Oil edges lower, shrugging off Gulf of Mexico shut-ins | Reuters:
Oil prices slipped slightly on Monday amid concerns about a stalled global economic recovery and with Libya poised to resume production, and failed to get support from an impending storm which has disrupted U.S. output.
Brent crude LCOc1 settled down 22 cents, or 0.6%, at $39.61 a barrel while U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 7 cents, or 0.2%, at $37.26 a barrel.
Both contracts ended last week lower, falling for a second week in a row.
“The storm is taking production offline in the Gulf of Mexico, and the market doesn’t care - that shows just how bad the situation is,” said Bob Yawger, director of energy futures for Mizuho in New York.
Monday 14 September 2020
Russia's Sberbank to target Middle East investors with #UAE subsidiary | ZAWYA MENA Edition
Russia's Sberbank to target Middle East investors with UAE subsidiary | ZAWYA MENA Edition:
Russia's largest lender Sberbank SBER.MM has received approval in principle to open an office in the United Arab Emirates to facilitate investment between Russian and Middle Eastern investors, the bank said on Monday.
The state-owned bank said Sberinvest Middle East would engage in trade finance of Russian exports to the Middle East and that the company's launch would create a link between Russian businesses and investors from the region.
Sberbank, which already has three million customers in 17 countries outside Russia, expects to obtain final authorisation from the Financial Services Regulatory Authority to open an office in Abu Dhabi by the end of the year.
"Last week we obtained an in-principle approval from the local regulator to open Sberinvest Middle East Limited, which followed an approval from the Russian watchdog," Oleg Ganeev, chairman of Sberinvest Middle East's board, said in a statement.
Russia's largest lender Sberbank SBER.MM has received approval in principle to open an office in the United Arab Emirates to facilitate investment between Russian and Middle Eastern investors, the bank said on Monday.
The state-owned bank said Sberinvest Middle East would engage in trade finance of Russian exports to the Middle East and that the company's launch would create a link between Russian businesses and investors from the region.
Sberbank, which already has three million customers in 17 countries outside Russia, expects to obtain final authorisation from the Financial Services Regulatory Authority to open an office in Abu Dhabi by the end of the year.
"Last week we obtained an in-principle approval from the local regulator to open Sberinvest Middle East Limited, which followed an approval from the Russian watchdog," Oleg Ganeev, chairman of Sberinvest Middle East's board, said in a statement.
GP Global's tanker seized in India over loan dispute: document | Reuters
GP Global's tanker seized in India over loan dispute: document | Reuters:
An Indian court has ordered the seizure of a tanker belonging to Dubai-based oil trading firm GP Global after a petition from UAE lender National Bank of Fujairah over a loan default, a court document showed.
The Gujarat High Court directed the authorities of Pipavav Port on Sept. 9 to seize the company’s bunkering tanker, GP B3, and detain it until a further court order or until the outstanding loan amount of just over $2 million is paid, a court document seen by Reuters shows. The next hearing is on Sept. 17.
GP Global said last month it had appointed restructuring experts after failing to reach a deal with its lenders over debt restructuring. It said in July an internal investigation had uncovered fraud within the company and led to criminal complaints against some of its employees.
In the legal challenge in India, lawyers for National Bank of Fujairah (NBF) told the court the company had borrowed $11.05 million from the bank in 2015 and mortgaged the seized vessel as well as two other tankers, the GP B2 and GP Asphalt III.
An Indian court has ordered the seizure of a tanker belonging to Dubai-based oil trading firm GP Global after a petition from UAE lender National Bank of Fujairah over a loan default, a court document showed.
The Gujarat High Court directed the authorities of Pipavav Port on Sept. 9 to seize the company’s bunkering tanker, GP B3, and detain it until a further court order or until the outstanding loan amount of just over $2 million is paid, a court document seen by Reuters shows. The next hearing is on Sept. 17.
GP Global said last month it had appointed restructuring experts after failing to reach a deal with its lenders over debt restructuring. It said in July an internal investigation had uncovered fraud within the company and led to criminal complaints against some of its employees.
