Oil slips on coronavirus fears, strong dollar | Reuters
Oil prices fell slightly on Monday as a stronger dollar, fears over soaring COVID-19 cases around the world and the slow pace of vaccination against the coronavirus outweighed a better-than-expected quarterly rebound for China’s economy.
Brent crude was down 23 cents, or 0.4%, at $54.87 per barrel at 1720 GMT, and West Texas Intermediate U.S. crude fell 19 cents, or 0.4%, to $52.17.
“Corona-induced economic fears, a stronger U.S. dollar and more pessimistic investor sentiment are all playing their part in the fact that Brent is trading ... around $3 lower than last Wednesday,” said Commerzbank analyst Eugen Weinberg.
The benchmarks had rallied in the past few weeks, buoyed by COVID-19 vaccine rollouts and a surprise cut in output by Saudi Arabia. But the slow pace of vaccination has raised doubts over how soon economies could recover.
Monday, 18 January 2021
Oil falls on coronavirus fears, strong dollar | Reuters
Oil falls on coronavirus fears, strong dollar | Reuters
Oil prices fell on Monday as a stronger dollar, fears over soaring COVID-19 cases around the world and the slow pace of vaccination against the virus outweighed a better-than-expected quarterly rebound for China’s economy.
Brent crude was down 24 cents, or 0.4%, at $54.86 per barrel at 1308 GMT, and West Texas Intermediate U.S. crude fell 10 cents, or 0.2%, to $52.26.
“Corona-induced economic fears, a stronger U.S. dollar and more pessimistic investor sentiment are all playing their part in the fact that Brent is trading ... around $3 lower than last Wednesday,” said Commerzbank analyst Eugen Weinberg.
The benchmarks had rallied in recent weeks, buoyed by COVID-19 vaccine rollouts and a surprise cut of output by Saudi Arabia. However, the slow pace of vaccination has raised doubts over how soon economies could recover.
Oil prices fell on Monday as a stronger dollar, fears over soaring COVID-19 cases around the world and the slow pace of vaccination against the virus outweighed a better-than-expected quarterly rebound for China’s economy.
Brent crude was down 24 cents, or 0.4%, at $54.86 per barrel at 1308 GMT, and West Texas Intermediate U.S. crude fell 10 cents, or 0.2%, to $52.26.
“Corona-induced economic fears, a stronger U.S. dollar and more pessimistic investor sentiment are all playing their part in the fact that Brent is trading ... around $3 lower than last Wednesday,” said Commerzbank analyst Eugen Weinberg.
The benchmarks had rallied in recent weeks, buoyed by COVID-19 vaccine rollouts and a surprise cut of output by Saudi Arabia. However, the slow pace of vaccination has raised doubts over how soon economies could recover.
#AbuDhabi market leads broader gains | Reuters
Abu Dhabi market leads broader gains | Reuters
Stock markets in the Gulf ended higher on Monday, with the Abu Dhabi index marking its best session in more than nine months, led by United Arab Emirates’ top lender, First Abu Dhabi Bank.
The Abu Dhabi index gained nearly 4% and the benchmark has risen in all but two sessions so far in the new year.
First Abu Dhabi Bank was the best performer on the benchmark, adding about 8%. Another bank, Abu Dhabi Commercial Bank, rose nearly 5%.
The Abu Dhabi Department of Finance has announced a 6 billion-dirham ($1.63 billion) supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises.
The first phase of this initiative is in partnership with the National Health Insurance Co and First Abu Dhabi Bank, aiming to provide liquidity to healthcare SMEs.
Dubai’s main share index advanced 1.2%, led by a 1.5% gain in developer Emaar Properties and a 0.9% increase in the emirate’s biggest bank, Emirates NBD.
Elsewhere, Saudi Arabia’s benchmark index gained 0.6%, with Saudi Telecom rising 5.4% to finish as the best performer.
Financial stocks also underpinned the gains, with Riyad Bank and Samba Financial Group tacking on 1.9% and 1.8%, respectively.
Separately, Saudi Basic Industries Corp has hired NCB Capital to advise on a potential listing of its speciality chemicals business, an offering that could raise several hundred million dollars, three sources told Reuters.
In Qatar, the main index finished little changed as a 1.3% gain in Industries Qatar was offset by losses in Qatar Islamic Bank, which finished 1.8% lower.
