Oil rises on U.S. stimulus hopes, tighter market under Biden | Reuters
Oil edged higher on Wednesday on expectations that U.S. President Joe Biden’s administration will deliver hefty pandemic-related economic stimulus that will lift fuel demand and enact policies that will tighten crude supply.
Biden, who was inaugurated on Wednesday, immediately was set to take measures to curb the U.S. oil industry, including a plant to re-enter the Paris climate accord, cancelling a permit for the Keystone XL crude oil pipeline and pausing planned drilling in the Arctic.
Brent crude settled at $56.08 a barrel, gaining 18 cents. U.S. West Texas Intermediate (WTI) crude settled at $53.24 a barrel, climbing 26 cents.
U.S. Treasury Secretary nominee Janet Yellen on Tuesday urged lawmakers to “act big” on pandemic relief spending, which boosted oil prices.
“There’s renewed hopes about the stimulus - there’s just a good mood in the markets overall, a sense of moving forward and that demand is going to be picking up,” said John Kilduff, partner at Again Capital LLC in New York.
Wednesday, 20 January 2021
MIDEAST STOCKS- #Dubai leads most Gulf markets higher; #Saudi eases | Nasdaq
MIDEAST STOCKS-Dubai leads most Gulf markets higher; Saudi eases | Nasdaq
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading gains boosted by its top lender Emirates NBD, while Saudi bucked the trend to close lower.
Dubai's main share index .DFMGI advanced 1.4%, with Emirates NBD ENBD.DU jumping 4.4% and sharia-compliant lender Dubai Islamic Bank DISB.DU up 0.8%.
Emirates NBD recorded a more 20% increase in the number and value of fund transfers via its DirectRemit platform in 2020 compared to the previous year.
Property stocks also drove gains, with blue-chip developer Emaar Properties EMAR.DU ending 1% higher.
In Abu Dhabi, the index .ADI added 0.3%, with Aldar Properties ALDAR.AD surging 8.1% in its biggest intraday gain since October.
On Wednesday, the Abu Dhabi Executive Council approved a framework between the Abu Dhabi Government and Aldar Properties for development of capital projects in the emirate.
The framework includes Aldar taking on the management of 30 billion dirhams ($8.17 billion) worth of major projects.
The index's gains, however, were limited by losses at telecoms firm Etisalat ETISALAT.AD, which closed 3.2% lower.
Etisalat had posted its best day in nearly six years on Tuesday as the company called a board meeting for Wednesday to discuss increasing the foreign ownership limit in the firm.
Qatar's main index .QSI gained 0.3%, led by a 3.3% jump in market heavyweight Industries Qatar IQCD.QA.
Elsewhere, Saudi Arabia's benchmark index .TASI fell 0.3%, hit by a 1.4% fall Saudi Telecom Company 7010.SE and a 0.3% drop in Al Rajhi Bank 1120.SE.
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading gains boosted by its top lender Emirates NBD, while Saudi bucked the trend to close lower.
Dubai's main share index .DFMGI advanced 1.4%, with Emirates NBD ENBD.DU jumping 4.4% and sharia-compliant lender Dubai Islamic Bank DISB.DU up 0.8%.
Emirates NBD recorded a more 20% increase in the number and value of fund transfers via its DirectRemit platform in 2020 compared to the previous year.
Property stocks also drove gains, with blue-chip developer Emaar Properties EMAR.DU ending 1% higher.
In Abu Dhabi, the index .ADI added 0.3%, with Aldar Properties ALDAR.AD surging 8.1% in its biggest intraday gain since October.
On Wednesday, the Abu Dhabi Executive Council approved a framework between the Abu Dhabi Government and Aldar Properties for development of capital projects in the emirate.
The framework includes Aldar taking on the management of 30 billion dirhams ($8.17 billion) worth of major projects.
The index's gains, however, were limited by losses at telecoms firm Etisalat ETISALAT.AD, which closed 3.2% lower.
Etisalat had posted its best day in nearly six years on Tuesday as the company called a board meeting for Wednesday to discuss increasing the foreign ownership limit in the firm.
Qatar's main index .QSI gained 0.3%, led by a 3.3% jump in market heavyweight Industries Qatar IQCD.QA.
