MIDEAST STOCKS-Most Gulf markets gains as financial shares rise - Reuters:
Most stock markets in the Gulf ended
higher on Monday, largely led by gains in financial shares.
Saudi Arabia's benchmark index, however, bucked the
trend, ending flat, with petrochemicals and some financial
shares moving sideways. Al Rajhi Bank though added
0.5% and Riyad Bank gained 1.7%.
Shares in the United Arab Emirates - which signed an
agreement with Israel on Thursday to normalize diplomatic
relations - extended gains from the previous session.
Dubai's main share index rose 1%, boosted by a 4.5%
jump in Emirates NBD Bank (ENBD), extending gains for
a fifth session.
On Thursday, the lender said it was in preliminary
discussions with Lebanon's Blom Bank about acquiring a
stake in Blom Bank Egypt.
Arabtec Holding, by contrast, dropped 4.9%.
The United Arab Emirates' largest listed contractor swung to
a loss in the first half of the year, citing tight liquidity and
limited new projects, and said it was seeking an advisor for
debt restructuring.
Monday, 17 August 2020
Israeli investor glee met with Emirati caution after deal on ties - Reuters
Israeli investor glee met with Emirati caution after deal on ties - Reuters:
From a proposed rail link to the Gulf from the Israeli port of Haifa, to quick-hop direct flights from Tel Aviv, the prospect of formal relations with the United Arab Emirates is stirring excitement in Israel.
In the UAE, which Israeli business executives with foreign passports have visited for years, companies that are likely candidates for above-board deal-making with Israel are taking a more cautious line, apparently awaiting government guidance on future policy.
Israel and the Gulf State announced on Thursday they would normalise relations under a U.S.-sponsored deal that still awaits negotiations on details such as opening embassies and travel links before it is officially signed.
Israeli officials have been quick to play up the economic benefits of the accord, which once formalised would also include agreements on tourism, technology, energy, healthcare and security, among other areas.
From a proposed rail link to the Gulf from the Israeli port of Haifa, to quick-hop direct flights from Tel Aviv, the prospect of formal relations with the United Arab Emirates is stirring excitement in Israel.
 |
| The national flags of Israel and the United Arab Emirates flutter along a highway following the agreement to formalize ties between the two countries, in Netanya, Israel August 17, 2020. REUTERS/Nir Elias -/File Photo |
In the UAE, which Israeli business executives with foreign passports have visited for years, companies that are likely candidates for above-board deal-making with Israel are taking a more cautious line, apparently awaiting government guidance on future policy.
Israel and the Gulf State announced on Thursday they would normalise relations under a U.S.-sponsored deal that still awaits negotiations on details such as opening embassies and travel links before it is officially signed.
Israeli officials have been quick to play up the economic benefits of the accord, which once formalised would also include agreements on tourism, technology, energy, healthcare and security, among other areas.
Middle East News: #Oman Credit Rating Downgraded a Second Time by Fitch - Bloomberg
Middle East News: Oman Credit Rating Downgraded a Second Time by Fitch - Bloomberg:
Oman received its second downgrade this year from Fitch Ratings because of what it called the “continued erosion” of the country’s fiscal and external balance sheets.
Fitch lowered Oman’s sovereign rating one notch to BB-, three steps below investment grade and on par with Brazil, Turkey and Bangladesh, according to a statement on Monday. The outlook is negative. Fitch’s latest downgrade brings its ranking of Oman to the same level as that of Moody’s Investors Service and S&P Global Ratings.
Even before the virus outbreak and declines in oil prices, Oman was already among the most vulnerable economies in the six-nation Gulf Cooperation Council. It’s now on track to run a budget shortfall that Fitch estimates at nearly 20% of gross domestic product in 2020, compared with about 8% in 2019.
“We expect fiscal reform and higher oil prices to narrow the fiscal deficit to the mid-single digits by 2022, but there are considerable downside risks to this forecast,” Fitch analysts including Krisjanis Krustins said in the report.
Oman received its second downgrade this year from Fitch Ratings because of what it called the “continued erosion” of the country’s fiscal and external balance sheets.
Fitch lowered Oman’s sovereign rating one notch to BB-, three steps below investment grade and on par with Brazil, Turkey and Bangladesh, according to a statement on Monday. The outlook is negative. Fitch’s latest downgrade brings its ranking of Oman to the same level as that of Moody’s Investors Service and S&P Global Ratings.
Even before the virus outbreak and declines in oil prices, Oman was already among the most vulnerable economies in the six-nation Gulf Cooperation Council. It’s now on track to run a budget shortfall that Fitch estimates at nearly 20% of gross domestic product in 2020, compared with about 8% in 2019.
