Abu Dhabi Stocks Drop, Matching Longest Losing Streak on Record - Bloomberg:
Abu Dhabi’s equity benchmark ADX General Index dropped on Wednesday, matching the gauge’s longest losing streak on record after extending its drop to a 10th session, as the index’s biggest member First Abu Dhabi Bank PJSC is facing pressure by more attractively valued peers.
The ADX has dropped 6.2 percent since the start of the month, making it the worst equity performer globally among major stock gauges tracked by Bloomberg.
FAB, which represents 43 percent of the index, is going to “come under more pressure” as investors could start rotating into other stocks, such as Abu Dhabi Commercial Bank PJSC, which currently trades at a 30 percent discount to FAB, said Jaap Meijer, managing director and head of equity research at Arqaam Capital Ltd, who has the only sell recommendation on FAB among analysts tracked by Bloomberg.
Wednesday, 13 March 2019
Oil Hits 2019 High as U.S. Inventories Show a Tightening Market - Bloomberg
Oil Hits 2019 High as U.S. Inventories Show a Tightening Market - Bloomberg:
Oil prices climbed to their highest so far this year as a decline in U.S. crude and fuel stockpiles added to evidence of a tightening market.
Futures in New York rose 2.4 percent on Wednesday, closing above $58 a barrel for the first time since mid-November. The U.S. Energy Department’s closely watched weekly inventory report showed a 3.86 million-barrel decline for crude last week, defying forecasts of an increase. A 4.62 million drawdown for gasoline was the steepest since October.
Oil prices climbed to their highest so far this year as a decline in U.S. crude and fuel stockpiles added to evidence of a tightening market.
Futures in New York rose 2.4 percent on Wednesday, closing above $58 a barrel for the first time since mid-November. The U.S. Energy Department’s closely watched weekly inventory report showed a 3.86 million-barrel decline for crude last week, defying forecasts of an increase. A 4.62 million drawdown for gasoline was the steepest since October.
#Qatar Petroleum acquires twelve exploration blocks in Morocco | ZAWYA MENA Edition
Qatar Petroleum acquires twelve exploration blocks in Morocco | ZAWYA MENA Edition:
Qatar Petroleum said it has agreed with Italian oil major Eni to acquire a 30 percent participating interest in the Tarfaya Shallow Exploration Permit, a series of 12 neighboring offshore blocks along the Atlantic coast of Morocco.
The agreement, which is subject to regulatory approvals from Morocco, will leave the operator Eni with a 45 percent participating interest and Qatar Petroleum and Morocco's Office National des Hydrocarbures et des Mines (ONHYM) with 30 percent and 25 percent, respectively.
Qatar Petroleum said it has agreed with Italian oil major Eni to acquire a 30 percent participating interest in the Tarfaya Shallow Exploration Permit, a series of 12 neighboring offshore blocks along the Atlantic coast of Morocco.
The agreement, which is subject to regulatory approvals from Morocco, will leave the operator Eni with a 45 percent participating interest and Qatar Petroleum and Morocco's Office National des Hydrocarbures et des Mines (ONHYM) with 30 percent and 25 percent, respectively.
Saudi Arabian equities, emerging market fixed income favoured by UBP fund selector | ZAWYA MENA Edition
Saudi Arabian equities, emerging market fixed income favoured by UBP fund selector | ZAWYA MENA Edition:
Many emerging market (EM) managers are increasing their allocations to Middle East and North Africa (MENA) markets, especially to Saudi Arabia, a fund selector from Swiss private bank Union Bancaire Privée (UBP) has told Zawya.
“People are more and more looking at frontier markets and how the indices are gradually incorporating those frontier markets, so we have been increasing research on MENA in the last few years, just to make sure we understand who the players are,” Cédric Le Berre, fund selector and portfolio manager at UBP said in an interview last week, noting that MENA remains a niche region for the bank’s clients.
