Directionless UAE bourses perplexes traders in short-term:
Traders in the UAE bourse have been stuck with positions and don’t know what to do: ie to book losses or to stay in the market.
The Dubai Financial Market General index has been falling since the past three years, registering a fall of 50 per cent from the high of more than 5,000 in the last 36 months. The DFM index closed 0.22 per cent lower at 2,526.02 on Thursday. Traded value has also fallen from a daily average of Dh2-3 billion in 2016 to Dh100-200 million now, indicating declining interest from institutions.
Traders are still stuck with their positions in shares like Gulf Finance House (GFH) or Emaar Properties among others. GFH used to trade Dh2.27 in 2017 and share prices have fallen to Dh0.85. Emaar Properties shares have fallen from a high of Dh9 to less than Dh5 now.
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Thursday 3 January 2019
Dnata to manage Etihad Airways contact centres
Dnata to manage Etihad Airways contact centres:
Dnata, the Dubai-based air services provider owned by Emirates Group, is to manage Etihad Airways’ contact centres, in what appears to be the latest step towards closer cooperation between the two rivals.
The contact centres were formerly managed by Etihad itself, and this is the first time it has appointed a third-party to manage those operations. Dnata told Gulf News that it will help Etihad provide customer service to its passengers through “innovative and efficient technology solutions”.
“Dnata confirms that it has been appointed by Etihad to manage the airline’s contact centre operations,” a dnata spokesperson said. “Including Etihad, dnata now operates 15 contact centres globally, handling more than 2 million customer contacts a month, with some 2,500 employees.”
Dnata, the Dubai-based air services provider owned by Emirates Group, is to manage Etihad Airways’ contact centres, in what appears to be the latest step towards closer cooperation between the two rivals.
The contact centres were formerly managed by Etihad itself, and this is the first time it has appointed a third-party to manage those operations. Dnata told Gulf News that it will help Etihad provide customer service to its passengers through “innovative and efficient technology solutions”.
“Dnata confirms that it has been appointed by Etihad to manage the airline’s contact centre operations,” a dnata spokesperson said. “Including Etihad, dnata now operates 15 contact centres globally, handling more than 2 million customer contacts a month, with some 2,500 employees.”
Oil Edges Up as Traders Weigh Economic Risks Against OPEC Cuts - Bloomberg
Oil Edges Up as Traders Weigh Economic Risks Against OPEC Cuts - Bloomberg:
Oil ended another topsy-turvy day by closing near a two-week high, as traders weighed signs that OPEC is following through on production cuts against hints of an economic slowdown.
Global benchmark Brent crude rose, fell and then rebounded on Thursday, ending the trading session up 1.9 percent. Prices were spurred by signs that OPEC had made an early start on its pledged production curbs. Saudi Arabia also moved to increase prices in the U.S. and Asia, a signal that the world’s biggest exporter thinks demand will be sustained. Prices eased slightly after industry-funded report was said to show gasoline inventories jumped 8 million barrels last week, while crude stocks fell by 4.46 million.
“We really do need a sustained effort from some of the OPEC producers to take supply out of the market in order for prices to recover,” Jason Gammel, an analyst at Jefferies LLC, said in a Bloomberg television interview. “Now we’re starting to see that.”
Oil ended another topsy-turvy day by closing near a two-week high, as traders weighed signs that OPEC is following through on production cuts against hints of an economic slowdown.
Global benchmark Brent crude rose, fell and then rebounded on Thursday, ending the trading session up 1.9 percent. Prices were spurred by signs that OPEC had made an early start on its pledged production curbs. Saudi Arabia also moved to increase prices in the U.S. and Asia, a signal that the world’s biggest exporter thinks demand will be sustained. Prices eased slightly after industry-funded report was said to show gasoline inventories jumped 8 million barrels last week, while crude stocks fell by 4.46 million.
“We really do need a sustained effort from some of the OPEC producers to take supply out of the market in order for prices to recover,” Jason Gammel, an analyst at Jefferies LLC, said in a Bloomberg television interview. “Now we’re starting to see that.”
