hilal Bank,” said Tariq Qaqish, managing director of the asset-management division at Mena Corp. Financial Services in Dubai.
Abu Dhabi shares rose at the open on Tuesday after Abu Dhabi Commercial Bank (ADCB) said it was exploring potential merger talks with two other lenders, while regional markets were muted amid continued U.S. trade disputes with other countries.
ADCB on Monday said it was in early merger talks with Union National Bank (UNB) and Al Hilal Bank, which could potentially form a lender with $113 billion in assets.
“Investors are reacting to the positive news of the potential merger ADCB and UNB and possibly Al Hilal Bank,” said Tariq Qaqish, managing director of the asset-management division at Mena Corp. Financial Services in Dubai.
U.S. Throttles Iran Oil Flows to Buyers Who Vowed Resistance - Bloomberg
U.S. Throttles Iran Oil Flows to Buyers Who Vowed Resistance - Bloomberg:
The world’s top oil buyers are discovering that U.S. sanctions on Iran will squeeze their trade flows whether they agree with America or not.
It was only about three months ago that India’s foreign minister said that the country won’t adhere to unilateral restrictions and will continue buying Iranian crude. China also made similar comments and was said to have rejected an American request to cut imports. Japan and South Korea have held talks with the U.S. aimed at securing exemptions.
Yet for all the pushback and negotiations, an emerging pattern shows U.S. sanctions are succeeding in throttling Iran’s sales to its customers even before the measures take effect in early November. While America initially wanted a complete halt in purchases, traders are now concerned that even a revised aim for only cuts would take out enough supply to create a market deficit -- which other producers may struggle to fill.
The world’s top oil buyers are discovering that U.S. sanctions on Iran will squeeze their trade flows whether they agree with America or not.
It was only about three months ago that India’s foreign minister said that the country won’t adhere to unilateral restrictions and will continue buying Iranian crude. China also made similar comments and was said to have rejected an American request to cut imports. Japan and South Korea have held talks with the U.S. aimed at securing exemptions.
Yet for all the pushback and negotiations, an emerging pattern shows U.S. sanctions are succeeding in throttling Iran’s sales to its customers even before the measures take effect in early November. While America initially wanted a complete halt in purchases, traders are now concerned that even a revised aim for only cuts would take out enough supply to create a market deficit -- which other producers may struggle to fill.
U.S. crude prices rise as Gulf oil rigs evacuated; Brent dips | Reuters
U.S. crude prices rise as Gulf oil rigs evacuated; Brent dips | Reuters:
U.S. oil prices rose on Tuesday, breaking past $70 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane.
U.S. West Texas Intermediate (WTI) crude futures were at $70.25 per barrel at 0650 GMT, up 45 cents, or 0.6 percent from their last settlement.
Anadarko Petroleum Corp said on Monday it had evacuated and shut production at two oil platforms in the northern Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane.
U.S. oil prices rose on Tuesday, breaking past $70 per barrel, after two Gulf of Mexico oil platforms were evacuated in preparation for a hurricane.
U.S. West Texas Intermediate (WTI) crude futures were at $70.25 per barrel at 0650 GMT, up 45 cents, or 0.6 percent from their last settlement.
Anadarko Petroleum Corp said on Monday it had evacuated and shut production at two oil platforms in the northern Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane.
UAE private-sector growth slows in August as employment slumps: PMI | Reuters
UAE private-sector growth slows in August as employment slumps: PMI | Reuters:
Expansion of the United Arab Emirates’ non-oil private sector slowed to a five-month low in August as total employment shrank for the first time on record, a survey of companies showed on Tuesday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, fell to 55.0 last month from 55.8 in July. A reading above 50 indicates expansion and below that level, contraction.
Output growth accelerated to 63.1 from 61.9, but growth in new orders slowed to a 20-month low of 57.1 from 60.6. The reading for employment sank to 49.0 from 50.2, falling below 50 for the first time since the survey was launched in August 2009.
Expansion of the United Arab Emirates’ non-oil private sector slowed to a five-month low in August as total employment shrank for the first time on record, a survey of companies showed on Tuesday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, fell to 55.0 last month from 55.8 in July. A reading above 50 indicates expansion and below that level, contraction.
Output growth accelerated to 63.1 from 61.9, but growth in new orders slowed to a 20-month low of 57.1 from 60.6. The reading for employment sank to 49.0 from 50.2, falling below 50 for the first time since the survey was launched in August 2009.
Saudi private-sector growth in August is fastest this year: PMI | Reuters
Saudi private-sector growth in August is fastest this year: PMI | Reuters:
Growth in Saudi Arabia’s non-oil private sector edged up in August to its fastest rate this year, a survey of companies showed on Tuesday, suggesting a long-awaited recovery of the economy may have begun.
The economy has been hit hard in the last few years by low oil prices and government austerity, but the International Monetary Fund predicts it will start picking up this year as state spending and oil output increase.
The corporate survey indicated that process may now be underway. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index rose to 55.1 last month from 54.9 in July; a level above 50 indicates expansion.
Growth in Saudi Arabia’s non-oil private sector edged up in August to its fastest rate this year, a survey of companies showed on Tuesday, suggesting a long-awaited recovery of the economy may have begun.
The economy has been hit hard in the last few years by low oil prices and government austerity, but the International Monetary Fund predicts it will start picking up this year as state spending and oil output increase.
The corporate survey indicated that process may now be underway. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index rose to 55.1 last month from 54.9 in July; a level above 50 indicates expansion.
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