GCC banks lenders unite to be leaner and efficient in tough conditions - The National:
Financial institutions in the region, home to one-third of the world’s proven oil reserves, are consolidating like never before. There is a banking merger transaction happening, or has recently been agreed upon in every GCC-member country.
“The news is coming together so it looks like a wave of mergers and they are all related but they are not. There are different reasons at work,” said Chiro Ghosh, an analyst with Sico Bank in Bahrain.
“In most cases, it is to gain the scale and be competitive in changing markets, while in others it is strategic decision such as in the case of Saudi merger [between Saudi British Bank and Alawaal]. None of the deals are related to asset quality issues and it’s not the case of one bank coming to rescue the other one in a merger,” he said.
Wednesday 26 December 2018
#Dubai’s penny stocks see mild traction
Dubai’s penny stocks see mild traction:
Small stocks, those whose prices are below Dh1, witnessed buying in the last hour of trade in Dubai, led by a Gulf Finance House (GFH) recovery after traders saw positive movement in US futures.
GFH closed more than 5 per cent higher to end at Dh0.846, after the company reassured investors that the recent fall in share prices had nothing to do with its fundamentals.
“The stock has been affected primarily due to the international and regional market pressures and margin calls that have impacted investors in the stock markets,” GFH said in a statement posted on Dubai Financial Market (DFM) website.
Small stocks, those whose prices are below Dh1, witnessed buying in the last hour of trade in Dubai, led by a Gulf Finance House (GFH) recovery after traders saw positive movement in US futures.
GFH closed more than 5 per cent higher to end at Dh0.846, after the company reassured investors that the recent fall in share prices had nothing to do with its fundamentals.
“The stock has been affected primarily due to the international and regional market pressures and margin calls that have impacted investors in the stock markets,” GFH said in a statement posted on Dubai Financial Market (DFM) website.
#Russia Warns U.S. Against Interfering in #Saudi Royal Succession - Bloomberg
Russia Warns U.S. Against Interfering in Saudi Royal Succession - Bloomberg:
Russia warned the U.S. against any effort to influence the royal succession in Saudi Arabia, offering its support to embattled Saudi Crown Prince Mohammed bin Salman, who’s under continuing pressure over the killing of a government critic.
President Vladimir Putin’s envoy to the Middle East said Prince Mohammed has every right to inherit the throne when the ailing 82-year-old King Salman dies.
“Of course we are against interference. The Saudi people and leadership must decide such questions themselves,” Mikhail Bogdanov, who is also deputy foreign minister, said in an interview in Moscow on Tuesday. “The King made a decision and I can’t even imagine on what grounds someone in America will interfere in such an issue and think about who should rule Saudi Arabia, now or in the future. This is a Saudi matter.”
Russia warned the U.S. against any effort to influence the royal succession in Saudi Arabia, offering its support to embattled Saudi Crown Prince Mohammed bin Salman, who’s under continuing pressure over the killing of a government critic.
President Vladimir Putin’s envoy to the Middle East said Prince Mohammed has every right to inherit the throne when the ailing 82-year-old King Salman dies.
“Of course we are against interference. The Saudi people and leadership must decide such questions themselves,” Mikhail Bogdanov, who is also deputy foreign minister, said in an interview in Moscow on Tuesday. “The King made a decision and I can’t even imagine on what grounds someone in America will interfere in such an issue and think about who should rule Saudi Arabia, now or in the future. This is a Saudi matter.”
WTI Crude Climbs Amid Broader U.S. Stock Market Recovery: Chart - Bloomberg
WTI Crude Climbs Amid Broader U.S. Stock Market Recovery: Chart - Bloomberg:
Despite the severely oversold signal flashed by its GTI Global Strength Indicator -- a measure of upward and downward movements of successive closing prices -- West Texas Intermediate crude had continued to fall toward $42 a barrel. But on Wednesday, the U.S. oil benchmark was back to rising for the first time in four sessions amid a hint that OPEC and its partners could meet again to discuss output curbs, and as equities advanced. “Crude is finding a bit of relief after its aggressive move lower as stocks find a footing, but at this price deck even some of the best wells are struggling to be economic,” said Bloomberg Intelligence industry analyst Mark Rossano.
