Real estate shares get battered while banks are favoured in Dubai:
Traders in Dubai continued selling their real estate share exposures even as banks were favoured. In Abu Dhabi, weaker than expected results led to a lower limit on Waha Capital’s shares.
Emaar Properties, which has the highest weightage on Dubai index, neared its lowest level in 52 weeks, closing 2.68 per cent lower at Dh3.99. Emaar Development closed 3.65 per cent lower at Dh3.43.
“Traders are selling real estate scrips thinking that the results might be weak,” said an analyst who did not wish to be named.
Thursday, 7 February 2019
How does the Gulf manage the next phase of its love affair with oil? | Arab News
How does the Gulf manage the next phase of its love affair with oil? | Arab News:
By a simple fact of geology, the future of the countries of the Arabian Gulf is inextricably linked with the energy business, and in particular with the oil industry. This is the central tenet of the newly published book “Energy Kingdoms” by Jim Krane, former Gulf-based journalist-turned-academic at the Baker Institute for Energy Studies at Rice University in Houston, Texas.
Oil has been responsible for the explosive increase in the Gulf states’ living standards, and for the booming economic development they have experienced since the 1970s, when they managed to persuade the world to pay a reasonable price for the “black gold” that the West had been getting on the cheap until then. Two examples in particular illustrate the importance of oil as an economic determinant. Dubai, ironically because it did not have much oil to begin with, used oil revenue as seed capital to develop its potential as a hub for transport, trade and tourism. The emirate also offered a haven for oil executives working in less comfortable environments in the region.
Saudi Arabia, on the other hand, is the full-on oil economy, blessed with quantities beyond the dreams of oil explorers in the 1930s. Oil has be
By a simple fact of geology, the future of the countries of the Arabian Gulf is inextricably linked with the energy business, and in particular with the oil industry. This is the central tenet of the newly published book “Energy Kingdoms” by Jim Krane, former Gulf-based journalist-turned-academic at the Baker Institute for Energy Studies at Rice University in Houston, Texas.
Oil has been responsible for the explosive increase in the Gulf states’ living standards, and for the booming economic development they have experienced since the 1970s, when they managed to persuade the world to pay a reasonable price for the “black gold” that the West had been getting on the cheap until then. Two examples in particular illustrate the importance of oil as an economic determinant. Dubai, ironically because it did not have much oil to begin with, used oil revenue as seed capital to develop its potential as a hub for transport, trade and tourism. The emirate also offered a haven for oil executives working in less comfortable environments in the region.
Saudi Arabia, on the other hand, is the full-on oil economy, blessed with quantities beyond the dreams of oil explorers in the 1930s. Oil has be
QSE index closes at 10,505.19 points - The Peninsula Qatar
QSE index closes at 10,505.19 points - The Peninsula Qatar:
Qatar Stock Exchange (QSE) benchmark lost 215.12 points, or 2.01 percent, last week when the bourse closed yesterday at 10,505.19 points.
Trading value during last week decreased by 22.37 percent to reach QR1.05bn compared to QR1.35bn.
Trading volume decreased by 10.06 percent to reach 38.34 million shares, as against 42.63 million shares, while the number of transactions fell by 16.82 percent, to reach 24,192 transactions as compared to 29,083 transactions.
Qatar Stock Exchange (QSE) benchmark lost 215.12 points, or 2.01 percent, last week when the bourse closed yesterday at 10,505.19 points.
Trading value during last week decreased by 22.37 percent to reach QR1.05bn compared to QR1.35bn.
Trading volume decreased by 10.06 percent to reach 38.34 million shares, as against 42.63 million shares, while the number of transactions fell by 16.82 percent, to reach 24,192 transactions as compared to 29,083 transactions.
Crude Stumbles as Dour Signs on Trade Truce Add to Economic Woes - Bloomberg
Crude Stumbles as Dour Signs on Trade Truce Add to Economic Woes - Bloomberg:
Oil fell for the third day this week amid signs the U.S. and China aren’t close to resolving their trade spat ahead of a March 1 deadline.