In the legal challenge in India, lawyers for National Bank of Fujairah (NBF) told the court the company had borrowed $11.05 million from the bank in 2015 and mortgaged the seized vessel as well as two other tankers, the GP B2 and GP Asphalt III.
OPEC sees steeper oil demand drop as virus remains challenging | Reuters
OPEC sees steeper oil demand drop as virus remains challenging | Reuters:
World oil demand will fall more steeply in 2020 than previously forecast due to the coronavirus and recover more slowly than expected next year, OPEC said on Monday, potentially making it harder for the group and its allies to support the market.
World oil demand will tumble by 9.46 million barrels per day (bpd) this year, the Organization of the Petroleum Exporting Countries said in a monthly report, more than the 9.06 million bpd decline expected a month ago.
Oil prices have collapsed as the coronavirus crisis has curtailed travel and economic activity. While some countries have eased lockdowns, allowing demand to recover, a rising number of new cases and higher oil output have weighed on prices.
“Risks remain elevated and tilted to the downside, particularly related to the development of COVID-19 infection cases as well as possible cures,” OPEC said of the 2021 outlook.
World oil demand will fall more steeply in 2020 than previously forecast due to the coronavirus and recover more slowly than expected next year, OPEC said on Monday, potentially making it harder for the group and its allies to support the market.
World oil demand will tumble by 9.46 million barrels per day (bpd) this year, the Organization of the Petroleum Exporting Countries said in a monthly report, more than the 9.06 million bpd decline expected a month ago.
Oil prices have collapsed as the coronavirus crisis has curtailed travel and economic activity. While some countries have eased lockdowns, allowing demand to recover, a rising number of new cases and higher oil output have weighed on prices.
“Risks remain elevated and tilted to the downside, particularly related to the development of COVID-19 infection cases as well as possible cures,” OPEC said of the 2021 outlook.
#Dubai's Emirates NDB signs MoU with #Israel's Bank Hapoalim | Reuters
Dubai's Emirates NDB signs MoU with Israel's Bank Hapoalim | Reuters:
The two largest lenders in the United Arab Emirates and Israel, Emirates NDB and Bank Hapoalim, signed a memorandum of understanding (MoU) as the two countries move to forge ties, a statement from Hapoalim said on Monday.
It is the first banking agreement between lenders in the two countries since they agreed to normalise ties under a U.S.-brokered accord.
“The MoU marks a historic first as the banks look to further cooperation ties following the establishment of financial and economic relations between the United Arab Emirates and Israel,” the Bank Hapoalim statement said.
The UAE, along with Bahrain, is due to sign a normalisation deal with Israel on Tuesday at a White House ceremony hosted by U.S. President Donald Trump.
The two largest lenders in the United Arab Emirates and Israel, Emirates NDB and Bank Hapoalim, signed a memorandum of understanding (MoU) as the two countries move to forge ties, a statement from Hapoalim said on Monday.
It is the first banking agreement between lenders in the two countries since they agreed to normalise ties under a U.S.-brokered accord.
“The MoU marks a historic first as the banks look to further cooperation ties following the establishment of financial and economic relations between the United Arab Emirates and Israel,” the Bank Hapoalim statement said.
The UAE, along with Bahrain, is due to sign a normalisation deal with Israel on Tuesday at a White House ceremony hosted by U.S. President Donald Trump.
#Kuwait Bourse Debuts in Region’s Best 1st-Day Pop for a Year - Bloomberg
Kuwait Bourse Debuts in Region’s Best 1st-Day Pop for a Year - Bloomberg:
Boursa Kuwait surged more than 10-fold in its trading debut on Monday as it became only the third publicly traded exchange in the Middle East.
Shares in the bourse operator rose as high as 1,210 fils, after being sold at 100 fills in an offering to Kuwaiti citizens last year. It’s the strongest debut of any stock in Europe, the Middle East and Africa for a year. They pared the increase to 1,055 fils at the close, with the country’s Premier Market finishing 0.4% higher.
The trading debut was initially expected to take place in April and comes ahead of Kuwait’s upgrade to the group of countries classified as emerging market by MSCI Inc. in November, a move anticipated to trigger inflows from foreign investors.