#SaudiArabia may need extra time to privatize soccer clubs | Reuters
Saudi Arabia may need extra time to privatize soccer clubs | Reuters:
Saudi Arabia’s plan to privatize its soccer clubs could be delayed beyond the targeted 2020, the head of the country’s soccer federation told Reuters, in what would be the latest setback to economic reforms.
Sport is one of the pillars of the government’s Vision 2030 goal to raise living standards and diversify the economy beyond oil exports, while the privatization of soccer clubs has been earmarked as an early candidate in a drive to privatize state-linked assets.
Former Croatia manager Slaven Bilić and Brazilian player Giuliano are among the top names to grace the Saudi league, in which Al Hilal are reigning champions.
Saudi Arabia’s plan to privatize its soccer clubs could be delayed beyond the targeted 2020, the head of the country’s soccer federation told Reuters, in what would be the latest setback to economic reforms.
Sport is one of the pillars of the government’s Vision 2030 goal to raise living standards and diversify the economy beyond oil exports, while the privatization of soccer clubs has been earmarked as an early candidate in a drive to privatize state-linked assets.
Former Croatia manager Slaven Bilić and Brazilian player Giuliano are among the top names to grace the Saudi league, in which Al Hilal are reigning champions.
#Qatar GDP growth accelerates to 2.2 pct y/y in Q3 | Reuters
Qatar GDP growth accelerates to 2.2 pct y/y in Q3 | Reuters:
Qatar’s gross domestic product growth accelerated to an annual 2.2 percent in the third quarter of 2018 from a revised 1.7 percent in the second quarter, the Ministry of Development Planning and Statistics said on Thursday.
Quarter-on-quarter growth climbed to 4.0 percent, the highest rate in at least two years, from 1.2 percent.
Qatar’s gross domestic product growth accelerated to an annual 2.2 percent in the third quarter of 2018 from a revised 1.7 percent in the second quarter, the Ministry of Development Planning and Statistics said on Thursday.
Quarter-on-quarter growth climbed to 4.0 percent, the highest rate in at least two years, from 1.2 percent.
Oil rises in choppy trade as OPEC supply cuts vie with demand worry | Reuters
Oil rises in choppy trade as OPEC supply cuts vie with demand worry | Reuters:
Oil prices rose more than one percent on Thursday in a session of volatile trade, drawing support from signs that Saudi Arabia is cutting crude output but pressured by concerns that slowing global economic growth could dent demand.
Brent crude LCOc1 futures gained $1.04 to settle at $55.95 a barrel, a 1.89 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 55 cents to settle at $47.09 a barrel, a 1.18 percent gain.
Prices traded in a wide range, with Brent hitting a session high of $56.30 a barrel and a low of $53.93 a barrel. WTI posted a session high of $47.49 a barrel and a low of $45.35 a barrel.
Oil prices rose more than one percent on Thursday in a session of volatile trade, drawing support from signs that Saudi Arabia is cutting crude output but pressured by concerns that slowing global economic growth could dent demand.
Brent crude LCOc1 futures gained $1.04 to settle at $55.95 a barrel, a 1.89 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 55 cents to settle at $47.09 a barrel, a 1.18 percent gain.
Prices traded in a wide range, with Brent hitting a session high of $56.30 a barrel and a low of $53.93 a barrel. WTI posted a session high of $47.49 a barrel and a low of $45.35 a barrel.
MIDEAST STOCKS-Most Gulf markets recover on financials, #Qatar leads | Reuters
MIDEAST STOCKS-Most Gulf markets recover on financials, Qatar leads | Reuters:
Major Gulf markets staged a recovery on Thursday after opening on a weak note on global market woes, with renewed interest in financial stocks helping overcome volatility in global markets.
The Qatari index rose 0.7 percent, with 18 of its 20 stocks advancing. The Middle East's second largest petrochemical firm Industries Qatar added 1.8 percent while Qatar Islamic Bank increased 0.9 percent.
But Mesaieed Petrochemical plunged by 7.3 percent, having jumped by its 10 percent daily limit in the previous session on news that major shareholder Qatar Petroleum had finished distributing a tranche of free incentive shares to investors, potentially improving liquidity in the stock.
