Aramco Extends Drop to Erase a Third of Initial IPO Rally - Bloomberg

Aramco Extends Drop to Erase a Third of Initial IPO Rally - Bloomberg:

Saudi Aramco shares fell for a third straight session, with investors locking in some profits now that the catalyst of inclusion in stock indexes has past.

Aramco slid 3.3% to 35.50 riyals in Riyadh on Thursday, underperforming the Tadawul All Share Index, which rose 0.5%.

The oil giant was included this week in MSCI’s main gauge tracking emerging-market stocks and also in the Saudi index, opening room for investors to sell on the liquidity events. The stock is down more than 6% from the highest closing price reached on Monday, paring more than a third of its rally since the biggest initial public offering in the world.

Oil reaches three-month highs, supported by low U.S. inventories, trade progress - Reuters

Oil reaches three-month highs, supported by low U.S. inventories, trade progress - Reuters:

Oil prices reached the highest level in three months in thin pre-Christmas trading on Thursday, buoyed by the previous day’s news that U.S. crude inventories declined and as U.S.-China trade tensions continued to ease.

Brent crude futures rose 37 cents to settle at $66.54 a barrel, gaining for the sixth straight day.

U.S. West Texas Intermediate (WTI) crude rose 29 cents to settle at $61.22 a barrel.

Trading volume was thin, with oil headed for a third consecutive weekly rise. Prices were buoyed by China’s Dec. 13 decision to cancel a plan to impose additional tariffs on U.S. imports on Dec. 15 and the Phase 1 deal between Washington and China, which has eased trade tensions.

UPDATE 1- #Qatar to change crude oil pricing from March-loading cargoes - sources - Reuters

UPDATE 1-Qatar to change crude oil pricing from March-loading cargoes - sources - Reuters:

Qatar Petroleum (QP) plans to change the pricing of its crude for cargoes loading from March to allow buyers to better compare the value of its oil with that of other Middle East producers, two sources with knowledge of the matter said on Thursday.

The producer will announce in February the official selling prices (OSPs) for Qatar Land and Qatar Marine crude on a forward pricing basis, the sources said. 


At the same time, QP will also release the OSPs for cargoes loading in January and February, they said.

#Dubai wealth fund ICD posts $2.9bn profit, up 4.4% - Arabianbusiness

Dubai wealth fund ICD posts $2.9bn profit, up 4.4% - Arabianbusiness:

Dubai's sovereign wealth fund on Thurday announced half-year revenues of AED106.3 billion ($28.9 billion) and a net profit of AED10.5 billio ($2.86 billion).

Investment Corporation of Dubai (ICD) said revenues fell by 7.7 percent decrease compared to the year-earlier period, resulting primarily from lower oil prices.

Net profit grew by 4.4 percent, driven by the higher performance of the banking and financial services and transportation segments, it added in a statement. 

These increases were partially offset by lower profits in oil and gas and aluminium production. 

Banking and financial services results were benefited by an AED2.1 billion gain related to the IPO of Network International Holdings, ICD said.

#AbuDhabi's non-oil foreign trade falls 8.8% to $42bn - Arabianbusiness

Abu Dhabi's non-oil foreign trade falls 8.8% to $42bn - Arabianbusiness:

Abu Dhabi recorded non-oil foreign trade of AED154.4 billion ($42 billion) in the first nine months of 2019, a decrease of 8.8 percent compared to the corresponding period last year, according to new data from Statistics Centre - Abu Dhabi (SCAD). 


The decrease was a result of a 12.7 percent decline in imports (AED75.4 billion), as well as a 14.8 percent decrease in non-oil exports (AED41.4 billion) from January to September, state news agency WAM reported, citing the SCAD figures.

The value of re-exports increased by nine percent during the same period, it added. 


Total trade figures for the emirate decreased by 2.7 percent in September compared to the same month in 2018, SCAD revealed, noting that the decrease was due to a 29.9 percent drop in exports. The total value of imports and re-exports increased by 11.5 and 3.47 percent, respectively.

MIDEAST STOCKS-Financials buoy #Saudi shares; Aramco's retreat continues - Reuters

MIDEAST STOCKS-Financials buoy Saudi shares; Aramco's retreat continues - Reuters:

Financial shares helped lift Saudi
Arabia's stock market for a fifth consecutive session on
Thursday, while top lender Commercial International Bank
supported Egypt's bourse.

Saudi's benchmark index rose 0.5%, with Al Rajhi
Bank and National Commercial Bank, rising
1.5% and 2.8% respectively.

Among petrochemicals, Saudi Basic Industries was
up 0.9% after its affiliate Clariant said that it is
selling its masterbatches unit to U.S.-based PolyOne Corp
for $1.6 billion. It will pay shareholders
about $1 billion from the proceeds.

