Swing traders remain active in banking shares on UAE bourses:
Swing traders were active on Sunday buying banking shares from their support level on UAE bourses.
Union National Bank closed 0.93 per cent higher at Dh5.40, after its shares took support at Dh5.30 on Thursday. Abu Dhabi Commercial Bank ended 1.31 per cent higher at Dh9.31. Abu Dhabi Islamic Bank closed 2.31 per cent higher at Dh4.40. “
Traders may look to buy Union National Bank. We expect recovery towards the recent high at Dh5.60,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note. On the losing side, Aldar Properties closed 1.04 per cent lower at Dh1.91. First Abu Dhabi Bank ended 0.97 per cent lower at Dh14.36. Etisalat closed 1.07 per cent lower at Dh16.70. The Abu Dhabi Securities Exchange general index closed 0.41 per cent lower at 4,977.29.
Sunday 17 March 2019
American oil leaders say no to NOPEC
American oil leaders say no to NOPEC:
US oil industry leaders are concerned by the potential damage that could be done to their businesses if the Trump administration passes the so-called NOPEC act, opening up oil producers to legal action in the US.
An employee of the American Petroleum Institute (API), the trade organization for the US oil and gas industry, wrote: “The act’s extraterritorial overreach would harm core US economic and energy interests.”
The possible legislation under the No Oil Producing and Exporting Cartels Act was the subject of frenzied discussion at the CERAWeek by IHS Markit conference in Houston, Texas, where the Organization of the Oil Exporting Countries (OPEC) lobbied US financiers against it.
US oil industry leaders are concerned by the potential damage that could be done to their businesses if the Trump administration passes the so-called NOPEC act, opening up oil producers to legal action in the US.
An employee of the American Petroleum Institute (API), the trade organization for the US oil and gas industry, wrote: “The act’s extraterritorial overreach would harm core US economic and energy interests.”
The possible legislation under the No Oil Producing and Exporting Cartels Act was the subject of frenzied discussion at the CERAWeek by IHS Markit conference in Houston, Texas, where the Organization of the Oil Exporting Countries (OPEC) lobbied US financiers against it.
Qatar’s LNG ramp up to see $35bn greenfield investments - The Peninsula Qatar
Qatar’s LNG ramp up to see $35bn greenfield investments - The Peninsula Qatar:
The global oil and gas industry’s investments in new projects are set to double in 2019, with Qatar, the UAE and Saudi Arabia fueling growth. Qatar which has plans to boost its LNG capacity to 110 million tonnes per annum (million tpa) will require more than $35bn in greenfield investments, making it one of the biggest projects to be approved in the region over the last decade, according to Rystad Energy forecast.
Rystad is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to clients exposed to the energy industry across the globe.
Rystad Energy forecasts that projects involving more than $240bn in greenfield investments will be sanctioned in 2019, with almost 25 percent expected to come from the Middle East region.
The global oil and gas industry’s investments in new projects are set to double in 2019, with Qatar, the UAE and Saudi Arabia fueling growth. Qatar which has plans to boost its LNG capacity to 110 million tonnes per annum (million tpa) will require more than $35bn in greenfield investments, making it one of the biggest projects to be approved in the region over the last decade, according to Rystad Energy forecast.
Rystad is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to clients exposed to the energy industry across the globe.
Rystad Energy forecasts that projects involving more than $240bn in greenfield investments will be sanctioned in 2019, with almost 25 percent expected to come from the Middle East region.
#Qatar Stocks Buck Mideast Gains, Fall Most in 11 Days: Inside EM - Bloomberg
Qatar Stocks Buck Mideast Gains, Fall Most in 11 Days: Inside EM - Bloomberg:
Qatari stocks retreated the most in the Middle East, declining the most in 11 days.
The main index declined 1.1 percent, led by a drop in Masraf Al Rayan. Morgan Stanley analysts last week downgraded Qatari stocks to underweight from equal-weight, citing the market’s relatively high valuations in an emailed note. The gauge has been trading at a premium to emerging-market peers since June.
Still, the estimated earnings per share for the gauge’s 20 members has risen in March, poised for its longest monthly rising streak since at least early 2008, when Bloomberg began tracking the data.
Qatari stocks retreated the most in the Middle East, declining the most in 11 days.
The main index declined 1.1 percent, led by a drop in Masraf Al Rayan. Morgan Stanley analysts last week downgraded Qatari stocks to underweight from equal-weight, citing the market’s relatively high valuations in an emailed note. The gauge has been trading at a premium to emerging-market peers since June.