“We expect fiscal reform and higher oil prices to narrow the fiscal deficit to the mid-single digits by 2022, but there are considerable downside risks to this forecast,” Fitch analysts including Krisjanis Krustins said in the report.
#Qatar expects economy to contract this year: central bank report - Reuters
Qatar expects economy to contract this year: central bank report - Reuters:
Qatar expects the economy to contract this year amid low oil prices and the coronavirus crisis, after it shrank by 0.3% last year, the central bank said in a report on Monday.
“Our initial analysis indicates that, if the conditions of dual stress continues for an extended period, real GDP growth will remain negative in 2020,” the report said.
In 2019 real gross domestic product contracted by 0.3% mainly because of a slowdown in the hydrocarbon sector, it said.
Qatar expects the economy to contract this year amid low oil prices and the coronavirus crisis, after it shrank by 0.3% last year, the central bank said in a report on Monday.
“Our initial analysis indicates that, if the conditions of dual stress continues for an extended period, real GDP growth will remain negative in 2020,” the report said.
In 2019 real gross domestic product contracted by 0.3% mainly because of a slowdown in the hydrocarbon sector, it said.
#UAE News: Finablr Founder Shetty Quits as Indian Court Closes Net on NMC Health - Bloomberg
UAE News: Finablr Founder Shetty Quits as Indian Court Closes Net on NMC Health - Bloomberg:
Finablr Plc co-Chairman Bavaguthu Raghuram Shetty resigned from the embattled foreign-exchange operator’s board in the wake of a corruption scandal that pushed its sister firm NMC Health Plc into administration.
The announcement of Shetty’s departure was followed by another statement on Monday that Britain’s tax authority intends to shut down Finablr’s UAE Exchange UK and Xpress Money Services. The firm plans to work with the agency to attempt to restore the registrations, Finablr said.
In a separate matter, a commercial court in the Indian city of Bengaluru has temporarily restrained Shetty from selling certain assets following a petition filed by Commercial Bank of Dubai PSC, according to an order dated Aug. 14.
Finablr and NMC Health, which were both listed on the London Stock Exchange before being suspended, uncovered billions of dollars of hidden debt. Shetty has previously said that he was the victim of fraud.
Finablr Plc co-Chairman Bavaguthu Raghuram Shetty resigned from the embattled foreign-exchange operator’s board in the wake of a corruption scandal that pushed its sister firm NMC Health Plc into administration.
The announcement of Shetty’s departure was followed by another statement on Monday that Britain’s tax authority intends to shut down Finablr’s UAE Exchange UK and Xpress Money Services. The firm plans to work with the agency to attempt to restore the registrations, Finablr said.
In a separate matter, a commercial court in the Indian city of Bengaluru has temporarily restrained Shetty from selling certain assets following a petition filed by Commercial Bank of Dubai PSC, according to an order dated Aug. 14.
Finablr and NMC Health, which were both listed on the London Stock Exchange before being suspended, uncovered billions of dollars of hidden debt. Shetty has previously said that he was the victim of fraud.
Oil rises on China plan to boost U.S. imports, OPEC+ compliance - Reuters
Oil rises on China plan to boost U.S. imports, OPEC+ compliance - Reuters:
Oil prices settled higher on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S. officials said China is in compliance with the first phase of the two nations’ trade deal.
Brent crude LCOc1 settled up 57 cents, or 1.3%, to $45.87 a barrel, and U.S. West Texas Intermediate crude CLc1 was up 88 cents, or 2.1 %, to $42.41 a barrel.
Compliance with OPEC+ oil output cuts is seen at around 97% in July, two OPEC+ sources told Reuters. The oil-producing nations have been cutting output by record levels to curb supply and reduce worldwide inventories.
China is living up to its end of the trade deal the two parties signed in January, U.S. President Donald Trump said on Monday, even though the nation has fallen short so far of promised purchases of U.S. products.
Oil prices settled higher on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S. officials said China is in compliance with the first phase of the two nations’ trade deal.
Brent crude LCOc1 settled up 57 cents, or 1.3%, to $45.87 a barrel, and U.S. West Texas Intermediate crude CLc1 was up 88 cents, or 2.1 %, to $42.41 a barrel.
Compliance with OPEC+ oil output cuts is seen at around 97% in July, two OPEC+ sources told Reuters. The oil-producing nations have been cutting output by record levels to curb supply and reduce worldwide inventories.
China is living up to its end of the trade deal the two parties signed in January, U.S. President Donald Trump said on Monday, even though the nation has fallen short so far of promised purchases of U.S. products.
