OPEC+ Silence Has Oil Market Second-Guessing Next Supply Move - Bloomberg
OPEC and its allies kept oil-watchers guessing about their next move, after a day of preliminary talks offered few clues as to whether the market will get the April supply increase it’s been expecting.
Saudi Arabia and Russia, leaders of group, held bilateral talks on Wednesday, seeking common ground as Riyadh urges caution and Moscow presses to raise output, a delegate said. While OPEC+ is still widely expected to revive some of the 7 million barrels a day they’ve idled, a preliminary meeting of ministers earlier in the day didn’t get into specifics.
The trajectory of oil prices in the coming months now rests on the outcome of Thursday’s full meeting of the Organization of Petroleum Exporting Countries and its allies. Crude could move higher if the group doesn’t deliver all of the extra barrels the market needs to fuel the economic recovery from the Covid-19 pandemic.
“OPEC+ may raise by only 0.9 million barrels a day in April,” said Amrita Sen, chief oil analyst and co-founder at Energy Aspects Ltd. Anything less than the 1.4 million barrel-a-day hike that had previously been expected “should be viewed as bullish by the market.”
Wednesday, 3 March 2021
Oil Surges After Record U.S. Fuel Supply Drop From Deep Freeze - Oil Prices for Mar. 03, 2021: Brent Crude, WTI - Bloomberg
Oil Surges After Record U.S. Fuel Supply Drop From Deep Freeze Oil Prices for Mar. 03, 2021: Brent Crude, WTI - Bloomberg
Oil jumped the most in more than a week after a U.S. government report showed a record drop in domestic fuel inventories from the aftermath of a deep freeze that shuttered refineries in several states.
Crude futures in New York climbed 2.6% on Wednesday, snapping a three-day streak of losses. U.S. gasoline inventories tumbled last week by the most since 1990 after a polar blast wiped out more than 5 million barrels a day of refining capacity in late February along the U.S. Gulf Coast, according to Energy Information Administration data. Crude stockpiles swelled with refineries still shut.
“The market expected some noise from the storm’s lingering effects,” said Matt Sallee, portfolio manager at Tortoise, a firm that manages roughly $8 billion in energy-related assets. “Absent the magnitude of the changes, things came in pretty much as expected with the enormous product draw more than offsetting the record crude build.”
The U.S. data also showed gasoline supplied, a gauge for demand, surged the most since May, supporting those who say the oil market needs more barrels from producers as OPEC+ heads into a meeting on Thursday. The group is poised to agree on a coordinated production hike to cool the rapid surge in crude prices.
PRICES
- West Texas Intermediate for April delivery rose $1.53 to settle at $61.28 a barrel
- Brent for May settlement climbed $1.37 to end the session at $64.07 a barrel
DP World-backed freeport 'open for business' after winning UK government bid | The National
DP World-backed freeport 'open for business' after winning UK government bid | The National
A UAE-backed freeport on the river Thames won the support of the British government on Wednesday, after UK Finance Minister Rishi Sunak unveiled the eight winning bids to turbocharge post-Brexit Britain in his budget statement.
The Thames Freeport in East London's Thames Estuary is a digitally linked, special economic zone that includes DP World-owned London Gateway port, as well as Tilbury port and a Ford factory in Dagenham. It is one of eight new economic zones that will receive tax advantages and customs relief.
Alan Shaoul, chief financial officer at DP World in the UK, said on Wednesday that the Thames Freeport was “open for business”.
“Our London Gateway site alone has almost 10 million square feet of land that has planning consent, and the capacity to expand materially its operational area and therefore attract new foreign direct investment within the lifetime of this parliament,” Mr Shaoul said.
A UAE-backed freeport on the river Thames won the support of the British government on Wednesday, after UK Finance Minister Rishi Sunak unveiled the eight winning bids to turbocharge post-Brexit Britain in his budget statement.
The Thames Freeport in East London's Thames Estuary is a digitally linked, special economic zone that includes DP World-owned London Gateway port, as well as Tilbury port and a Ford factory in Dagenham. It is one of eight new economic zones that will receive tax advantages and customs relief.
Alan Shaoul, chief financial officer at DP World in the UK, said on Wednesday that the Thames Freeport was “open for business”.
“Our London Gateway site alone has almost 10 million square feet of land that has planning consent, and the capacity to expand materially its operational area and therefore attract new foreign direct investment within the lifetime of this parliament,” Mr Shaoul said.
