UAE markets stabilise | GulfNews.com:
The Dubai Financial Market General Index (DFMGI) rose by 59.42 or 2.11 per cent last week to end at 2,880.42. This was the first positive week in four. There were 28 advancing issues and 11 declining, while volume dipped slightly below the previous week.
For the past eight weeks or so downward momentum has been slowing as measured by the Relative Strength Index (RSI) momentum oscillator with the indicator now showing a bullish divergence. The indicator bottomed at 19.2 nine weeks ago and has been rising since, ending last week back above the 30 oversold level to 33.1. At the low the RSI was the most oversold since the DFMGI bottom in January 2016. Even though price can stay oversold and under pressure for some time when the characteristics of the RSI are combined with recent price behaviour the near-term bullish argument becomes stronger.
Last week’s low of 2,820.67 held above support of the previous week which is at 2,805.44. This creates an inside week where the high to low range was contained within the borders of the prior week’s range. The pattern suggests that selling pressure has diminished as support held above the prior week’s low.
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Saturday 7 July 2018
Dubai property deals fall in first half as emirate rolls out reforms
Dubai property deals fall in first half as emirate rolls out reforms:
Dubai Land Department (DLD) said the value of real estate transactions in the first six months of 2018 was 111 billion dirhams ($30.2 billion) across 27,642 transactions. The DLD did not provide comparative figures for the year-earlier period, however data released by the department last year reflects a 16 percent decline in the value of deals and a 22 percent drop in their overall number. The property market in the emirate has been battling headwinds from rising US interest rates, expatriate job losses and a strong US dollar, to which the dirham is pegged, making property purchases expensive for many overseas buyers.
Dubai Land Department (DLD) said the value of real estate transactions in the first six months of 2018 was 111 billion dirhams ($30.2 billion) across 27,642 transactions. The DLD did not provide comparative figures for the year-earlier period, however data released by the department last year reflects a 16 percent decline in the value of deals and a 22 percent drop in their overall number. The property market in the emirate has been battling headwinds from rising US interest rates, expatriate job losses and a strong US dollar, to which the dirham is pegged, making property purchases expensive for many overseas buyers.
Technical analysis of the QSE index
Technical analysis of the QSE index:
The General Index managed to close up 2.61% from the week before. Better yet, the index managed to sustain a close above the 9,000 level, which puts it in a strong position to reach the 9,500 level. We wait on how that challenge will unfold to determine the next direction for the index. The major resistance levels are around the 9,500-9,600 points and the closest support is around the 8,600 level.
The General Index managed to close up 2.61% from the week before. Better yet, the index managed to sustain a close above the 9,000 level, which puts it in a strong position to reach the 9,500 level. We wait on how that challenge will unfold to determine the next direction for the index. The major resistance levels are around the 9,500-9,600 points and the closest support is around the 8,600 level.