Basic Chemical Industries jumped 4.2% following
its board proposal for 2019 cash dividend of one riyal per
share.

However, Saudi Aramco's shares fell for third day
in row, to close 3.3% down at 35.5 riyals ($9.46) a day after
their inclusion in the MSCI emerging- markets index. The oil
giant will also join the FTSE benchmark on Thursday.

Spanish startup Glovo hits $1 bln "unicorn" valuation with #AbuDhabi funds | Nasdaq

Spanish startup Glovo hits $1 bln "unicorn" valuation with Abu Dhabi funds | Nasdaq:

Spanish delivery startup Glovo said on Thursday it had achieved a valuation of $1 billion, after a new funding round attracted investment from Abu Dhabi sovereign wealth fund Mubadala.

The Barcelona-based firm said it raised 150 million euros ($165.33 million) from Mubadala and other investors such as venture capital fund Lakestar, as well as from Idinvest Partners and Drake QSR, which had already invested in Glovo in the past.

Glovo said this was the first funding round in which Mubadala had taken part and said the startup had now achieved "unicorn" status, a term used for a privately owned firm that achieves a valuation of $1 billion or more.

Glovo, which is active in 26 countries where it delivers everything from meals to groceries and medicines, is the third Spanish tech firm to surpass the $1 billion valuation mark.

Oil Rally Stutters as Plentiful Gasoline Muddies Demand Outlook - Bloomberg

Oil Rally Stutters as Plentiful Gasoline Muddies Demand Outlook - Bloomberg:

Oil hovered near $61 a barrel for a second day after capping its longest streak of gains in almost two months as traders weighed bearish signs of swelling U.S. fuel inventories against a surprise decline in domestic crude stockpiles.

Futures in New York were little changed, after dipping less than 0.1% on Wednesday. Official U.S. inventory data showed gasoline, diesel and heating oil stockpiles swelled, reigniting demand concerns. Nationwide crude inventories fell to levels not seen since early November last week, government data showed, contradicting industry figures that pointed to an inventory build.

Crude has gained more than 10% this month, following an agreement from the Organization of Petroleum Exporting Countries and allies to deeper-than-expected output cuts, as well as amid positive trade signals between the U.S. and China. American crude exports also rose last week to the highest level since October, contributing to the inventory draw, the Energy Information Administration said.

#SaudiArabia’s PIF gives $1bln leg-up for small firms | ZAWYA MENA Edition

Saudi Arabia’s PIF gives $1bln leg-up for small firms | ZAWYA MENA Edition:

Saudi Arabia’s Public Investment Fund (PIF) has launched a new investment vehicle aimed at boosting small and medium enterprises (SMEs) in
the Kingdom.

It will invest in venture capital and private equity funds geared towards small businesses.

The SR4 billion ($1.07 billion) “Jada” initiative is the latest move by the government to support SMEs, seen as a key part of plans to diversify the economy away from oil.

“Jada is the first instrument of its kind in the Kingdom,” the PIF said in a statement. “It is a catalyst for small and medium enterprises, seeking to secure rewarding incomes, to ensure financial sustainability and support the Kingdom’s priorities in terms of supporting small and medium enterprises.”

Gulf banks’ assets jump 3.1% to $2.3trln in third quarter | ZAWYA MENA Edition

Gulf banks’ assets jump 3.1% to $2.3trln in third quarter | ZAWYA MENA Edition:

GCC banks continued to strengthen their aggregate balance sheets during Q3-2019 as listed banks in all six GCC countries reported higher total assets during the quarter that increased by 3.1 per cent to $2.3 trillion compared with $2.2trn at the end of Q2-2019.

According to a report by Kuwaiti firm Kamco Research, each of the six GCC countries showed an increase in net loans and customer deposits.

A slightly better loan-to-deposit ratio in three countries helped to partly offset the impact of a decline in market rates during the quarter.

The asset growth during the quarter was once again led by conventional banks that grew assets at 3.6pc quarter-on-quarter (QoQ) while Islamic banks increased their balance sheet size at a slightly slower pace of 1.4pc.

#Kuwait MSCI inclusion could generate 1 bln dinars in inflows - minister - Reuters

Kuwait MSCI inclusion could generate 1 bln dinars in inflows - minister - Reuters:

Kuwait’s inclusion into the MSCI Emerging Market Index could generate inflows of 1 billion Kuwaiti dinars ($3.30 billion), Trade and Industry Minister Khaled Al-Roudhan said on Thursday.

He was speaking at a news conference following the announcement of Kuwait’s inclusion into the MSCI Emerging Market Index. ($1 = 0.3035 Kuwaiti dinars)

Aramco, Lebanon, Gulf Oil: A Guide to Middle East Risks in 2020 - Bloomberg

Aramco, Lebanon, Gulf Oil: A Guide to Middle East Risks in 2020 - Bloomberg:

If 2019 was the year when a clutch of Middle East markets burst into the mainstream, then 2020 will test whether the foreign money keeps flooding in.