Emirate of #Sharjah sells $1.25 billion in bonds | Reuters
Emirate of Sharjah sells $1.25 billion in bonds | Reuters
The Emirate of Sharjah launched $1.25 billion in two-tranche bonds of 12- and 30-year paper on Wednesday, a document from one of the banks arranging the deal showed.
It sold $750 million in 12-year notes at 3.625% and $500 million in 30-year bonds at 4.75% out of combined orders of more than $2.7 billion, the document showed.
It had tightened final guidance to between 3.625% and 3.75% for the 12-year notes and 4.75% to 4.875% for the 30-year tranche from initial guidance of around 3.875% for the 12-year bonds and between 4.875% and 5% for the 30-year paper.
Bank ABC, Citi, Emirates NBD Capital, HSBC, Mashreq and Standard Chartered are arranging the deal, which is expected to close later on Wednesday.
The Emirate of Sharjah launched $1.25 billion in two-tranche bonds of 12- and 30-year paper on Wednesday, a document from one of the banks arranging the deal showed.
It sold $750 million in 12-year notes at 3.625% and $500 million in 30-year bonds at 4.75% out of combined orders of more than $2.7 billion, the document showed.
It had tightened final guidance to between 3.625% and 3.75% for the 12-year notes and 4.75% to 4.875% for the 30-year tranche from initial guidance of around 3.875% for the 12-year bonds and between 4.875% and 5% for the 30-year paper.
Bank ABC, Citi, Emirates NBD Capital, HSBC, Mashreq and Standard Chartered are arranging the deal, which is expected to close later on Wednesday.
#Dubai Risks Driving Out Investors as Public Companies Delist - Bloomberg
Dubai Risks Driving Out Investors as Public Companies Delist - Bloomberg
Betting on Dubai to deliver uninterrupted success as a tourism and entertainment hub is turning into a costly business for some stock investors.
For the second time in less than three months, one of the emirate’s leading companies said it will effectively delist one of its units for about two-thirds of its original public-offering price. Emaar Properties PJSC, which built the city’s iconic Burj Khlaifa tower, announced Tuesday it plans to buy back a 15% stake in its Emaar Malls PJSC unit at a 36% discount to the 2.9 dirhams a share at which it sold it in 2014.
The move has any number of repercussions for a market that’s struggling to sustain interest following a pandemic-triggered selloff last year that was exacerbated by Dubai’s status as a global travel hub. As well as depriving investors of exposure to one of the emirate’s strongest sectors, removing a $6.3 billion company from the DFM exchange may simply drive away would-be buyers, both big and small, from future offerings.
“It could prove an impediment to companies looking to spin off small stakes of 10% or 15% as investors may shy away even if the stock is attractive,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital Ltd. in Abu Dhabi. “Fears of minority shareholders not being protected will become a concern for international investors going forward” as well, he said.
Emaar’s decision is additionally worrying for investors because it comes so soon after a similar move from another of the emirate’s leading property developers. In December, government-controlled Meraas Holding LLC proposed taking DXB Entertainments private at a 33% discount.
Betting on Dubai to deliver uninterrupted success as a tourism and entertainment hub is turning into a costly business for some stock investors.
For the second time in less than three months, one of the emirate’s leading companies said it will effectively delist one of its units for about two-thirds of its original public-offering price. Emaar Properties PJSC, which built the city’s iconic Burj Khlaifa tower, announced Tuesday it plans to buy back a 15% stake in its Emaar Malls PJSC unit at a 36% discount to the 2.9 dirhams a share at which it sold it in 2014.
The move has any number of repercussions for a market that’s struggling to sustain interest following a pandemic-triggered selloff last year that was exacerbated by Dubai’s status as a global travel hub. As well as depriving investors of exposure to one of the emirate’s strongest sectors, removing a $6.3 billion company from the DFM exchange may simply drive away would-be buyers, both big and small, from future offerings.
“It could prove an impediment to companies looking to spin off small stakes of 10% or 15% as investors may shy away even if the stock is attractive,” said Mohammed Ali Yasin, the chief strategy officer at Al Dhabi Capital Ltd. in Abu Dhabi. “Fears of minority shareholders not being protected will become a concern for international investors going forward” as well, he said.
Emaar’s decision is additionally worrying for investors because it comes so soon after a similar move from another of the emirate’s leading property developers. In December, government-controlled Meraas Holding LLC proposed taking DXB Entertainments private at a 33% discount.