Within the region, however, he said: “We favour Saudi Arabia, and this is where we see EM managers focusing and allocating money, partly because of the MSCI upgrade but also because the market is very liquid and very large in size, so people feel comfortable with that.”
Many emerging market (EM) managers are increasing their allocations to Middle East and North Africa (MENA) markets, especially to Saudi Arabia, a fund selector from Swiss private bank Union Bancaire Privée (UBP) has told Zawya.
“People are more and more looking at frontier markets and how the indices are gradually incorporating those frontier markets, so we have been increasing research on MENA in the last few years, just to make sure we understand who the players are,” Cédric Le Berre, fund selector and portfolio manager at UBP said in an interview last week, noting that MENA remains a niche region for the bank’s clients.
Within the region, however, he said: “We favour Saudi Arabia, and this is where we see EM managers focusing and allocating money, partly because of the MSCI upgrade but also because the market is very liquid and very large in size, so people feel comfortable with that.”
#Qatar to offer new areas of real estate for foreign ownership | Reuters
Qatar to offer new areas of real estate for foreign ownership | Reuters:
Qatar’s cabinet said on Wednesday it would identify several new areas where foreigners can own real estate, state news agency QNA said, part of a campaign to draw more investment to a sector that has been hit in recent years.
Last year Qatar passed a law permitting greater foreign ownership of its real estate sector, but details on how or where it would apply have been unclear. Only a small number of areas are currently open to foreign buying.
As part of the 2018 law, the cabinet said it would now identify 10 locations eligible for full foreign ownership and 16 that could be held for a period of 99 years, QNA reported, without providing details of the locations.
Qatar’s cabinet said on Wednesday it would identify several new areas where foreigners can own real estate, state news agency QNA said, part of a campaign to draw more investment to a sector that has been hit in recent years.
Last year Qatar passed a law permitting greater foreign ownership of its real estate sector, but details on how or where it would apply have been unclear. Only a small number of areas are currently open to foreign buying.
As part of the 2018 law, the cabinet said it would now identify 10 locations eligible for full foreign ownership and 16 that could be held for a period of 99 years, QNA reported, without providing details of the locations.
AHAB files for financial restructuring under #Saudi bankruptcy law | Reuters
AHAB files for financial restructuring under Saudi bankruptcy law | Reuters:
Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) said on Wednesday it had filed last week for a financial restructuring under Saudi Arabia’s new bankruptcy law, as it seeks to end a decade-long dispute with creditors.
Saudi Arabia’s bankruptcy law, which came into effect in August, is an important step towards making the kingdom more investor friendly, offering a legal framework to struggling companies seeking to restructure debt following the 2009 global financial crisis and, more recently, weaker oil prices.
Creditors have been pursuing AHAB and Saad Group, another Saudi conglomerate, since they defaulted on about $22 billion in combined debt in 2009.
Saudi conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) said on Wednesday it had filed last week for a financial restructuring under Saudi Arabia’s new bankruptcy law, as it seeks to end a decade-long dispute with creditors.
Saudi Arabia’s bankruptcy law, which came into effect in August, is an important step towards making the kingdom more investor friendly, offering a legal framework to struggling companies seeking to restructure debt following the 2009 global financial crisis and, more recently, weaker oil prices.
Creditors have been pursuing AHAB and Saad Group, another Saudi conglomerate, since they defaulted on about $22 billion in combined debt in 2009.
Oil up after U.S. crude stock draw, supply growth seen easing | Reuters
Oil up after U.S. crude stock draw, supply growth seen easing | Reuters:
Oil futures rallied about 2 percent on Wednesday as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world’s top producer was revised lower.
A widespread power outage in Venezuela that has stalled crude exports from the OPEC-member nation, which has already seen reduced shipments from U.S. sanctions, helped to tighten the market.
Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent. U.S. crude oil futures settled at $58.26 a barrel, rising $1.39 cents, or 2.44 percent.
