Foreign ownership on Tadawul exceeds $51bln in one week | ZAWYA MENA Edition:
The value of foreign ownership on the Saudi Stock Exchange (Tadawul) on the main market increased to SAR 193.27 billion during the week ended on 3 September 2020, compared to SAR 192.02 billion in the previous week.
Foreign ownership of issued shares dipped to 2.13% last week from 2.17% a week earlier, while ownership of free shares inched down to 12.53% from 12.59%, according to official data.
This growth was boosted by higher share ownership value of qualified investors by SAR 1.34 billion to SAR 139.55 billion, representing 1.53% of issued shares.
In the meantime, the value of shares owned by Saudi nationals surged by SAR 220.53 million to reach SAR 8.856 trillion, representing 97.42% of issued shares and 85.25% of free shares.
The value of shares owned by GCC nationals soared by SAR 753.69 million to stand at SAR 41.64 billion. Their ownership of issued shares remained unchanged at 0.46% while that of free shares fell to 2.22%.
Monday 7 September 2020
Middle East Deals: #Saudi Telecom Seeks to Cut Offer for Stake in Vodafone Egypt - Bloomberg
Middle East Deals: Saudi Telecom Seeks to Cut Offer for Stake in Vodafone Egypt - Bloomberg:
Saudi Telecom Co. is in discussions to reduce its non-binding $2.39 billion offer for a stake in Vodafone Egypt, two people with direct knowledge of the talks said.
The discussions come as a deadline nears for STC to move ahead with the non-binding offer first made in January. The Saudi company in July extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.
The cash offer is for Vodafone’s 55% stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt. STC had said that the offer gives the Egyptian business an enterprise value of $4.35 billion.
The two people, who include an Egyptian official, didn’t provide additional details and requested anonymity because they weren’t authorized to comment on the talks.
Saudi Telecom Co. is in discussions to reduce its non-binding $2.39 billion offer for a stake in Vodafone Egypt, two people with direct knowledge of the talks said.
The discussions come as a deadline nears for STC to move ahead with the non-binding offer first made in January. The Saudi company in July extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.
The cash offer is for Vodafone’s 55% stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt. STC had said that the offer gives the Egyptian business an enterprise value of $4.35 billion.
The two people, who include an Egyptian official, didn’t provide additional details and requested anonymity because they weren’t authorized to comment on the talks.
Column: Hedge funds grow skeptical of oil market rebalancing - Kemp - Reuters
Column: Hedge funds grow skeptical of oil market rebalancing - Kemp - Reuters:
Hedge fund sentiment toward crude and products turned sharply more negative at the end of August amid signs of a slow post-epidemic recovery in oil consumption and persistently high inventories.
Hedge funds and other money managers sold the equivalent of almost 40 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 1.
The rate of selling equaled the week to July 28 as the fastest since mid-March, when the epidemic was raging unchecked and major oil exporters were engaged in unrestricted volume warfare.
Portfolio managers were heavy sellers of Brent (-19 million barrels), U.S. diesel (-11 million barrels), European gasoil (-6 million) and U.S. gasoline (-3 million), while making few changes to NYMEX and ICE WTI (+1 million).
Hedge fund sentiment toward crude and products turned sharply more negative at the end of August amid signs of a slow post-epidemic recovery in oil consumption and persistently high inventories.
Hedge funds and other money managers sold the equivalent of almost 40 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 1.
The rate of selling equaled the week to July 28 as the fastest since mid-March, when the epidemic was raging unchecked and major oil exporters were engaged in unrestricted volume warfare.
Portfolio managers were heavy sellers of Brent (-19 million barrels), U.S. diesel (-11 million barrels), European gasoil (-6 million) and U.S. gasoline (-3 million), while making few changes to NYMEX and ICE WTI (+1 million).
Oil falls after #Saudi cuts prices, China slows imports - Reuters
Oil falls after Saudi cuts prices, China slows imports - Reuters:
Oil prices fell on Monday after Saudi Arabia made its deepest monthly price cuts to supply for Asia in five months and as uncertainty over Chinese demand clouds the market’s recovery.
Brent crude LCOc1 was trading at $42.03 a barrel, down 63 cents or 1.5%, by 1555 GMT, after earlier sliding to $41.51, its lowest since July 30.
West Texas Intermediate U.S. crude CLc1 fell 67 cents, or 1.7%, to $39.10 per barrel after hitting $38.55, its lowest since July 10.
“The mood has turned somewhat pessimistic in the second half of last week and the immediate risk is skewed to the downside,” said oil broker PVM’s Tamas Varga.
