UAE Stocks Rise Most in Mideast, Track Global Peers: Inside EM - Bloomberg
Benchmark indexes in the United Arab Emirates climbed the most in the Middle East, tracking global stock rallies on optimism surrounding the rollout of coronavirus vaccines.
Indexes in Oman and Israel also rose, while the main gauges in Egypt and Qatar were unchanged. The Tadawul All Share Index in Riyadh dropped the most in the region, with 20 out of its 21 sectors declining. Markets in Kuwait and Bahrain were closed for a public holiday.
Last week, emerging-market stocks advanced to the highest level since 2007 amid optimism over the vaccines and as a slide in the dollar boosted risk assets.
The UAE reported 1,590 virus cases on Sunday, down from a record-high the day before. The Gulf nation has approved the shot developed by Pfizer Inc. and BioNTech SE, as well as the one by Sinopharm unit China National Biotec Group.
“We are positive on the UAE in 2021,” said Harshjit Oza, head of research at Abu Dhabi-based International Securities. “The UAE looks attractive from a valuation standpoint, offering better risk-reward compared to other emerging markets. Adding to that macro factors such as the arrival of vaccines, recovery in oil prices, and improved geopolitical environment should help the market, going forward.”
Sunday, 3 January 2021
Iraq Picks Chinese Firm for $2 Billion Oil Prepayment Deal - Bloomberg
Iraq Picks Chinese Firm for $2 Billion Oil Prepayment Deal - Bloomberg
Iraq has selected a Chinese company for a multibillion-dollar oil-supply deal, as the Arab nation seeks funds to bolster an economy reeling from the Coronavirus-triggered collapse in energy prices.
SOMO, which oversees Iraq’s petroleum exports, picked a Chinese firm after receiving bids from several traders, the official Iraqi News Agency reported, citing an interview with the head of SOMO, Alaa Al-Yasiri. While INA didn’t name the company or specify if Prime Minister Mustafa al-Kadhimi had signed off on the deal, Bloomberg reported last month that ZhenHua Oil Co., a subsidiary of China’s largest state-owned defense contractor, was the winner.
“There was intense competition between two European and Chinese companies, and the Chinese company won,” INA quoted Al-Yasiri as saying.
It’s the first time Baghdad has sought a prepayment deal, in which oil is effectively used as security for a loan. It’s also the latest example of China lending to struggling oil producers via state-controlled trading companies and banks.
Iraq has selected a Chinese company for a multibillion-dollar oil-supply deal, as the Arab nation seeks funds to bolster an economy reeling from the Coronavirus-triggered collapse in energy prices.
SOMO, which oversees Iraq’s petroleum exports, picked a Chinese firm after receiving bids from several traders, the official Iraqi News Agency reported, citing an interview with the head of SOMO, Alaa Al-Yasiri. While INA didn’t name the company or specify if Prime Minister Mustafa al-Kadhimi had signed off on the deal, Bloomberg reported last month that ZhenHua Oil Co., a subsidiary of China’s largest state-owned defense contractor, was the winner.
“There was intense competition between two European and Chinese companies, and the Chinese company won,” INA quoted Al-Yasiri as saying.
It’s the first time Baghdad has sought a prepayment deal, in which oil is effectively used as security for a loan. It’s also the latest example of China lending to struggling oil producers via state-controlled trading companies and banks.
Mideast Stocks: #UAE stocks gain, #Saudi slips on first trading day of 2021 | ZAWYA MENA Edition
Mideast Stocks: UAE stocks gain, Saudi slips on first trading day of 2021 | ZAWYA MENA Edition
Stock markets in the United Arab Emirates (UAE) closed higher on Sunday, starting 2021 on a positive note on hopes that the rollout of a coronavirus vaccine will lift economic activity, while Saudi Arabian shares fell on uncertainty about the outlook for oil prices this year.
The UAE on Saturday recorded a fourth straight record number of daily coronavirus cases, with 1,963 new infections.
Dubai and Abu Dhabi have begun rolling out COVID-19 vaccines, which BofA said in a note are particularly pertinent for the UAE given its exposure to trade and tourism.
"We believe the vaccine provides a realistic chance that the travel & tourism sector (including attendance at the Expo) and trade could rebound more strongly than currently anticipated," said the statement.
Expo 2020, due to take place in Dubai but delayed due to the pandemic, will now take place from October 2021 to March 2022.