MIDEAST STOCKS-Property shares lift #Dubai bourse, #Saudi strong ahead of OPEC+ meet | Nasdaq
MIDEAST STOCKS-Property shares lift Dubai bourse, Saudi strong ahead of OPEC+ meet | Nasdaq
Dubai's stock market ended higher on Wednesday, led by blue-chip developer Emaar Properties EMAR.DU, while Saudi shares also registered strong gains ahead of an OPEC+ meet.
Dubai's main share index .TASI gained 0.8%, extending gains for a fifth consecutive session, with Emaar Properties rising 2.2%, while its unit Emaar Malls EMAA.DU jumped over 5%, its biggest intraday gain since November last year.
Emaar on Tuesday said it was buying out minority shareholders of its shopping centre unit, less than a decade after floating shares in the company.
Emaar Properties, which already owns close to 85% of Emaar Malls, will swap 0.51 of its own shares with shareholders of Emaar Malls. This values Emaar Malls at 24 billion dirhams ($6.53 billion).
Saudi Arabia's benchmark index .TASI rose 0.7%, ahead of an OPEC+ meet on Thursday, with oil behemoth Saudi Aramco 2222.SE and petrochemical maker Saudi Basic Industries 2010.SE advancing 1.7%, and 2.3% respectively.
OPEC sees a generally positive oil market outlook with last year's uncertainty easing, but downside risks caused by the pandemic persist, the group's secretary general and its experts said on Tuesday.
The market widely expects them to ease their production cuts, which were the deepest ever, by around 1.5 million barrels per day (bpd), with OPEC's leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.
Meanwhile, S&P Global has said Saudi Arabia's credit rating is unlikely to be affected by last week's U.S. report that the Kingdom's de facto ruler, Crown Prince Mohammed bin Salman, approved an operation to capture or kill journalist Jamal Khashoggi, who was murdered in 2018.
In Qatar, the index .QSI eased 0.2%, hit by a 4.5% fall in Qatar Gas Transport QGTS.QA, which traded ex-dividend.
Dubai's stock market ended higher on Wednesday, led by blue-chip developer Emaar Properties EMAR.DU, while Saudi shares also registered strong gains ahead of an OPEC+ meet.
Dubai's main share index .TASI gained 0.8%, extending gains for a fifth consecutive session, with Emaar Properties rising 2.2%, while its unit Emaar Malls EMAA.DU jumped over 5%, its biggest intraday gain since November last year.
Emaar on Tuesday said it was buying out minority shareholders of its shopping centre unit, less than a decade after floating shares in the company.
Emaar Properties, which already owns close to 85% of Emaar Malls, will swap 0.51 of its own shares with shareholders of Emaar Malls. This values Emaar Malls at 24 billion dirhams ($6.53 billion).
Saudi Arabia's benchmark index .TASI rose 0.7%, ahead of an OPEC+ meet on Thursday, with oil behemoth Saudi Aramco 2222.SE and petrochemical maker Saudi Basic Industries 2010.SE advancing 1.7%, and 2.3% respectively.
OPEC sees a generally positive oil market outlook with last year's uncertainty easing, but downside risks caused by the pandemic persist, the group's secretary general and its experts said on Tuesday.
The market widely expects them to ease their production cuts, which were the deepest ever, by around 1.5 million barrels per day (bpd), with OPEC's leader, Saudi Arabia, ending its voluntary production cut of 1 million bpd.
Meanwhile, S&P Global has said Saudi Arabia's credit rating is unlikely to be affected by last week's U.S. report that the Kingdom's de facto ruler, Crown Prince Mohammed bin Salman, approved an operation to capture or kill journalist Jamal Khashoggi, who was murdered in 2018.
In Qatar, the index .QSI eased 0.2%, hit by a 4.5% fall in Qatar Gas Transport QGTS.QA, which traded ex-dividend.
#AbuDhabi fund, CVC, among suitors for $1 billion NMC hospital business | Reuters
Abu Dhabi fund, CVC, among suitors for $1 billion NMC hospital business | Reuters
Abu Dhabi state-owned holding company ADQ and private equity firm CVC Capital Partners are among the suitors that have shown interest in NMC Health’s core hospital business, sources told Reuters.
Hospital operators in the region have reported higher profits for last year as the COVID-19 pandemic led to higher in-patient occupancy.
NMC has hired advisers for the sale of NMC’s healthcare business in the United Arab Emirates (UAE) and Oman, which sources said could generate around $1 billion.
ADQ is serious about the transaction, which would make sense for the nascent wealth fund, whose portfolio includes Abu Dhabi Health Services Co (Seha), two sources said. They declined to be named as the matter is not public.