Oil prices fell on Monday after Saudi Arabia made its deepest monthly price cuts to supply for Asia in five months and as uncertainty over Chinese demand clouds the market’s recovery.
Brent crude LCOc1 was trading at $42.03 a barrel, down 63 cents or 1.5%, by 1555 GMT, after earlier sliding to $41.51, its lowest since July 30.
West Texas Intermediate U.S. crude CLc1 fell 67 cents, or 1.7%, to $39.10 per barrel after hitting $38.55, its lowest since July 10.
“The mood has turned somewhat pessimistic in the second half of last week and the immediate risk is skewed to the downside,” said oil broker PVM’s Tamas Varga.
Top short-term challenges and opportunities for GCC asset managers | ZAWYA MENA Edition
Top short-term challenges and opportunities for GCC asset managers | ZAWYA MENA Edition:
The profitability of asset managers in most Gulf countries will face moderate to high pressure in the next 12-18 months, according to a report by Moody's. It also noted that factors such as the COVID-19 crisis and the drop in oil prices have weighed on assets under management (AUM).
“The sector's relatively low geographic and product diversification and regional geopolitical tensions will add further pressure,” said Vanessa Robert, VP-Senior Credit Officer at Moody's. “Still, an improving regulatory environment and growing interest from foreign investors will provide some counterbalancing uplift.”
Current weak oil prices will hold back economic growth and public spending across the region, with negative consequences for asset managers. Oil is also a key source of revenue for the sector's investor base, which consists largely of local high-net worth individuals, family offices, and government-related institutions, including sovereign wealth funds (SWFs).
According to Moody's GCC governments' plans to reduce their economic dependence on hydrocarbon extraction and privatise certain state-owned assets should contribute to medium to long term growth, and encourage the development of capital markets.
The profitability of asset managers in most Gulf countries will face moderate to high pressure in the next 12-18 months, according to a report by Moody's. It also noted that factors such as the COVID-19 crisis and the drop in oil prices have weighed on assets under management (AUM).
“The sector's relatively low geographic and product diversification and regional geopolitical tensions will add further pressure,” said Vanessa Robert, VP-Senior Credit Officer at Moody's. “Still, an improving regulatory environment and growing interest from foreign investors will provide some counterbalancing uplift.”
Current weak oil prices will hold back economic growth and public spending across the region, with negative consequences for asset managers. Oil is also a key source of revenue for the sector's investor base, which consists largely of local high-net worth individuals, family offices, and government-related institutions, including sovereign wealth funds (SWFs).
According to Moody's GCC governments' plans to reduce their economic dependence on hydrocarbon extraction and privatise certain state-owned assets should contribute to medium to long term growth, and encourage the development of capital markets.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #SaudiArabia #Qatar close
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.
Israel sees trade with #UAE at $4 billion a year - Reuters
Israel sees trade with UAE at $4 billion a year - Reuters:
Annual trade between Israel and the United Arab Emirates is expected to reach $4 billion, an Israeli minister said on Monday.
Israel and the UAE announced in August they would normalize diplomatic relations in a deal brokered by Washington.
The UAE has since announced it was scrapping an economic boycott on Israel and officials from the two countries have said they were looking at cooperation in defense, energy, medicine, tourism, technology and financial investment.
A number of Israeli and Emirati businesses have signed deals since the normalization accord was announced.
“Within three to five years trade between Israel and the United Arab Emirates will reach $4 billion,” Israeli Intelligence Minister Eli Cohen told Israel’s Reshet Bet radio station.
Annual trade between Israel and the United Arab Emirates is expected to reach $4 billion, an Israeli minister said on Monday.
Israel and the UAE announced in August they would normalize diplomatic relations in a deal brokered by Washington.
The UAE has since announced it was scrapping an economic boycott on Israel and officials from the two countries have said they were looking at cooperation in defense, energy, medicine, tourism, technology and financial investment.
A number of Israeli and Emirati businesses have signed deals since the normalization accord was announced.
“Within three to five years trade between Israel and the United Arab Emirates will reach $4 billion,” Israeli Intelligence Minister Eli Cohen told Israel’s Reshet Bet radio station.
Oil Extends Drop After #Saudi Price Cuts Underscore Demand Fall - Bloomberg
Oil Extends Drop After Saudi Price Cuts Underscore Demand Fall - Bloomberg:
Oil extended its retreat below $40 a barrel after Saudi Arabia cut pricing for October crude sales, as demand struggles to fully recover from the coronavirus outbreak.
Futures in New York dropped 1.7% after Saudi Aramco reduced its key Arab Light grade by a larger-than-expected amount for shipments to Asia in a sign that fuel demand in the largest oil-importing region is wavering. The company also lowered prices to the U.S. for the first time in six months.