Still, the estimated earnings per share for the gauge’s 20 members has risen in March, poised for its longest monthly rising streak since at least early 2008, when Bloomberg began tracking the data.
Saudis Urge OPEC+ to Stick With Oil Cuts as Job Not Yet Done - Bloomberg
Saudis Urge OPEC+ to Stick With Oil Cuts as Job Not Yet Done - Bloomberg:
OPEC and its allies have much work ahead to balance global oil markets and are prepared to do what’s necessary in the second half, Saudi Energy Minister Khalid Al-Falih said.
The 24-nation coalition known as OPEC+ needs to “stay the course” until June as its job is “nowhere near complete” in terms of restoring oil-market fundamentals, Al-Falih said late Sunday at a news conference in Baku, Azerbaijan. U.S. inventories remain significantly above normal levels, and there is a risk of oversupply in the short term, he said.
But there was less full-throated support for extending the OPEC+ output-cuts agreement from Russia and Iraq -- the pact’s other two biggest producers. Russian Energy Minister Alexander Novak said at the same briefing that uncertainties arising from production in Venezuela and Iran make it difficult for the coalition to determine its next step before May or June.
OPEC and its allies have much work ahead to balance global oil markets and are prepared to do what’s necessary in the second half, Saudi Energy Minister Khalid Al-Falih said.
The 24-nation coalition known as OPEC+ needs to “stay the course” until June as its job is “nowhere near complete” in terms of restoring oil-market fundamentals, Al-Falih said late Sunday at a news conference in Baku, Azerbaijan. U.S. inventories remain significantly above normal levels, and there is a risk of oversupply in the short term, he said.
But there was less full-throated support for extending the OPEC+ output-cuts agreement from Russia and Iraq -- the pact’s other two biggest producers. Russian Energy Minister Alexander Novak said at the same briefing that uncertainties arising from production in Venezuela and Iran make it difficult for the coalition to determine its next step before May or June.
Kuwait Airways Said to Seek $350 Million Loan to Pay for Planes - Bloomberg
Kuwait Airways Said to Seek $350 Million Loan to Pay for Planes - Bloomberg:
Kuwait Airways Corp. is seeking a $350 million loan that will help the Gulf carrier pay for planes, people with knowledge of the deal said.
The state-run airline is talking to banks to raise a five-year facility, said the people, asking not to be identified because the information is private. It’ll be used to make early payments for narrow-body jets, they said.
Kuwait Airways has 15 Airbus SE A320neo narrow-body planes on order as well as eight A330neos, five A350s plus 10 Boeing 777s. It currently has a fleet of 17 planes, according to information on its website.
Kuwait Airways Corp. is seeking a $350 million loan that will help the Gulf carrier pay for planes, people with knowledge of the deal said.
The state-run airline is talking to banks to raise a five-year facility, said the people, asking not to be identified because the information is private. It’ll be used to make early payments for narrow-body jets, they said.
Kuwait Airways has 15 Airbus SE A320neo narrow-body planes on order as well as eight A330neos, five A350s plus 10 Boeing 777s. It currently has a fleet of 17 planes, according to information on its website.
#Iran's Rouhani inaugurates four new phases of South Pars gas field | Reuters
Iran's Rouhani inaugurates four new phases of South Pars gas field | Reuters:
Iranian President Hassan Rouhani formally inaugurated four new phases of South Pars, the world’s largest gas field, on Sunday, according to a statement posted by the Iranian oil ministry on Twitter.
Iran has invested $11 billion to complete the four phases and they will increase the country’s gas production capacity by up to 110 million cubic meters per day, the statement said.
Iranian Oil Minister Bijan Zanganeh said on Saturday that Iran, which share South Pars with Qatar, expects to operate 27 phases by next March.
Iranian President Hassan Rouhani formally inaugurated four new phases of South Pars, the world’s largest gas field, on Sunday, according to a statement posted by the Iranian oil ministry on Twitter.
Iran has invested $11 billion to complete the four phases and they will increase the country’s gas production capacity by up to 110 million cubic meters per day, the statement said.
Iranian Oil Minister Bijan Zanganeh said on Saturday that Iran, which share South Pars with Qatar, expects to operate 27 phases by next March.
#Saudi signals OPEC may need to extend oil cuts until end-2019 | Reuters
Saudi signals OPEC may need to extend oil cuts until end-2019 | Reuters:
Saudi Arabia said on Sunday OPEC’s job in rebalancing the oil market was far from done as global inventories were still rising despite harsh U.S. sanctions on Iran and Venezuela, signaling it may need to expand output cuts into the second half of 2019.
