Traded value recover in Dubai ahead of long holidays:
Traders on the Dubai bourse resorted to continued selling and preferred to hold cash and move on the sidelines ahead of an extended weekend, causing a fall in the Dubai index on Thursday.
Traded value jumped fourfold to Dh434 million from a daily average of Dh100 million. The Dubai Financial Market general index closed 0.61 per cent lower at 2,668.66.
“The four-day weekend ahead could keep investors on the sidelines to avoid any global risk impacts,” Issam Kassabieh, Senior Financial Analyst, Menacorp said. The G20 meeting will be held over the weekend in Argentina.
Thursday, 29 November 2018
QSE inches near 10,400 level on strong buying in telecom shares
QSE inches near 10,400 level on strong buying in telecom shares:
The Qatar Stock Exchange on Thursday inched near 10,400 levels, having gained 35 points mainly on the back of strong buying in telecom segment.
Foreign funds were increasingly bullish and non-Qatari individuals as well as domestic and Gulf funds turned net buyers as the 20-stock Qatar Index settled 0.34% higher at 10,364.54 points.
Foreign institutions were increasingly net buyers in the market, which is up 21.6% year-to-date.
The Qatar Stock Exchange on Thursday inched near 10,400 levels, having gained 35 points mainly on the back of strong buying in telecom segment.
Foreign funds were increasingly bullish and non-Qatari individuals as well as domestic and Gulf funds turned net buyers as the 20-stock Qatar Index settled 0.34% higher at 10,364.54 points.
Foreign institutions were increasingly net buyers in the market, which is up 21.6% year-to-date.
Oil Advances as Russia Shows Willingness to Join Saudis On Cuts - Bloomberg
Oil Advances as Russia Shows Willingness to Join Saudis On Cuts - Bloomberg:
Oil climbed for the first time in three days as Russia expressed a willingness to join Saudi Arabia in curbing global supplies.
Russia wants more predictability and “smooth price dynamics” in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina. The remarks presaged a G-20 summit where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.
West Texas Intermediate crude has fallen 21 percent this month, on track for its its worst monthly showing in a decade. Yet after sliding below $50 a barrel earlier on Thursday -- a key budgetary marker for U.S. shale drillers -- some traders saw an oversold market, said Bart Melek, head commodity strategist at TD Securities in Toronto.
Oil climbed for the first time in three days as Russia expressed a willingness to join Saudi Arabia in curbing global supplies.
Russia wants more predictability and “smooth price dynamics” in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina. The remarks presaged a G-20 summit where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.
West Texas Intermediate crude has fallen 21 percent this month, on track for its its worst monthly showing in a decade. Yet after sliding below $50 a barrel earlier on Thursday -- a key budgetary marker for U.S. shale drillers -- some traders saw an oversold market, said Bart Melek, head commodity strategist at TD Securities in Toronto.
OPEC Meeting Can't Reverse Larger Trend to Lower Oil Prices - Bloomberg
OPEC Meeting Can't Reverse Larger Trend to Lower Oil Prices - Bloomberg:
Some of us are starting to associate turkey with low oil prices.
Just four years ago, on Thanksgiving Day in 2014, OPEC held a meeting in Vienna, the outcome of which set off a dramatic slide in oil prices. The price of Brent crude dropped $6 a barrel, or 8 percent, in just the 24 hours after OPEC announced the outcome of its meeting. This Thanksgiving, there was no OPEC gathering, but on Friday, the Brent price still slid nearly $4, or 6 percent, to its lowest mark in a year. Although the price has since stabilized, we cannot rule out a further slip in the weeks or months ahead.
The recent decrease in oil prices is what academics like to call “over-determined.” Despite recent jitters about a looming spike in the price of oil, both supply and demand have conspired to bring down prices. New production has come on line in recent months, be it from Clair Ridge (BP’s new mega-oil field in the North Sea), record amounts of shale oil coming out of the U.S., or simply production increases by Saudi Arabia, Iraq and Russia. Other developments — like the hope to resolve infrastructure bottlenecks in the U.S. and a new agreement between Baghdad and the Kurds to allow the restart of exports from Kirkuk’s contested oil fields — promise even more oil in the months ahead. Unexpected sanctions waivers issued by the Trump administration mean Iranian oil will not be squeezed out of global markets just yet. Meanwhile, the robust growth in oil demand of the past years appears to be easing, especially with trade frictions looking persistent.