Oil futures rallied about 2 percent on Wednesday as U.S. crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world’s top producer was revised lower.
A widespread power outage in Venezuela that has stalled crude exports from the OPEC-member nation, which has already seen reduced shipments from U.S. sanctions, helped to tighten the market.
Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent. U.S. crude oil futures settled at $58.26 a barrel, rising $1.39 cents, or 2.44 percent.
Exclusive: Exxon eyes Israel gas bid in major Middle East shift | Reuters
Exclusive: Exxon eyes Israel gas bid in major Middle East shift | Reuters: Exxon Mobil Corp is considering exploring for oil and gas in Israel, said a person with direct knowledge of the matter, in what would make Exxon the first oil major to operate in the country still technically at war with Gulf Arab states.
A number of large gas discoveries offshore Israel and in nearby eastern Mediterranean waters in the last decade have made Israel a potentially lucrative prospect for big energy firms. The region is emerging as a new hot spot for gas exploration and production.
Until those discoveries, Israel was believed to be sitting on scant oil and gas reserves. There was little reason for energy firms to explore for energy in Israel and risk complicating operations and future investments in nearby Arab countries that hold some of the world’s largest energy reserves.
A number of large gas discoveries offshore Israel and in nearby eastern Mediterranean waters in the last decade have made Israel a potentially lucrative prospect for big energy firms. The region is emerging as a new hot spot for gas exploration and production.
Until those discoveries, Israel was believed to be sitting on scant oil and gas reserves. There was little reason for energy firms to explore for energy in Israel and risk complicating operations and future investments in nearby Arab countries that hold some of the world’s largest energy reserves.
MIDEAST STOCKS-Rising oil price boosts #Saudi, top telecom firm weighs on #AbuDhabi | Reuters
MIDEAST STOCKS-Rising oil price boosts Saudi, top telecom firm weighs on Abu Dhabi | Reuters:
Saudi Arabia's stock market rose on Wednesday as banks and petrochemical shares gained amid rising oil prices, while Abu Dhabi was pulled down by Emirates Telecommunications.
Saudi Arabia's index was up 1 percent, with Al Rajhi Bank gaining 0.9 percent.
The Middle East's largest petrochemical maker Saudi Basic Industries (SABIC) also rose 1 percent in active trade after it said it will merge its units Saudi Petrochemical Co and Arabian Petrochemical Co.
Saudi Arabia's stock market rose on Wednesday as banks and petrochemical shares gained amid rising oil prices, while Abu Dhabi was pulled down by Emirates Telecommunications.
Saudi Arabia's index was up 1 percent, with Al Rajhi Bank gaining 0.9 percent.
The Middle East's largest petrochemical maker Saudi Basic Industries (SABIC) also rose 1 percent in active trade after it said it will merge its units Saudi Petrochemical Co and Arabian Petrochemical Co.
#Dubai's Aramex Rallies as Foreigners Cheer Australia Post's Exit - Bloomberg
Dubai's Aramex Rallies as Foreigners Cheer Australia Post's Exit - Bloomberg:
Aramex PJSC was set for its biggest gain in more than two years after a unit of Australian Postal Corp. sold its stake in Middle Eastern package-delivery service, enabling other foreign investors to buy the stock.
Aramex was trading up 8 percent at 4.73 dirhams as of 1:20 p.m. in Dubai, putting the stock on track for its biggest increase since January 2017. It was the best performer among the 37 companies on Dubai’s main share index.
Australia Post Transaction Services Pty sold its 10 percent holding in Dubai-based Aramex for about 603 million dirhams ($164 million), according to a filing. That opens the way for more investors from outside the Gulf to buy stakes, since the stock was almost at the 49 percent regulatory limit of foreign ownership.
Aramex PJSC was set for its biggest gain in more than two years after a unit of Australian Postal Corp. sold its stake in Middle Eastern package-delivery service, enabling other foreign investors to buy the stock.