The move compounded losses in the American West Texas Intermediate crude benchmark, which fell 7.5% last week as the demand impact from the coronavirus outbreak continues to weigh on markets. While infection rates in the U.S. are slowing, the pandemic appears to be staging a comeback in parts of Europe and cases in India are still surging.
Oil extended its retreat below $40 a barrel after Saudi Arabia cut pricing for October crude sales, as demand struggles to fully recover from the coronavirus outbreak.
Futures in New York dropped 1.7% after Saudi Aramco reduced its key Arab Light grade by a larger-than-expected amount for shipments to Asia in a sign that fuel demand in the largest oil-importing region is wavering. The company also lowered prices to the U.S. for the first time in six months.
The move compounded losses in the American West Texas Intermediate crude benchmark, which fell 7.5% last week as the demand impact from the coronavirus outbreak continues to weigh on markets. While infection rates in the U.S. are slowing, the pandemic appears to be staging a comeback in parts of Europe and cases in India are still surging.
#UAE's Cambridge Medical owner hires advisory deNovo for potential sale -sources - Reuters
UAE's Cambridge Medical owner hires advisory deNovo for potential sale -sources - Reuters:
The private equity owner of Cambridge Medical and Rehabilitation Center (CMRC), a long-term care business in the United Arab Emirates and Saudi Arabia, has hired corporate advisory firm deNovo for a potential sale of the company, three sources familiar with the matter said.
TVM Capital Healthcare, a Dubai-based private equity business, is planning an exit of its investment in CMRC in a deal valued at between $200 million and $300 million, two of the sources said, declining to be named as the matter is not public. It made the investment in 2012.
Cambridge is one of the few speciality players in this sector and has potential to expand as the need for long-term care for aging patients in the region grows, one of the people familiar with the process said.
A document was circulated by deNovo, a Dubai boutique advisory, to potential buyers to gauge interest, one source said.
The private equity owner of Cambridge Medical and Rehabilitation Center (CMRC), a long-term care business in the United Arab Emirates and Saudi Arabia, has hired corporate advisory firm deNovo for a potential sale of the company, three sources familiar with the matter said.
TVM Capital Healthcare, a Dubai-based private equity business, is planning an exit of its investment in CMRC in a deal valued at between $200 million and $300 million, two of the sources said, declining to be named as the matter is not public. It made the investment in 2012.
Cambridge is one of the few speciality players in this sector and has potential to expand as the need for long-term care for aging patients in the region grows, one of the people familiar with the process said.
A document was circulated by deNovo, a Dubai boutique advisory, to potential buyers to gauge interest, one source said.
ACWA Signs Financing Pact for $650 Million #Saudi Water Project - Bloomberg
ACWA Signs Financing Pact for $650 Million Saudi Water Project - Bloomberg:
ACWA Power obtained financing to help develop a $650 million desalination project in Saudi Arabia.
The transaction is funded through “limited recourse ring-fenced project financing” with Al Rajhi Bank, Abu Dhabi Islamic Bank, Riyad Bank and Mizuho Bank Ltd. as initial mandated lead arrangers, the utility said in a statement. Riyad Bank and Bank AlJazira also provided equity bridge loans earlier this month.
Commercial operation of the seawater reverse osmosis desalination project, known as Jubail-3A, is scheduled toward the end of 2022.
ACWA Power obtained financing to help develop a $650 million desalination project in Saudi Arabia.
The transaction is funded through “limited recourse ring-fenced project financing” with Al Rajhi Bank, Abu Dhabi Islamic Bank, Riyad Bank and Mizuho Bank Ltd. as initial mandated lead arrangers, the utility said in a statement. Riyad Bank and Bank AlJazira also provided equity bridge loans earlier this month.
Commercial operation of the seawater reverse osmosis desalination project, known as Jubail-3A, is scheduled toward the end of 2022.
Boursa #Kuwait suspends trading of 14 companies | ZAWYA MENA Edition
Boursa Kuwait suspends trading of 14 companies | ZAWYA MENA Edition:
Trading has been suspended for 14 Boursa Kuwait companies for a variety of reasons, the stock market announced today.
The suspensions were made by the stock market for 10 different reasons, with Effect Real Estate Co and Danah Al Safat Foodstuff Co (DANAH) both suspended due to liquidation.
DANAH also received a suspension for a loss exceeding 75 percent of paid up capital, as did Ithmaar Holding Co, Al Rai Media Group Co and Al Deera Holding Co and Ajwan Gulf Real Estate.