QIB reported a net profit of 3.07 billion riyals ($839.30 million) for the fiscal year 2020, up from 3.06 billion riyals a year earlier, but cut its 2020 dividend to 0.40 riyal per share from 0.525 riyal in 2019.
Stock markets in the Gulf ended higher on Monday, with the Abu Dhabi index marking its best session in more than nine months, led by United Arab Emirates’ top lender, First Abu Dhabi Bank.
The Abu Dhabi index gained nearly 4% and the benchmark has risen in all but two sessions so far in the new year.
First Abu Dhabi Bank was the best performer on the benchmark, adding about 8%. Another bank, Abu Dhabi Commercial Bank, rose nearly 5%.
The Abu Dhabi Department of Finance has announced a 6 billion-dirham ($1.63 billion) supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises.
The first phase of this initiative is in partnership with the National Health Insurance Co and First Abu Dhabi Bank, aiming to provide liquidity to healthcare SMEs.
Dubai’s main share index advanced 1.2%, led by a 1.5% gain in developer Emaar Properties and a 0.9% increase in the emirate’s biggest bank, Emirates NBD.
Elsewhere, Saudi Arabia’s benchmark index gained 0.6%, with Saudi Telecom rising 5.4% to finish as the best performer.
Financial stocks also underpinned the gains, with Riyad Bank and Samba Financial Group tacking on 1.9% and 1.8%, respectively.
Separately, Saudi Basic Industries Corp has hired NCB Capital to advise on a potential listing of its speciality chemicals business, an offering that could raise several hundred million dollars, three sources told Reuters.
In Qatar, the main index finished little changed as a 1.3% gain in Industries Qatar was offset by losses in Qatar Islamic Bank, which finished 1.8% lower.
QIB reported a net profit of 3.07 billion riyals ($839.30 million) for the fiscal year 2020, up from 3.06 billion riyals a year earlier, but cut its 2020 dividend to 0.40 riyal per share from 0.525 riyal in 2019.
#UAE News: #Dubai’s Property Glut Means Two More Years of Price Drop for JLL - Bloomberg
UAE News: Dubai’s Property Glut Means Two More Years of Price Drop for JLL - Bloomberg
Dubai home prices will likely extend declines this year and next as the market works to clear an oversupply that’s been a drag on values since 2014, according to property broker JLL.
“We’re really not at the bottom yet,” Dana Salbak, head of Middle East research at JLL, said on Monday at a virtual event. “We’re likely to see single-digit declines between 5% to 8% over the next year given that supply stays under control and developers continue to phase out their projects rather than flood the market.”
A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the coronavirus pandemic.
The government has responded by setting up a committee to manage supply and demand as some of the city’s largest developers continued with construction. Some developers have been calling for a moratorium on new projects in Dubai, the Middle East’s tourism and financial hub that’s grown reliant on real estate to power its economy.
“We’re really not at the bottom yet,” Dana Salbak, head of Middle East research at JLL, said on Monday at a virtual event. “We’re likely to see single-digit declines between 5% to 8% over the next year given that supply stays under control and developers continue to phase out their projects rather than flood the market.”
A property glut and faltering demand have driven Dubai home prices down by more than 30% since the market peaked seven years ago, a decline made worse by the coronavirus pandemic.
The government has responded by setting up a committee to manage supply and demand as some of the city’s largest developers continued with construction. Some developers have been calling for a moratorium on new projects in Dubai, the Middle East’s tourism and financial hub that’s grown reliant on real estate to power its economy.
Qatari bank sees gradual growth in #Saudi after end of rift | Reuters
Qatari bank sees gradual growth in Saudi after end of rift | Reuters
Qatar National Bank (QNB), Gulf’s biggest bank by assets, expects its business in Saudi Arabia will pick up only gradually after reviving its Riyadh branch that was dormant for more than three years due to a diplomatic and economic rift.
A QNB executive made the comments to analysts on Monday after Riyadh announced a deal on Jan. 5 to end the dispute with Doha that forced Qatari firms to halt business in the kingdom and its airline to reroute flights around Saudi airspace.
QNB opened its branch in the Saudi capital in May 2017, just a month before the dispute erupted.
QNB Group Chief Financial Officer Ramzi Mari told analysts that the impact of reopening its Riyadh branch would be gradual, analysts who joined the call told Reuters.