Aramex was trading up 8 percent at 4.73 dirhams as of 1:20 p.m. in Dubai, putting the stock on track for its biggest increase since January 2017. It was the best performer among the 37 companies on Dubai’s main share index.
Australia Post Transaction Services Pty sold its 10 percent holding in Dubai-based Aramex for about 603 million dirhams ($164 million), according to a filing. That opens the way for more investors from outside the Gulf to buy stakes, since the stock was almost at the 49 percent regulatory limit of foreign ownership.
For its Own Sake, Europe Should Do More For the Arab World - Bloomberg
For its Own Sake, Europe Should Do More For the Arab World - Bloomberg:
Given the political turmoil in their respective spheres, the European and Arab leaders who attended the first Arab League-European Union summit in Sharm El-Sheikh may not have realized they were missing a great opportunity. Indeed, they were quite distracted during the event—the Europeans, with Brexit, and the Arabs with Qatar’s decision to send a downgraded delegation to the gathering at the Red Sea resort.
This is disappointing, because the summit was a rare chance for top leaders from both sides to explore areas of potential collaboration in the face of common strategic challenges, including security and migration. It’s only small mercy that they’ve agreed on holding another meeting in 2022.
Given the political turmoil in their respective spheres, the European and Arab leaders who attended the first Arab League-European Union summit in Sharm El-Sheikh may not have realized they were missing a great opportunity. Indeed, they were quite distracted during the event—the Europeans, with Brexit, and the Arabs with Qatar’s decision to send a downgraded delegation to the gathering at the Red Sea resort.
This is disappointing, because the summit was a rare chance for top leaders from both sides to explore areas of potential collaboration in the face of common strategic challenges, including security and migration. It’s only small mercy that they’ve agreed on holding another meeting in 2022.
Value Quest Among Pricey #Saudi Stocks Leads Some to Mouwasat - Bloomberg
Value Quest Among Pricey Saudi Stocks Leads Some to Mouwasat - Bloomberg:
Saudi Arabian stocks are becoming pricier as the country heads for inclusion in major emerging-market benchmarks. But analysts believe they have spotted a bargain that may have been overlooked by many investors.
Mouwasat Medical Services Co., a health-care provider with a market value of about 7.6 billion riyals ($2 billion), is seen as an attractively valued and fundamentally interesting bet by firms ranging from Morgan Stanley to EFG Hermes Holding. Proponents say it stands out in an industry struggling with squeezed margins amid an exodus of expatriate employees following Crown Prince Mohammed bin Salman’s imposition of levies on foreign workers in 2018.
Saudi Arabian stocks are becoming pricier as the country heads for inclusion in major emerging-market benchmarks. But analysts believe they have spotted a bargain that may have been overlooked by many investors.
Mouwasat Medical Services Co., a health-care provider with a market value of about 7.6 billion riyals ($2 billion), is seen as an attractively valued and fundamentally interesting bet by firms ranging from Morgan Stanley to EFG Hermes Holding. Proponents say it stands out in an industry struggling with squeezed margins amid an exodus of expatriate employees following Crown Prince Mohammed bin Salman’s imposition of levies on foreign workers in 2018.
Emirates NBD starts marketing perpetual dollar bond | ZAWYA MENA Edition
Emirates NBD starts marketing perpetual dollar bond | ZAWYA MENA Edition:
Emirates NBD , Dubai's largest bank, started marketing U.S. dollar-denominated bonds with an initial price guidance in the range of 6.375 percent and 6.5 percent, a document from one of the banks leading the deal showed on Wednesday.
The bank has mandated BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Nomura and Standard Chartered Bank to arrange the issue.
The planned deal would be of benchmark size, which generally means at least $500 million, and will be an Additional Tier 1 perpetual bond not callable for six years.
Emirates NBD , Dubai's largest bank, started marketing U.S. dollar-denominated bonds with an initial price guidance in the range of 6.375 percent and 6.5 percent, a document from one of the banks leading the deal showed on Wednesday.