Effect Real Estate has also failed to file any financial reports since early 2019 and has failed to pay its subscription fees in 2020.
Trading has been suspended for 14 Boursa Kuwait companies for a variety of reasons, the stock market announced today.
The suspensions were made by the stock market for 10 different reasons, with Effect Real Estate Co and Danah Al Safat Foodstuff Co (DANAH) both suspended due to liquidation.
DANAH also received a suspension for a loss exceeding 75 percent of paid up capital, as did Ithmaar Holding Co, Al Rai Media Group Co and Al Deera Holding Co and Ajwan Gulf Real Estate.
Effect Real Estate has also failed to file any financial reports since early 2019 and has failed to pay its subscription fees in 2020.
Oil skids after #Saudi cuts prices, China slows imports - Reuters
Oil skids after Saudi cuts prices, China slows imports - Reuters:
Oil prices were trading down more than 1% on Monday after hitting their lowest since July, as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months and optimism about demand recovery cooled amid the pandemic.
Brent crude LCOc1 was at $42.11 a barrel, down 55 cents or 1.3% by 0642 GMT, after earlier sliding to $41.51, the lowest since July 30.
U.S. West Texas Intermediate crude CLc1 skidded 64 cents, or 1.6%, to $39.13 a barrel after earlier dropping to $38.55, the lowest since July 10.
The world remains awash with crude and fuel despite supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, and government efforts to stimulate the global economy and oil demand. Refiners have reduced their fuel output as a result, causing oil producers such as Saudi Arabia to cut prices to offset the falling crude demand.
Oil prices were trading down more than 1% on Monday after hitting their lowest since July, as Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months and optimism about demand recovery cooled amid the pandemic.
Brent crude LCOc1 was at $42.11 a barrel, down 55 cents or 1.3% by 0642 GMT, after earlier sliding to $41.51, the lowest since July 30.
U.S. West Texas Intermediate crude CLc1 skidded 64 cents, or 1.6%, to $39.13 a barrel after earlier dropping to $38.55, the lowest since July 10.
The world remains awash with crude and fuel despite supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, and government efforts to stimulate the global economy and oil demand. Refiners have reduced their fuel output as a result, causing oil producers such as Saudi Arabia to cut prices to offset the falling crude demand.
MIDEAST STOCKS-Major Gulf markets little changed in early trade | Reuters
MIDEAST STOCKS-Major Gulf markets little changed in early trade | Reuters:
Major stock markets in the Gulf were calm in early trading on Monday in the absence of fresh factors, with financials helping Saudi Arabian shares.
The kingdom’s benchmark index gained 0.2%, with Riyad Bank rising 0.8% and Anaam Holding jumping 7.7%.
Last week, Anaam Holding signed a non-binding memorandum of understanding with Ghadeer Real Estate Company to fully acquire its share capital.
Dubai’s main share index edged up 0.1%, helped by Emirates Integrated Telecommunications 1.9% rise and logistic firm Aramex’s 1.4% gain.
Dubai’s $2 billion dual-tranche bond sale on Wednesday was backed mostly by funds in the Middle East, Europe and the United Kingdom, a document showed.
It was Dubai’s first foray into the public debt markets since 2014, as the Middle Eastern tourism and commerce hub seeks to bolster finances hurt by the COVID-19 pandemic.
The Abu Dhabi index slipped 0.1%, with the country’s largest lender First Abu Dhabi Bank losing 0.3%.
In Qatar, the index added 0.1%. Qatar Islamic Bank rose 0.3%, while Commercial Bank was up 0.5%.
Major stock markets in the Gulf were calm in early trading on Monday in the absence of fresh factors, with financials helping Saudi Arabian shares.
The kingdom’s benchmark index gained 0.2%, with Riyad Bank rising 0.8% and Anaam Holding jumping 7.7%.
Last week, Anaam Holding signed a non-binding memorandum of understanding with Ghadeer Real Estate Company to fully acquire its share capital.
Dubai’s main share index edged up 0.1%, helped by Emirates Integrated Telecommunications 1.9% rise and logistic firm Aramex’s 1.4% gain.
Dubai’s $2 billion dual-tranche bond sale on Wednesday was backed mostly by funds in the Middle East, Europe and the United Kingdom, a document showed.
It was Dubai’s first foray into the public debt markets since 2014, as the Middle Eastern tourism and commerce hub seeks to bolster finances hurt by the COVID-19 pandemic.
The Abu Dhabi index slipped 0.1%, with the country’s largest lender First Abu Dhabi Bank losing 0.3%.
In Qatar, the index added 0.1%. Qatar Islamic Bank rose 0.3%, while Commercial Bank was up 0.5%.
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