Futures fell 2.5 percent in New York, joining a slide for U.S. equities. Markets hit a wall after White House economic adviser Larry Kudlow said a “sizable distance" remained in negotiations between the world’s two biggest economies. Later in the day, President Donald Trump said he didn’t expect to meet with his Chinese counterpart before the end of the month, when Trump’s threatened to increase tariffs.
“Clearly if we have an all-out trade war, with quite a bit of the market’s growth slated to come from China and other emerging markets, that ain’t bullish for oil," said Kyle Cooper, a Houston-based consultant at Ion Energy Group LLC.
Oil fell for the third day this week amid signs the U.S. and China aren’t close to resolving their trade spat ahead of a March 1 deadline.
Futures fell 2.5 percent in New York, joining a slide for U.S. equities. Markets hit a wall after White House economic adviser Larry Kudlow said a “sizable distance" remained in negotiations between the world’s two biggest economies. Later in the day, President Donald Trump said he didn’t expect to meet with his Chinese counterpart before the end of the month, when Trump’s threatened to increase tariffs.
“Clearly if we have an all-out trade war, with quite a bit of the market’s growth slated to come from China and other emerging markets, that ain’t bullish for oil," said Kyle Cooper, a Houston-based consultant at Ion Energy Group LLC.
Shares in Waha Capital fell sharply on Thurs as the company reported a drop in earnings | ZAWYA MENA Edition
Shares in Waha Capital fell sharply on Thurs as the company reported a drop in earnings | ZAWYA MENA Edition:
Shares in Waha Capital dropped to their daily limit on Thursday, after the company reported lower fourth quarter (Q4) earnings for 2018.
Q4 2018 net loss attributable to shareholders amounted to 150.1 million UAE dirhams ($40.9 million), compared to a net profit of 158.1 million UAE dirhams for Q4 2017.
“The company announced weak results in Q4 and a drop in their income for the whole year of around 32 percent, impacting the shares' profitability (net profit/total income) which was reduced from 23 fils in 2017 to 8 fils in 2018,” Amer Saqfelhait, trading manager of capital markets at Al Mal Capital, told Zawya.
Shares in Waha Capital dropped to their daily limit on Thursday, after the company reported lower fourth quarter (Q4) earnings for 2018.
Q4 2018 net loss attributable to shareholders amounted to 150.1 million UAE dirhams ($40.9 million), compared to a net profit of 158.1 million UAE dirhams for Q4 2017.
“The company announced weak results in Q4 and a drop in their income for the whole year of around 32 percent, impacting the shares' profitability (net profit/total income) which was reduced from 23 fils in 2017 to 8 fils in 2018,” Amer Saqfelhait, trading manager of capital markets at Al Mal Capital, told Zawya.
#AbuDhabi Investment Office set up to guide FDI | ZAWYA MENA Edition
Abu Dhabi Investment Office set up to guide FDI | ZAWYA MENA Edition:
A new investment office has been set up with the goal of driving more foreign direct investment (FDI) into Abu Dhabi.
In a statement issued on Thursday afternoon, it was announced that the new Abu Dhabi Investment Office (ADIO) had been set up as part of the Ghdan 21 initiative announced in June last year, through which the emirate's government is driving a 50 billion United Arab Emirates dirhams ($13.6 billion) economic stimulus package.
The statement said that ADIO would have responsibility for running an FDI strategy which would include setting up a PPP (public-private partnership) Centre of Excellence.
A new investment office has been set up with the goal of driving more foreign direct investment (FDI) into Abu Dhabi.
In a statement issued on Thursday afternoon, it was announced that the new Abu Dhabi Investment Office (ADIO) had been set up as part of the Ghdan 21 initiative announced in June last year, through which the emirate's government is driving a 50 billion United Arab Emirates dirhams ($13.6 billion) economic stimulus package.
The statement said that ADIO would have responsibility for running an FDI strategy which would include setting up a PPP (public-private partnership) Centre of Excellence.
Total's South Africa discovery could hold 1 billion barrels oil equivalent: CEO | Reuters
Total's South Africa discovery could hold 1 billion barrels oil equivalent: CEO | Reuters:
French oil and gas major Total’s South African offshore discovery could contain 1 billion barrels of total resources and is “probably quite big”, Chief Executive Patrick Pouyanne said on Thursday.
