Thursday, 12 December 2019

#Saudi Aramco to Rise more says Jaap Meijer, managing director of equity research at Arqaam Capital - Bloomberg

Saudi Aramco to Rise more says Jaap Meijer, managing director of equity research at Arqaam Capital - Bloomberg:

Jaap Meijer, managing director of equity research at Arqaam Capital Ltd. in Dubai, talks about the prospects for Saudi Aramco. Its shares surged Wednesday after the oil producer’s initial public offering, valuing the company at a record $1.88 trillion in the culmination of a four-year effort by the kingdom to list its crown jewel. Meijer speaks with Manus Cranny and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Baladna, Rameda IPO in Middle East Today Beyond Aramco - Bloomberg

Baladna, Rameda IPO in Middle East Today Beyond Aramco - Bloomberg:

As the eyes of the world were on the blockbuster market debut of Saudi Aramco, two much smaller Middle East stock listings snuck in underneath the radars of many investors.


Dairy producer Baladna fell 1% in Doha after raising $390 million in an offer that was restricted to locals, erasing gains at the open of as much as 5.9%. And in Cairo, a pharmaceutical company known as Rameda lost as much as 13% after raising about $109 million.

The stocks’ debuts indicate that listing activity is picking up in the Middle East after what has been a quiet year. The most recent listing in Saudi Arabia for a company bigger than $100 million was in June, while no IPOs happened in the United Arab Emirates this year.

#Saudi Aramco Investors Should Cash Out Now, Bernstein Says - Bloomberg

Saudi Aramco Investors Should Cash Out Now, Bernstein Says - Bloomberg:

Saudi Aramco investors should take profit now after shares in the world’s biggest company jumped 10% in their first day of trading Wednesday, analysts at Sanford C. Bernstein & Co. recommended in a note to clients.

A low dividend yield, the political risk of the government still running the company, and a bleak outlook for oil prices all point to a fair valuation for Saudi Aramco that’s about 28% lower than the $1.88 trillion it reached after its first day of trading in Riyadh, Bernstein analysts including Neil Beveridge and Oswald Clint said in the Thursday note.

There may still be some short term upside because of index inclusion and the difficulty of shorting stocks on the Saudi Tadawul Stock Exchange, Bernstein said. The company jumped a second day on Thursday, pushing the oil giant beyond the $2 trillion valuation that Crown Prince Mohammed bin Salman set as a target more than three years ago.

Investors, take note: Top five #UAE investment opportunities for 2020 | ZAWYA MENA Edition

Investors, take note: Top five UAE investment opportunities for 2020 | ZAWYA MENA Edition:

In a wide-ranging interview Anita Yadav, CEO of Century Financial, picks the investment opportunities available in the UAE.

What would be the top 5 investment opportunities for investors in UAE for 2020?

Right now in the UAE there is no single asset class that really stands out, but there’s no asset class that is to be avoided either. Everything has its pluses and minuses and within those asset classes you can pick and choose the winners.

Although returns on the Dubai Financial Market and the Abu Dhabi Securities Exchange have been less than stellar this year, I would say there is a strong case for being invested in equities. Among the listed stocks I find value in some of the upcoming newer sectors, say for example, delivery companies, or companies with credible track record like Air Arabia, Aramex, Emirates NBD or DEWA.

Oil prices rise on OPEC deficit forecast - Reuters

Oil prices rise on OPEC deficit forecast - Reuters:

Oil prices rose on Thursday, recouping some of the losses from the previous session that followed a surprise increase in U.S. crude inventories, as the market mood switched to relief after OPEC forecast a supply deficit next year.

Brent futures LCOc1 rose 28 cents, or 0.4% to $64.00 a barrel, after skidding 1% on Wednesday on the U.S. stocks build-up.

West Texas Intermediate crude CLc1 was up 12 cents, or 0.2%, at $58.88 a barrel, following a 0.8% drop the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) on Wednesday said it now expected a small deficit in the oil market in the next year, suggesting the market is tighter than previously thought - even before the latest pact with other producers to curb supply takes effect.

Oil market oversupply set to stay despite OPEC+ pact: IEA - Reuters

Oil market oversupply set to stay despite OPEC+ pact: IEA - Reuters:

Global oil inventories could rise sharply despite an agreement by OPEC and its allies to deepen output cuts as well as lower expected production by the U.S. and other non-OPEC countries, the International Energy Agency (IEA) said on Thursday.

“Despite the additional curbs ... and a reduction in our forecast of 2020 non-OPEC supply growth to 2.1 million barrels per day (bpd), global oil inventories could build by 700,000 bpd in Q1 2020,” the Paris-based IEA said in a monthly report.

The Organization of the Petroleum Exporting Countries, led de facto by Saudi Arabia, and other producers including Russia agreed last week to rein in output by an extra 500,000 bpd in the first quarter of 2020 in order to balance the market and buoy prices, but stopped short of pledging action beyond March.

#Saudi Aramco tops Crown Prince's $2 trillion goal as shares surge - Reuters

Saudi Aramco tops Crown Prince's $2 trillion goal as shares surge - Reuters:

Saudi Aramco (2222.SE) topped the $2 trillion target sought by Saudi leader Crown Prince Mohammed bin Salman on Thursday as its shares clocked up a second day of gains, defying some scepticism about the state-owned oil firm’s long-term value.

The Saudi Crown Prince has made Aramco’s initial public offering (IPO) the centerpiece of his vision of diversifying the Kingdom’s economy away from its dependence on oil by using the $25.6 billion raised to develop other sectors.

But that is well below his plan in 2016 to raise as much as $100 billion via a blockbuster international and domestic IPO.

Riyadh scaled back its plans after overseas investors baulked at the proposed valuation and only 1.5% of Saudi Arabian Oil Co (Aramco) shares were listed on the Riyadh stock exchange on Wednesday, a tiny free float for such a large company.

Mideast Stocks: #Saudi drops a day after Aramco's debut, other Gulf markets quiet | ZAWYA MENA Edition

Mideast Stocks: Saudi drops a day after Aramco's debut, other Gulf markets quiet | ZAWYA MENA Edition:

Saudi Arabia's stock market fell on Thursday, reversing most of the previous session's gains made as state-owned oil giant Aramco debuted on the exchange, while other major Gulf markets were also little changed.

Aramco, however, jumped 8.1%, adding to a 10% rise on Wednesday. Its shares had been as much as 10% higher at 38.7 riyals at Thursday's market open, implying a market value of $2 trillion, Refinitiv data showed.

Aramco raised $25.6 billion on Dec. 5 through its IPO and plans to exercise a 15% greenshoe option in whole or part during the first 30 days of trading. If the option is exercised in full, the total raised from the IPO would amount to $29.4 billion.

The firm is expected to be included in the MSCI emerging markets index on Dec. 17.