Some of us are starting to associate turkey with low oil prices.
Just four years ago, on Thanksgiving Day in 2014, OPEC held a meeting in Vienna, the outcome of which set off a dramatic slide in oil prices. The price of Brent crude dropped $6 a barrel, or 8 percent, in just the 24 hours after OPEC announced the outcome of its meeting. This Thanksgiving, there was no OPEC gathering, but on Friday, the Brent price still slid nearly $4, or 6 percent, to its lowest mark in a year. Although the price has since stabilized, we cannot rule out a further slip in the weeks or months ahead.
The recent decrease in oil prices is what academics like to call “over-determined.” Despite recent jitters about a looming spike in the price of oil, both supply and demand have conspired to bring down prices. New production has come on line in recent months, be it from Clair Ridge (BP’s new mega-oil field in the North Sea), record amounts of shale oil coming out of the U.S., or simply production increases by Saudi Arabia, Iraq and Russia. Other developments — like the hope to resolve infrastructure bottlenecks in the U.S. and a new agreement between Baghdad and the Kurds to allow the restart of exports from Kirkuk’s contested oil fields — promise even more oil in the months ahead. Unexpected sanctions waivers issued by the Trump administration mean Iranian oil will not be squeezed out of global markets just yet. Meanwhile, the robust growth in oil demand of the past years appears to be easing, especially with trade frictions looking persistent.
Saudi Contractor Said to Have Defaulted on $2 Billion of Debt - Bloomberg
Saudi Contractor Said to Have Defaulted on $2 Billion of Debt - Bloomberg:
One of Saudi Arabia’s major contractors defaulted on almost $2 billion after a falling out among its owners and delays in payments from the government, according to people with knowledge of the matter.
The Saudi unit of Cyprus-based Joannou & Paraskevaides Group defaulted on about 7 billion riyals ($1.9 billion) in bank loans about two months ago, said the people, asking not to be identified as the information is private. The defaults are largely the result of problems getting paid by the Ministry of Interior, the people said.
Lenders, which include Arab National Bank, Alawwal Bank, Banque Saudi Fransi, Emirates NBD PJSC, Saudi British Bank and Samba Financial Group, don’t expect to recover much of the money, the people said.
One of Saudi Arabia’s major contractors defaulted on almost $2 billion after a falling out among its owners and delays in payments from the government, according to people with knowledge of the matter.
The Saudi unit of Cyprus-based Joannou & Paraskevaides Group defaulted on about 7 billion riyals ($1.9 billion) in bank loans about two months ago, said the people, asking not to be identified as the information is private. The defaults are largely the result of problems getting paid by the Ministry of Interior, the people said.
Lenders, which include Arab National Bank, Alawwal Bank, Banque Saudi Fransi, Emirates NBD PJSC, Saudi British Bank and Samba Financial Group, don’t expect to recover much of the money, the people said.
Shares in Doha Bank drop 2.6 percent in November following MSCI decision, despite late rebound | ZAWYA MENA Edition
Shares in Doha Bank drop 2.6 percent in November following MSCI decision, despite late rebound | ZAWYA MENA Edition:
Shares in Doha Bank, Qatar’s fifth-biggest lender, have dropped 2.6 percent during the month of November, as index compiler MSCI moved the stock its small cap index.
“Doha Bank’s removal from MSCI EM triggered more than QAR300m of selling by index-related investors and has unsurprisingly pressured the stock,” Akber Khan, senior director of asset management at Al Rayan Investment, told Zawya by email.
Index compiler MSCI announced the results of its 2018 semi-annual index review on November 13, which saw Doha Bank removed from the MSCI Qatar Index and moved to a small cap index.
Shares in Doha Bank, Qatar’s fifth-biggest lender, have dropped 2.6 percent during the month of November, as index compiler MSCI moved the stock its small cap index.
“Doha Bank’s removal from MSCI EM triggered more than QAR300m of selling by index-related investors and has unsurprisingly pressured the stock,” Akber Khan, senior director of asset management at Al Rayan Investment, told Zawya by email.
Index compiler MSCI announced the results of its 2018 semi-annual index review on November 13, which saw Doha Bank removed from the MSCI Qatar Index and moved to a small cap index.