Saudi Arabian healthcare operator Sulaiman Al Habib Medical Group (HMG) has been invited to the process, said one of the two sources and a third source.
Abu Dhabi state-owned holding company ADQ and private equity firm CVC Capital Partners are among the suitors that have shown interest in NMC Health’s core hospital business, sources told Reuters.
Hospital operators in the region have reported higher profits for last year as the COVID-19 pandemic led to higher in-patient occupancy.
NMC has hired advisers for the sale of NMC’s healthcare business in the United Arab Emirates (UAE) and Oman, which sources said could generate around $1 billion.
ADQ is serious about the transaction, which would make sense for the nascent wealth fund, whose portfolio includes Abu Dhabi Health Services Co (Seha), two sources said. They declined to be named as the matter is not public.
Saudi Arabian healthcare operator Sulaiman Al Habib Medical Group (HMG) has been invited to the process, said one of the two sources and a third source.
Oil up as OPEC+ considers rollover rather than raising output | Reuters
Oil up as OPEC+ considers rollover rather than raising output | Reuters
Oil prices rose on Wednesday, boosted by expectations that OPEC+ producers might decide against increasing output when they meet this week, while signs of progress in the coronavirus vaccine rollout in the United States gave further support.
Brent oil was up 66 cents, or 1%, to $63.36 a barrel by 1313 GMT. U.S. West Texas Intermediate (WTI) crude rose 65 cents, or 1.1%, to $60.40 a barrel.
“The fundamentals of the oil market suggest further strength as oil demand grows with the recovery and leisure and travel activity is likely to bounce,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
“We see oil prices pushing temporarily above $70 by mid-year,” he added.
Oil prices jumped after Reuters reported based on three sources that the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, are considering rolling over production cuts from March into April rather than raising output.
Oil prices rose on Wednesday, boosted by expectations that OPEC+ producers might decide against increasing output when they meet this week, while signs of progress in the coronavirus vaccine rollout in the United States gave further support.
Brent oil was up 66 cents, or 1%, to $63.36 a barrel by 1313 GMT. U.S. West Texas Intermediate (WTI) crude rose 65 cents, or 1.1%, to $60.40 a barrel.
“The fundamentals of the oil market suggest further strength as oil demand grows with the recovery and leisure and travel activity is likely to bounce,” said Norbert Rücker, analyst at Swiss bank Julius Baer.
“We see oil prices pushing temporarily above $70 by mid-year,” he added.
Oil prices jumped after Reuters reported based on three sources that the Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as OPEC+, are considering rolling over production cuts from March into April rather than raising output.
The LNG King Embarks on Sales Campaign After Approving Expansion - Bloomberg #Qatar
The LNG King Embarks on Sales Campaign After Approving Expansion - Bloomberg
Executives from the top exporter of liquefied natural gas are jetting around the globe in a whirlwind bid to strike competitive deals with the fastest growing customers. They need to.
Qatar, the world’s largest producer of the fuel, last month approved a $29 billion plan to boost capacity at its LNG export facility by 64% this decade, and is now urgently seeking to lock-in contracts and undercut rival developers from the U.S. to Australia.
That’s why Qatar Petroleum executives were last week in Pakistan to sign a supply deal and pose for photos with Prime Minister Imran Khan, a few days earlier the nation announced an agreement with a trading house for supply to Bangladesh.
“Just in the last week or so we signed a couple of contracts and we’re working on many more,” Qatar Energy Minister Saad Al-Kaabi said at the CERAWeek by IHS Markit conference on March 2.
In the rush to ink deals, Qatar agreed to rates well below those they were demanding less than a decade ago. Pakistan’s latest contract is at a 10.2% link to oil prices, compared to 13.37% in 2016. The Bangladesh deal was done below the 11% mark, according to traders, who requested anonymity to discuss private details.
It is also no coincidence that the first deals out of the gate were for LNG delivered to South Asia, where Royal Dutch Shell expects demand to triple through 2040, out-pacing the rest of the world. Pakistan, Bangladesh and India will need LNG to supplement declining domestic production and to meet growing demand from the industrial and power sectors, Maarten Wetselaar, integrated gas and new energies director at Shell, said in a presentation of the outlook last week.
Executives from the top exporter of liquefied natural gas are jetting around the globe in a whirlwind bid to strike competitive deals with the fastest growing customers. They need to.
Qatar, the world’s largest producer of the fuel, last month approved a $29 billion plan to boost capacity at its LNG export facility by 64% this decade, and is now urgently seeking to lock-in contracts and undercut rival developers from the U.S. to Australia.