Elsewhere, Saudi Arabia's benchmark index .TASI fell 0.3%, hit by a 1.4% fall Saudi Telecom Company 7010.SE and a 0.3% drop in Al Rajhi Bank 1120.SE.
Vaccine Rollout Lifts #Dubai Stocks to Top of the Equity Pile - Bloomberg
Vaccine Rollout Lifts Dubai Stocks to Top of the Equity Pile - Bloomberg
One of the world’s fastest vaccine rollouts is fueling one of its best stock rallies.
As the United Arab Emirates pushes its inoculation program, the Dubai Financial Market General Index has climbed about 12% this year, trimming its 10% slump in 2020. Only two major markets performed better. MSCI Inc.’s gauge of developing-nation stocks has advanced 8%.
“Vaccines are a prime reason for this,” said Divye Arora, a money manager at Daman Investments Psc in Dubai. “We have seen a move globally away from growth and defensive toward value and cyclical. Dubai offers both value and cyclical exposure.”
The UAE, the third-biggest oil producer in OPEC, has administered more than two million coronavirus vaccine doses, inoculating nearly a fifth of its population, as it tries to emerge from the pandemic. The campaign is seen as key to reviving the economy of Dubai, which is reliant on income from travel and tourism.
One of the world’s fastest vaccine rollouts is fueling one of its best stock rallies.
As the United Arab Emirates pushes its inoculation program, the Dubai Financial Market General Index has climbed about 12% this year, trimming its 10% slump in 2020. Only two major markets performed better. MSCI Inc.’s gauge of developing-nation stocks has advanced 8%.
“Vaccines are a prime reason for this,” said Divye Arora, a money manager at Daman Investments Psc in Dubai. “We have seen a move globally away from growth and defensive toward value and cyclical. Dubai offers both value and cyclical exposure.”
The UAE, the third-biggest oil producer in OPEC, has administered more than two million coronavirus vaccine doses, inoculating nearly a fifth of its population, as it tries to emerge from the pandemic. The campaign is seen as key to reviving the economy of Dubai, which is reliant on income from travel and tourism.
Oil Producers Face a Long Haul Back to Business as Usual - Bloomberg
Oil Producers Face a Long Haul Back to Business as Usual - Bloomberg
This is no time for the world’s oil producers to start adding supplies to the global market if they want to drain a glut that built up because of Covid-19.
That’s the conclusion that comes out of the latest monthly forecasts published by the world’s three major oil agencies — the International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries — if producers hope to get global inventories back to pre-pandemic levels by the end of the year.
Mindful of risks to oil demand, Saudi Arabia this month stunned oil traders by making unilateral cuts to its crude production of 1 million barrels a day. The move was at odds with most other nations participating in an OPEC+ pact to manage oil supplies, who either kept output stable or even increased it slightly. The alliance will meet again in early March to decide on their next steps.
The three agencies’ outlooks offer a degree of validation for Saudi Arabia’s stance. Of the trio, only OPEC raised its forecast of global oil demand this year, and then by a tiny 20,000 barrels a day, or roughly 0.02% of consumption. A surge in new coronavirus cases, driven by the emergence of more contagious variants, has led many countries to re-impose movement restrictions that are so detrimental to transport fuel usage. Cases are starting to rise again in Asia, the region that had been driving a recovery in global oil demand at the end of 2020.
This is no time for the world’s oil producers to start adding supplies to the global market if they want to drain a glut that built up because of Covid-19.
That’s the conclusion that comes out of the latest monthly forecasts published by the world’s three major oil agencies — the International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries — if producers hope to get global inventories back to pre-pandemic levels by the end of the year.
Mindful of risks to oil demand, Saudi Arabia this month stunned oil traders by making unilateral cuts to its crude production of 1 million barrels a day. The move was at odds with most other nations participating in an OPEC+ pact to manage oil supplies, who either kept output stable or even increased it slightly. The alliance will meet again in early March to decide on their next steps.