OPEC+ Seeks to Defend Oil-Market Gains as Demand Outlook Darkens - Bloomberg
OPEC+ Seeks to Defend Oil-Market Gains as Demand Outlook Darkens - Bloomberg:
OPEC and its allies have achieved the oil-market equivalent of a high-wire act: increasing supply even as demand remains depleted, without crashing prices.
Whether they can successfully continue the balancing act is unclear.
The coalition of producers led by Saudi Arabia and Russia is restoring some of the vast quantities of crude halted during the depths of the coronavirus crisis. So far the supply boost hasn’t derailed oil’s fragile recovery, which has seen prices climb to a five-month high.
But the outlook for fuel demand has deteriorated as the pandemic crushes international travel, and new outbreaks of the disease are weighing on the economic recovery. On Wednesday, key OPEC+ members will meet to consider how to safe-guard their recent success.
OPEC and its allies have achieved the oil-market equivalent of a high-wire act: increasing supply even as demand remains depleted, without crashing prices.
Whether they can successfully continue the balancing act is unclear.
The coalition of producers led by Saudi Arabia and Russia is restoring some of the vast quantities of crude halted during the depths of the coronavirus crisis. So far the supply boost hasn’t derailed oil’s fragile recovery, which has seen prices climb to a five-month high.
But the outlook for fuel demand has deteriorated as the pandemic crushes international travel, and new outbreaks of the disease are weighing on the economic recovery. On Wednesday, key OPEC+ members will meet to consider how to safe-guard their recent success.
#Dubai economy may shrink 5.2% this year, rebound 4.3% in 2021 - MUFG | ZAWYA MENA Edition
Dubai economy may shrink 5.2% this year, rebound 4.3% in 2021 - MUFG | ZAWYA MENA Edition:
Dubai's economy is expected to contract 5.2% this year from the impact of the coronavirus pandemic but the Middle East trade and tourism hub could see growth rebound to 4.3% next year, Japan's MUFG said.
While vital economic sectors of the emirate have been dealt a severe blow by the global health crisis, high-frequency indicators signal a normalisation in economic activity, the bank said in a report.
Also, the seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) increased to 51.7 in July from 50.0 in June, the highest reading since December last year, signalling improved business conditions.
"Dubai has been most vulnerable to the coronacrisis than other regional economies, with more than a third of the economy – wholesale and retail trade, transportation, recreation and hospitality – explicitly susceptible to physical distancing and travel restrictions," said Eshan Khoman, head of MENA research and strategy at MUFG.
Dubai's economy is expected to contract 5.2% this year from the impact of the coronavirus pandemic but the Middle East trade and tourism hub could see growth rebound to 4.3% next year, Japan's MUFG said.
While vital economic sectors of the emirate have been dealt a severe blow by the global health crisis, high-frequency indicators signal a normalisation in economic activity, the bank said in a report.
Also, the seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) increased to 51.7 in July from 50.0 in June, the highest reading since December last year, signalling improved business conditions.
"Dubai has been most vulnerable to the coronacrisis than other regional economies, with more than a third of the economy – wholesale and retail trade, transportation, recreation and hospitality – explicitly susceptible to physical distancing and travel restrictions," said Eshan Khoman, head of MENA research and strategy at MUFG.
Arabtec to call EGM as company posts H1 losses of $216m - Arabianbusiness
Arabtec to call EGM as company posts H1 losses of $216m - Arabianbusiness:
UAE-based building giant Arabtec Holding is to call an extraordinary general meeting to discuss future options for the group after posting a net loss of AED794 million ($216m) for the first six months of the year.
Revenue also dropped from AED4.213 billion ($1.147bn) in the first six months of 2019 to AED3.026bn ($824m) for the same period this year.
The losses were attributed to Arabtec Construction, while other core businesses, including Target (industrial), Arabtec Engineering Services (infrastructure) and EFECO (MEP) were said to be trading profitably.
In a statement to Dubai Financial Market (DFM), the company blamed the losses on tight liquidity in the real estate and construction sector, a slowing real estate market resulting in few new awards, limited settlement and recoverability of contractual claims, and the impact of Covid-19.
UAE-based building giant Arabtec Holding is to call an extraordinary general meeting to discuss future options for the group after posting a net loss of AED794 million ($216m) for the first six months of the year.
Revenue also dropped from AED4.213 billion ($1.147bn) in the first six months of 2019 to AED3.026bn ($824m) for the same period this year.
The losses were attributed to Arabtec Construction, while other core businesses, including Target (industrial), Arabtec Engineering Services (infrastructure) and EFECO (MEP) were said to be trading profitably.