That’s why Qatar Petroleum executives were last week in Pakistan to sign a supply deal and pose for photos with Prime Minister Imran Khan, a few days earlier the nation announced an agreement with a trading house for supply to Bangladesh.
“Just in the last week or so we signed a couple of contracts and we’re working on many more,” Qatar Energy Minister Saad Al-Kaabi said at the CERAWeek by IHS Markit conference on March 2.
In the rush to ink deals, Qatar agreed to rates well below those they were demanding less than a decade ago. Pakistan’s latest contract is at a 10.2% link to oil prices, compared to 13.37% in 2016. The Bangladesh deal was done below the 11% mark, according to traders, who requested anonymity to discuss private details.
It is also no coincidence that the first deals out of the gate were for LNG delivered to South Asia, where Royal Dutch Shell expects demand to triple through 2040, out-pacing the rest of the world. Pakistan, Bangladesh and India will need LNG to supplement declining domestic production and to meet growing demand from the industrial and power sectors, Maarten Wetselaar, integrated gas and new energies director at Shell, said in a presentation of the outlook last week.
#AbuDhabi's Chimera Capital lists new ETF on DFM | ZAWYA MENA Edition
Abu Dhabi's Chimera Capital lists new ETF on DFM | ZAWYA MENA Edition
UAE-based asset management firm Chimera Capital listed its exchange-traded fund (ETF) on the Dubai Financial Market (DFM) on Wednesday.
The Chimera S&P UAE UCITS ETF has been designed to track the performance of the S&P UAE BMI Liquid 20/35 Capped Index, which includes the largest stocks by capitalisation in the UAE.
The new ETF is a sub-fund of the Chimera UCITS ICAV umbrella fund. It listed on the Abu Dhabi Securities Exchange last February 23 and is the second to be launched by Chimera in less than a year.
Last July, the firm rolled out the Chimera S&P UAE Shariah ETF, which has surpassed 50 million dirhams ($13.6 million) in assets under management as of December 2020, to become the third-largest equity ETF listed in the Middle East and North Africa (MENA) markets.
“The new ETF provides investors with the added flexibility that comes from being able to choose between distributing and accumulating share classes, a feature which will make the fund attractive to different investor types,” said Seif Fikry, chief executive officer (CEO) of Chimera.
UAE-based asset management firm Chimera Capital listed its exchange-traded fund (ETF) on the Dubai Financial Market (DFM) on Wednesday.
The Chimera S&P UAE UCITS ETF has been designed to track the performance of the S&P UAE BMI Liquid 20/35 Capped Index, which includes the largest stocks by capitalisation in the UAE.
The new ETF is a sub-fund of the Chimera UCITS ICAV umbrella fund. It listed on the Abu Dhabi Securities Exchange last February 23 and is the second to be launched by Chimera in less than a year.
Last July, the firm rolled out the Chimera S&P UAE Shariah ETF, which has surpassed 50 million dirhams ($13.6 million) in assets under management as of December 2020, to become the third-largest equity ETF listed in the Middle East and North Africa (MENA) markets.
“The new ETF provides investors with the added flexibility that comes from being able to choose between distributing and accumulating share classes, a feature which will make the fund attractive to different investor types,” said Seif Fikry, chief executive officer (CEO) of Chimera.
OPEC+ Is Poised to Cool Oil Market With Extra Production - Bloomberg
OPEC+ Is Poised to Cool Oil Market With Extra Production - Bloomberg
OPEC+ is poised to agree a production increase this week as it seeks to cool a rapid rally in crude prices.
There’s a widespread view within the group that the market can absorb additional barrels, according to people familiar with the deliberations. While the usual differences are present -- with Saudi Arabia cautious and Russia keen to open the taps -- all sides are ready to increase production, they said, asking not to be named because the information was private.
That could put the group on track to implement the majority of the 1.5 million barrel-a-day output increase that’s up for debate on Thursday.
An agreement to hike OPEC+ supply would be the latest sign that the global economy is recovering from the damage wrought by the coronavirus pandemic. The cartel has endured a year of pain, dominated by the deepest output cuts in its history. But the sacrifice has paid off, reviving oil prices back to pre-crisis levels above $60 a barrel.
OPEC+ is poised to agree a production increase this week as it seeks to cool a rapid rally in crude prices.
There’s a widespread view within the group that the market can absorb additional barrels, according to people familiar with the deliberations. While the usual differences are present -- with Saudi Arabia cautious and Russia keen to open the taps -- all sides are ready to increase production, they said, asking not to be named because the information was private.