Major Gulf markets staged a recovery on Thursday after opening on a weak note on global market woes, with renewed interest in financial stocks helping overcome volatility in global markets.
The Qatari index rose 0.7 percent, with 18 of its 20 stocks advancing. The Middle East's second largest petrochemical firm Industries Qatar added 1.8 percent while Qatar Islamic Bank increased 0.9 percent.
But Mesaieed Petrochemical plunged by 7.3 percent, having jumped by its 10 percent daily limit in the previous session on news that major shareholder Qatar Petroleum had finished distributing a tranche of free incentive shares to investors, potentially improving liquidity in the stock.
#Dubai businesses voice fears about slow recovery | Financial Times
Dubai businesses voice fears about slow recovery | Financial Times:
A series of government reforms in recent years has failed to revive Dubai’s economy, business people have warned, as the Gulf’s commercial hub struggles to shake off a four-year slump.
Senior business figures and officials are concerned that the crisis, sparked in 2015 by the slide in oil prices, has not eased despite higher crude markets last year which were expected to boost confidence in a city renowned for recycling petrodollars.
Tensions with neighbouring Iran, encapsulated in the bloody war in Yemen, as well as the embargo on Qatar, have compounded an already protracted slowdown in trade, tourism and retail.
A series of government reforms in recent years has failed to revive Dubai’s economy, business people have warned, as the Gulf’s commercial hub struggles to shake off a four-year slump.
Senior business figures and officials are concerned that the crisis, sparked in 2015 by the slide in oil prices, has not eased despite higher crude markets last year which were expected to boost confidence in a city renowned for recycling petrodollars.
Tensions with neighbouring Iran, encapsulated in the bloody war in Yemen, as well as the embargo on Qatar, have compounded an already protracted slowdown in trade, tourism and retail.
China Southern Shares Gain After #Qatar Airways Buys 5% Stake - Bloomberg
China Southern Shares Gain After Qatar Airways Buys 5% Stake - Bloomberg:
China Southern Airlines Co. shares advanced after Qatar Airways purchased 5 percent of the mainland carrier and expressed interest in buying more in a bid to bolster its network in China.
The Gulf carrier now holds a total of 613.36 million shares of China Southern, including 430 million shares listed in Shanghai and 183 million in Hong Kong, according to a filing by the state-owned mainland airline Wednesday.
China Southern shares rose as much as 4 percent in Shanghai Thursday, the biggest intraday gain in a month. The Hong Kong-traded stock advanced as much as 1.9 percent.
China Southern Airlines Co. shares advanced after Qatar Airways purchased 5 percent of the mainland carrier and expressed interest in buying more in a bid to bolster its network in China.
The Gulf carrier now holds a total of 613.36 million shares of China Southern, including 430 million shares listed in Shanghai and 183 million in Hong Kong, according to a filing by the state-owned mainland airline Wednesday.
China Southern shares rose as much as 4 percent in Shanghai Thursday, the biggest intraday gain in a month. The Hong Kong-traded stock advanced as much as 1.9 percent.
Natural Gas Prices in Europe Headed Lower - Bloomberg
Natural Gas Prices in Europe Headed Lower - Bloomberg:
European natural gas prices look set to fall for the first time in four years in 2019 as buyers keep a close eye on flows from Russia that reached a record last year.
With a healthy amount of fuel in storage after a mild start to this winter, the outlook is bearish. That’s being exacerbated by an expected increase in imports, which would help offset declining production in the region. While Russia intends to maintain its grip on about 40 percent of the European market, fluctuations in that dependency will be closely monitored.
“The question is how much gas Russia ends up delivering into the European markets -- that will be a key determinant,” said Murray Douglas, research director for European gas at Wood Mackenzie Ltd. “Russia expressed publicly it wants to keep deliveries. That could generate a real collapse in prices in the summer months, when we will see a big LNG supply.”
European natural gas prices look set to fall for the first time in four years in 2019 as buyers keep a close eye on flows from Russia that reached a record last year.