Abu Dhabi's stock index rose 0.7%, led by a 1.7% increase in First Abu Dhabi Bank, while telecoms firm Etisalat gained 0.7%.
The Dubai index was up 0.6%, supported by gains in financial and real estate shares. Emirates NBD rose nearly 2%, while Emaar Properties was up 1.4%.
The share index in Saudi Arabia fell 0.9% as most of its constituents closed in negative territory. Al Rajhi Bank led the losers, dropping 1.2%.
Chemical maker Saudi Basic Industries shed 0.8%, while Saudi Aramco was down 0.4%.
Oil prices are unlikely to mount much of a recovery in 2021 as a new coronavirus variant and related travel restrictions threaten already weakened fuel demand, a Reuters poll showed.
According to the poll, Brent crude prices would average $50.67 per barrel this year.
The Qatari Index closed flat as Qatar Fuel gained 1.2% and Commercial Bank shed 1.2%.
A Gulf Cooperation Council (GCC) summit will be held on Jan. 5 to discuss steps towards ending a diplomatic row with Qatar that began in 2017 when Saudi Arabia, the United Arab Emirates and Bahrain severed diplomatic ties with Qatar, accusing it of backing "terrorist" groups. Doha denies the charge and accuses its neighbours of seeking to curtail its sovereignty.
"I see some regional companies from Saudi, UAE and Qatar benefiting if these countries reach a settlement to the issues and remove the blockade," said Joice Mathew, senior research manager at United Securities.
Stock markets in the United Arab Emirates (UAE) closed higher on Sunday, starting 2021 on a positive note on hopes that the rollout of a coronavirus vaccine will lift economic activity, while Saudi Arabian shares fell on uncertainty about the outlook for oil prices this year.
The UAE on Saturday recorded a fourth straight record number of daily coronavirus cases, with 1,963 new infections.
Dubai and Abu Dhabi have begun rolling out COVID-19 vaccines, which BofA said in a note are particularly pertinent for the UAE given its exposure to trade and tourism.
"We believe the vaccine provides a realistic chance that the travel & tourism sector (including attendance at the Expo) and trade could rebound more strongly than currently anticipated," said the statement.
Expo 2020, due to take place in Dubai but delayed due to the pandemic, will now take place from October 2021 to March 2022.
Abu Dhabi's stock index rose 0.7%, led by a 1.7% increase in First Abu Dhabi Bank, while telecoms firm Etisalat gained 0.7%.
The Dubai index was up 0.6%, supported by gains in financial and real estate shares. Emirates NBD rose nearly 2%, while Emaar Properties was up 1.4%.
The share index in Saudi Arabia fell 0.9% as most of its constituents closed in negative territory. Al Rajhi Bank led the losers, dropping 1.2%.
Chemical maker Saudi Basic Industries shed 0.8%, while Saudi Aramco was down 0.4%.
Oil prices are unlikely to mount much of a recovery in 2021 as a new coronavirus variant and related travel restrictions threaten already weakened fuel demand, a Reuters poll showed.
According to the poll, Brent crude prices would average $50.67 per barrel this year.
The Qatari Index closed flat as Qatar Fuel gained 1.2% and Commercial Bank shed 1.2%.
A Gulf Cooperation Council (GCC) summit will be held on Jan. 5 to discuss steps towards ending a diplomatic row with Qatar that began in 2017 when Saudi Arabia, the United Arab Emirates and Bahrain severed diplomatic ties with Qatar, accusing it of backing "terrorist" groups. Doha denies the charge and accuses its neighbours of seeking to curtail its sovereignty.
"I see some regional companies from Saudi, UAE and Qatar benefiting if these countries reach a settlement to the issues and remove the blockade," said Joice Mathew, senior research manager at United Securities.
Why #Saudi banks are better positioned in 2021 compared to GCC peers | Banking – Gulf News
Why Saudi banks are better positioned in 2021 compared to GCC peers | Banking – Gulf News
Saudi banks are entering the New Year from a position of advantage with higher loan growth and relatively low impairments reported in in the first three quarters of 2020.
Despite the challenging operating environment posed by COVID-19 and drastic fall in oil prices, 2020 was not such a bad year for the Saudi Banks, according to Bank of America Merrill Lynch (BoAML) analysts.
The Saudi banks, like others in the Middle East North Africa region, have faced the perfect storm of falling interest rates and a weak and increasingly uncertain economic outlook, with the Saudi economy forecast to shrink 5.6 per cent by the IMF in 2020.