The bank would rebuild its information technology infrastructure and the banking team in Riyadh, Mari said, according to the analysts who did not give further details.
A QNB executive made the comments to analysts on Monday after Riyadh announced a deal on Jan. 5 to end the dispute with Doha that forced Qatari firms to halt business in the kingdom and its airline to reroute flights around Saudi airspace.
QNB opened its branch in the Saudi capital in May 2017, just a month before the dispute erupted.
QNB Group Chief Financial Officer Ramzi Mari told analysts that the impact of reopening its Riyadh branch would be gradual, analysts who joined the call told Reuters.
The bank would rebuild its information technology infrastructure and the banking team in Riyadh, Mari said, according to the analysts who did not give further details.
Adnoc defies retreat from oil with push to pump up output | Financial Times
Adnoc defies retreat from oil with push to pump up output | Financial Times
 |
| Sultan Al Jaber insists the UAE’s crude will be needed even in a world turning away from fossil fuels © FT montage; Bloomberg Some of the world’s biggest oil groups are increasingly on the defensive, as investor pressure over climate change forces them to retreat from dirtier businesses and funnel cash into greener energy. But Sultan Al Jaber, head of the Abu Dhabi National Oil Company, is unapologetic for accelerating crude output — and is primed to swoop in. “We see the writing on the wall and see opportunity from decisions being taken from other companies,” he told the Financial Times. Mr Jaber has a singular vision: to raise the output capacity of the United Arab Emirates — already Opec’s third-biggest producer — from around 3m barrels of oil a day in 2016 to 5m b/d by 2030. “We will not leave any opportunity unturned,” he said. “We are continuing exploration programmes, identifying proven reserves, increasing production and, wherever we can, we will attract strategic partners.” |
Al Mal Capital's REIT officially lists on #Dubai stock exchange | ZAWYA MENA Edition
Al Mal Capital's REIT officially lists on Dubai stock exchange | ZAWYA MENA Edition
Al Mal Capital’s real estate investment trust (REIT) has officially listed on the Dubai Financial Market (DFM), following the successful initial public offering (IPO) last year.
The listing is considered a “significant milestone” as it reinforces the bourse’s diversification strategy, providing investors with new products and investment opportunities, according to Essa Kazim, chairman of DFM.
The stock exchange hosted a bell ringing ceremony on Monday to celebrate the commencement of the fund’s trading on the bourse, through the listing symbol: AMCREIT.
The asset management firm, a subsidiary of Dubai Investments, had earlier raised 350 million dirhams ($95.3 million) from an initial public offering. The fund obtained a license to operate as a real estate investment fund last December.
“Today’s listing is a key foundation for this new asset class and we are looking forward to see it gaining momentum during the coming period in line with REIT’s strong presence globally and to truly reflect the magnitude, quality and expansion of the real estate sector in Dubai by encouraging the establishment and listing of more REITs in the future,” Kazim said.
Al Mal Capital’s real estate investment trust (REIT) has officially listed on the Dubai Financial Market (DFM), following the successful initial public offering (IPO) last year.
The listing is considered a “significant milestone” as it reinforces the bourse’s diversification strategy, providing investors with new products and investment opportunities, according to Essa Kazim, chairman of DFM.
The stock exchange hosted a bell ringing ceremony on Monday to celebrate the commencement of the fund’s trading on the bourse, through the listing symbol: AMCREIT.
The asset management firm, a subsidiary of Dubai Investments, had earlier raised 350 million dirhams ($95.3 million) from an initial public offering. The fund obtained a license to operate as a real estate investment fund last December.
“Today’s listing is a key foundation for this new asset class and we are looking forward to see it gaining momentum during the coming period in line with REIT’s strong presence globally and to truly reflect the magnitude, quality and expansion of the real estate sector in Dubai by encouraging the establishment and listing of more REITs in the future,” Kazim said.
Biggest Gulf ETF Eyes Growth as Embargo Ends, World Cup Nears - Bloomberg
Biggest Gulf ETF Eyes Growth as Embargo Ends, World Cup Nears - Bloomberg
The end of an embargo on Qatar has come at a handy time for the Gulf’s biggest equity-focused exchange traded fund, just as the gas-rich country is set to get a boost from hosting one of the world’s most popular events.