With a healthy amount of fuel in storage after a mild start to this winter, the outlook is bearish. That’s being exacerbated by an expected increase in imports, which would help offset declining production in the region. While Russia intends to maintain its grip on about 40 percent of the European market, fluctuations in that dependency will be closely monitored.
“The question is how much gas Russia ends up delivering into the European markets -- that will be a key determinant,” said Murray Douglas, research director for European gas at Wood Mackenzie Ltd. “Russia expressed publicly it wants to keep deliveries. That could generate a real collapse in prices in the summer months, when we will see a big LNG supply.”
#Dubai Bank Said to Win Right to Swap #Abraaj Debt for Fund Stakes - Bloomberg
Dubai Bank Said to Win Right to Swap Abraaj Debt for Fund Stakes - Bloomberg:
Noor Bank PJSC, which provided a $100 million loan to the collapsed Abraaj Group, won the right to swap the debt for stakes in some of the Dubai-based buyout firm’s funds, according to people with knowledge of the matter.
Privately-held Noor Bank won approval from a court in the Cayman Islands, where Abraaj is undergoing a supervised restructuring, to take ownership of stakes in the funds that were pledged against the loan, the people said, asking not to be identified because the process is private.
Noor Bank will hold the stakes alongside other investors and limited partners, the people said. The lender may eventually be able to recover more than it lent to Abraaj when the assets in the funds are sold, one of the people said.
Noor Bank PJSC, which provided a $100 million loan to the collapsed Abraaj Group, won the right to swap the debt for stakes in some of the Dubai-based buyout firm’s funds, according to people with knowledge of the matter.
Privately-held Noor Bank won approval from a court in the Cayman Islands, where Abraaj is undergoing a supervised restructuring, to take ownership of stakes in the funds that were pledged against the loan, the people said, asking not to be identified because the process is private.
Noor Bank will hold the stakes alongside other investors and limited partners, the people said. The lender may eventually be able to recover more than it lent to Abraaj when the assets in the funds are sold, one of the people said.
Turbulent or Steady? OPEC or Shale? -- The State of Oil in 2019 - Bloomberg
Turbulent or Steady? OPEC or Shale? -- The State of Oil in 2019 - Bloomberg:
Oil had a tumultuous 2018, with prices rising to a four-year high in October before plunging more than $30 in the following months. Oversupply and demand worries are high on the concern list for the industry, making volatility a buzzword this year as well.
There are other power dynamics at play. OPEC’s Viennese waltz in early December was a perfect example of a shift, with Russia brokering a deal to curb output and sharing the reins with traditional leader Saudi Arabia. President Donald Trump’s tweets demanding lower oil prices and U.S. shale producers pumping out unprecedented volumes of crude, threaten to undo all of OPEC and Russia’s years-long work.
There are “major uncertainties” and forecasting trends in 2019 is “even more hazardous than usual,” said Neil Atkinson, head of oil markets at the International Energy Agency. Geopolitical uncertainty is a serious risk to the industry, according to Ryan Lance, chief executive officer of ConocoPhillips. Still, there is likely to be a lack of “shock and awe” in OPEC policy, which could temper volatility, said Greg Sharenow, a portfolio manager at Pacific Investment Management Co.
Oil had a tumultuous 2018, with prices rising to a four-year high in October before plunging more than $30 in the following months. Oversupply and demand worries are high on the concern list for the industry, making volatility a buzzword this year as well.
There are other power dynamics at play. OPEC’s Viennese waltz in early December was a perfect example of a shift, with Russia brokering a deal to curb output and sharing the reins with traditional leader Saudi Arabia. President Donald Trump’s tweets demanding lower oil prices and U.S. shale producers pumping out unprecedented volumes of crude, threaten to undo all of OPEC and Russia’s years-long work.
There are “major uncertainties” and forecasting trends in 2019 is “even more hazardous than usual,” said Neil Atkinson, head of oil markets at the International Energy Agency. Geopolitical uncertainty is a serious risk to the industry, according to Ryan Lance, chief executive officer of ConocoPhillips. Still, there is likely to be a lack of “shock and awe” in OPEC policy, which could temper volatility, said Greg Sharenow, a portfolio manager at Pacific Investment Management Co.