As rift lingers with neighbors, Qatar ramps up air and seapower | Reuters
As rift lingers with neighbors, Qatar ramps up air and seapower | Reuters:
Qatar will more than double its naval forces by 2025 as a massive new base comes online and it expands a national service program amid a protracted dispute with neighbors which it says requires greater self-reliance.
Like its larger neighbors, the tiny but gas-rich state has used its massive wealth to launch a sweeping modernization of its military, pouring tens of billions of dollars into some of the world’s most advanced weapons systems.
Qatari defense officials said the buildup has been planned for several years, and predates a Saudi Arabia-led political and economic boycott imposed since June 2017 over allegations that Doha supports terrorism - something which Qatar denies.
Qatar will more than double its naval forces by 2025 as a massive new base comes online and it expands a national service program amid a protracted dispute with neighbors which it says requires greater self-reliance.
Like its larger neighbors, the tiny but gas-rich state has used its massive wealth to launch a sweeping modernization of its military, pouring tens of billions of dollars into some of the world’s most advanced weapons systems.
Qatari defense officials said the buildup has been planned for several years, and predates a Saudi Arabia-led political and economic boycott imposed since June 2017 over allegations that Doha supports terrorism - something which Qatar denies.
Bidders line up for UAE-based Stanford Marine Group - sources | Reuters
Bidders line up for UAE-based Stanford Marine Group - sources | Reuters:
Gulf Navigation Holding, Tristar Group, Hineni Capital and BT Investment are among bidders for Dubai-based marine services firm Stanford Marine Group (SMG), sources familiar with the matter said. Banks now control SMG, which operates offshore supply vessels for the oil and gas industry, after it struggled to meet terms of its debt obligations following a steep fall in chartering rates.
Neither SMG nor the bidders named by the sources responded to requests for comment.
SMG is 51 percent owned by a fund managed by Dubai-based private equity firm Abraaj, which is in provisional liquidation after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Gulf Navigation Holding, Tristar Group, Hineni Capital and BT Investment are among bidders for Dubai-based marine services firm Stanford Marine Group (SMG), sources familiar with the matter said. Banks now control SMG, which operates offshore supply vessels for the oil and gas industry, after it struggled to meet terms of its debt obligations following a steep fall in chartering rates.
Neither SMG nor the bidders named by the sources responded to requests for comment.
SMG is 51 percent owned by a fund managed by Dubai-based private equity firm Abraaj, which is in provisional liquidation after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Oil rises after Russia leans towards output cut | Reuters
Oil rises after Russia leans towards output cut | Reuters:
Oil reversed course and rose as much as 3 percent on Thursday, after industry sources said Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week.
Prices in November were down nearly 22 percent so far, set for the biggest monthly fall since the depths of the financial crisis in 2008.
A steady rise in crude supply from the United States, now the world’s top producer, has pressured prices along with Saudi Arabia’s insistence that it will not cut output on its own to stabilize the market. Brent crude slid early to another 2018 low below $58 a barrel.
Oil reversed course and rose as much as 3 percent on Thursday, after industry sources said Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week.
Prices in November were down nearly 22 percent so far, set for the biggest monthly fall since the depths of the financial crisis in 2008.
A steady rise in crude supply from the United States, now the world’s top producer, has pressured prices along with Saudi Arabia’s insistence that it will not cut output on its own to stabilize the market. Brent crude slid early to another 2018 low below $58 a barrel.
MIDEAST STOCKS-FAB drags down Abu Dhabi but banks boost Saudi | Reuters
MIDEAST STOCKS-FAB drags down Abu Dhabi but banks boost Saudi | Reuters:
Abu Dhabi’s stock market fell sharply to a four-month low on Thursday because of a slide in shares of First Abu Dhabi Bank, the United Arab Emirates’ largest lender, just before MSCI doubled its weighting of the stock in its indexes.
The Abu Dhabi index lost 2.3 percent amid record volume in FAB, which slumped 3 percent. A total of 57.9 million shares in the bank traded, by far the highest since its listing in April 2017.
MSCI decided on the weighting increase in its semi-annual index review in mid-November. Arqaam Capital estimated the increase, which takes effect at the end of this week, would attract $524 million of passive funds into the stock.