Despite the severely oversold signal flashed by its GTI Global Strength Indicator -- a measure of upward and downward movements of successive closing prices -- West Texas Intermediate crude had continued to fall toward $42 a barrel. But on Wednesday, the U.S. oil benchmark was back to rising for the first time in four sessions amid a hint that OPEC and its partners could meet again to discuss output curbs, and as equities advanced. “Crude is finding a bit of relief after its aggressive move lower as stocks find a footing, but at this price deck even some of the best wells are struggling to be economic,” said Bloomberg Intelligence industry analyst Mark Rossano.
Isolated #Qatar Beats Its Gulf Peers in 2018's Asset Scorecards - Bloomberg
Isolated Qatar Beats Its Gulf Peers in 2018's Asset Scorecards - Bloomberg:
It’s been a year-and-a-half since Saudi Arabia and other Arab nations cut ties with Qatar in a dramatic breakup. Most analysts at the time said they’d kiss and make up within months, but here we are, at the cusp of 2019, and there’s no sign of a reconciliation.
Even though Qatar is the one that’s been isolated, its assets have fared better this year than other Gulf nations.
The Gas-rich state has offset the impact of the embargo on its economy, prompting Moody’s Investors Service in July to reverse last year’s cut in its credit-rating outlook. Doha’s credit risk plunged and foreign investors piled into its stocks at the fastest pace since at least 2016.
It’s been a year-and-a-half since Saudi Arabia and other Arab nations cut ties with Qatar in a dramatic breakup. Most analysts at the time said they’d kiss and make up within months, but here we are, at the cusp of 2019, and there’s no sign of a reconciliation.
Even though Qatar is the one that’s been isolated, its assets have fared better this year than other Gulf nations.
The Gas-rich state has offset the impact of the embargo on its economy, prompting Moody’s Investors Service in July to reverse last year’s cut in its credit-rating outlook. Doha’s credit risk plunged and foreign investors piled into its stocks at the fastest pace since at least 2016.
#Qatar launches permanent shipping line with #Oman, #Kuwait | ZAWYA MENA Edition
Qatar launches permanent shipping line with Oman, Kuwait | ZAWYA MENA Edition:
Qatar has opened a permanent shipping line with its GCC neighbours Oman and Kuwait on Monday, 24 December.
In a 20-minute journey, the shipping operations will take place through Doha’s Hamad Port, Oman’s Sohar port and Shuwaikh port in Kuwait, the gas-rich nation said.
With a capacity of 250 passenger rooms, the ship will transport both goods and passengers.
The ship also features cinema hall, a games hall, a free market, restaurants and cafes.
Qatar has opened a permanent shipping line with its GCC neighbours Oman and Kuwait on Monday, 24 December.
In a 20-minute journey, the shipping operations will take place through Doha’s Hamad Port, Oman’s Sohar port and Shuwaikh port in Kuwait, the gas-rich nation said.
With a capacity of 250 passenger rooms, the ship will transport both goods and passengers.
The ship also features cinema hall, a games hall, a free market, restaurants and cafes.
#Iran says private exporters had no problem selling its oil | Reuters
Iran says private exporters had no problem selling its oil | Reuters:
Iran said on Wednesday private exporters have had “no problems” selling Iranian oil, and 3 million barrels of crude could be sold soon to non-government traders, state media reported, despite U.S. sanctions targeting Tehran’s oil sales.
Iran began selling crude oil to private companies for export in late October, just ahead of U.S. sanctions on sectors including oil which came into effect in November.
“Those who bought oil on the bourse have been able to export and there have been no problems in this regard,” the state news agency IRNA quoted Oil Minister Bijan Zanganeh as saying without giving further details about the exports.
Iran said on Wednesday private exporters have had “no problems” selling Iranian oil, and 3 million barrels of crude could be sold soon to non-government traders, state media reported, despite U.S. sanctions targeting Tehran’s oil sales.
Iran began selling crude oil to private companies for export in late October, just ahead of U.S. sanctions on sectors including oil which came into effect in November.
“Those who bought oil on the bourse have been able to export and there have been no problems in this regard,” the state news agency IRNA quoted Oil Minister Bijan Zanganeh as saying without giving further details about the exports.