Russia, which is cutting oil output in tandem with OPEC, also said production cuts would stay in place at least until June, when Washington’s next steps on reducing Iran’s and Venezuela’s oil exports become clearer.
The United States has been increasing its own oil exports steeply in recent months while imposing sanctions on Venezuela and Iran to reduce their shipments to global markets.
Saudi Arabia said on Sunday OPEC’s job in rebalancing the oil market was far from done as global inventories were still rising despite harsh U.S. sanctions on Iran and Venezuela, signaling it may need to expand output cuts into the second half of 2019.
Russia, which is cutting oil output in tandem with OPEC, also said production cuts would stay in place at least until June, when Washington’s next steps on reducing Iran’s and Venezuela’s oil exports become clearer.
The United States has been increasing its own oil exports steeply in recent months while imposing sanctions on Venezuela and Iran to reduce their shipments to global markets.
MIDEAST STOCKS- #Saudi dips ahead of FTSE Russell index inclusion, other markets mixed | Reuters
MIDEAST STOCKS-Saudi dips ahead of FTSE Russell index inclusion, other markets mixed | Reuters:
Saudi stocks dipped slightly on Sunday, a day ahead of the market's inclusion in the FTSE Russell's emerging market index, while other Gulf markets were mixed with Qatar down 1.1 percent on weakness in banks and real estate firms.
Investors booked profits in recent gainers on the Tadawul, weakening the benchmark, which was down 0.2 percent. The Saudi index has gained 9.5 percent so far this year, outperforming major Gulf markets.
Foreign investors have been net buyers of Saudi stocks every week this year, positioning for passive fund inflows after its inclusion in the FTSE Russell index on March 18 and in MSCI from late May.
Saudi stocks dipped slightly on Sunday, a day ahead of the market's inclusion in the FTSE Russell's emerging market index, while other Gulf markets were mixed with Qatar down 1.1 percent on weakness in banks and real estate firms.
Investors booked profits in recent gainers on the Tadawul, weakening the benchmark, which was down 0.2 percent. The Saudi index has gained 9.5 percent so far this year, outperforming major Gulf markets.
Foreign investors have been net buyers of Saudi stocks every week this year, positioning for passive fund inflows after its inclusion in the FTSE Russell index on March 18 and in MSCI from late May.
#Algeria Joins Iran Venezuela in OPEC "Shaky Six" Oil Nations - Bloomberg
Algeria Joins Iran Venezuela in OPEC "Shaky Six" Oil Nations - Bloomberg:
Meet the exclusive group of oil producers that nobody wants to join.
Algeria’s deepening political crisis has made its future oil production extremely uncertain. So, ignominiously, it is now the latest OPEC member to have become so vulnerable that it forms part of the “Shaky Six” group of nations suffering involuntary output cuts or at risk of seeing their production fall.
This adds yet another complication for the OPEC+ oil ministers as they gather in Baku, Azerbaijan today and tomorrow to assess the effectiveness of their latest output deal and what they need to do in the coming months to rebalance the oil market. A drop in Algerian supply would add to the cuts already being implemented, but make it more difficult for the group to forecast when they might be able to ease restrictions.
Meet the exclusive group of oil producers that nobody wants to join.
Algeria’s deepening political crisis has made its future oil production extremely uncertain. So, ignominiously, it is now the latest OPEC member to have become so vulnerable that it forms part of the “Shaky Six” group of nations suffering involuntary output cuts or at risk of seeing their production fall.
This adds yet another complication for the OPEC+ oil ministers as they gather in Baku, Azerbaijan today and tomorrow to assess the effectiveness of their latest output deal and what they need to do in the coming months to rebalance the oil market. A drop in Algerian supply would add to the cuts already being implemented, but make it more difficult for the group to forecast when they might be able to ease restrictions.
#SaudiArabia's New Rules Set to Raise Islamic Tax for Some Banks - Bloomberg
Saudi Arabia's New Rules Set to Raise Islamic Tax for Some Banks - Bloomberg:
Saudi Arabia set out new rules for the calculation of an Islamic tax on banks that’ll result in them paying between 10 percent to 20 percent of net profit.
The General Authority of Zakat & Tax set limits for the taxable asset base of between four times and eight times net profit, according to a statement on its website. That’s equivalent to a corridor of between 10 percent and 20 percent of net income, Bloomberg Intelligence analyst Edmond Christou said.
Most of the kingdom’s major banks will end up paying the lower limit, he wrote in a note.
Saudi Arabia set out new rules for the calculation of an Islamic tax on banks that’ll result in them paying between 10 percent to 20 percent of net profit.
