#Saudi Stock Index Set to Be First in Gulf to Erase 2020 Drop - Bloomberg

Saudi Stock Index Set to Be First in Gulf to Erase 2020 Drop - Bloomberg:

Saudi Arabia’s main equity index is poised to be the first in the Gulf to erase losses accumulated in 2020 as local investors shrug off low oil prices and boost their exposure to stocks.

The Tadawul All Share Index advanced as much as 0.3% on Monday, climbing above its closing level on Dec. 31. Saudi Basic Industries Corp., Saudi Telecom Co. and Banque Saudi Fransi provided the biggest boost to the market by index points.

While the Saudi index is outperforming peers in the oil-rich neighborhood as investors seek alternatives in a low interest rate environment, it is just catching up with other equity gauges amid a recent surge in global markets.

The MSCI Emerging Markets Index, which has a more than 50% weighting in Asian stocks, erased 2020’s drop late last last month. Other emerging makets that have already traded in the green for the year include South Africa and Turkey.

OPEC: Why #SaudiArabia Wants to Scare Oil Traders - Bloomberg

OPEC: Why Saudi Arabia Wants to Scare Oil Traders - Bloomberg:

Last week’s virtual meeting of oil ministers from the OPEC+ alliance was a fascinating insight into the exercise of power by Saudi oil minister Prince Abdulaziz Bin Salman. It opened with ABS, as he’s referred to, lecturing his counterparts about the importance of honoring the oil output cuts they agree to, not as an act of charity but as a vital commitment to maximizing each member country’s profits.

The only person sitting at the table with him in Riyadh was the oil minister of the United Arab Emirates — the latest country to blatantly ignore its production goal. It can’t have been a particularly comfortable place to be.

It turns out that the new OPEC — where members are meant to be in it all together, sticking to output targets and making up for any shortfalls with deeper compensatory reductions — is starting to show some similarities to the old OPEC, which was marred by rampant cheating.

During the first four months of the deal OPEC+ struck in April implementing record output cuts, the 10 OPEC countries bound by the pact — plus 10 more from outside the group — pumped just 12.7 million barrels more than they agreed. That puts the overall compliance rate at just over 98%, an astonishingly high figure for a group with a reputation for missing its targets by a wide margin.

Column: Hedge fund selling slows ahead of #Saudi warning | Reuters

Column: Hedge fund selling slows ahead of Saudi warning | Reuters:

Hedge funds sold petroleum for the fourth week running, though the rate slowed from the two-year peak set a week earlier, as they lowered their expectations on oil consumption, prompting Saudi Arabia to issue an unusually blunt warning to short sellers.

Hedge funds and other money managers sold the equivalent of 18 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 15, down from sales of 171 million the week before.

The combined position across all six contracts has fallen to 426 million barrels (which puts it in the 24th percentile for all weeks since 2013) from 664 million barrels on Aug. 18 (the 63rd percentile).

Petroleum positions have turned firmly bearish, from moderately bullish in the middle of last month, records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission show.

Portfolio managers have become sceptical about market rebalancing as OPEC+ shows signs of weariness with production cuts and oil consumption recovers more slowly from the pandemic than anticipated.

Oil price fall hurts major Gulf markets | Reuters

Oil price fall hurts major Gulf markets | Reuters:

Major Middle Eastern markets ended lower on Monday, after oil prices slid on the possible return of Libyan production and as rising COVID-19 cases around the world stoked demand concerns.

Brent crude LCOc1 was down 99 cents or 2.1% at $42.23 a barrel by 1227 GMT. [O/R]

Global oil refiners are cutting fuel production into the autumn as the recovery in demand from the impact of coronavirus has stalled, according to executives, refinery workers and industry analysts.

Saudi Arabia's benchmark index .TASI fell 0.9%, with Al Rajhi Bank 1120.SE losing 0.6%, while Riyad Bank 1010.SE shed 2%.

Dubai's main share index .DFMGI dropped 2.2%, pressured by a 2.8% fall in sharia-compliant lender Dubai Islamic Bank DISB.DU and 3.3% slide in blue-chip developer Emaar Properties EMAR.DU. 


Lower prices and disruptions to crude exports could impact fiscal balances in countries reliant on oil income.

The Abu Dhabi index .ADI declined 1.2%, driven down by a 1.6% drop in the country's largest lender First Abu Dhabi Bank FAB.AD and a 1% decrease in Emirates Telecommunications Group.

In Qatar, the index .QSI retreated 1.5%, as all the shares on the index were in negative territory except one. Petrochemical maker Industries Qatar IQCD.QA slid 2.2%, while Mesaieed Petrochemical MPHC.QA slid 4.6%.

Oil falls 5% as economic outlook dims with rising virus cases | Reuters

Oil falls 5% as economic outlook dims with rising virus cases | Reuters:

Oil prices plunged about 5% on Monday, weakening as rising coronavirus cases stoked worries about global demand, and a potential return of Libyan production bolstered oversupply fears.