Total said it had made a significant gas condensate discovery after drilling its Brulpadda prospects on Block 11B/12B in the Outeniqua Basin.
“It is gas condensate and light oil. Mainly gas. There are four other prospects on the license that we have to drill; it could be around 1 billion barrels of total resources of gas and condensate,” Pouyanne said.
French oil and gas major Total’s South African offshore discovery could contain 1 billion barrels of total resources and is “probably quite big”, Chief Executive Patrick Pouyanne said on Thursday.
Total said it had made a significant gas condensate discovery after drilling its Brulpadda prospects on Block 11B/12B in the Outeniqua Basin.
“It is gas condensate and light oil. Mainly gas. There are four other prospects on the license that we have to drill; it could be around 1 billion barrels of total resources of gas and condensate,” Pouyanne said.
U.S. lawmakers renew push for penalties against #SaudiArabia | Reuters
U.S. lawmakers renew push for penalties against Saudi Arabia | Reuters:
Republican and Democratic U.S. lawmakers renewed their push on Thursday to penalize Saudi Arabia for the murder of Saudi journalist Jamal Khashoggi and address the humanitarian crisis in Yemen, introducing legislation to bar some arms sales and impose sanctions on those responsible for his death.
Democrats Bob Menendez, Jack Reed, Jeanne Shaheen and Chris Murphy and Republicans Todd Young, Lindsey Graham and Susan Collins introduced the bill one day before the Feb. 8 deadline for President Donald Trump’s administration to submit a report to Congress on whether Saudi Crown Prince Mohamed bin Salman ordered Khashoggi’s killing.
Congressional aides said they had been given no indication that the administration would meet that deadline. The White House did not immediately respond to a request for comment.
Republican and Democratic U.S. lawmakers renewed their push on Thursday to penalize Saudi Arabia for the murder of Saudi journalist Jamal Khashoggi and address the humanitarian crisis in Yemen, introducing legislation to bar some arms sales and impose sanctions on those responsible for his death.
Democrats Bob Menendez, Jack Reed, Jeanne Shaheen and Chris Murphy and Republicans Todd Young, Lindsey Graham and Susan Collins introduced the bill one day before the Feb. 8 deadline for President Donald Trump’s administration to submit a report to Congress on whether Saudi Crown Prince Mohamed bin Salman ordered Khashoggi’s killing.
Congressional aides said they had been given no indication that the administration would meet that deadline. The White House did not immediately respond to a request for comment.
MIDEAST STOCKS- #Qatar slides on wide sell-off, all major Gulf markets drop | Reuters
MIDEAST STOCKS-Qatar slides on wide sell-off, all major Gulf markets drop | Reuters:
Qatar's stock market fell sharply on Thursday as all but one of its stocks slid, while all major Gulf bourses also tumbled, mostly pressured by financial shares.
Qatar's index, one of the world's best performing markets last year, fell 1.7 percent with 19 of its 20 stocks declining.
Market heavyweight Industries Qatar dropped 1.9 percent and Middle East's largest lender Qatar National Bank was down 1.6 percent.
Qatar's stock market fell sharply on Thursday as all but one of its stocks slid, while all major Gulf bourses also tumbled, mostly pressured by financial shares.
Qatar's index, one of the world's best performing markets last year, fell 1.7 percent with 19 of its 20 stocks declining.
Market heavyweight Industries Qatar dropped 1.9 percent and Middle East's largest lender Qatar National Bank was down 1.6 percent.
Middle East investors retreat from western property deals | Financial Times
Middle East investors retreat from western property deals | Financial Times:
Middle Eastern investment into western commercial property fell more than a third last year as lower oil prices and concerns over Brexit stifled demand.
Regional investment into the US and Europe fell 36 per cent to $5.8bn in 2018, compared with $9.1bn in 2017, according to data from JLL, a real estate consultancy.