“Yet despite this, the Saudi banks have fared strongly, with system loan growth having reached 11 per cent year to date (and 14 per cent year on year at the close of the third quarter 2020),” said a BoAML note.
Banking sector revenues improved 3 per cent year to date largely by lower cost of funds resulting from 50 billon riyal interest free government deposits. The year saw banks limiting decline earnings despite a 34 per cent spike in impairments largely through cost control measures.
Saudi banks are entering the New Year from a position of advantage with higher loan growth and relatively low impairments reported in in the first three quarters of 2020.
Despite the challenging operating environment posed by COVID-19 and drastic fall in oil prices, 2020 was not such a bad year for the Saudi Banks, according to Bank of America Merrill Lynch (BoAML) analysts.
The Saudi banks, like others in the Middle East North Africa region, have faced the perfect storm of falling interest rates and a weak and increasingly uncertain economic outlook, with the Saudi economy forecast to shrink 5.6 per cent by the IMF in 2020.
“Yet despite this, the Saudi banks have fared strongly, with system loan growth having reached 11 per cent year to date (and 14 per cent year on year at the close of the third quarter 2020),” said a BoAML note.
Banking sector revenues improved 3 per cent year to date largely by lower cost of funds resulting from 50 billon riyal interest free government deposits. The year saw banks limiting decline earnings despite a 34 per cent spike in impairments largely through cost control measures.
Update on Riyadh Bureau - tks @RiyadhBureau @ahmed
Update on Riyadh Bureau - Riyadh Bureau
When I launched this newsletter in 2019, it was meant to be a side project while working as a correspondent for the Financial Times. But as our lives changed dramatically over the last twelve months, I have decided to leave my newspaper gig and make Riyadh Bureau my full-time job.
Today is the last day of the free preview period. Starting next week, only paid subscribers will receive this newsletter three times per week. In addition, paid subscribers will be able to comment on posts and participate in regular Ask Me Anything threads. Free subscribers will now receive this newsletter only once a week.
Whether you are a diplomat, a business executive, an academic, a journalist, a consultant or just someone interested in Saudi Arabia, this newsletter will provide you with useful insights through news, analysis and commentary as well as links to important stories related to the kingdom in both English and Arabic.
Subscriptions are $120 per year or $12 per month. I have offered discounts to early subscribers since I moved the newsletter to its new schedule a few weeks ago, and today is your last chance to take advantage of that offer for 10% off the annual subscription rate:
When I launched this newsletter in 2019, it was meant to be a side project while working as a correspondent for the Financial Times. But as our lives changed dramatically over the last twelve months, I have decided to leave my newspaper gig and make Riyadh Bureau my full-time job.
Today is the last day of the free preview period. Starting next week, only paid subscribers will receive this newsletter three times per week. In addition, paid subscribers will be able to comment on posts and participate in regular Ask Me Anything threads. Free subscribers will now receive this newsletter only once a week.
Whether you are a diplomat, a business executive, an academic, a journalist, a consultant or just someone interested in Saudi Arabia, this newsletter will provide you with useful insights through news, analysis and commentary as well as links to important stories related to the kingdom in both English and Arabic.
Subscriptions are $120 per year or $12 per month. I have offered discounts to early subscribers since I moved the newsletter to its new schedule a few weeks ago, and today is your last chance to take advantage of that offer for 10% off the annual subscription rate:
#Dubai Stocks Rise Most in Mideast, Track Global Peers: Inside EM - Bloomberg
Dubai Stocks Rise Most in Mideast, Track Global Peers: Inside EM - Bloomberg
Dubai’s benchmark index climbed the most in the Middle East, tracking global stock rallies on optimism surrounding the rollout of coronavirus vaccines.
Indexes in Abu Dhabi, Oman and Israel also rose, while Egypt’s main gauge fell. The Tadawul All Share Index in Riyadh dropped, weighed down by consumer durables and the apparel sector. Markets in Kuwait and Bahrain were closed for a public holiday.
Last week, emerging-market stocks advanced to the highest level since 2007 amid optimism over the vaccines and as a slide in the dollar boosted risk assets.
The United Arab Emirates, of which Dubai is a part, reported record-high coronavirus cases on Saturday. The Gulf nation has approved the shot developed by Pfizer Inc. and BioNTech SE, as well as the one by Sinopharm unit China National Biotec Group.
Dubai’s benchmark index climbed the most in the Middle East, tracking global stock rallies on optimism surrounding the rollout of coronavirus vaccines.