Saudi Aramco’s $2 Trillion Zombie IPO - Bloomberg
Saudi Aramco’s $2 Trillion Zombie IPO - Bloomberg:
It was the moment Saudi Arabia’s reforming young prince told the world he meant business. In early 2016, Mohammed bin Salman said he planned to sell shares in the kingdom’s crown jewel: Saudi Aramco, the giant energy company that produces 10 percent of the world’s oil and finances the Saudi state. The initial public offering—planned for 2018—would be the deal to end all deals, raising more than $100 billion for a new sovereign wealth fund, creating the world’s most valuable listed company, and funneling hundreds of millions of dollars in fees to Wall Street’s elite banks. MBS, as the 32-year-old crown prince is known, said the company would be worth at least $2 trillion—more than double the current market valuation of Apple Inc.—and perhaps as much as $2.5 trillion. Two years later, things look very different. A combination of hubris on the valuation, an overambitious timetable, and indifference—if not derision—from global investors doubtful that an IPO would benefit them, has forced Riyadh to delay the sale until at least 2019. And many observers—including members of the company’s senior leadership—doubt whether it will happen at all. Aramco has become the zombie IPO. Add Donald
It was the moment Saudi Arabia’s reforming young prince told the world he meant business. In early 2016, Mohammed bin Salman said he planned to sell shares in the kingdom’s crown jewel: Saudi Aramco, the giant energy company that produces 10 percent of the world’s oil and finances the Saudi state. The initial public offering—planned for 2018—would be the deal to end all deals, raising more than $100 billion for a new sovereign wealth fund, creating the world’s most valuable listed company, and funneling hundreds of millions of dollars in fees to Wall Street’s elite banks. MBS, as the 32-year-old crown prince is known, said the company would be worth at least $2 trillion—more than double the current market valuation of Apple Inc.—and perhaps as much as $2.5 trillion. Two years later, things look very different. A combination of hubris on the valuation, an overambitious timetable, and indifference—if not derision—from global investors doubtful that an IPO would benefit them, has forced Riyadh to delay the sale until at least 2019. And many observers—including members of the company’s senior leadership—doubt whether it will happen at all. Aramco has become the zombie IPO. Add Donald
Iran calls for EU help as shipping giant pulls out for fear of U.S. sanctions | Reuters
Iran calls for EU help as shipping giant pulls out for fear of U.S. sanctions | Reuters:
One of the world’s biggest cargo shippers announced on Saturday it was pulling out of Iran for fear of becoming entangled in U.S. sanctions, and President Hassan Rouhani demanded that European countries to do more to offset the U.S. measures.
The announcement by France’s CMA CGM that it was quitting Iran deals a blow to Tehran’s efforts to persuade European countries to keep their companies operating in Iran despite the threat of new American sanctions.
Iran says it needs more help from Europe to keep alive an agreement with world powers to curb its nuclear program. U.S. President Donald Trump abandoned the agreement in May and has announced new sanctions on Tehran. Washington has ordered all countries to stop buying Iranian oil by November and foreign firms to stop doing business there or face U.S. blacklists.
One of the world’s biggest cargo shippers announced on Saturday it was pulling out of Iran for fear of becoming entangled in U.S. sanctions, and President Hassan Rouhani demanded that European countries to do more to offset the U.S. measures.
The announcement by France’s CMA CGM that it was quitting Iran deals a blow to Tehran’s efforts to persuade European countries to keep their companies operating in Iran despite the threat of new American sanctions.
Iran says it needs more help from Europe to keep alive an agreement with world powers to curb its nuclear program. U.S. President Donald Trump abandoned the agreement in May and has announced new sanctions on Tehran. Washington has ordered all countries to stop buying Iranian oil by November and foreign firms to stop doing business there or face U.S. blacklists.
Iranian oil minister calls Trump's order to OPEC insulting | Reuters
Iranian oil minister calls Trump's order to OPEC insulting | Reuters:
Iran’s oil minister on Saturday accused U.S. President Donald Trump of insulting OPEC by ordering it to increase production and reduce prices, adding that Iranian output and exports had not changed as a result of U.S. pressure.
Trump on Wednesday accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher, and urged Saudi Arabia to pump more if it wanted Washington to continue protecting it against its top rival Iran.
“Mr Trump sends every day a new message that creates uncertainty in the market,” Iranian Oil Minister Bijan Zanganeh said in an interview with state television.
Iran’s oil minister on Saturday accused U.S. President Donald Trump of insulting OPEC by ordering it to increase production and reduce prices, adding that Iranian output and exports had not changed as a result of U.S. pressure.
Trump on Wednesday accused the Organization of the Petroleum Exporting Countries of driving fuel prices higher, and urged Saudi Arabia to pump more if it wanted Washington to continue protecting it against its top rival Iran.
“Mr Trump sends every day a new message that creates uncertainty in the market,” Iranian Oil Minister Bijan Zanganeh said in an interview with state television.