The General Authority of Zakat & Tax set limits for the taxable asset base of between four times and eight times net profit, according to a statement on its website. That’s equivalent to a corridor of between 10 percent and 20 percent of net income, Bloomberg Intelligence analyst Edmond Christou said.
Most of the kingdom’s major banks will end up paying the lower limit, he wrote in a note.
#Qatar Bars FAB From Adding Clients Amid Riyal Manipulation Probe - Bloomberg
Qatar Bars FAB From Adding Clients Amid Riyal Manipulation Probe - Bloomberg:
Qatar banned the United Arab Emirates’ biggest bank from growing its business in the country amid an investigation into the potential manipulation of its currency.
First Abu Dhabi Bank PJSC "failed to comply with an order of the QFC Civil and Commercial Court to produce an affidavit demonstrating its preservation of documents relevant to an ongoing regulatory investigation into potential manipulation of the Qatari riyal," the Qatar Financial Centre Regulatory Authority said on its website.
The lender won’t be able to add new customers and engage in any regulated activities including deposit taking, providing credit facilities and arranging deals in investments, it said. The restriction doesn’t stop First Abu Dhabi Bank, which operates one wholesale banking branch in Doha, from continuing to provide services to existing customers.
Qatar banned the United Arab Emirates’ biggest bank from growing its business in the country amid an investigation into the potential manipulation of its currency.
First Abu Dhabi Bank PJSC "failed to comply with an order of the QFC Civil and Commercial Court to produce an affidavit demonstrating its preservation of documents relevant to an ongoing regulatory investigation into potential manipulation of the Qatari riyal," the Qatar Financial Centre Regulatory Authority said on its website.
The lender won’t be able to add new customers and engage in any regulated activities including deposit taking, providing credit facilities and arranging deals in investments, it said. The restriction doesn’t stop First Abu Dhabi Bank, which operates one wholesale banking branch in Doha, from continuing to provide services to existing customers.
MOVES- #UAE's Dhabi Group chief executive resigns | Reuters
MOVES-UAE's Dhabi Group chief executive resigns | Reuters:
The chief executive of Dhabi Group, owned by a prominent member of the royal family in Abu Dhabi, has resigned. Adeel Bajwa who took over as chief executive of the diversified investment group in 2016, told Reuters on Sunday he had resigned and planned to take up a new and challenging assignment.
Prior to being the chief executive of Dhabi Group, he was general counsel and board member of several of the group’s companies. Bajwa was involved in mergers and acquisitions for the group in Africa and South Asia, including deals involving Warid Telecom.
Dhabi Group, owned by Sheikh Nahyan Mubarak al-Nahyan, has investments across sectors including telecommunications, financial services, real estate, energy, healthcare and construction in the United Arab Emirates, Pakistan, Turkey, Georgia, Africa and the United States.
The chief executive of Dhabi Group, owned by a prominent member of the royal family in Abu Dhabi, has resigned. Adeel Bajwa who took over as chief executive of the diversified investment group in 2016, told Reuters on Sunday he had resigned and planned to take up a new and challenging assignment.
Prior to being the chief executive of Dhabi Group, he was general counsel and board member of several of the group’s companies. Bajwa was involved in mergers and acquisitions for the group in Africa and South Asia, including deals involving Warid Telecom.
Dhabi Group, owned by Sheikh Nahyan Mubarak al-Nahyan, has investments across sectors including telecommunications, financial services, real estate, energy, healthcare and construction in the United Arab Emirates, Pakistan, Turkey, Georgia, Africa and the United States.
ADNOC awards Japan’s Inpex Corp onshore exploration concession | Reuters
ADNOC awards Japan’s Inpex Corp onshore exploration concession | Reuters:
Abu Dhabi National Oil Co (ADNOC) awarded Japan’s Inpex Corp an onshore exploration concession in Abu Dhabi’s competitive block bid round, ADNOC said in a statement on Sunday.
Inpex will hold a 100 percent stake in the exploration phase, while ADNOC has the option to hold a 60 percent stake in the production phase of the concession, the statement said.
The 35-year concession is for Onshore Block 4, and Inpex will invest up to 646 million UAE dirhams ($175.89 million) in the block, ADNOC said.
Abu Dhabi National Oil Co (ADNOC) awarded Japan’s Inpex Corp an onshore exploration concession in Abu Dhabi’s competitive block bid round, ADNOC said in a statement on Sunday.
Inpex will hold a 100 percent stake in the exploration phase, while ADNOC has the option to hold a 60 percent stake in the production phase of the concession, the statement said.