That could put the group on track to implement the majority of the 1.5 million barrel-a-day output increase that’s up for debate on Thursday.
An agreement to hike OPEC+ supply would be the latest sign that the global economy is recovering from the damage wrought by the coronavirus pandemic. The cartel has endured a year of pain, dominated by the deepest output cuts in its history. But the sacrifice has paid off, reviving oil prices back to pre-crisis levels above $60 a barrel.
#Kuwait wealth fund in talks with KPC on $20 billion-plus dividends - sources | Reuters
Kuwait wealth fund in talks with KPC on $20 billion-plus dividends - sources | Reuters
Kuwait’s sovereign wealth fund is negotiating with state-owned Kuwait Petroleum Corporation (KPC) a new payment schedule for more than $20 billion in accrued dividends, two sources said, as the Gulf state seeks ways to counter a liquidity crunch.
KPC has owed for years about 7 billion Kuwaiti dinars ($23.14 billion) in dividends to the General Reserve Fund (GRF), one of Kuwait’s sovereign funds.
GRF and KPC agreed in recent years a repayment schedule, but GRF now wants to review it and accelerate it as part of government efforts to cover the deficit, said the sources.
“KPC is suffering due to low oil prices and the government has a liquidity problem. KPC wants as long as possible to return the money, and the government wants the largest amount possible,” said one of the sources.
Kuwait’s sovereign wealth fund is negotiating with state-owned Kuwait Petroleum Corporation (KPC) a new payment schedule for more than $20 billion in accrued dividends, two sources said, as the Gulf state seeks ways to counter a liquidity crunch.
KPC has owed for years about 7 billion Kuwaiti dinars ($23.14 billion) in dividends to the General Reserve Fund (GRF), one of Kuwait’s sovereign funds.
GRF and KPC agreed in recent years a repayment schedule, but GRF now wants to review it and accelerate it as part of government efforts to cover the deficit, said the sources.
“KPC is suffering due to low oil prices and the government has a liquidity problem. KPC wants as long as possible to return the money, and the government wants the largest amount possible,” said one of the sources.
Property shares buoy #Dubai as major Gulf markets rise | Reuters
Property shares buoy Dubai as major Gulf markets rise | Reuters
Major stock markets in the Gulf rose in early trade on Wednesday, with the Dubai index leading the gains, boosted by its property shares following a buy out announcement.
On Tuesday, Emaar Properties said it was buying out minority shareholders of Emaar Malls in a all-share deal.
In Dubai, the index gained 0.8%, led by a 3% jump in blue-chip developer Emaar Properties, while its shopping centre unit Emaar Malls surged 5.9%.
Qatar’s benchmark index edged up 0.3%, helped by its banking shares, with sharia-complaint lender Qatar Islamic Bank increasing 1.3%, while Gulf’s largest lender Qatar National Bank added 0.9%.
A Moody’s report on Monday said that Qatari banks profits will remain resilient for 2021, despite the higher provisioning costs driven by coronavirus pandemic. (nL3N2KZ2GA)
Saudi’s benchmark index was up 0.2%, as Al Rajhi Bank gained 0.1% and Samba Financial Group rose 0.8%.
Elsewhere, Arabian Centres and Fawaz Abdulaziz Alhokair gained 4.4% and 2.9% respectively, after they announced they were acquiring a combined 51% stake in online fashion retailer, Vogacloset.
Abu Dhabi index, however, traded flat.
Major stock markets in the Gulf rose in early trade on Wednesday, with the Dubai index leading the gains, boosted by its property shares following a buy out announcement.
On Tuesday, Emaar Properties said it was buying out minority shareholders of Emaar Malls in a all-share deal.
In Dubai, the index gained 0.8%, led by a 3% jump in blue-chip developer Emaar Properties, while its shopping centre unit Emaar Malls surged 5.9%.
Qatar’s benchmark index edged up 0.3%, helped by its banking shares, with sharia-complaint lender Qatar Islamic Bank increasing 1.3%, while Gulf’s largest lender Qatar National Bank added 0.9%.
A Moody’s report on Monday said that Qatari banks profits will remain resilient for 2021, despite the higher provisioning costs driven by coronavirus pandemic. (nL3N2KZ2GA)
Saudi’s benchmark index was up 0.2%, as Al Rajhi Bank gained 0.1% and Samba Financial Group rose 0.8%.