Boursa Kuwait joins Dubai Financial Market PJSC and Tel Aviv Stock Exchange Ltd. as publicly traded regional exchanges. The sale of 50% of the company to individuals followed a 44% sale to a consortium of domestic and international investors last year, and was the last stage of a privatization process. The remaining 6% is owned by the country’s Public Institute for Social Security.
While Monday marked the stock’s exchange debut, the shares have been traded on the local over-the-counter platform since Jan. 15. The price of 100 fils a share was set by the Capital Markets Authority law that mandated the privatization of the Kuwait Stock Exchange.
Boursa Kuwait “is being listed at a 40-50% discount to its EM peers, despite enjoying higher margins, returns on capital, and historical earnings growth,” said Gus Chehayeb, the chief investment officer at Sancta Capital Group Ltd. in Dubai. Sancta Capital has been buying Boursa Kuwait shares in the over-the-counter market since January.
“Note that Kuwait has a history of redistributing its wealth among its citizens by essentially gifting them stakes in recently privatized lucrative state-owned assets,” said Chehayeb.
The shares outstanding and traded on Kuwait’s exchange have a combined market value of about $91 billion, according to data compiled by Bloomberg. That compares to $157 billion for the Tel Aviv Stock Exchange and $265 billion for the combined markets of Dubai and Abu Dhabi.
Boursa Kuwait surged more than 10-fold in its trading debut on Monday as it became only the third publicly traded exchange in the Middle East.
Shares in the bourse operator rose as high as 1,210 fils, after being sold at 100 fills in an offering to Kuwaiti citizens last year. It’s the strongest debut of any stock in Europe, the Middle East and Africa for a year. They pared the increase to 1,055 fils at the close, with the country’s Premier Market finishing 0.4% higher.
The trading debut was initially expected to take place in April and comes ahead of Kuwait’s upgrade to the group of countries classified as emerging market by MSCI Inc. in November, a move anticipated to trigger inflows from foreign investors.
Boursa Kuwait joins Dubai Financial Market PJSC and Tel Aviv Stock Exchange Ltd. as publicly traded regional exchanges. The sale of 50% of the company to individuals followed a 44% sale to a consortium of domestic and international investors last year, and was the last stage of a privatization process. The remaining 6% is owned by the country’s Public Institute for Social Security.
While Monday marked the stock’s exchange debut, the shares have been traded on the local over-the-counter platform since Jan. 15. The price of 100 fils a share was set by the Capital Markets Authority law that mandated the privatization of the Kuwait Stock Exchange.
Boursa Kuwait “is being listed at a 40-50% discount to its EM peers, despite enjoying higher margins, returns on capital, and historical earnings growth,” said Gus Chehayeb, the chief investment officer at Sancta Capital Group Ltd. in Dubai. Sancta Capital has been buying Boursa Kuwait shares in the over-the-counter market since January.
“Note that Kuwait has a history of redistributing its wealth among its citizens by essentially gifting them stakes in recently privatized lucrative state-owned assets,” said Chehayeb.
The shares outstanding and traded on Kuwait’s exchange have a combined market value of about $91 billion, according to data compiled by Bloomberg. That compares to $157 billion for the Tel Aviv Stock Exchange and $265 billion for the combined markets of Dubai and Abu Dhabi.
Citi Has a Message for Oil Bulls: $60 Oil to Return by 2021 - Bloomberg
Citi Has a Message for Oil Bulls: $60 Oil to Return by 2021 - Bloomberg
Citigroup Inc. has a message to cheer up despairing oil bulls: prices will get back to $60 a barrel before the end of 2021.
Citigroup Inc. has a message to cheer up despairing oil bulls: prices will get back to $60 a barrel before the end of 2021.
“We’re bullish definitely,” Ed Morse, global head of commodities research at Citi, said in an interview during the S&P Global Platts Asia Pacific Petroleum Conference. “In our base case, prices go up because the market balances” and gigantic inventories are drawn down, he said.
The rate at which those stockpiles are shrinking appears to have slowed in recent weeks as the coronavirus proved stubbornly persistent and the OPEC+ alliance returned barrels to the market. That’s pushed global benchmark Brent crude down around 12% so far this month.