New CEO of #Saudi's biggest developer Dar Al Arkan expects market revival soon | ZAWYA MENA Edition
New CEO of Saudi's biggest developer Dar Al Arkan expects market revival soon | ZAWYA MENA Edition:
As the Saudi property market adjusts to conflicting dynamics of substantial government stimulus and regulatory reform at the same time that demand is dampened due to departing expatriates, the chief executive of the kingdom’s largest listed real estate developer has said that he expects the market to return to growth.
Yet Kelvin Kwok, the new CEO of Dar Al Arkan Real Estate Development Co, also said that providing financing for the average citizen is crucial to reviving the Saudi real estate market and remains cautious of international investments.
“With the support of government initiatives and a bounce in the fundamental levels of economic activity driven by the improved oil prices and Saudi employment levels, we expect the market to return to growth,” he told Zawya in an interview conducted via email.
As the Saudi property market adjusts to conflicting dynamics of substantial government stimulus and regulatory reform at the same time that demand is dampened due to departing expatriates, the chief executive of the kingdom’s largest listed real estate developer has said that he expects the market to return to growth.
Yet Kelvin Kwok, the new CEO of Dar Al Arkan Real Estate Development Co, also said that providing financing for the average citizen is crucial to reviving the Saudi real estate market and remains cautious of international investments.
“With the support of government initiatives and a bounce in the fundamental levels of economic activity driven by the improved oil prices and Saudi employment levels, we expect the market to return to growth,” he told Zawya in an interview conducted via email.
#Qatar GDP growth accelerates to 2.2 pct y/y in Q3 | Reuters
Qatar GDP growth accelerates to 2.2 pct y/y in Q3 | Reuters:
Qatar’s gross domestic product growth accelerated to an annual 2.2 percent in the third quarter of 2018 from a revised 1.7 percent in the second quarter, the Ministry of Development Planning and Statistics said on Thursday.
Quarter-on-quarter growth climbed to 4.0 percent, the highest rate in at least two years, from 1.2 percent.
Qatar’s gross domestic product growth accelerated to an annual 2.2 percent in the third quarter of 2018 from a revised 1.7 percent in the second quarter, the Ministry of Development Planning and Statistics said on Thursday.
Quarter-on-quarter growth climbed to 4.0 percent, the highest rate in at least two years, from 1.2 percent.
Oil prices decline on swelling oversupply, volatile markets | Reuters
Oil prices decline on swelling oversupply, volatile markets | Reuters:
Oil prices fell on Thursday amid volatile currency and stock markets, coupled with concerns that an economic slowdown in 2019 will cut into fuel demand just as crude supplies are surging.
U.S. West Texas Intermediate crude oil futures dropped 75 cents to $45.79 a barrel by 0900 GMT.
International Brent crude futures were down 50 cents at $54.41 a barrel.
Oil prices fell on Thursday amid volatile currency and stock markets, coupled with concerns that an economic slowdown in 2019 will cut into fuel demand just as crude supplies are surging.
U.S. West Texas Intermediate crude oil futures dropped 75 cents to $45.79 a barrel by 0900 GMT.
International Brent crude futures were down 50 cents at $54.41 a barrel.
MIDEAST STOCKS-Global market weakness pressures Gulf markets | Reuters
MIDEAST STOCKS-Global market weakness pressures Gulf markets | Reuters:
All major Gulf markets fell on Thursday, weighed down by falling oil prices and volatile global markets on concern over the world economy and corporate earnings into 2019.
Continuing weakness in property shares contributed to a 0.4 percent decline in the Dubai index, one of the world’s worst-performing stock markets last year.
The emirate’s largest listed developer Emaar Properties lost 1.2 percent and construction company Arabtec retreated 1 percent.
All major Gulf markets fell on Thursday, weighed down by falling oil prices and volatile global markets on concern over the world economy and corporate earnings into 2019.
Continuing weakness in property shares contributed to a 0.4 percent decline in the Dubai index, one of the world’s worst-performing stock markets last year.
The emirate’s largest listed developer Emaar Properties lost 1.2 percent and construction company Arabtec retreated 1 percent.