The three agencies’ outlooks offer a degree of validation for Saudi Arabia’s stance. Of the trio, only OPEC raised its forecast of global oil demand this year, and then by a tiny 20,000 barrels a day, or roughly 0.02% of consumption. A surge in new coronavirus cases, driven by the emergence of more contagious variants, has led many countries to re-impose movement restrictions that are so detrimental to transport fuel usage. Cases are starting to rise again in Asia, the region that had been driving a recovery in global oil demand at the end of 2020.
Bahrain to raise $2 billion in bond sale after deficit spike | Reuters
Bahrain to raise $2 billion in bond sale after deficit spike | Reuters
Bahrain is expected to raise $2 billion in a three-tranche bond sale on Wednesday, a document showed, after the coronavirus pandemic and low oil prices exacerbated its fiscal deficit and pushed total outstanding debt to nearly $40 billion.
The debt sale comes amid uncertainty over future fiscal help for the small oil-producing state, as wealthier Gulf neighbours who have previously come to Bahrain’s aid have their own financial woes to deal with.
Bahrain gave initial price guidance of around 4.875% for a seven-year bond tranche, around 5.75% for 12-year notes and around 6.75% for 30-year bonds, according to the document from one of the banks arranging the deal.
Bahrain’s fiscal deficit is estimated to have more than doubled to $4.4 billion last year, compared with a budgeted $2.1 billion, according to a bond prospectus reviewed by Reuters, that cited preliminary estimated figures.
Bahrain is expected to raise $2 billion in a three-tranche bond sale on Wednesday, a document showed, after the coronavirus pandemic and low oil prices exacerbated its fiscal deficit and pushed total outstanding debt to nearly $40 billion.
The debt sale comes amid uncertainty over future fiscal help for the small oil-producing state, as wealthier Gulf neighbours who have previously come to Bahrain’s aid have their own financial woes to deal with.
Bahrain gave initial price guidance of around 4.875% for a seven-year bond tranche, around 5.75% for 12-year notes and around 6.75% for 30-year bonds, according to the document from one of the banks arranging the deal.
Bahrain’s fiscal deficit is estimated to have more than doubled to $4.4 billion last year, compared with a budgeted $2.1 billion, according to a bond prospectus reviewed by Reuters, that cited preliminary estimated figures.
Aldar Shares Jump as #AbuDhabi Signs Off on $12 Billion in Deals - Bloomberg
Aldar Shares Jump as Abu Dhabi Signs Off on $12 Billion in Deals - Bloomberg
Aldar Properties PJSC climbed the most in almost three months after Abu Dhabi signed off on deals worth $12.3 billion.
The company will take on management of 30 billion dirhams ($8.2 billion) in developments and provide oversight for projects worth 10 billion dirhams in education, health-care and infrastructure. Aldar will also manage 5 billion dirhams of projects that were awarded by the government in 2019.
The shares rose as much as 15% shortly after trading started, and trimmed their gains to 8% as of 11 a.m. local time. Abu Dhabi’s benchmark index rose 0.1%.
As part of its efforts to diversify, Aldar has been investing in a fee-based, development management division to manage buildings for clients. Aldar initially announced announced the 30 billion-dirham deal to build more than 25,000 homes for Emirati citizens in October.
Aldar Properties PJSC climbed the most in almost three months after Abu Dhabi signed off on deals worth $12.3 billion.
The company will take on management of 30 billion dirhams ($8.2 billion) in developments and provide oversight for projects worth 10 billion dirhams in education, health-care and infrastructure. Aldar will also manage 5 billion dirhams of projects that were awarded by the government in 2019.
The shares rose as much as 15% shortly after trading started, and trimmed their gains to 8% as of 11 a.m. local time. Abu Dhabi’s benchmark index rose 0.1%.
As part of its efforts to diversify, Aldar has been investing in a fee-based, development management division to manage buildings for clients. Aldar initially announced announced the 30 billion-dirham deal to build more than 25,000 homes for Emirati citizens in October.
Post-merger, NCB Cap to become #Saudi's largest asset management firm: Moody's | ZAWYA MENA Edition
Post-merger, NCB Cap to become Saudi's largest asset management firm: Moody's | ZAWYA MENA Edition
Moody’s Investors Service expects the potential merger between Saudi Arabia’s National Commercial Bank (NCB) and Samba Financial Group to reinforce NCB's asset management arm.