It will take until late 2021 for global oil consumption to return to the 2019 level of 101 million barrels a day due to growth in economy, Morse said. Citi sees global benchmark Brent crude, which is currently trading near $40 a barrel, averaging around $55 in 2021 before getting back to the $60 mark by the end of the year. West Texas Intermediate will recover to $58 by then.
The rate at which those stockpiles are shrinking appears to have slowed in recent weeks as the coronavirus proved stubbornly persistent and the OPEC+ alliance returned barrels to the market. That’s pushed global benchmark Brent crude down around 12% so far this month.
It will take until late 2021 for global oil consumption to return to the 2019 level of 101 million barrels a day due to growth in economy, Morse said. Citi sees global benchmark Brent crude, which is currently trading near $40 a barrel, averaging around $55 in 2021 before getting back to the $60 mark by the end of the year. West Texas Intermediate will recover to $58 by then.
Nomura Cuts #Dubai Investment Bank Jobs in Mideast Coverage Shift - Bloomberg
Nomura Cuts Dubai Investment Bank Jobs in Mideast Coverage Shift - Bloomberg:
Nomura Holdings Inc. eliminated about a half dozen investment banking jobs in Dubai, as Japan’s biggest brokerage shrinks its Middle East footprint and moves coverage of the region to staff in other offices.
The Tokyo-based firm made the cuts in recent weeks, and will now serve Middle Eastern clients from cities where it has bigger operations, such as London, people with knowledge of the matter said. Its asset management and global markets divisions will keep their on-the-ground presence, the people said, asking not to be identified because the information is private.
Nomura has been overhauling its global wholesale business since April last year in a bid to save $1 billion in costs and sustain profitability abroad. New Chief Executive Officer Kentaro Okuda has persisted with those efforts by cutting dozens of investment banking jobs in the U.S., Bloomberg reported in July.
The firm obtained its license to operate from Dubai’s financial center in 2009 after acquiring parts of Lehman Brothers Holdings Inc. during the global financial crisis.
Nomura Holdings Inc. eliminated about a half dozen investment banking jobs in Dubai, as Japan’s biggest brokerage shrinks its Middle East footprint and moves coverage of the region to staff in other offices.
The Tokyo-based firm made the cuts in recent weeks, and will now serve Middle Eastern clients from cities where it has bigger operations, such as London, people with knowledge of the matter said. Its asset management and global markets divisions will keep their on-the-ground presence, the people said, asking not to be identified because the information is private.
Nomura has been overhauling its global wholesale business since April last year in a bid to save $1 billion in costs and sustain profitability abroad. New Chief Executive Officer Kentaro Okuda has persisted with those efforts by cutting dozens of investment banking jobs in the U.S., Bloomberg reported in July.
The firm obtained its license to operate from Dubai’s financial center in 2009 after acquiring parts of Lehman Brothers Holdings Inc. during the global financial crisis.
Investment banks have gradually scaled back their presence in the United Arab Emirates in recent years amid a lack of major deals. Nomura struggled to meet competition from banks like HSBC Holdings Plc that deployed their massive balance sheets in the region, and from more specialized firms like Moelis & Co., one of the people said.
MIDEAST STOCKS-Most major Gulf markets rise; #Qatar eases | Reuters
MIDEAST STOCKS-Most major Gulf markets rise; Qatar eases | Reuters:
Most major Gulf markets ended higher on Monday, with financial shares boosting the Saudi index, while Qatar bucked the trend to close lower.
Saudi Arabia's benchmark index rose 0.6%, extending gains for a third straight session, with Al Rajhi Bank gaining 0.6% and National Commercial Bank, the country's largest lender, advancing 2.7%.
The kingdom will partially lift its suspension of international flights as of Sept. 15 to allow "exceptional categories" of citizens and residents to travel, the state news agency SPA said on Sunday.
Saudi Arabia will scrap all travel restrictions on air, land and sea transport for citizens on Jan. 1, 2021, the agency added.
Dubai's main share index closed up 0.4%, boosted by a 6.5% jump in DAMAC Properties and a 0.7% increase in blue-chip developer Emaar Properties.