Elsewhere, Arabian Centres and Fawaz Abdulaziz Alhokair gained 4.4% and 2.9% respectively, after they announced they were acquiring a combined 51% stake in online fashion retailer, Vogacloset.
Abu Dhabi index, however, traded flat.
Mideast Spotify Challenger Anghami Is Said to Near SPAC Merger - Bloomberg
Mideast Spotify Challenger Anghami Is Said to Near SPAC Merger - Bloomberg
Anghami, the Abu Dhabi-based music-streaming service that claims over 70 million users, is close to being listed on the Nasdaq stock exchange in New York by merging with a blank-check company, according to people familiar with the matter, setting the stage for one of the biggest investments into a Middle Eastern technology startup in years.
Anghami, Arabic for “my tunes,” has been holding talks with Vistas Media Acquisition Company Inc., a special purpose acquisition company set up last year, and a deal may be announced as early as Wednesday, the people said, asking not to be named because the information is private. It would mark the first listing on the Nasdaq in New York by a home-grown Middle Eastern tech company.
If the deal goes ahead, Anghami could be valued at close to $300 million, according to the people. The transaction includes a combined $40 million commitment from UAE financial firm Shuaa Capital and the parent of the SPAC sponsor in so-called PIPE -- private investment in public equity -- financing, the people said.
SPACs are often formed to allow private companies to raise fresh funds to grow and list directly without having to go through the costly and time-consuming initial public offering process.
Representatives for Anghami, Vistas and Shuaa declined to comment.
A successful listing of Anghami would add to a streak of major technology deals in the Middle East that started with acquisitions of local companies by Uber Technologies Inc. and Amazon.com Inc.
Anghami, the Abu Dhabi-based music-streaming service that claims over 70 million users, is close to being listed on the Nasdaq stock exchange in New York by merging with a blank-check company, according to people familiar with the matter, setting the stage for one of the biggest investments into a Middle Eastern technology startup in years.
Anghami, Arabic for “my tunes,” has been holding talks with Vistas Media Acquisition Company Inc., a special purpose acquisition company set up last year, and a deal may be announced as early as Wednesday, the people said, asking not to be named because the information is private. It would mark the first listing on the Nasdaq in New York by a home-grown Middle Eastern tech company.
If the deal goes ahead, Anghami could be valued at close to $300 million, according to the people. The transaction includes a combined $40 million commitment from UAE financial firm Shuaa Capital and the parent of the SPAC sponsor in so-called PIPE -- private investment in public equity -- financing, the people said.
SPACs are often formed to allow private companies to raise fresh funds to grow and list directly without having to go through the costly and time-consuming initial public offering process.
Representatives for Anghami, Vistas and Shuaa declined to comment.
A successful listing of Anghami would add to a streak of major technology deals in the Middle East that started with acquisitions of local companies by Uber Technologies Inc. and Amazon.com Inc.
#Saudi, #UAE Business Activity Slows as Virus Cases Rise - Bloomberg
Saudi, UAE Business Activity Slows as Virus Cases Rise - Bloomberg
Business conditions in the Arab world’s two largest economies improved at a slower pace in February as coronavirus cases crept up and employment figures dipped.
Weaker demand, faltering sentiment and job cuts weighed on non-oil private sector activity in the United Arab Emirates and neighboring Saudi Arabia according to Purchasing Managers’ Indexes compiled by IHS Markit. The overall benchmarks remained above the 50 mark that separates growth from contraction.
In Saudi Arabia, a gauge tracking employment fell for a third straight month, as companies reduced their workforce despite higher demand, signaling recovery in the job market is lagging behind the rebound in activity. In the UAE, where authorities have reimposed some virus-related restrictions, customer sales slowed.
“The tightening of Covid-19 restrictions in February had a notable impact on the UAE economy,” IHS Economist David Owen wrote. “The return to stricter lockdown measures meant that many firms’ expectations for future output growth remained subdued in February, despite the success of the UAE’s vaccine program paving the way for a reopening of the economy later in the year.
Business conditions in the Arab world’s two largest economies improved at a slower pace in February as coronavirus cases crept up and employment figures dipped.
Weaker demand, faltering sentiment and job cuts weighed on non-oil private sector activity in the United Arab Emirates and neighboring Saudi Arabia according to Purchasing Managers’ Indexes compiled by IHS Markit. The overall benchmarks remained above the 50 mark that separates growth from contraction.
In Saudi Arabia, a gauge tracking employment fell for a third straight month, as companies reduced their workforce despite higher demand, signaling recovery in the job market is lagging behind the rebound in activity. In the UAE, where authorities have reimposed some virus-related restrictions, customer sales slowed.