Abu Dhabi’s stock market fell sharply to a four-month low on Thursday because of a slide in shares of First Abu Dhabi Bank, the United Arab Emirates’ largest lender, just before MSCI doubled its weighting of the stock in its indexes.
The Abu Dhabi index lost 2.3 percent amid record volume in FAB, which slumped 3 percent. A total of 57.9 million shares in the bank traded, by far the highest since its listing in April 2017.
MSCI decided on the weighting increase in its semi-annual index review in mid-November. Arqaam Capital estimated the increase, which takes effect at the end of this week, would attract $524 million of passive funds into the stock.
Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg
Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg:
Oil dropped below $50 a barrel in New York for the first time in more than a year as traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market.
All eyes are on this weekend’s G20 summit in Argentina, where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are likely to discuss how to coordinate oil policy, but both leaders have reasons for caution. Shielded by a budget surplus and a weak ruble, Putin said yesterday current prices suit Russia fine. The crown prince, under pressure after the killing of Jamal Khashoggi, can’t afford to alienate President Donald Trump.
Beyond politics, production from Saudi Arabia and America’s shale mean inventories are starting to rise again. U.S. crude stockpiles have now increased for 10 consecutive weeks. OPEC, Russia and other producers are due to meet in Vienna next week to discuss production policy for 2019.
Oil dropped below $50 a barrel in New York for the first time in more than a year as traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market.
All eyes are on this weekend’s G20 summit in Argentina, where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are likely to discuss how to coordinate oil policy, but both leaders have reasons for caution. Shielded by a budget surplus and a weak ruble, Putin said yesterday current prices suit Russia fine. The crown prince, under pressure after the killing of Jamal Khashoggi, can’t afford to alienate President Donald Trump.
Beyond politics, production from Saudi Arabia and America’s shale mean inventories are starting to rise again. U.S. crude stockpiles have now increased for 10 consecutive weeks. OPEC, Russia and other producers are due to meet in Vienna next week to discuss production policy for 2019.
Now Is the Time to Enter Dubai Property Market, Kanoo Group Says - Bloomberg
Now Is the Time to Enter Dubai Property Market, Kanoo Group Says - Bloomberg:
The downturn in Dubai’s property market is coming to an end, making it a good time to invest, the head of a Gulf family conglomerate said.
Real estate prices are stable and in some cases are rising, Mishal Kanoo, chairman of Bahrain-based Kanoo Group, said in a Bloomberg TV interview.
“When people perceive something to be low, this is the ideal time to come in,” Kanoo said. “We are at the beginning of an upward cycle, which you will see the effect of either this quarter or next quarter.” His company has interests in shipping, travel, chemicals, oil and gas.
The downturn in Dubai’s property market is coming to an end, making it a good time to invest, the head of a Gulf family conglomerate said.
Real estate prices are stable and in some cases are rising, Mishal Kanoo, chairman of Bahrain-based Kanoo Group, said in a Bloomberg TV interview.
“When people perceive something to be low, this is the ideal time to come in,” Kanoo said. “We are at the beginning of an upward cycle, which you will see the effect of either this quarter or next quarter.” His company has interests in shipping, travel, chemicals, oil and gas.
Dubai Hotel Mogul Habtoor Says Don't Build More Hotels in City - Bloomberg
Dubai Hotel Mogul Habtoor Says Don't Build More Hotels in City - Bloomberg:
Khalaf Al Habtoor, the Dubai billionaire who added 1,600 hotel rooms to the city through one project alone, said the market is now saturated and he’s looking to expand elsewhere.
“I would not recommend any expansion in hotels at all to anybody,” Al Habtoor said in an interview with Bloomberg TV. The group’s beach properties are doing well, “but with very low rates.” His city hotel occupancy is fluctuating and “the rates are not great,” he said.
The tycoon said he’s currently deciding whether it’s best to build or acquire between seven and 10 schools. He’s also studying building a specialized hospital with about 100 beds. Al Habtoor is planning to fund the investments through a mix of debt and equity.
Khalaf Al Habtoor, the Dubai billionaire who added 1,600 hotel rooms to the city through one project alone, said the market is now saturated and he’s looking to expand elsewhere.
“I would not recommend any expansion in hotels at all to anybody,” Al Habtoor said in an interview with Bloomberg TV. The group’s beach properties are doing well, “but with very low rates.” His city hotel occupancy is fluctuating and “the rates are not great,” he said.