In a statement to Dubai Financial Market (DFM), the company blamed the losses on tight liquidity in the real estate and construction sector, a slowing real estate market resulting in few new awards, limited settlement and recoverability of contractual claims, and the impact of Covid-19.
RPT- #Saudi PIF boosts trading team to back opportunistic buying strategy - Reuters
RPT-Saudi PIF boosts trading team to back opportunistic buying strategy - Reuters:
Saudi Arabia’s main sovereign wealth fund has boosted its trading team to pursue further an aggressive strategy that saw it sell more than a dozen global stocks for short-term profit in the second quarter of 2020.
The more than $300 billion Public Investment Fund (PIF) has built a small team of traders to execute its trading strategy who report to its head of international investments, Turqi al-Nowaiser, two sources familiar with the matter said.
Last month, PIF hired Maziar Alamouti, a former head of trading at advisory and wealth management firm Quilter Investors, two sources told Reuters.
Alamouti is part of the Public Markets team, which is responsible for further building out the PIF’s trading capabilities, one of the sources said.
Saudi Arabia’s main sovereign wealth fund has boosted its trading team to pursue further an aggressive strategy that saw it sell more than a dozen global stocks for short-term profit in the second quarter of 2020.
The more than $300 billion Public Investment Fund (PIF) has built a small team of traders to execute its trading strategy who report to its head of international investments, Turqi al-Nowaiser, two sources familiar with the matter said.
Last month, PIF hired Maziar Alamouti, a former head of trading at advisory and wealth management firm Quilter Investors, two sources told Reuters.
Alamouti is part of the Public Markets team, which is responsible for further building out the PIF’s trading capabilities, one of the sources said.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Oil steady as China's plans to boost U.S. imports counters tensions - Reuters
Oil steady as China's plans to boost U.S. imports counters tensions - Reuters:
Oil prices steadied on Monday as news that China planned to ship large volumes of U.S. crude in August and September countered rising tensions between the two countries and a delay in the review of their trade pact over the weekend.
Brent crude LCOc1 was down 3 cents, or 0.1%, to $44.77 a barrel by 0858 GMT, while U.S. West Texas Intermediate crude CLc1 was up 3 cents, or 0.1%, to $42.04 a barrel.
The United States and China delayed a review of their Phase 1 trade deal initially slated for Saturday, citing scheduling conflicts.
However, in a positive signal, Chinese state-owned oil firms have tentatively booked tankers to transport at least 20 million barrels of U.S. crude for August and September.
Oil prices steadied on Monday as news that China planned to ship large volumes of U.S. crude in August and September countered rising tensions between the two countries and a delay in the review of their trade pact over the weekend.
Brent crude LCOc1 was down 3 cents, or 0.1%, to $44.77 a barrel by 0858 GMT, while U.S. West Texas Intermediate crude CLc1 was up 3 cents, or 0.1%, to $42.04 a barrel.
The United States and China delayed a review of their Phase 1 trade deal initially slated for Saturday, citing scheduling conflicts.
However, in a positive signal, Chinese state-owned oil firms have tentatively booked tankers to transport at least 20 million barrels of U.S. crude for August and September.
MIDEAST STOCKS-Major Gulf bourses gain as banks lift #Saudi index - Reuters
MIDEAST STOCKS-Major Gulf bourses gain as banks lift Saudi index - Reuters:
Major stock markets in the Gulf rose in early trade on Monday, with the Saudi index bolstered by gains in its banking shares.
Saudi Arabia’s benchmark index rose 0.5%, with Al Rajhi Bank gaining 1.4% and Riyad Bank up 2.1%.
The kingdom’s consumer price index jumped 6.1% in July compared with a year earlier, boosted by a tripling of value-added tax, official data showed on Sunday.
The annual inflation rate in June was 0.5%, the smallest increase since January, before the VAT increase to 15% from 5% came into effect on July 1.
Dubai’s main share index edged up 0.2%, supported by a 2% rise in Emirates NBD Bank, on course for its fifth session of gains.
Major stock markets in the Gulf rose in early trade on Monday, with the Saudi index bolstered by gains in its banking shares.
Saudi Arabia’s benchmark index rose 0.5%, with Al Rajhi Bank gaining 1.4% and Riyad Bank up 2.1%.
The kingdom’s consumer price index jumped 6.1% in July compared with a year earlier, boosted by a tripling of value-added tax, official data showed on Sunday.
The annual inflation rate in June was 0.5%, the smallest increase since January, before the VAT increase to 15% from 5% came into effect on July 1.
Dubai’s main share index edged up 0.2%, supported by a 2% rise in Emirates NBD Bank, on course for its fifth session of gains.