The 35-year concession is for Onshore Block 4, and Inpex will invest up to 646 million UAE dirhams ($175.89 million) in the block, ADNOC said.
RPT- #Saudi stocks set to receive $20 bln windfall even as some investors sit out | Reuters
RPT-Saudi stocks set to receive $20 bln windfall even as some investors sit out | Reuters:
Saudi Arabia’s inclusion in major emerging markets stock indices from Monday is likely to suck in around $20 billion in passive inflows, but unease after Jamal Khashoggi’s murder and sluggish reforms could lead some active foreign investors to steer clear.
Saudi Arabia will be the biggest recent addition to the global indices, the largest of which is the MSCI Emerging Markets Index, which it joins from May. MSCI will give the kingdom a weight of 2.7 percent, between Russia and Mexico.
The kingdom is hoping the inclusions, starting on Monday when Saudi stocks join the FTSE Emerging All Cap Index, will kickstart its drive to become a major destination for foreign capital, after its global reputation was tainted by Khashoggi’s killing at the hands of Saudi agents in October.
Saudi Arabia’s inclusion in major emerging markets stock indices from Monday is likely to suck in around $20 billion in passive inflows, but unease after Jamal Khashoggi’s murder and sluggish reforms could lead some active foreign investors to steer clear.
Saudi Arabia will be the biggest recent addition to the global indices, the largest of which is the MSCI Emerging Markets Index, which it joins from May. MSCI will give the kingdom a weight of 2.7 percent, between Russia and Mexico.
The kingdom is hoping the inclusions, starting on Monday when Saudi stocks join the FTSE Emerging All Cap Index, will kickstart its drive to become a major destination for foreign capital, after its global reputation was tainted by Khashoggi’s killing at the hands of Saudi agents in October.
#Saudi Falih optimistic on continued commitment to OPEC+ oil supply cut | Reuters
Saudi Falih optimistic on continued commitment to OPEC+ oil supply cut | Reuters:
Saudi Arabia’s energy minister said on Sunday he was optimistic about continued commitment to the oil supply cut agreement between OPEC and non-OPEC members.
“I am obviously optimistic that implementation of our OPEC+ agreement will improve, it’s already strong by historical standards,” Khalid al-Falih said on the sidelines of the joint ministerial monitoring committee meeting in Baku.
Overall conformity with the cuts in the first two months of this year are less than levels seen in 2017 and 2018 but the oil producers “will catch up very soon,” he told reporters.
Saudi Arabia’s energy minister said on Sunday he was optimistic about continued commitment to the oil supply cut agreement between OPEC and non-OPEC members.
“I am obviously optimistic that implementation of our OPEC+ agreement will improve, it’s already strong by historical standards,” Khalid al-Falih said on the sidelines of the joint ministerial monitoring committee meeting in Baku.
Overall conformity with the cuts in the first two months of this year are less than levels seen in 2017 and 2018 but the oil producers “will catch up very soon,” he told reporters.
MIDEAST STOCKS- #Saudi edges up ahead of FTSE Russell index inclusion, other mkts mixed | Reuters
MIDEAST STOCKS-Saudi edges up ahead of FTSE Russell index inclusion, other mkts mixed | Reuters:
Saudi stocks were trading 0.2 percent higher on Sunday, a day ahead of the exchange’s inclusion in the FTSE Russell’s emerging market index, while other Gulf markets were mixed with Qatar down 0.8 percent on weakness in banks and real estate firms.
The Saudi index has gained 9.8 percent so far this year, outperforming major Gulf markets. Foreign investors have been net buyers of Saudi stocks every week this year, positioning for passive fund inflows after its inclusion in the FTSE Russell index on March 18 and MSCI in late May.
Foreign net buying has hit $2.1 billion year-to-date. “We can reasonably expect between 90 billion to 100 billion riyals ($24-$27 billion) inflows,” said Muhammad Faisal Potrik, head of research at Riyad Capital.
Saudi stocks were trading 0.2 percent higher on Sunday, a day ahead of the exchange’s inclusion in the FTSE Russell’s emerging market index, while other Gulf markets were mixed with Qatar down 0.8 percent on weakness in banks and real estate firms.
The Saudi index has gained 9.8 percent so far this year, outperforming major Gulf markets. Foreign investors have been net buyers of Saudi stocks every week this year, positioning for passive fund inflows after its inclusion in the FTSE Russell index on March 18 and MSCI in late May.
Foreign net buying has hit $2.1 billion year-to-date. “We can reasonably expect between 90 billion to 100 billion riyals ($24-$27 billion) inflows,” said Muhammad Faisal Potrik, head of research at Riyad Capital.
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