The Abu Dhabi index added 0.1%, helped by a 5.5% leap in Abu Dhabi National Oil Company for Distribution .
Abu Dhabi National Oil Company (ADNOC) completed a placement to institutional investors of 1.25 billion shares in ADNOC Distribution.
This represents 10% of ADNOC Distribution's share capital. With the additional 10% placement, valued at $1 billion, the free float will rise to 20% and contribute to improved liquidity of ADNOC Distribution shares, the company said.
In Qatar, the index, which advanced over 1% in the previous session, slipped 0.1%. Qatar National Bank, the Gulf's largest lender, declined 2.4% and Qatar Fuel Company was down 1.4%.
Boursa Kuwait, the country's national stock market, made its public debut on Monday at more than 10 times the price its shares were offered to citizens last year, becoming the Gulf's second publicly listed stock exchange.
The Kuwaiti index increased 0.4%.
Outside the Gulf, Egypt's blue-chip index fell 0.5%, weighed down by a 0.8% drop in Commercial International Bank.
#UAE- #Israel Treaty Doesn’t Wind Things Up Right Away - Bloomberg
UAE-Israel Treaty Doesn’t Wind Things Up Right Away - Bloomberg:
The treaty Israel and the United Arab Emirates will sign this week won’t fully normalize ties, but will be the start of a yearlong process that could protect the Gulf nation’s interests as it lobbies to buy the U.S.’s top warplane, according to people briefed on the pact.
The plan is for both sides to gradually increase cooperation over the course of a year, starting with economic cooperation, continuing with deepened security and intelligence ties, then culminating in the exchange of ambassadors, the two people familiar said on condition of anonymity to discuss confidential conversations.
While phased agreements run the risk of never ripening into subsequent stages, the Emiratis apparently concluded that’s “less risky than waking up one morning and finding out that their major move -- historic move -- turns into a fiasco,” said Nimrod Novik, a veteran Israeli peace negotiator and a fellow at the Israel Policy Forum think tank.
The treaty Israel and the United Arab Emirates will sign this week won’t fully normalize ties, but will be the start of a yearlong process that could protect the Gulf nation’s interests as it lobbies to buy the U.S.’s top warplane, according to people briefed on the pact.
The plan is for both sides to gradually increase cooperation over the course of a year, starting with economic cooperation, continuing with deepened security and intelligence ties, then culminating in the exchange of ambassadors, the two people familiar said on condition of anonymity to discuss confidential conversations.
While phased agreements run the risk of never ripening into subsequent stages, the Emiratis apparently concluded that’s “less risky than waking up one morning and finding out that their major move -- historic move -- turns into a fiasco,” said Nimrod Novik, a veteran Israeli peace negotiator and a fellow at the Israel Policy Forum think tank.
Exchange Operator Boursa #Kuwait Surges Tenfold in Trading Debut - Bloomberg
Exchange Operator Boursa Kuwait Surges Tenfold in Trading Debut - Bloomberg:
Boursa Kuwait surged tenfold on its trading debut on Monday as it became only the third publicly listed exchange in the Middle East.
Shares in the bourse operator rose as much as 1,100% shortly after the open. The stock traded as high as 1,210 fils, after being sold at 100 fills in an offering last year. The country’s Premier Market index was up 0.4%.
The trading debut was initially expected to take place in April and comes ahead of Kuwait’s upgrade to the group of countries classified as emerging market by MSCI Inc. in November, a move expected to trigger inflows from foreign investors.
Boursa Kuwait joins Dubai Financial Market PJSC and Tel Aviv Stock Exchange Ltd. as the third publicly traded stock exchange in the Middle East. The IPO of 50% of the bourse to local citizens followed a 44% sale to a consortium of domestic and international investors. Prior to the public listing, Boursa Kuwait shares have been allowed to trade on the over-the-counter platform since Jan. 15.
Boursa Kuwait surged tenfold on its trading debut on Monday as it became only the third publicly listed exchange in the Middle East.
Shares in the bourse operator rose as much as 1,100% shortly after the open. The stock traded as high as 1,210 fils, after being sold at 100 fills in an offering last year. The country’s Premier Market index was up 0.4%.