The year opened with five Gulf Arab economies joining JPMorgan Chase & Co.’s emerging-market bond indexes. The spotlight stayed firmly on the region as Saudi Aramco’s $12 billion international bond $12 Billion of Bonds in Unprecedented Debut (1)" target="_blank">debut in April was followed by preparations for its historic public offering at the end of the year. Gulf dollar bonds outperformed their emerging-market peers with returns of 14% this year.

At the same time, drone and missile strikes on Aramco’s facilities in September served as a reminder of the region’s political fault-lines and the potential pitfalls investors face. 

“Geopolitical disruption risk has not disappeared,” Citigroup Inc. analysts including Edward Morse wrote in an emailed note. The headwinds have been “heavily discounted by markets, which look to us to be more vulnerable to disruption” than before the Aramco attack, they said.

Tadawul News: 17 REITs on #Saudi stock exchange now worth $3.7bn - Arabianbusiness

Tadawul News: 17 REITs on Saudi stock exchange now worth $3.7bn - Arabianbusiness:

The number of real estate investment trusts (REITs) listed on the Saudi stock exchange has risen to 17, with a total market capitalisation of $3.7 billion as of November 2019, according to a report from Knight Frank.

Knight Frank’s last REIT update – in Q1 2018 – recorded 12 REITs with a $2.3 billion market capitalisation.

However, in a statement the firm said it expects a slowdown in listings, with the vast majority of activity taking place in 2018 and not 2019. In 2018, nine new REITs were listed, compared to just one listing to date in 2019.

“The growing depth of the market is offering a more favourable platform for investors willing to adopt a long-term investment approach while taking advantage of the portfolio diversification benefits offered by REITs,” said Stefan Burch, general manager and partner at Knight Frank Middle East in Saudi Arabia.

MSCI to boost #Kuwait equities with 2020 emerging markets upgrade - Reuters

MSCI to boost Kuwait equities with 2020 emerging markets upgrade - Reuters:

MSCI Inc, the world’s largest index provider, said it will reclassify the MSCI Kuwait Indexes from frontier to emerging markets as the Kuwaiti equity market had met all the necessary requirements, a move expected to generate billions of dollars of inflows.

The index compiler will include the MSCI Kuwait index in the Emerging Market Index in one phase during the May 2020 semi-annual index review, it said in a statement late on Wednesday.

Sebastien Lieblich, Global Head of Index Solutions and Chairman of the MSCI equity index committee, said: “Kuwait’s addition adds further diversification to the MSCI Emerging Markets Index with an estimated weight of 0.69%.”

The upgrade follows Kuwait’s implementation of regulatory and operational enhancements in the Kuwaiti equity market, such as introducing omnibus accounts that would allow foreign investors to trade while remaining anonymous, offering the same privileges that local investors now have.

Oil prices surf U.S.-China trade thaw to three-month highs - Reuters

Oil prices surf U.S.-China trade thaw to three-month highs - Reuters:

Oil prices remained atop three-month peaks on Thursday, extending a robust streak that began a week ago, as thawing trade relations between the United States and China supported global markets.

Brent crude futures edged up 8 cents to $66.25 a barrel by 0645 GMT, while U.S. West Texas Intermediate (WTI) crude gained 4 cents to $60.97. Trading volume was thin, with not even news of President Donald Trump’s impeachment by the U.S. House of Representatives stirring the oil market.

“We’re near the top of trading ranges for both Brent and WTI so it’s interesting to see them holding here,” said Michael McCarthy, chief market analyst at CMC Markets in Sydney.

While there is a clear uptrend in place on the daily technical price chart for WTI to potentially move towards $61.50 a barrel, there are also near-term risks - touching that price level may encourage traders to sell, McCarthy said.

MIDEAST STOCKS- #Saudi shares extend gains; #UAE markets retreat - Agricultural Commodities - Reuters

MIDEAST STOCKS-Saudi shares extend gains; UAE markets retreat - Agricultural Commodities - Reuters:

Saudi Arabia’s stock market edged up on Thursday, extending gains for a fifth straight session, while markets in United Arab Emirates were subdued.

Saudi’s benchmark index rose 0.1%, with Saudi British Bank rising 1.3%, while Saudi Basic Industries (SABIC) was up 0.6%.

Clariant, an affiliate of SABIC, is selling its masterbatches unit to U.S.-based PolyOne Corp for $1.6 billion, the Swiss speciality chemicals maker said on Thursday. It will pay shareholders about $1 billion from the proceeds.

Saudi Aramco’s shares fell a further 0.7% to 36.5 riyals ($9.73) a day after their inclusion in the MSCI emerging- markets index. The oil giant will also join the FTSE benchmark on Thursday.