“This is the most significant drop in the past 10 years,” Fadi Moussalli, an executive director at JLL’s International Capital Group, told the Financial Times. “We are back to the year following the global financial crisis.”
Middle Eastern investment into western commercial property fell more than a third last year as lower oil prices and concerns over Brexit stifled demand.
Regional investment into the US and Europe fell 36 per cent to $5.8bn in 2018, compared with $9.1bn in 2017, according to data from JLL, a real estate consultancy.
“This is the most significant drop in the past 10 years,” Fadi Moussalli, an executive director at JLL’s International Capital Group, told the Financial Times. “We are back to the year following the global financial crisis.”
#Dubai Property Glut on Show in Worst Week for Stocks Since 2016 - Bloomberg
Dubai Property Glut on Show in Worst Week for Stocks Since 2016 - Bloomberg:
Dubai stocks are giving investors an update on the woes confronting the local real-estate industry.
The DFM Real Estate & Construction Index has fallen about 7 percent in the past five days and is set for the biggest weekly drop since May 2016. All its members are down by at least 1.4 percent this week, compared with an overall 0.2 percent retreat in an emerging-market gauge for the sector.
Oversupply is casting a cloud over Dubai developers and real-estate companies at the same time that the region confronts a slump in oil prices. Emaar Properties PJSC, the sheikhdom’s biggest developer and the stock with the third-largest weighting in the local benchmark index, last month put on hold plans to sell new debt as interest rates increased. Subsidiary Emaar Development PJSC is set for the worst week since its 2017 market debut.
Dubai stocks are giving investors an update on the woes confronting the local real-estate industry.
The DFM Real Estate & Construction Index has fallen about 7 percent in the past five days and is set for the biggest weekly drop since May 2016. All its members are down by at least 1.4 percent this week, compared with an overall 0.2 percent retreat in an emerging-market gauge for the sector.
Oversupply is casting a cloud over Dubai developers and real-estate companies at the same time that the region confronts a slump in oil prices. Emaar Properties PJSC, the sheikhdom’s biggest developer and the stock with the third-largest weighting in the local benchmark index, last month put on hold plans to sell new debt as interest rates increased. Subsidiary Emaar Development PJSC is set for the worst week since its 2017 market debut.
#Iran Oil Industry Faces Bleak Outlook 40 Years After Revolution - Bloomberg
Iran Oil Industry Faces Bleak Outlook 40 Years After Revolution - Bloomberg:
As Iran’s Islamic Republic enters a fifth decade, its energy industry has little to celebrate. The country’s crude output has yet to recover to pre-revolution levels and is unlikely to do so for many years, even without U.S. sanctions.
Oil production is languishing as foreign investors steer clear of the world’s fourth-largest holder of crude. Pledges by U.S. officials to tighten curbs on Iran’s oil sales and the expiration of waivers for several of the nation’s customers in early May are set to further restrict its exports.
Iran’s output slumped after the U.S. reinstated sanctions last year, accusing the country of sponsoring terrorism. Exemptions for importing countries including Japan, China, Turkey, India and South Korea have partially cushioned the blow. While some Iranian officials say they expect Washington to extend the waivers when they expire -- possibly to help offset the decline in output of similar-quality crude from Venezuela -- President Donald Trump’s administration insists it has no plans to do so.
As Iran’s Islamic Republic enters a fifth decade, its energy industry has little to celebrate. The country’s crude output has yet to recover to pre-revolution levels and is unlikely to do so for many years, even without U.S. sanctions.
Oil production is languishing as foreign investors steer clear of the world’s fourth-largest holder of crude. Pledges by U.S. officials to tighten curbs on Iran’s oil sales and the expiration of waivers for several of the nation’s customers in early May are set to further restrict its exports.
Iran’s output slumped after the U.S. reinstated sanctions last year, accusing the country of sponsoring terrorism. Exemptions for importing countries including Japan, China, Turkey, India and South Korea have partially cushioned the blow. While some Iranian officials say they expect Washington to extend the waivers when they expire -- possibly to help offset the decline in output of similar-quality crude from Venezuela -- President Donald Trump’s administration insists it has no plans to do so.