The trading debut was initially expected to take place in April and comes ahead of Kuwait’s upgrade to the group of countries classified as emerging market by MSCI Inc. in November, a move expected to trigger inflows from foreign investors.
Boursa Kuwait joins Dubai Financial Market PJSC and Tel Aviv Stock Exchange Ltd. as the third publicly traded stock exchange in the Middle East. The IPO of 50% of the bourse to local citizens followed a 44% sale to a consortium of domestic and international investors. Prior to the public listing, Boursa Kuwait shares have been allowed to trade on the over-the-counter platform since Jan. 15.
Oil Giant Aramco Regains Top Spot From Apple as Tech Rally Fades - Bloomberg
Oil Giant Aramco Regains Top Spot From Apple as Tech Rally Fades - Bloomberg:
Saudi Aramco is once again the world’s most valuable company after its market capitalization rose a shade above Apple Inc. amid a slump in U.S. technology shares.
The state oil giant’s stock has gained 1.1% in Riyadh this month, despite Brent crude dropping 12% to below $40 a barrel as concerns about an acceleration in coronavirus infections mount.
Meanwhile, Apple has fallen nearly 17% in September. That’s almost taken the stock into bear-market territory -- which is a 20% drop from a recent peak -- and the company’s market value has declined to $1.9 trillion from $2.3 trillion.
Saudi Aramco is once again the world’s most valuable company after its market capitalization rose a shade above Apple Inc. amid a slump in U.S. technology shares.
The state oil giant’s stock has gained 1.1% in Riyadh this month, despite Brent crude dropping 12% to below $40 a barrel as concerns about an acceleration in coronavirus infections mount.
Meanwhile, Apple has fallen nearly 17% in September. That’s almost taken the stock into bear-market territory -- which is a 20% drop from a recent peak -- and the company’s market value has declined to $1.9 trillion from $2.3 trillion.
Sovereigns raid rainy day funds for $100 billion after COVID-19 storm | Reuters
Sovereigns raid rainy day funds for $100 billion after COVID-19 storm | Reuters:
Countries coping with the coronavirus crisis and a slump in commodities prices are dipping into sovereign wealth funds for more than $100 billion, and that figure could swell as budget pressures mount for some emerging markets.
Governments from Angola to East Timor have built up “rainy day” savings to help stabilise their economies and support their citizens in the event of a shock. Some funds -- especially derived from commodities wealth -- are worth multiples of national economic output.
The twin blow of the commodities collapse and the pandemic, which stalled much economic activity for months, is likely to drain stabilisation funds in countries like Peru and Colombia, according to Global SWF, which tracks such funds.
Big chunks of similar funds in Ghana and Nigeria are likely to be spent, it said, while 24 withdrawals totalling about $137 billion include heavy drawdowns of savings or development funds in Bahrain, Kuwait, Iran and Angola.
Countries coping with the coronavirus crisis and a slump in commodities prices are dipping into sovereign wealth funds for more than $100 billion, and that figure could swell as budget pressures mount for some emerging markets.
Governments from Angola to East Timor have built up “rainy day” savings to help stabilise their economies and support their citizens in the event of a shock. Some funds -- especially derived from commodities wealth -- are worth multiples of national economic output.
The twin blow of the commodities collapse and the pandemic, which stalled much economic activity for months, is likely to drain stabilisation funds in countries like Peru and Colombia, according to Global SWF, which tracks such funds.
Big chunks of similar funds in Ghana and Nigeria are likely to be spent, it said, while 24 withdrawals totalling about $137 billion include heavy drawdowns of savings or development funds in Bahrain, Kuwait, Iran and Angola.
ADNOC completes $1 billion institutional placement for distribution business | Reuters
ADNOC completes $1 billion institutional placement for distribution business | Reuters:
State-run Abu Dhabi National Oil Company (ADNOC) said on Monday it had completed a placement to institutional investors of 10% in its subsidiary ADNOC Distribution’s ADNOCDIST.AD total share capital, or 1.25 billion shares, valued at $1 billion.
The placement will increase ADNOC Distribution’s free float to 20%, and contribute to improved liquidity of the company, ADNOC said in a statement. ADNOC will retain an 80% strategic stake in ADNOC Distribution and continues to see strong growth potential in the company, it added.