“If successfully executed, the merger will bring long-term benefits to NCB Capital including some product diversification into fixed income and alternative products, based on the assumption that NCB Capital shall be the surviving entity,” it said in a note Wednesday.
The two banks entered a binding merger agreement in 3Q 2020 following which the parent banks approved the merger of the capitals between NCB Capital and Samba Capital & Investment Management Company (Samba Capital) once the banks merger has been completed.
The merger, subject to regulatory approval, will reinforce the position of the merged entity as Saudi Arabia's biggest asset manager, based on assets under management (AUM), the ratings agency said.
Moody’s Investors Service expects the potential merger between Saudi Arabia’s National Commercial Bank (NCB) and Samba Financial Group to reinforce NCB's asset management arm.
“If successfully executed, the merger will bring long-term benefits to NCB Capital including some product diversification into fixed income and alternative products, based on the assumption that NCB Capital shall be the surviving entity,” it said in a note Wednesday.
The two banks entered a binding merger agreement in 3Q 2020 following which the parent banks approved the merger of the capitals between NCB Capital and Samba Capital & Investment Management Company (Samba Capital) once the banks merger has been completed.
The merger, subject to regulatory approval, will reinforce the position of the merged entity as Saudi Arabia's biggest asset manager, based on assets under management (AUM), the ratings agency said.
Masdar, Emirates NBD Asset Management to provide services for #UAE’s first ‘green’ REIT | ZAWYA MENA Edition
Masdar, Emirates NBD Asset Management to provide services for UAE’s first ‘green’ REIT | ZAWYA MENA Edition
Masdar, a subsidiary of Mubadala Investment Company and a pioneer in sustainable urban development, has partnered with Emirates NBD Asset Management to receive management services for the UAE’s first sustainable real estate investment trust – the Masdar Green REIT.
Together, Masdar Capital Management (a recently established FSRA Regulated Fund Manager) and Emirates NBD Asset Management bring significant experience and expertise in sustainable real estate and property asset management to the partnership.
Masdar announced it was launching the REIT, the first in the UAE to invest solely in sustainable real estate projects, during Abu Dhabi Sustainability Week (ADSW) in January last year.
The Masdar Green REIT has been established at Abu Dhabi Global Market (ADGM) as a Qualified Investor Fund (QIF) and offers an attractive opportunity for professional investors through private placement to invest in a unique portfolio of stable, income-producing sustainable real estate assets. Masdar also confirmed that the REIT has now received approval from ADGM’s Financial Services Regulatory Authority to begin operations.
Masdar, a subsidiary of Mubadala Investment Company and a pioneer in sustainable urban development, has partnered with Emirates NBD Asset Management to receive management services for the UAE’s first sustainable real estate investment trust – the Masdar Green REIT.
Together, Masdar Capital Management (a recently established FSRA Regulated Fund Manager) and Emirates NBD Asset Management bring significant experience and expertise in sustainable real estate and property asset management to the partnership.
Masdar announced it was launching the REIT, the first in the UAE to invest solely in sustainable real estate projects, during Abu Dhabi Sustainability Week (ADSW) in January last year.
The Masdar Green REIT has been established at Abu Dhabi Global Market (ADGM) as a Qualified Investor Fund (QIF) and offers an attractive opportunity for professional investors through private placement to invest in a unique portfolio of stable, income-producing sustainable real estate assets. Masdar also confirmed that the REIT has now received approval from ADGM’s Financial Services Regulatory Authority to begin operations.
Oil rise on hopes of U.S. stimulus, crude stocks drawdown | Reuters
Oil rise on hopes of U.S. stimulus, crude stocks drawdown | Reuters
Oil prices rose on Wednesday, building on solid gains overnight, thanks to a combination of a weaker dollar and expectations the incoming U.S. administration will deliver massive stimulus spending that would lift fuel demand and draw down crude stocks.
U.S. West Texas Intermediate (WTI) crude futures climbed 41 cents, or 0.77%, to $53.39 a barrel at 0750 GMT, building on a 1.2% rise on Tuesday.
Brent crude futures rose 37 cents, or 0.66%, to $56.27 a barrel, adding to a 2.1% gain on Tuesday.