The tycoon said he’s currently deciding whether it’s best to build or acquire between seven and 10 schools. He’s also studying building a specialized hospital with about 100 beds. Al Habtoor is planning to fund the investments through a mix of debt and equity.
Mideast Stocks: Abu Dhabi recovers slightly, Gulf inches up | ZAWYA MENA Edition
Mideast Stocks: Abu Dhabi recovers slightly, Gulf inches up | ZAWYA MENA Edition:
The Abu Dhabi stock market recovered some losses early on Thursday as blue chips rebounded. Other major Gulf markets inched up in quiet trade, getting only a minor boost from Wall Street's sharp rally because oil prices remain low.
Abu Dhabi's index added 0.5 percent, after falling 1.6 percent in the last session. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, gained 1.1 percent and Aldar Properties increased 1.9 percent.
Saudi Arabia's index inched up 0.3 percent in the first hour, with Saudi Basic Industries rising 0.7 percent and Alinma Bank adding 0.8 percent.
The Abu Dhabi stock market recovered some losses early on Thursday as blue chips rebounded. Other major Gulf markets inched up in quiet trade, getting only a minor boost from Wall Street's sharp rally because oil prices remain low.
Abu Dhabi's index added 0.5 percent, after falling 1.6 percent in the last session. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, gained 1.1 percent and Aldar Properties increased 1.9 percent.
Saudi Arabia's index inched up 0.3 percent in the first hour, with Saudi Basic Industries rising 0.7 percent and Alinma Bank adding 0.8 percent.
COLUMN-Crude oil focuses on Trump, Putin, Bin Salman nexus, but China looms: Russell | Reuters
COLUMN-Crude oil focuses on Trump, Putin, Bin Salman nexus, but China looms: Russell | Reuters:
The crude oil market is likely to be fixated in coming days on the interactions of U.S. President Donald Trump, his Russian counterpart Vladimir Putin and Saudi Arabia’s embattled Crown Prince Mohammed bin Salman at this weekend’s G20 meeting.
Throw in a dash of U.S.-China trade politics at a much anticipated dinner on Saturday between Trump and President Xi Jingping and the G20 gathering in Buenos Aires is potentially going to deliver a smorgasbord of juicy headlines to drive crude prices.
While the focus of crude oil market participants is correct, and indeed they have little choice but to focus on the machinations of Trump, Putin and Bin Salman, there is always a risk of placing too much emphasis on the politics of oil.
The crude oil market is likely to be fixated in coming days on the interactions of U.S. President Donald Trump, his Russian counterpart Vladimir Putin and Saudi Arabia’s embattled Crown Prince Mohammed bin Salman at this weekend’s G20 meeting.
Throw in a dash of U.S.-China trade politics at a much anticipated dinner on Saturday between Trump and President Xi Jingping and the G20 gathering in Buenos Aires is potentially going to deliver a smorgasbord of juicy headlines to drive crude prices.
While the focus of crude oil market participants is correct, and indeed they have little choice but to focus on the machinations of Trump, Putin and Bin Salman, there is always a risk of placing too much emphasis on the politics of oil.
Mideast funds become more defensive after oil prices tumble: Reuters poll | Reuters
Mideast funds become more defensive after oil prices tumble: Reuters poll | Reuters:
Middle East funds have become more defensive after November’s oil price plunge and now expect on balance to trim their equities exposure slightly while increasing their holdings of fixed income, a monthly Reuters poll showed on Thursday.
Hit by oversupply worries, Brent oil LCOc1 tumbled to below $60 a barrel at the end of this month from around $75 at the end of October and peaks around $85 in early October.
The poll of 13 leading regional fund managers, conducted over the past week, found 15 percent now expect to raise equity allocations in the next three months and 23 percent to reduce them.
Middle East funds have become more defensive after November’s oil price plunge and now expect on balance to trim their equities exposure slightly while increasing their holdings of fixed income, a monthly Reuters poll showed on Thursday.
Hit by oversupply worries, Brent oil LCOc1 tumbled to below $60 a barrel at the end of this month from around $75 at the end of October and peaks around $85 in early October.
The poll of 13 leading regional fund managers, conducted over the past week, found 15 percent now expect to raise equity allocations in the next three months and 23 percent to reduce them.
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