'Bullish' on Saudi Banks Al Rajhi, National Commercial, Samba, Shuaa Capital Says – Bloomberg
'Bullish' on Saudi Banks Al Rajhi, National Commercial, Samba, Shuaa Capital Says – Bloomberg:
Aarthi Chandrasekaran, a Dubai-based vice president and banking analyst at Shuaa Capital PSC, talks about Saudi Arabian and U.A.E. banks. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aarthi Chandrasekaran, a Dubai-based vice president and banking analyst at Shuaa Capital PSC, talks about Saudi Arabian and U.A.E. banks. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ex-Petrofac executive pleads guilty to 11 counts of bribery | Reuters
Ex-Petrofac executive pleads guilty to 11 counts of bribery | Reuters:
A former executive at British oil firm Petrofac has pleaded guilty to eleven counts of bribery as part of an ongoing Serious Fraud Office investigation into the company and its subsidiaries, prosecutors said on Thursday.
David Lufkin, 51, a British national and previously global head of sales for Petrofac International Limited, entered his pleas at Westminster Magistrates’ Court on Wednesday.
The SFO said the charges related to the making of corrupt offers to influence the award of contracts to Petrofac worth in excess of 730 million dollars in Iraq and in excess of 3.5 billion dollars in Saudi Arabia.
A former executive at British oil firm Petrofac has pleaded guilty to eleven counts of bribery as part of an ongoing Serious Fraud Office investigation into the company and its subsidiaries, prosecutors said on Thursday.
David Lufkin, 51, a British national and previously global head of sales for Petrofac International Limited, entered his pleas at Westminster Magistrates’ Court on Wednesday.
The SFO said the charges related to the making of corrupt offers to influence the award of contracts to Petrofac worth in excess of 730 million dollars in Iraq and in excess of 3.5 billion dollars in Saudi Arabia.
#UAE's Mashreqbank hires banks ahead of dollar bond sale | ZAWYA MENA Edition
UAE's Mashreqbank hires banks ahead of dollar bond sale | ZAWYA MENA Edition:
Dubai-based Mashreqbank has hired banks to arrange fixed income investor meetings ahead of a potential issue of five-year U.S. dollar-denominated bonds, a document issued by one of the banks showed on Thursday.
Mashreqbank, the largest privately owned bank in the United Arab Emirates, will meet investors in the UAE, Europe and Asia, starting Feb. 10.
BNP Paribas, BofA Merrill Lynch, Commerzbank, Mashreqbank, Nomura and Societe Generale will arrange the meetings ahead of the potential issue, expected to be of benchmark size, which generally means at least $500 million.
Dubai-based Mashreqbank has hired banks to arrange fixed income investor meetings ahead of a potential issue of five-year U.S. dollar-denominated bonds, a document issued by one of the banks showed on Thursday.
Mashreqbank, the largest privately owned bank in the United Arab Emirates, will meet investors in the UAE, Europe and Asia, starting Feb. 10.
BNP Paribas, BofA Merrill Lynch, Commerzbank, Mashreqbank, Nomura and Societe Generale will arrange the meetings ahead of the potential issue, expected to be of benchmark size, which generally means at least $500 million.
Mideast Stocks: Real estate weighs on #Dubai, most major Gulf markets down | ZAWYA MENA Edition
Mideast Stocks: Real estate weighs on Dubai, most major Gulf markets down | ZAWYA MENA Edition:
Dubai's stock market fell in early trade on Thursday as all its property shares slipped, while Qatar slid, pressured by its blue-chip financial stocks.
In Dubai, the index lost 0.9 percent, with the emirate's largest listed developer Emaar Properties dropping 2.4 percent, while its unit Emaar Development lost 4.8 percent.
DAMAC Properties was down 3.8 percent.
Dubai's stock market fell in early trade on Thursday as all its property shares slipped, while Qatar slid, pressured by its blue-chip financial stocks.
In Dubai, the index lost 0.9 percent, with the emirate's largest listed developer Emaar Properties dropping 2.4 percent, while its unit Emaar Development lost 4.8 percent.
DAMAC Properties was down 3.8 percent.
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