The transaction represents “the largest block placement of a publicly listed” company in the Gulf region and “leverages significant investor demand for ADNOC Distribution shares”, ADNOC said.
In 2017, ADNOC listed 10% of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, on the Abu Dhabi Securities Exchange.
ADNOC had been considering selling a bigger stake in its fuel distribution business, including a secondary listing overseas, after the initial public offering (IPO) in 2017, Reuters had reported.
State-run Abu Dhabi National Oil Company (ADNOC) said on Monday it had completed a placement to institutional investors of 10% in its subsidiary ADNOC Distribution’s ADNOCDIST.AD total share capital, or 1.25 billion shares, valued at $1 billion.
The placement will increase ADNOC Distribution’s free float to 20%, and contribute to improved liquidity of the company, ADNOC said in a statement. ADNOC will retain an 80% strategic stake in ADNOC Distribution and continues to see strong growth potential in the company, it added.
The transaction represents “the largest block placement of a publicly listed” company in the Gulf region and “leverages significant investor demand for ADNOC Distribution shares”, ADNOC said.
In 2017, ADNOC listed 10% of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, on the Abu Dhabi Securities Exchange.
ADNOC had been considering selling a bigger stake in its fuel distribution business, including a secondary listing overseas, after the initial public offering (IPO) in 2017, Reuters had reported.
MIDEAST STOCKS-Banks lift #Saudi shares, real estate boosts #UAE markets | Reuters
MIDEAST STOCKS-Banks lift Saudi shares, real estate boosts UAE markets | Reuters:
Most Gulf stock markets rose on Monday, with the Saudi Arabian index boosted by financial shares, while markets in the United Arab Emirates gained on strength in property shares.
Saudi’s benchmark index gained 0.6%, with the country’s largest lender National Commercial Bank climbing 2.3%. Al Rajhi Bank firmed 0.6%.
The kindgom will partially lift its suspension of international flights as of Sept. 15 to allow “exceptional categories” of citizens and residents to travel, the state news agency SPA said on Sunday.
The news agency also said Saudi Arabia will scrap all travel restrictions on air, land and sea transport for citizens on Jan. 1, 2021.
Dubai’s main share index rose 0.4%, driven by a 0.9% gain in Emirates NBD Bank and a 5.2% jump in DAMAC Properties.
The Abu Dhabi index edged up 0.1%, supported by a 1.5% rise in Aldar Properties and a 0.3% increase in Abu Dhabi National Oil Company for Distribution.
Abu Dhabi National Oil Company (ADNOC) completed a placement to institutional investors of 1.25 billion shares in ADNOC Distribution.
This represents 10% of ADNOC Distribution’s share capital. With the additional 10% placement, valued at $1 billion, the free float will rise to 20% and, contributing to improved liquidity of ADNOC Distribution shares, the company said.
Boursa Kuwait, the country’s national stock market, made its public debut on Monday at more than 10 times the price its shares were offered to citizens last year, becoming the Gulf’s second publicly listed stock exchange.
The Kuwaiti index was up 0.2%.
In Qatar, the index slipped 0.1%, hurt by a 1.3% fall in the Gulf’s largest lender Qatar National Bank.
Most Gulf stock markets rose on Monday, with the Saudi Arabian index boosted by financial shares, while markets in the United Arab Emirates gained on strength in property shares.
Saudi’s benchmark index gained 0.6%, with the country’s largest lender National Commercial Bank climbing 2.3%. Al Rajhi Bank firmed 0.6%.
The kindgom will partially lift its suspension of international flights as of Sept. 15 to allow “exceptional categories” of citizens and residents to travel, the state news agency SPA said on Sunday.
The news agency also said Saudi Arabia will scrap all travel restrictions on air, land and sea transport for citizens on Jan. 1, 2021.
Dubai’s main share index rose 0.4%, driven by a 0.9% gain in Emirates NBD Bank and a 5.2% jump in DAMAC Properties.
The Abu Dhabi index edged up 0.1%, supported by a 1.5% rise in Aldar Properties and a 0.3% increase in Abu Dhabi National Oil Company for Distribution.