UPDATE 1-Saudi Aramco creates fuel retail subsidiary | Reuters
UPDATE 1-Saudi Aramco creates fuel retail subsidiary | Reuters:
Saudi Aramco is establishing a domestic fuel retailing subsidiary as part of the national oil company’s drive to expand beyond crude oil production into downstream businesses.
The new firm, Saudi Aramco Retail Co, will create a network of filling stations within Saudi Arabia to sell automotive fuels, Aramco said on Wednesday, without giving details of the size, cost or time-frame for the network.
In April, Aramco said it had signed a memorandum of understanding with French firm Total to evaluate the feasibility of jointly buying a retail service station network in Saudi Arabia.
Saudi Aramco is establishing a domestic fuel retailing subsidiary as part of the national oil company’s drive to expand beyond crude oil production into downstream businesses.
The new firm, Saudi Aramco Retail Co, will create a network of filling stations within Saudi Arabia to sell automotive fuels, Aramco said on Wednesday, without giving details of the size, cost or time-frame for the network.
In April, Aramco said it had signed a memorandum of understanding with French firm Total to evaluate the feasibility of jointly buying a retail service station network in Saudi Arabia.
Exclusive: New allegations against Ghosn concern payments to #Saudi businessman - sources | Reuters
Exclusive: New allegations against Ghosn concern payments to Saudi businessman - sources | Reuters:
Fresh misconduct allegations brought by Tokyo prosecutors against ousted Nissan Chairman Carlos Ghosn center on the use of company funds to pay a Saudi businessman who is believed to have helped him out of financial difficulties, two company sources with knowledge of the matter said.
Prosecutors arrested Ghosn for a third time on Friday, accusing him of aggravated breach of trust in transferring personal investment losses to the automaker.
The prosecutors’ statement said they believe that around October 2008, Ghosn was trying to deal with losses on paper of 1.85 billion yen ($16.6 million) incurred on a swap contract he had with a bank which it did not name.
Fresh misconduct allegations brought by Tokyo prosecutors against ousted Nissan Chairman Carlos Ghosn center on the use of company funds to pay a Saudi businessman who is believed to have helped him out of financial difficulties, two company sources with knowledge of the matter said.
Prosecutors arrested Ghosn for a third time on Friday, accusing him of aggravated breach of trust in transferring personal investment losses to the automaker.
The prosecutors’ statement said they believe that around October 2008, Ghosn was trying to deal with losses on paper of 1.85 billion yen ($16.6 million) incurred on a swap contract he had with a bank which it did not name.
MIDEAST STOCKS-Gulf moves sideways despite oil tumble, banks boost Egypt | Reuters
MIDEAST STOCKS-Gulf moves sideways despite oil tumble, banks boost Egypt | Reuters:
Gulf stock markets largely moved sideways on Wednesday despite Brent oil’s decline below $50 a barrel for the first time since July 2017, while Egypt’s blue-chip index rose sharply, led by rebounding bank shares.
Oil’s 15 percent tumble this month, if sustained, threatens major damage to the state finances of most Gulf countries, which could reduce governments’ ability to spend and could revive investor concerns about their financial stability.
But Gulf stock markets have held up relatively well in the last several weeks, outperforming MSCI’s emerging market index . The Saudi stock index slid just 0.1 percent on Wednesday, as did Qatar’s index.
Gulf stock markets largely moved sideways on Wednesday despite Brent oil’s decline below $50 a barrel for the first time since July 2017, while Egypt’s blue-chip index rose sharply, led by rebounding bank shares.
Oil’s 15 percent tumble this month, if sustained, threatens major damage to the state finances of most Gulf countries, which could reduce governments’ ability to spend and could revive investor concerns about their financial stability.
But Gulf stock markets have held up relatively well in the last several weeks, outperforming MSCI’s emerging market index . The Saudi stock index slid just 0.1 percent on Wednesday, as did Qatar’s index.
Mideast Stocks: Gulf edges down, losses minor despite Brent oil below $50 | ZAWYA MENA Edition
Mideast Stocks: Gulf edges down, losses minor despite Brent oil below $50 | ZAWYA MENA Edition:
Major Gulf stock markets edged lower early on Wednesday because of sagging oil prices and global bourses, but the region's losses were minor despite Brent oil's decline below $50 a barrel for the first time since July 2017.