Inflows to the Doha-based Al Rayan Qatar ETF jumped when news of the potential normalization of relations with Saudi Arabia emerged late last year. Daily volumes surged earlier this month as the end of a three-year rift that also included the United Arab Emirates was finally confirmed.
The Shariah-compliant ETF is listed in Doha, with a market capitalization of about $153 million, and has returned almost 19% since its inception in 2018. It allocates to the 23 stocks currently in the QE Al Rayan Islamic Index. The fund started less than a year after the group of Arab countries cut ties with Qatar for allegedly supporting terrorist groups, an accusation Qatar has always denied.
Now, as Qatar gets ready to host the FIFA World Cup soccer tournament next year, the benefit for listed companies ranging from logistics to telecommunications and hospitality helps to build an investment case that could appeal to wealthy Saudi and Emirati individuals, according to the fund’s manager.
The end of an embargo on Qatar has come at a handy time for the Gulf’s biggest equity-focused exchange traded fund, just as the gas-rich country is set to get a boost from hosting one of the world’s most popular events.
Inflows to the Doha-based Al Rayan Qatar ETF jumped when news of the potential normalization of relations with Saudi Arabia emerged late last year. Daily volumes surged earlier this month as the end of a three-year rift that also included the United Arab Emirates was finally confirmed.
The Shariah-compliant ETF is listed in Doha, with a market capitalization of about $153 million, and has returned almost 19% since its inception in 2018. It allocates to the 23 stocks currently in the QE Al Rayan Islamic Index. The fund started less than a year after the group of Arab countries cut ties with Qatar for allegedly supporting terrorist groups, an accusation Qatar has always denied.
Now, as Qatar gets ready to host the FIFA World Cup soccer tournament next year, the benefit for listed companies ranging from logistics to telecommunications and hospitality helps to build an investment case that could appeal to wealthy Saudi and Emirati individuals, according to the fund’s manager.
#Saudi petrochemicals giant SABIC hires NCB for speciality chemicals unit IPO - sources | Reuters
Saudi petrochemicals giant SABIC hires NCB for speciality chemicals unit IPO - sources | Reuters
Saudi Basic Industries Corp (SABIC) has hired NCB Capital to advise on a potential listing of its speciality chemicals business, an offering that could raise several hundred million dollars, three sources said.
The company is also sounding out foreign banks for advisory roles and HSBC and JPMorgan are among those in the final phase of pitching for the deal, which could be launched later this year or early 2022, two of the sources said.
Saudi Arabia, which hosted Aramco’s record $29.4 billion IPO in 2019, has become one of the Middle East’s biggest markets for deals. The kingdom is encouraging more listings, seeking to deepen its capital markets under reforms aimed at reducing its reliance on oil.
The sources declined to be identified as the matter has not yet been made public. NCB Capital did not respond to a Reuters request for comment, while JPMorgan and HSBC declined to comment.
Saudi Basic Industries Corp (SABIC) has hired NCB Capital to advise on a potential listing of its speciality chemicals business, an offering that could raise several hundred million dollars, three sources said.
The company is also sounding out foreign banks for advisory roles and HSBC and JPMorgan are among those in the final phase of pitching for the deal, which could be launched later this year or early 2022, two of the sources said.
Saudi Arabia, which hosted Aramco’s record $29.4 billion IPO in 2019, has become one of the Middle East’s biggest markets for deals. The kingdom is encouraging more listings, seeking to deepen its capital markets under reforms aimed at reducing its reliance on oil.
The sources declined to be identified as the matter has not yet been made public. NCB Capital did not respond to a Reuters request for comment, while JPMorgan and HSBC declined to comment.
Lender FAB buoys #AbuDhabi as most major Gulf markets rise | Reuters
Lender FAB buoys Abu Dhabi as most major Gulf markets rise | Reuters
Most major stock markets in the Gulf traded higher early on Monday, with the Abu Dhabi index leading the gains boosted by its top lender First Abu Dhabi Bank.
The Abu Dhabi index advanced 2.3%, with First Abu Dhabi Bank, the United Arab Emirates’ largest lender, jumping 5.3%, its biggest intraday gain since April last year.
The Abu Dhabi Department of Finance has announced a 6 billion dirhams ($1.63 billion) supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises.
The first phase of this initiative is in partnership with the National Health Insurance Company and First Abu Dhabi Bank, aiming to provide liquidity to SMEs in the healthcare sector.
