Savola Azizia United Co., a Saudi food producer, agreed to buy Al-Hokair Group’s 7 percent stake in Azizia Panda United Co. in a stock transaction valued at 297.6 million riyals ($79.4 million).
Savola Azizia plans to issue 8.7 million shares to pay for the holding, the company said in a statement on the Saudi bourse today. The amount represents 1.6 percent of Savola Azizia’s capital and is based on its share price at 34.2 riyals, according to the statement.
Jeddah-based Savola Azizia, which has 113 outlets in Saudi Arabia, is expanding its businesses to meet rising demand from a growing population in the Arab world’s biggest economy. In August, the company agreed to buy Al-Muhaidib Holding’s 18.6 percent stake in Azizia Panda and a 10 percent stake in Savola Foods Co., in return for raising Al-Muhaidib’s stake in Savola Azizia to 15 percent.
Saturday 25 September 2010
Saudi Shares Climb to Four-Month High as U.S., Oil Gain; Riyad Bank Rises - Bloomberg
Saudi Arabian shares rose to the highest in four months after global markets rallied on reports indicating the U.S. and German economies are growing.
The Tadawul All Share Index gauge added 0.8 percent to 6,485.68 as of 12:15 p.m. in Riyadh, the highest level since May 19. Saudi Basic Industries Corp., the world’s largest petrochemicals maker, known as Sabic, and Al Rajhi Bank, the kingdom’s largest publicly-traded lender by market value, led the advance. Tadawul has gained 6 percent this month.
“Investor sentiment continues to improve in Saudi Arabia,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh. “This can be seen through increased activity in the market over the past couple of weeks ahead of third- quarter earnings, and this was further buoyed by a strong close yesterday of U.S. markets and oil.”
The Tadawul All Share Index gauge added 0.8 percent to 6,485.68 as of 12:15 p.m. in Riyadh, the highest level since May 19. Saudi Basic Industries Corp., the world’s largest petrochemicals maker, known as Sabic, and Al Rajhi Bank, the kingdom’s largest publicly-traded lender by market value, led the advance. Tadawul has gained 6 percent this month.
“Investor sentiment continues to improve in Saudi Arabia,” said Anas Kassem, an investment analyst at Ajeej Capital in Riyadh. “This can be seen through increased activity in the market over the past couple of weeks ahead of third- quarter earnings, and this was further buoyed by a strong close yesterday of U.S. markets and oil.”
GCC Market Analytics: Weekly GCC Index Analysis (Week 40)
The only notable change from last week's Index Analysis is that the outlook for the Muscat 30 Index has now turned Bullish. The outlook for all other GCC indices remains the same which is good news because apart from the ADX Index all have a Bullish outlook.
Enjoy.
Enjoy.
Shuaa lowers its growth forecast for the Emirates - Published 23/9/10
Shuaa Capital has downgraded its growth forecast for the UAE economy due to a weaker rebound from the global financial crisis than expected.
Smaller fiscal stimulus than expected from Abu Dhabi and surprisingly slowcredit growth in the first half of the year prompted the investment bank to revise its GDP forecast to 1.8 per cent from 2.5 per cent.
“Although we believe the UAE economy has emerged from recession in 2010, the recovery has probably not been as strong as we had anticipated at the start of the year,” Khatija Haque, the chief economist at Shuaa, wrote in a research paper."
Smaller fiscal stimulus than expected from Abu Dhabi and surprisingly slowcredit growth in the first half of the year prompted the investment bank to revise its GDP forecast to 1.8 per cent from 2.5 per cent.
“Although we believe the UAE economy has emerged from recession in 2010, the recovery has probably not been as strong as we had anticipated at the start of the year,” Khatija Haque, the chief economist at Shuaa, wrote in a research paper."
Credit rating key to Dubai's $1bn bond issue - Arab News
Dubai's plan to issue up to $1 billion in sovereign bonds could help to revive bond market activity in the emirate, but investors say securing a credit rating remains crucial for wider investor appeal.
Expected as early as next week, the emirate's first government debt sale since the bursting of its real estate bubble and subsequent debt crisis last year could be a step towards rehabilitating its image in the eyes of international investors.
"It has to be at a decent price. But it will find an audience, that's for sure," said Haissam Arabi, chief executive of Dubai-based Gulfmena Alternative Investments.
Expected as early as next week, the emirate's first government debt sale since the bursting of its real estate bubble and subsequent debt crisis last year could be a step towards rehabilitating its image in the eyes of international investors.
"It has to be at a decent price. But it will find an audience, that's for sure," said Haissam Arabi, chief executive of Dubai-based Gulfmena Alternative Investments.