Oil's 15 percent tumble this month, if it is sustained, threatens major damage to the state finances of most Gulf countries, which could reduce governments' ability to spend on growth and revive investor concern about their financial stability.
As a result, the cost of insuring Saudi Arabian sovereign debt against default has rise in recent days to its highest levels this year, while the Saudi riyal has weakened against the dollar in the forwards market.
Major Gulf stock markets edged lower early on Wednesday because of sagging oil prices and global bourses, but the region's losses were minor despite Brent oil's decline below $50 a barrel for the first time since July 2017.
Oil's 15 percent tumble this month, if it is sustained, threatens major damage to the state finances of most Gulf countries, which could reduce governments' ability to spend on growth and revive investor concern about their financial stability.
As a result, the cost of insuring Saudi Arabian sovereign debt against default has rise in recent days to its highest levels this year, while the Saudi riyal has weakened against the dollar in the forwards market.
Oil in London Dips Below $50 as Market Chaos Counters OPEC+ Cuts - Bloomberg
Oil in London Dips Below $50 as Market Chaos Counters OPEC+ Cuts - Bloomberg:
Oil in London fell below $50 a barrel for the first time since July 2017 as broader financial market turmoil and worries over U.S. supply countered signs the OPEC+ coalition may extend or deepen output cuts.
Futures fell as much as 1.1 percent, after Monday’s 6.2 percent drop. Russian Energy Minister Alexander Novak tried to reassure investors, saying the market will be more stable in the first half of 2019 due to the deal between OPEC and its allies to cut output, and that producers will react if the situation changes. Meanwhile, S&P 500 Index futures fluctuated Wednesday while the benchmark U.S. gauge is at the brink of sliding into a bear market.
Oil has plunged more than 40 percent from a four-year high in October on the prospect of a supply glut. While the Organization of Petroleum Exporting Countries and its allies including Russia agreed to cut output early this month, investors are skeptical the reductions will be sufficient to dent supplies, with U.S. producers pumping near a record. At the same time, President Donald Trump’s trade war with China and the Federal Reserve’s policy on interest rates have clouded the outlook for global economic growth.
Oil in London fell below $50 a barrel for the first time since July 2017 as broader financial market turmoil and worries over U.S. supply countered signs the OPEC+ coalition may extend or deepen output cuts.
Futures fell as much as 1.1 percent, after Monday’s 6.2 percent drop. Russian Energy Minister Alexander Novak tried to reassure investors, saying the market will be more stable in the first half of 2019 due to the deal between OPEC and its allies to cut output, and that producers will react if the situation changes. Meanwhile, S&P 500 Index futures fluctuated Wednesday while the benchmark U.S. gauge is at the brink of sliding into a bear market.
Oil has plunged more than 40 percent from a four-year high in October on the prospect of a supply glut. While the Organization of Petroleum Exporting Countries and its allies including Russia agreed to cut output early this month, investors are skeptical the reductions will be sufficient to dent supplies, with U.S. producers pumping near a record. At the same time, President Donald Trump’s trade war with China and the Federal Reserve’s policy on interest rates have clouded the outlook for global economic growth.
#Dubai's Drake & Scull says chairman, CEO have resigned | ZAWYA MENA Edition
Dubai's Drake & Scull says chairman, CEO have resigned | ZAWYA MENA Edition:
Embattled Dubai-based contractor Drake & Scull has said that both its chairman and its chief executive have resigned from their posts following a board meeting on Tuesday.
The company said in a statement to the Dubai stock exchange that Abdullah Atatreh, who was appointed as chairman in September last year, would be replaced by independent board member Obaid Bin Touq, with a new independent board member, Abdullah Al Matrooshi, being voted onto the company's board. It did not give a reason for Atatreh's departure.
Meanwhile, the company also said that Yousef Al Mulla, who was only appointed to his post in August, had also resigned.
Embattled Dubai-based contractor Drake & Scull has said that both its chairman and its chief executive have resigned from their posts following a board meeting on Tuesday.
The company said in a statement to the Dubai stock exchange that Abdullah Atatreh, who was appointed as chairman in September last year, would be replaced by independent board member Obaid Bin Touq, with a new independent board member, Abdullah Al Matrooshi, being voted onto the company's board. It did not give a reason for Atatreh's departure.