Dubai’s main share index added 0.4%, led by a 0.4% rise in blue-chip developer Emaar Properties and a 0.6% increase in sharia-compliant lender Dubai Islamic Bank.
Meanwhile, the United Arab Emirates has lowered the minimum age requirement to receive a COVID-19 vaccination to 16, from 18 previously, the ministry of health said on Sunday.
Saudi Arabia’s benchmark index rose 0.2%, with oil giant Saudi Aramco rising 0.3% and utility firm Saudi Electricity climbing 1.9%.
In Qatar, the index fell 0.5%, hit by a 1.4% decline in Qatar Islamic Bank (QIB).
QIB reported a net profit of 3.07 billion riyals ($843.15 million) for the fiscal year 2020, up from 3.06 billion riyals a year earlier, but, cut its 2020 dividend to 0.40 riyal per share from 0.525 riyal in 2019.
Most major stock markets in the Gulf traded higher early on Monday, with the Abu Dhabi index leading the gains boosted by its top lender First Abu Dhabi Bank.
The Abu Dhabi index advanced 2.3%, with First Abu Dhabi Bank, the United Arab Emirates’ largest lender, jumping 5.3%, its biggest intraday gain since April last year.
The Abu Dhabi Department of Finance has announced a 6 billion dirhams ($1.63 billion) supply chain financing initiative to support a variety of sectors, as a key initiative in its commitment to support small and medium enterprises.
The first phase of this initiative is in partnership with the National Health Insurance Company and First Abu Dhabi Bank, aiming to provide liquidity to SMEs in the healthcare sector.
Dubai’s main share index added 0.4%, led by a 0.4% rise in blue-chip developer Emaar Properties and a 0.6% increase in sharia-compliant lender Dubai Islamic Bank.
Meanwhile, the United Arab Emirates has lowered the minimum age requirement to receive a COVID-19 vaccination to 16, from 18 previously, the ministry of health said on Sunday.
Saudi Arabia’s benchmark index rose 0.2%, with oil giant Saudi Aramco rising 0.3% and utility firm Saudi Electricity climbing 1.9%.
In Qatar, the index fell 0.5%, hit by a 1.4% decline in Qatar Islamic Bank (QIB).
QIB reported a net profit of 3.07 billion riyals ($843.15 million) for the fiscal year 2020, up from 3.06 billion riyals a year earlier, but, cut its 2020 dividend to 0.40 riyal per share from 0.525 riyal in 2019.
Oil's supply-led rally peters out as virus cases surge | Reuters
Oil's supply-led rally peters out as virus cases surge | Reuters
Oil prices on Monday fell further from 11-month highs touched last week, ending a rally that started at end-October on production cuts and strong Chinese demand, with the market’s outlook questioned as coronavirus infections rise.
Brent crude fell 20 cents, or 0.4%, to $54.90 a barrel by 0737 GMT, after dropping 2.3% on Friday. U.S. oil was down by 13 cents, or 0.3%, at $52.23 a barrel, having declined 2.3% in the previous trading session.
The benchmarks had rallied in recent weeks, buoyed by the start of COVID-19 vaccine rollouts and a surprise cut of crude output by the world’s biggest oil exporter, Saudi Arabia. Surging new infections throughout the world, however, have raised doubts about how long demand would hold up.
“The Relative Strength Indexes (RSI’s) on both contracts were in overbought territory, indicating a correction was on its way,” said Jeffrey Halley, senior market analyst at OANDA.
Oil prices on Monday fell further from 11-month highs touched last week, ending a rally that started at end-October on production cuts and strong Chinese demand, with the market’s outlook questioned as coronavirus infections rise.
Brent crude fell 20 cents, or 0.4%, to $54.90 a barrel by 0737 GMT, after dropping 2.3% on Friday. U.S. oil was down by 13 cents, or 0.3%, at $52.23 a barrel, having declined 2.3% in the previous trading session.
The benchmarks had rallied in recent weeks, buoyed by the start of COVID-19 vaccine rollouts and a surprise cut of crude output by the world’s biggest oil exporter, Saudi Arabia. Surging new infections throughout the world, however, have raised doubts about how long demand would hold up.
“The Relative Strength Indexes (RSI’s) on both contracts were in overbought territory, indicating a correction was on its way,” said Jeffrey Halley, senior market analyst at OANDA.