Indexes in Abu Dhabi, Oman and Israel also rose, while Egypt’s main gauge fell. The Tadawul All Share Index in Riyadh dropped, weighed down by consumer durables and the apparel sector. Markets in Kuwait and Bahrain were closed for a public holiday.
Last week, emerging-market stocks advanced to the highest level since 2007 amid optimism over the vaccines and as a slide in the dollar boosted risk assets.
The United Arab Emirates, of which Dubai is a part, reported record-high coronavirus cases on Saturday. The Gulf nation has approved the shot developed by Pfizer Inc. and BioNTech SE, as well as the one by Sinopharm unit China National Biotec Group.
Iranian Firms to Sign $1.2 Billion in Deals to Boost Oil Output - Bloomberg
Iranian Firms to Sign $1.2 Billion in Deals to Boost Oil Output - Bloomberg
Iranian companies plan to sign agreements worth $1.2 billion to maintain and raise the nation’s crude output, state-run National Iranian Oil Co. said.
The signings are to take place Monday in the presence of Oil Minister Bijan Namdar Zanganeh in Tehran, NIOC said in a statement, without providing further details.
Two NIOC subsidiaries signed $1.8 billion of similar domestic contracts in August to boost production at more than a dozen onshore and offshore crude deposits.
Zanganeh said in mid-December that Iran planned to roughly double oil production in the next year to 4.5 million barrels daily, as the country anticipates a loosening of U.S. sanctions after Joe Biden becomes president.
The Organization of Petroleum Exporting Countries, including Iran, are to meet Monday to assess production. While the 13-nation group has slashed output since April to buoy prices in the face of the coronavirus pandemic, Iran is exempt from a quota due to the sanctions.
Iranian companies plan to sign agreements worth $1.2 billion to maintain and raise the nation’s crude output, state-run National Iranian Oil Co. said.
The signings are to take place Monday in the presence of Oil Minister Bijan Namdar Zanganeh in Tehran, NIOC said in a statement, without providing further details.
Two NIOC subsidiaries signed $1.8 billion of similar domestic contracts in August to boost production at more than a dozen onshore and offshore crude deposits.
Zanganeh said in mid-December that Iran planned to roughly double oil production in the next year to 4.5 million barrels daily, as the country anticipates a loosening of U.S. sanctions after Joe Biden becomes president.
The Organization of Petroleum Exporting Countries, including Iran, are to meet Monday to assess production. While the 13-nation group has slashed output since April to buoy prices in the face of the coronavirus pandemic, Iran is exempt from a quota due to the sanctions.
Review: COVID-19, low oil price dragged most GCC indices into red in 2020 | ZAWYA MENA Edition
Review: COVID-19, low oil price dragged most GCC indices into red in 2020 | ZAWYA MENA Edition
GCC markets under performed their global peers and ended 2020 mixed, according to the GCC Markets Monthly Report by Kamco Invest.
Nearly all the markets remained in the red for most of the year due to the impact of Covid-19 and the decline in crude oil prices since March 2020.
Global crude prices lost more than a fifth of their value in 2020, as lockdowns to combat COVID-19 depressed economic activity and sent oil markets reeling. On the last trading day of 2020, Brent rose 17 cents to settle at $51.80 a barrel.
However, by year-end, two out of the seven exchanges in the GCC closed in the green led by gradual gains following the steep declines in Q1.
The aggregate MSCI GCC index reported a yearly decline for the first time in five years due to the twin shocks. On one hand, governments had to impose coronavirus-related restrictions that had a severe impact on the economic front; the IMF expects a 2.7 percent decline in GDP rates for the GCC region. On the other hand, the decline in demand for crude oil, the biggest revenue source for the GCC governments, resulted in prices hitting a three-decade low during the year.
GCC markets under performed their global peers and ended 2020 mixed, according to the GCC Markets Monthly Report by Kamco Invest.
Nearly all the markets remained in the red for most of the year due to the impact of Covid-19 and the decline in crude oil prices since March 2020.
Global crude prices lost more than a fifth of their value in 2020, as lockdowns to combat COVID-19 depressed economic activity and sent oil markets reeling. On the last trading day of 2020, Brent rose 17 cents to settle at $51.80 a barrel.
However, by year-end, two out of the seven exchanges in the GCC closed in the green led by gradual gains following the steep declines in Q1.