Meanwhile, the company also said that Yousef Al Mulla, who was only appointed to his post in August, had also resigned.
World's largest floating LNG platform starts production in Australia | Reuters
World's largest floating LNG platform starts production in Australia | Reuters:
Royal Dutch Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world’s largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.
Though the project started up later and cost more than originally estimated, it is expected to further cement Australia’s lead as the world’s biggest LNG exporter, after the country took the crown in November.
In a statement, Shell said wells have now been opened at the Prelude facility, located 475 kilometers north-north east of Broome in western Australia. This means Prelude has now entered start-up and ramp-up, the initial phase of production where gas and condensate - which is an ultra-light form of crude oil - is produced and moved through the facility.
Royal Dutch Shell said on Wednesday it has begun output at its Prelude floating liquefied natural gas (FLNG) facility in Australia, the world’s largest floating production structure and the last of a wave of eight LNG projects built in the country over the last decade.
Though the project started up later and cost more than originally estimated, it is expected to further cement Australia’s lead as the world’s biggest LNG exporter, after the country took the crown in November.
In a statement, Shell said wells have now been opened at the Prelude facility, located 475 kilometers north-north east of Broome in western Australia. This means Prelude has now entered start-up and ramp-up, the initial phase of production where gas and condensate - which is an ultra-light form of crude oil - is produced and moved through the facility.
#Sharjah govt plans to invest about $517 mln in Invest Bank | Reuters
Sharjah govt plans to invest about $517 mln in Invest Bank | Reuters:
The Government of Sharjah in the United Arab Emirates will invest up to 1.9 billion dirhams ($517.32 million) in struggling Invest Bank, the lender said on Wednesday, disclosing details of the two-stage investment plan. The Sharjah government stepped in to support Invest Bank, one of the smaller banks in the UAE, after it was hit by recent high levels of bad loans, partly due to its exposure to the troubled real estate and construction market.
The Government of Sharjah will buy 1.59 billion shares of Invest Bank for 1.115 billion dirhams, or 50.07 percent of the total issued share capital of the bank, Invest Bank said.
This is to enable Invest Bank to maintain capital adequacy after booking provisions of 1.266 billion dirhams in the third and fourth quarter financial statements, it said.
The Government of Sharjah in the United Arab Emirates will invest up to 1.9 billion dirhams ($517.32 million) in struggling Invest Bank, the lender said on Wednesday, disclosing details of the two-stage investment plan. The Sharjah government stepped in to support Invest Bank, one of the smaller banks in the UAE, after it was hit by recent high levels of bad loans, partly due to its exposure to the troubled real estate and construction market.
The Government of Sharjah will buy 1.59 billion shares of Invest Bank for 1.115 billion dirhams, or 50.07 percent of the total issued share capital of the bank, Invest Bank said.
This is to enable Invest Bank to maintain capital adequacy after booking provisions of 1.266 billion dirhams in the third and fourth quarter financial statements, it said.
Kazakhstan: OPEC, non-OPEC nations must stabilize oil prices in first-quarter | Reuters
Kazakhstan: OPEC, non-OPEC nations must stabilize oil prices in first-quarter | Reuters:
Kazakhstan expects the participants in a pact to curb global oil output to stabilize prices in the first quarter of 2019 and make a joint statement next month “in order to support the market”, Energy Minister Kanat Bozumbayev said on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, along with non-OPEC members such as Russia, agreed this month to begin curbing production in January to reduce a supply glut that has pressured benchmark crude prices to their lowest in more than a year.
“All these countries must stabilize the situation with energetic measures in January-February-March, prices must stabilize and enter a more or less positive range,” Bozumbayev told a briefing.
Kazakhstan expects the participants in a pact to curb global oil output to stabilize prices in the first quarter of 2019 and make a joint statement next month “in order to support the market”, Energy Minister Kanat Bozumbayev said on Wednesday.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, along with non-OPEC members such as Russia, agreed this month to begin curbing production in January to reduce a supply glut that has pressured benchmark crude prices to their lowest in more than a year.
“All these countries must stabilize the situation with energetic measures in January-February-March, prices must stabilize and enter a more or less positive range,” Bozumbayev told a briefing.
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