Most Gulf Equity Markets Gain as Iran Risk Eases: Inside EM - Bloomberg:
Qatar led Middle Eastern equity markets higher on Sunday amid easing tension between the U.S. and Iran, reversing a negative trend that prevailed most of last week.
The QE Index rose 0.6% on Sunday in Doha, more than any regional peer. Saudi Arabia’s Tadawul All Share Index climbed as much as 0.7% before trimming some gains, with 80% of index members advancing and materials contributing the most to the increase. Benchmarks in Dubai, Abu Dhabi, Bahrain and Egypt also climbed.
Shares in the region caught up with an extension of gains for an index tracking emerging markets equities on Friday, as President Donald Trump backed away from the precipice of war with Iran following the Islamic Republic’s attacks on Iraqi bases where U.S. forces are stationed.
Sunday, 12 January 2020
Oil Market News: How It Learned to Live With Middle East Tension - Bloomberg
Oil Market News: How It Learned to Live With Middle East Tension - Bloomberg:
A dramatic U.S. drone strike kills Iran’s most important general. Tehran vows retribution and oil prices jump almost 5% as traders rush to cover the risk of a Middle East war. Then the selling starts.
It’s a trading pattern that would have been unthinkable a decade ago, but has become increasingly familiar. The threat of conflict loomed over the heart of the global oil market this past week, but the usual panic buying by traders and
consumers was met quickly by a wave of U.S. shale drillers grasping the opportunity to lock in prices for future production.
The sudden price spike was blunted, and when the dust settled the plunge back down was steep.
These trades, known as hedges, combined with a massive expansion of oil stockpiles in Asia and surging U.S. crude exports, are the recipe for a market that’s capable of quickly shrugging off disruptions that until recently were considered nightmare scenarios.
A dramatic U.S. drone strike kills Iran’s most important general. Tehran vows retribution and oil prices jump almost 5% as traders rush to cover the risk of a Middle East war. Then the selling starts.
It’s a trading pattern that would have been unthinkable a decade ago, but has become increasingly familiar. The threat of conflict loomed over the heart of the global oil market this past week, but the usual panic buying by traders and
consumers was met quickly by a wave of U.S. shale drillers grasping the opportunity to lock in prices for future production.
The sudden price spike was blunted, and when the dust settled the plunge back down was steep.
These trades, known as hedges, combined with a massive expansion of oil stockpiles in Asia and surging U.S. crude exports, are the recipe for a market that’s capable of quickly shrugging off disruptions that until recently were considered nightmare scenarios.
#Sharjah announces 'biggest budget in history of emirate' | ZAWYA MENA Edition
Sharjah announces 'biggest budget in history of emirate' | ZAWYA MENA Edition:
The government of Sharjah has allocated a higher budget for 2020 as part of its plans to increase spending across several sectors. A 2 percent increase over the previous year’s budget makes it the largest in the history of the emirate.
Shaikh Sultan bin Mohammed Al Qasimi, supreme council member and ruler of Sharjah announced the budget at 29.1 billion UAE dirhams. The funding will primarily boost the government’s investments towards the improvement of the emirate’s infrastructure and fuel economic growth.
It will also boost expenses in social programs, economic activities, culture and education, among other sectors.
A huge chunk of the budget (33 percent), will go towards infrastructure development, a 10 percent increase over the 2019 budget. Close to 36 percent of the budget is earmarked for economic development, a statement said.
The government of Sharjah has allocated a higher budget for 2020 as part of its plans to increase spending across several sectors. A 2 percent increase over the previous year’s budget makes it the largest in the history of the emirate.
Shaikh Sultan bin Mohammed Al Qasimi, supreme council member and ruler of Sharjah announced the budget at 29.1 billion UAE dirhams. The funding will primarily boost the government’s investments towards the improvement of the emirate’s infrastructure and fuel economic growth.
It will also boost expenses in social programs, economic activities, culture and education, among other sectors.
A huge chunk of the budget (33 percent), will go towards infrastructure development, a 10 percent increase over the 2019 budget. Close to 36 percent of the budget is earmarked for economic development, a statement said.