Abu Dhabi National Oil Company (ADNOC) completed a placement to institutional investors of 1.25 billion shares in ADNOC Distribution.
This represents 10% of ADNOC Distribution’s share capital. With the additional 10% placement, valued at $1 billion, the free float will rise to 20% and, contributing to improved liquidity of ADNOC Distribution shares, the company said.
Boursa Kuwait, the country’s national stock market, made its public debut on Monday at more than 10 times the price its shares were offered to citizens last year, becoming the Gulf’s second publicly listed stock exchange.
The Kuwaiti index was up 0.2%.
In Qatar, the index slipped 0.1%, hurt by a 1.3% fall in the Gulf’s largest lender Qatar National Bank.
Gulf's fiscal diet risks deeper pain amid oil price uncertainty | Reuters
Gulf's fiscal diet risks deeper pain amid oil price uncertainty | Reuters:
Oil-rich Gulf nations are relying on a well-worn playbook of spending less and borrowing more to get through the coronavirus crisis but with the outlook for oil clouded by uncertainty the strategy is riskier than before.
Previous bouts of belt-tightening have relied on rebounding oil prices to replenish state coffers but Gulf states have bigger funding needs and lower foreign assets than in previous crises, while the pandemic risks keeping energy demand subdued for longer.
Brent prices LCOc1 have rebounded since plunging to a more than 20-year low in April, but at just over $40 per barrel, they are significantly below what most Gulf states would need to balance their budgets.
In the meantime, the shift to austerity in a region where government spending is the main engine of economic growth, along with a move in some countries to protect citizens’ jobs at the expense of foreign workers, is already hurting growth prospects.
“The problem faced by the GCC (Gulf Cooperation Council) is that domestic demand is driven by government spending and this would need significantly higher oil prices,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Oil-rich Gulf nations are relying on a well-worn playbook of spending less and borrowing more to get through the coronavirus crisis but with the outlook for oil clouded by uncertainty the strategy is riskier than before.
Previous bouts of belt-tightening have relied on rebounding oil prices to replenish state coffers but Gulf states have bigger funding needs and lower foreign assets than in previous crises, while the pandemic risks keeping energy demand subdued for longer.
Brent prices LCOc1 have rebounded since plunging to a more than 20-year low in April, but at just over $40 per barrel, they are significantly below what most Gulf states would need to balance their budgets.
In the meantime, the shift to austerity in a region where government spending is the main engine of economic growth, along with a move in some countries to protect citizens’ jobs at the expense of foreign workers, is already hurting growth prospects.
“The problem faced by the GCC (Gulf Cooperation Council) is that domestic demand is driven by government spending and this would need significantly higher oil prices,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Oil moves higher as storm threatens U.S. Gulf Coast | Reuters
Oil moves higher as storm threatens U.S. Gulf Coast | Reuters:
Oil prices rose on Monday as a tropical storm in the Gulf of Mexico prompted drillers to evacuate rigs and shut in production, although gains were muted by concerns about excess global supplies and falling fuel demand.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 14 cents, or 0.4%, at $37.47 a barrel by around 0629 GMT. Brent crude LCOc1 was 6 cents, or 0.2%, higher at $39.89 a barrel.
Both contracts ended last week lower, falling for a second week in a row.
Tropical Storm Sally gained in strength in the Gulf of Mexico west of Florida on Sunday and was poised to become a category 2 hurricane. The storm is disrupting oil production for the second time in less than a month after hurricane Laura swept through the region.
Oil prices rose on Monday as a tropical storm in the Gulf of Mexico prompted drillers to evacuate rigs and shut in production, although gains were muted by concerns about excess global supplies and falling fuel demand.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 14 cents, or 0.4%, at $37.47 a barrel by around 0629 GMT. Brent crude LCOc1 was 6 cents, or 0.2%, higher at $39.89 a barrel.
Both contracts ended last week lower, falling for a second week in a row.
Tropical Storm Sally gained in strength in the Gulf of Mexico west of Florida on Sunday and was poised to become a category 2 hurricane. The storm is disrupting oil production for the second time in less than a month after hurricane Laura swept through the region.