U.S. President-elect Joe Biden’s Treasury Secretary nominee Janet Yellen urged lawmakers on Tuesday to “act big” on pandemic relief spending, reinforcing hopes of massive spending to boost growth.
Oil prices rose on Wednesday, building on solid gains overnight, thanks to a combination of a weaker dollar and expectations the incoming U.S. administration will deliver massive stimulus spending that would lift fuel demand and draw down crude stocks.
U.S. West Texas Intermediate (WTI) crude futures climbed 41 cents, or 0.77%, to $53.39 a barrel at 0750 GMT, building on a 1.2% rise on Tuesday.
Brent crude futures rose 37 cents, or 0.66%, to $56.27 a barrel, adding to a 2.1% gain on Tuesday.
U.S. President-elect Joe Biden’s Treasury Secretary nominee Janet Yellen urged lawmakers on Tuesday to “act big” on pandemic relief spending, reinforcing hopes of massive spending to boost growth.
MIDEAST STOCKS-Gulf stocks gain in early trade | Nasdaq
MIDEAST STOCKS-Gulf stocks gain in early trade | Nasdaq
Stock markets in the Gulf rose in early trade on Wednesday, with Abu Dhabi on track to extend gains for a fourth session.
Saudi Arabia's benchmark index .TASI rose 0.1%, helped by a 0.6% increase in petrochemical firm Saudi Basic Industries 2010.SE and a 1.3% gain in Saudi British Bank 1060.SE.
Dubai's main share index .DFMGI added 0.6%, led by a 1.5% rise in blue-chip developer Emaar Properties EMAR.DU.
Financials stocks also drove the gains in the Dubai index, with Emirates NBD Bank ENBD.DU and sharia-compliant lender Dubai Islamic Bank DISB.DU gaining 0.9% and 0.6%, respectively.
In Abu Dhabi, the index .ADI edged up 0.1%, with Aldar Properties ALDAR.AD jumping 8.4%, its biggest intraday gain since Oct.
On Wednesday, Abu Dhabi Executive Council approved a framework between Abu Dhabi Government and Aldar Properties for development of capital projects in the emirate.
The framework includes Aldar taking on the management of 30 billion dirhams ($8.17 billion) worth of major projects.
The index's gains, however, were limited by losses at telecoms firm Etisalat ETISALAT.AD.
In the previous session, Etisalat saw its best day in nearly six years as the company called a board meeting on JAn. 20, to discuss increasing the foreign ownership limit in the firm.
Elsewhere, Qatar's main index .QSI gained 0.1%, driven mainly by a 1.5% rise in market heavyweight Industries Qatar IQCD.QA.
Stock markets in the Gulf rose in early trade on Wednesday, with Abu Dhabi on track to extend gains for a fourth session.
Saudi Arabia's benchmark index .TASI rose 0.1%, helped by a 0.6% increase in petrochemical firm Saudi Basic Industries 2010.SE and a 1.3% gain in Saudi British Bank 1060.SE.
Dubai's main share index .DFMGI added 0.6%, led by a 1.5% rise in blue-chip developer Emaar Properties EMAR.DU.
Financials stocks also drove the gains in the Dubai index, with Emirates NBD Bank ENBD.DU and sharia-compliant lender Dubai Islamic Bank DISB.DU gaining 0.9% and 0.6%, respectively.
In Abu Dhabi, the index .ADI edged up 0.1%, with Aldar Properties ALDAR.AD jumping 8.4%, its biggest intraday gain since Oct.
On Wednesday, Abu Dhabi Executive Council approved a framework between Abu Dhabi Government and Aldar Properties for development of capital projects in the emirate.
The framework includes Aldar taking on the management of 30 billion dirhams ($8.17 billion) worth of major projects.
The index's gains, however, were limited by losses at telecoms firm Etisalat ETISALAT.AD.
In the previous session, Etisalat saw its best day in nearly six years as the company called a board meeting on JAn. 20, to discuss increasing the foreign ownership limit in the firm.
Elsewhere, Qatar's main index .QSI gained 0.1%, driven mainly by a 1.5% rise in market heavyweight Industries Qatar IQCD.QA.