#AbuDhabi GDP continues to achieve significant growth rates: SCAD | ZAWYA MENA Edition
Abu Dhabi GDP continues to achieve significant growth rates: SCAD | ZAWYA MENA Edition:
The Statistics Centre Abu Dhabi, SCAD, recently released its annual national accounts report for 2018, in addition to the quarterly reports for the second and third quarters of 2019, where, cumulatively, the results showed a significant increase in Abu Dhabi’s gross domestic product, GDP.
The GDP at current prices reached AED932.4 billion in 2018, compared to AED813.6 billion in 2017, marking a growth of 14.6 percent. This rise was a direct result of the increase in oil GDP at current prices, which grew by 40.2 percent to AED388.5 billion in 2018, making up 41.6 percent of total GDP.
According to SCAD’s data, non-oil GDP at current prices increased from AED536.6 billion in 2017 to AED543.9 billion in 2018, achieving a growth rate of 1.4 percent, and contributing 58.3 percent of total GDP at current prices in 2018. Non-oil activities, meanwhile, recorded significant growth since 2008, as changes in economic activities during the past years helped accelerate the growth rates of the GDP at current prices.
The Statistics Centre Abu Dhabi, SCAD, recently released its annual national accounts report for 2018, in addition to the quarterly reports for the second and third quarters of 2019, where, cumulatively, the results showed a significant increase in Abu Dhabi’s gross domestic product, GDP.
The GDP at current prices reached AED932.4 billion in 2018, compared to AED813.6 billion in 2017, marking a growth of 14.6 percent. This rise was a direct result of the increase in oil GDP at current prices, which grew by 40.2 percent to AED388.5 billion in 2018, making up 41.6 percent of total GDP.
According to SCAD’s data, non-oil GDP at current prices increased from AED536.6 billion in 2017 to AED543.9 billion in 2018, achieving a growth rate of 1.4 percent, and contributing 58.3 percent of total GDP at current prices in 2018. Non-oil activities, meanwhile, recorded significant growth since 2008, as changes in economic activities during the past years helped accelerate the growth rates of the GDP at current prices.
MIDEAST STOCKS-Gulf markets gain after no escalation in U.S.-Iran tensions - Reuters
MIDEAST STOCKS-Gulf markets gain after no escalation in U.S.-Iran tensions - Reuters:
Middle East stocks closed
higher on Sunday amid relief at no further escalation
in tensions between Iran and the United States, but
shares of Saudi Aramco retreated.
Last week, U.S. President Donald Trump backed away
from days of angry rhetoric against Iran as the two
countries tried to defuse a crisis over the U.S.
killing of Iranian military commander Qassem
Soleimani.
Saudi Arabia's index rose 0.3%, led by a
5.6% jump in telecom operator Etihad Etisalat
.
Advanced Petrochemical added 2.2% after
reporting a 5.9% increase in its estimated annual
profit to 759 million riyals ($202 million).
Gains, however, were capped by losses in financial
and energy shares. Samba Financial Group
dropped 2.8%, while Saudi Aramco fell 0.6% to 34.8
riyals.
Middle East stocks closed
higher on Sunday amid relief at no further escalation
in tensions between Iran and the United States, but
shares of Saudi Aramco retreated.
Last week, U.S. President Donald Trump backed away
from days of angry rhetoric against Iran as the two
countries tried to defuse a crisis over the U.S.
killing of Iranian military commander Qassem
Soleimani.
Saudi Arabia's index rose 0.3%, led by a
5.6% jump in telecom operator Etihad Etisalat
.
Advanced Petrochemical added 2.2% after
reporting a 5.9% increase in its estimated annual
profit to 759 million riyals ($202 million).
Gains, however, were capped by losses in financial
and energy shares. Samba Financial Group
dropped 2.8%, while Saudi Aramco fell 0.6% to 34.8
riyals.
Trump Is Wrong The U.S. Does Need Middle East Oil. - Bloomberg
Trump Is Wrong The U.S. Does Need Middle East Oil. - Bloomberg:
President Donald Trump was wrong last week when he said that the U.S. doesn’t need Middle East oil. For one thing, U.S. refiners still need to process it to make the products their customers want. What’s more, America’s car drivers and truckers need it to keep flowing or else they’ll face higher prices at their local gas pump.