The bank has mandated BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Nomura and Standard Chartered Bank to arrange the issue.
The planned deal would be of benchmark size, which generally means at least $500 million, and will be an Additional Tier 1 perpetual bond not callable for six years.
#UAE set for marginal growth in 2019, #Saudi and #Oman economies to slow - Moody's | ZAWYA MENA Edition
UAE set for marginal growth in 2019, Saudi and Oman economies to slow - Moody's | ZAWYA MENA Edition:
The economy of the United Arab Emirates (UAE) is only expected to grow marginally in 2019, according to ratings agency Moody's. It has forecast GDP growth of 2.8 percent this year, up from an estimated 2.6 percent growth in 2018.
Speaking at a media briefing in Dubai on Tuesday, analyst Thaddeus Best said that headline growth would be "constrained" this year, which is partly due to the production cuts agreed by the 'OPEC-plus' group of producers, although its overall production allocation could be slightly higher than last year.
Growth in the non-oil economy is predicted to be slightly more robust at 2.9 percent this year, up from an estimated 2.4 percent in 2018.
The economy of the United Arab Emirates (UAE) is only expected to grow marginally in 2019, according to ratings agency Moody's. It has forecast GDP growth of 2.8 percent this year, up from an estimated 2.6 percent growth in 2018.
Speaking at a media briefing in Dubai on Tuesday, analyst Thaddeus Best said that headline growth would be "constrained" this year, which is partly due to the production cuts agreed by the 'OPEC-plus' group of producers, although its overall production allocation could be slightly higher than last year.
Growth in the non-oil economy is predicted to be slightly more robust at 2.9 percent this year, up from an estimated 2.4 percent in 2018.
#UAE included on EU tax blacklist because of poor communication, UAE banker says | Reuters
UAE included on EU tax blacklist because of poor communication, UAE banker says | Reuters:
The European Union’s decision to include the United Arab Emirates on its blacklist of tax havens was caused by “lack of communication” between the EU and the UAE government, the head of the UAE Banks Federation said.
European Union governments updated a blacklist of tax havens this week, adding the United Arab Emirates and nine other jurisdictions, tripling the number of listed jurisdictions.
The list was created in 2017 after revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
The European Union’s decision to include the United Arab Emirates on its blacklist of tax havens was caused by “lack of communication” between the EU and the UAE government, the head of the UAE Banks Federation said.
European Union governments updated a blacklist of tax havens this week, adding the United Arab Emirates and nine other jurisdictions, tripling the number of listed jurisdictions.
The list was created in 2017 after revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower their tax bills.
MIDEAST STOCKS-Aramex lifts #Dubai, #Saudi rises on banks | Reuters
MIDEAST STOCKS-Aramex lifts Dubai, Saudi rises on banks | Reuters:
Dubai’s stock market rose on Wednesday, supported by a jump in courier firm Aramex, while Saudi Arabia also gained as most of its banks traded higher amid rising oil prices.
In Dubai, the index was up 0.5 percent, with Aramex climbing 7.3 percent in active trade. Australia Post Transaction Services sold its 10 percent stake in the firm for 602.6 million dirhams ($164.1 million).
That opened up the possibility for a new foreign investor to buy into the company, Arqaam Capital said, adding this was “an excellent time” to buy the stock.
Dubai’s stock market rose on Wednesday, supported by a jump in courier firm Aramex, while Saudi Arabia also gained as most of its banks traded higher amid rising oil prices.
In Dubai, the index was up 0.5 percent, with Aramex climbing 7.3 percent in active trade. Australia Post Transaction Services sold its 10 percent stake in the firm for 602.6 million dirhams ($164.1 million).
That opened up the possibility for a new foreign investor to buy into the company, Arqaam Capital said, adding this was “an excellent time” to buy the stock.
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