The aggregate MSCI GCC index reported a yearly decline for the first time in five years due to the twin shocks. On one hand, governments had to impose coronavirus-related restrictions that had a severe impact on the economic front; the IMF expects a 2.7 percent decline in GDP rates for the GCC region. On the other hand, the decline in demand for crude oil, the biggest revenue source for the GCC governments, resulted in prices hitting a three-decade low during the year.
#UAE stocks rise, #Dubai outperforms on first trading day of 2021 | Reuters
UAE stocks rise, Dubai outperforms on first trading day of 2021 | Reuters
Stock markets in the United Arab Emirates rose in early trade on Sunday, starting 2021 on a positive note in line with the country’s economic forecast and eclipsing a recent record jump in COVID-19 cases.
The International Monetary Fund expects the country’s economy to swing back to growth of 1.3% this year from a 6.6% contraction in 2020.
The UAE recorded its fourth straight record number of daily coronavirus cases since the pandemic began, reporting 1,963 cases on Saturday
Dubai’s index gained 0.8%, boosted by real estate and banking shares. Emirates NBD increased 1.5%, while Emaar Properties led the gains at property stocks, rising 1.1%.
Dubai is expected to grow by 4% in 2021.
“I expect 2021 to be a grand reopening year for the Dubai business and economy. I think the pent-up travel & tourism demand, as well as revenge buying should provide the demand boost to major economic sectors”, said Joice Mathew, senior research manager at United Securities.
“Meanwhile, the Expo 2020 scheduled for 2H-2021 should provide a big boost to consumer-linked sectors”, Junaid Ansari, Acting Head of Investment Strategy & Research at Kamco Invest said.
In Abu Dhabi, the index was up 0.4% as First Abu Dhabi Bank rose 0.8% and telecoms major Etisalat added 0.6%.
Saudi Arabia’s benchmark index was down 0.6%. Saudi Industrial Investment was the biggest loser, declining 4% as it traded ex-dividend.
Saudi Basic Industries shed 0.6%
The Qatari index was down 0.3% as Commercial Bank dropped 2.2% and Industries Qatar lost 0.6%.
Qatar enters another year of its blockade by Saudi Arabia, Egypt, UAE and Bahrain on accusations of backing “terrorist” groups, charges which Doha denies.
A Gulf Cooperation Council (GCC) summit will be held on Jan. 5 to discuss steps towards ending the diplomatic row with Qatar.
“I see some regional companies from Saudi, UAE, and Qatar to benefit in case these countries reach a settlement to the issues and remove the blockade”, said Mathew.
Stock markets in the United Arab Emirates rose in early trade on Sunday, starting 2021 on a positive note in line with the country’s economic forecast and eclipsing a recent record jump in COVID-19 cases.
The International Monetary Fund expects the country’s economy to swing back to growth of 1.3% this year from a 6.6% contraction in 2020.
The UAE recorded its fourth straight record number of daily coronavirus cases since the pandemic began, reporting 1,963 cases on Saturday
Dubai’s index gained 0.8%, boosted by real estate and banking shares. Emirates NBD increased 1.5%, while Emaar Properties led the gains at property stocks, rising 1.1%.
Dubai is expected to grow by 4% in 2021.
“I expect 2021 to be a grand reopening year for the Dubai business and economy. I think the pent-up travel & tourism demand, as well as revenge buying should provide the demand boost to major economic sectors”, said Joice Mathew, senior research manager at United Securities.
“Meanwhile, the Expo 2020 scheduled for 2H-2021 should provide a big boost to consumer-linked sectors”, Junaid Ansari, Acting Head of Investment Strategy & Research at Kamco Invest said.
In Abu Dhabi, the index was up 0.4% as First Abu Dhabi Bank rose 0.8% and telecoms major Etisalat added 0.6%.
Saudi Arabia’s benchmark index was down 0.6%. Saudi Industrial Investment was the biggest loser, declining 4% as it traded ex-dividend.
Saudi Basic Industries shed 0.6%
The Qatari index was down 0.3% as Commercial Bank dropped 2.2% and Industries Qatar lost 0.6%.
Qatar enters another year of its blockade by Saudi Arabia, Egypt, UAE and Bahrain on accusations of backing “terrorist” groups, charges which Doha denies.
A Gulf Cooperation Council (GCC) summit will be held on Jan. 5 to discuss steps towards ending the diplomatic row with Qatar.
“I see some regional companies from Saudi, UAE, and Qatar to benefit in case these countries reach a settlement to the issues and remove the blockade”, said Mathew.
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