Trump made his assertion during an address from the White House after Iran launched a barrage of missiles at two airbases in Iraq used by the U.S. military and amid fears of an escalation in attacks on key oil infrastructure in the region, including potentially the flow of oil through the Strait of Hormuz — a narrow neck of water that connects the Persian Gulf to the open seas.
It’s certainly true that very little of the crude produced in the Persian Gulf region now finds its way to refineries in the U.S. Less than 5% of the 16.5 million barrels a day of crude and condensate — a light form of oil pumped from gas fields — that flowed through Hormuz in 2019 went to American refineries, according to tanker tracking data compiled by Bloomberg.
President Donald Trump was wrong last week when he said that the U.S. doesn’t need Middle East oil. For one thing, U.S. refiners still need to process it to make the products their customers want. What’s more, America’s car drivers and truckers need it to keep flowing or else they’ll face higher prices at their local gas pump.
Trump made his assertion during an address from the White House after Iran launched a barrage of missiles at two airbases in Iraq used by the U.S. military and amid fears of an escalation in attacks on key oil infrastructure in the region, including potentially the flow of oil through the Strait of Hormuz — a narrow neck of water that connects the Persian Gulf to the open seas.
It’s certainly true that very little of the crude produced in the Persian Gulf region now finds its way to refineries in the U.S. Less than 5% of the 16.5 million barrels a day of crude and condensate — a light form of oil pumped from gas fields — that flowed through Hormuz in 2019 went to American refineries, according to tanker tracking data compiled by Bloomberg.
Most Gulf Equity Markets Rally as Iran Risk Eases: Inside EM - Bloomberg
Most Gulf Equity Markets Rally as Iran Risk Eases: Inside EM - Bloomberg:
Saudi Arabia led Middle Eastern equity markets higher on Sunday amid easing tension between the U.S. and Iran, reversing a negative trend that prevailed most of last week.
The Tadawul All Share Index gained as much as 0.7%, with about 90% of index members advancing and banks contributing the most to the increase. Benchmarks in Dubai, Abu Dhabi and Qatar also climbed.
Shares in the region caught up with an extension of gains for an index tracking emerging markets equities on Friday, as President Donald Trump backed away from the precipice of war with Iran following the Islamic Republic’s attacks on Iraqi bases where U.S. forces are stationed.
In Riyadh, the final size of Saudi Aramco’s initial public offering jumped to $29.4 billion one month after its debut as Goldman Sachs Group Inc., one of the underwriters, executed an over-allotment option on the shares.
Saudi Arabia led Middle Eastern equity markets higher on Sunday amid easing tension between the U.S. and Iran, reversing a negative trend that prevailed most of last week.
The Tadawul All Share Index gained as much as 0.7%, with about 90% of index members advancing and banks contributing the most to the increase. Benchmarks in Dubai, Abu Dhabi and Qatar also climbed.
Shares in the region caught up with an extension of gains for an index tracking emerging markets equities on Friday, as President Donald Trump backed away from the precipice of war with Iran following the Islamic Republic’s attacks on Iraqi bases where U.S. forces are stationed.
In Riyadh, the final size of Saudi Aramco’s initial public offering jumped to $29.4 billion one month after its debut as Goldman Sachs Group Inc., one of the underwriters, executed an over-allotment option on the shares.
Breakingviews - Sultan Qaboos’ legacy of peace looks safe for now - Reuters
Breakingviews - Sultan Qaboos’ legacy of peace looks safe for now - Reuters:
Omani Sultan Qaboos is gone, but his legacy of peace lives on. The Gulf’s longest-serving ruler, in power for half a century, finally succumbed to illness late on Friday. That the iconic leader’s reign would soon end was expected. More surprising has been what appears to be a smooth succession.
Qaboos deserves the eulogies bestowed on him on Saturday from less enduring regional leaders in Saudi Arabia, the United Arab Emirates, Israel and Iran. As they feuded and exchanged threats during his rule, the sultan managed to stay on cordial terms with them all, and major western powers to boot. That gave him a platform to reform a country that in 1970 - when he seized power by deposing his own father in a bloodless coup assisted by British spies - had only one primary school, one medical clinic, and no tarmac road connecting its only international airport to the capital Muscat.