Crude oil followed other equities and commodities markets in turning risk-averse on Monday as rising COVID-19 infection rates in Europe and other countries prompted renewed lockdown measures, casting doubt over economic recovery.

“We’re seeing more depressing news on jet fuel demand,” said Gary Cunningham, director of market research at Tradition Energy in Stamford, Connecticut. “We’re looking for a much softer market. The economic picture doesn’t look as rosy as it did before.”

Brent crude LCOc1 settled down $1.71, or 3.96% at $41.44 a barrel. U.S. crude CLc1 fell $1.80, or 4.38% to $39.31 a barrel. Both contracts were set for their biggest daily drops in two weeks.

Prices pulled back amid mounting concerns that an increase in coronavirus cases could cut demand.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #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.

#Israel's Leumi, #UAE's DP World partner on regional trade | Reuters

Israel's Leumi, UAE's DP World partner on regional trade | Reuters:

Israel's Bank Leumi LUMI.TA and Dubai's DP World said on Monday they had agreed to partner in boosting trade between Israel and the rest of the Middle East.

This includes possible financing for the development of Israel’s port sector, Leumi, one of Israel’s largest lenders, said in a statement.

The memorandum of understanding includes simplifying working capital requirements to improve the flow of cargo and digital solutions to remove inefficiencies in the supply chain, DP World said in a separate statement.

Dubai state-owned DP World, a global port operator, announced last week that it was partnering with an Israeli group to bid for one of Israel’s two main ports.

#Saudi Arabian supermarket operator BinDawood may price IPO at top of range | Reuters

Saudi Arabian supermarket operator BinDawood may price IPO at top of range | Reuters:

Saudi Arabian supermarket operator BinDawood Holding may price its initial public offering (IPO) at the top of its range after a bookrunner note said investors bidding below 96 Saudi riyal ($25.60) may not get an allocation.

The company last week set an indicative price for its IPO between 84 to 96 riyals per share in the offering.

BinDawood, which owns the Danube and BinDawood supermarket brands, manages over 70 hypermarkets and supermarkets in major Saudi cities including Makkah, Medina, Jeddah, Riyadh, Khobar and Dammam, according to its website.

BinDawood will sell 20% of the company through the sale of existing shares. At the top of the range, the company could raise as much as 2.19 billion riyals ($584 million) in a Riyadh listing.

#Dubai-listed Shuaa Capital to issue $150mln bonds | ZAWYA MENA Edition

Dubai-listed Shuaa Capital to issue $150mln bonds | ZAWYA MENA Edition:

Dubai’s Shuaa Capital has received the green light to issue bonds worth up to $150 million.

The bonds will be offered through a private placement and will be listed outside the UAE, the company said in a bourse filing on Monday.

The asset management and investment banking platform, which has $13 billion in assets under management, has joined a growing number of corporates making a comeback to the debt markets to raise extra capital.

The company’s net profit for the second quarter of the year amounted to 267 million UAE dirhams.

Despite the headwinds from the coronavirus pandemic, the company said its investment bank’s model remains resilient and that it is actively involved in capital restructuring and raising mandates in excess of $2 billion.

Oil prices slip on potential return of Libyan output; Gulf storm supports | Reuters

Oil prices slip on potential return of Libyan output; Gulf storm supports | Reuters:

Oil prices fell on Monday on the potential return of output from Libya as rising coronavirus cases also added to worries about global demand, although a tropical storm heading for the U.S. Gulf of Mexico limited losses.

Brent crude was down 33 cents, or 0.8%, at $42.82 a barrel by 0645 GMT, while U.S. crude was down 38 cents, or 0.9%, to $40.73 a barrel.

Workers at Libya’s major Sharara field have restarted operations, two engineers working there said, after National Oil Corporation announced a partial lifting of force majeure. But it was still unclear when production might restart.

“The market can ill afford more crude hitting the market,” ANZ analysts said in a note on Monday, at a time when coronavirus-related curbs have eroded demand.

Mideast Stocks: Most Gulf markets little changed in quiet early trade | ZAWYA MENA Edition

Mideast Stocks: Most Gulf markets little changed in quiet early trade | ZAWYA MENA Edition:

Most Gulf stock markets were little changed in thin trading early on Monday, with banking shares hurting Dubai while petrochemical stocks supported Saudi Arabia.

Saudi Arabian benchmark index  rose 0.2%, with petrochemical maker Saudi Basic Industries Corp rising 0.7% and oil giant Saudi Aramco 0.3%.

But, shares of Saudi Industrial Investment Group and National Petrochemical Company retreated 1.9% and 2%, respectively. On Sunday, the shares had surged on news the two were in merger talks.

Dubai's main share index dropped 0.4%, weighed down by a 0.5% fall in Emirates NBD Bank and a 0.7% decrease in blue-chip developer Emaar Properties.

The Abu Dhabi index slipped 0.2%, hurt by a 0.2% ease in the country's largest lender First Abu Dhabi Bank.

In Qatar, the index added 0.3%, with United Development Company jumping 7.5%. Commercial Bank edged up 0.1%. The lender closed a dual-tranche $227.5 million syndicated term loan facility.