Qaboos did it by unifying his own realm, improving its infrastructure and status as a tourist destination, and making his subjects richer. But he hadn’t publicly anointed a successor. The
Omani Sultan Qaboos is gone, but his legacy of peace lives on. The Gulf’s longest-serving ruler, in power for half a century, finally succumbed to illness late on Friday. That the iconic leader’s reign would soon end was expected. More surprising has been what appears to be a smooth succession.
 |
| A painting of Oman's Sultan Qaboos bin Said is seen on a building in Muscat, Oman, January 11, 2020. REUTERS/Christopher Pike |
Qaboos deserves the eulogies bestowed on him on Saturday from less enduring regional leaders in Saudi Arabia, the United Arab Emirates, Israel and Iran. As they feuded and exchanged threats during his rule, the sultan managed to stay on cordial terms with them all, and major western powers to boot. That gave him a platform to reform a country that in 1970 - when he seized power by deposing his own father in a bloodless coup assisted by British spies - had only one primary school, one medical clinic, and no tarmac road connecting its only international airport to the capital Muscat.
Qaboos did it by unifying his own realm, improving its infrastructure and status as a tourist destination, and making his subjects richer. But he hadn’t publicly anointed a successor. The
#Saudi Aramco raises IPO to record $29.4 billion by over-allotment of shares - Reuters
Saudi Aramco raises IPO to record $29.4 billion by over-allotment of shares - Reuters:
State-owned oil company Saudi Aramco said on Sunday it had exercised its “greenshoe option” to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion.
Aramco initially raised a $25.6 billion, which was itself a record level, in its December IPO by selling 3 billion shares at 32 riyals ($8.53) a share. But it had indicated it could sell additional shares through the over-allotment of shares.
Aramco shares were flat at 35 riyals shortly after the market opened, according to Refinitiv data.
A greenshoe option, or over-allotment, allows companies to issue more shares in an IPO when there is greater demand from participants in the initial offer. Investors were allocated the additional shares during book-building.
State-owned oil company Saudi Aramco said on Sunday it had exercised its “greenshoe option” to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion.
Aramco initially raised a $25.6 billion, which was itself a record level, in its December IPO by selling 3 billion shares at 32 riyals ($8.53) a share. But it had indicated it could sell additional shares through the over-allotment of shares.
Aramco shares were flat at 35 riyals shortly after the market opened, according to Refinitiv data.
A greenshoe option, or over-allotment, allows companies to issue more shares in an IPO when there is greater demand from participants in the initial offer. Investors were allocated the additional shares during book-building.
MIDEAST STOCKS-Gulf stocks extend gains as U.S.-Iran tension ease - Reuters
MIDEAST STOCKS-Gulf stocks extend gains as U.S.-Iran tension ease - Reuters:
All major Gulf stock markets opened higher on Sunday, extending their gains from the previous session, amid relief at no further escalation in tensions between Iran and the United States.
Last week, U.S. President Donald Trump backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the U.S. killing of Iranian military commander Qassem Soleimani.
Saudi Arabia’s index rose 0.7%, outperforming regional peers and buoyed by gains in financial and petrochemical shares. Al Rajhi Bank and Banquet Saudi Francis were up 0.6% and 1.5%, respectively.
Advanced Petrochemical added 1.9% after reporting a 5.9% rise in estimated annual profit to 759 million riyals ($202 million).
All major Gulf stock markets opened higher on Sunday, extending their gains from the previous session, amid relief at no further escalation in tensions between Iran and the United States.
Last week, U.S. President Donald Trump backed away from days of angry rhetoric against Iran as the two countries tried to defuse a crisis over the U.S. killing of Iranian military commander Qassem Soleimani.
Saudi Arabia’s index rose 0.7%, outperforming regional peers and buoyed by gains in financial and petrochemical shares. Al Rajhi Bank and Banquet Saudi Francis were up 0.6% and 1.5%, respectively.
Advanced Petrochemical added 1.9% after reporting a 5.9% rise in estimated annual profit to 759 million riyals ($202 million).