“The tightening of Covid-19 restrictions in February had a notable impact on the UAE economy,” IHS Economist David Owen wrote. “The return to stricter lockdown measures meant that many firms’ expectations for future output growth remained subdued in February, despite the success of the UAE’s vaccine program paving the way for a reopening of the economy later in the year.
- The UAE’s PMI fell to 50.6 in February versus 51.2 in the previous month
- Business expectations improved ‘gradually’ with virus restrictions leading to more uncertainty for short-term growth prospects while new business didn’t rise for the first time in four months.
- Some companies noted weaker demand due to stricter restrictions on sectors including retail and services.
- Input prices rose “only slightly” as the impact on cost pressures was limited but some firms offered discounts to increase demand, leading to a drop in selling charges.
- Sentiment remained one of the weakest seen on record as only 6% of respondents gave a positive outlook for the coming year period.
- Workforce numbers were mostly flat and a few firms saw workers leave voluntarily.
- Saudi PMI dropped to 53.9 in February from January’s recent high of 57.1
- Rate of growth eased to a four-month low as output and new orders expanded at a slower pace.
- Firms were hopeful that Covid-19’s effect will alleviate, but optimism fell to the lowest since October.
- An uptick in business confidence led to higher sales.
- Firms continued to stock up inventories with hopes of an economic rebound from the downturn.
- Firms anticipated a “rocky start” to the year due to global lockdowns, though the distribution of vaccines is seen having a significant impact on economic activity during the second half of 2021.
Oil rises as U.S. vaccine progress raises demand expectations | Reuters
Oil rises as U.S. vaccine progress raises demand expectations | Reuters
Oil prices rose on Wednesday as signs of progress in the COVID-19 vaccine rollout in the United States, the world’s biggest consumer, raised demand expectations.
U.S. West Texas Intermediate (WTI) crude futures rose 15 cents, or 0.25%, to $59.90 a barrel by 0757 GMT, recovering from three days of losses.
Brent crude futures rose 24 cents, or 0.38%, to $62.94 a barrel after four days of losses.
“Ongoing stimulus measures, as COVID-19 vaccinations speed up, have boosted sentiment,” ANZ analysts wrote in a note.
The U.S. will have enough COVID-19 vaccine for every American adult by the end of May, President Joe Biden said on Tuesday after Merck & Co agreed to make rival Johnson & Johnson’s inoculation.
Oil prices rose on Wednesday as signs of progress in the COVID-19 vaccine rollout in the United States, the world’s biggest consumer, raised demand expectations.
U.S. West Texas Intermediate (WTI) crude futures rose 15 cents, or 0.25%, to $59.90 a barrel by 0757 GMT, recovering from three days of losses.
Brent crude futures rose 24 cents, or 0.38%, to $62.94 a barrel after four days of losses.
“Ongoing stimulus measures, as COVID-19 vaccinations speed up, have boosted sentiment,” ANZ analysts wrote in a note.
The U.S. will have enough COVID-19 vaccine for every American adult by the end of May, President Joe Biden said on Tuesday after Merck & Co agreed to make rival Johnson & Johnson’s inoculation.
Rising COVID-19 cases affected #UAE's non-oil private sector in February - PMI | ZAWYA MENA Edition
Rising COVID-19 cases affected UAE's non-oil private sector in February - PMI | ZAWYA MENA Edition
UAE's non-oil private sector businesses faced fresh disruptions in February as rising COVID-19 cases hampered sales and affected businesses.
Business expectations improved, but only gradually as restrictions led to further uncertainty about short-term growth prospects despite hopes for a rebound in the latter half of 2021, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, was at 50.6 in February compared to 51.2 in January, indicating a slower and only marginal improvement in business conditions.
However, the rate of output growth slowed from the previous month and was modest, as a number of firms commented on weaker demand trends due to stricter COVID-19 restrictions on areas such as retail and services.
David Owen, Economist at IHS Markit, said: "The tightening of COVID-19 restrictions in February had a notable impact on the UAE economy, according to
UAE's non-oil private sector businesses faced fresh disruptions in February as rising COVID-19 cases hampered sales and affected businesses.
Business expectations improved, but only gradually as restrictions led to further uncertainty about short-term growth prospects despite hopes for a rebound in the latter half of 2021, a survey showed on Wednesday.
The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, was at 50.6 in February compared to 51.2 in January, indicating a slower and only marginal improvement in business conditions.
However, the rate of output growth slowed from the previous month and was modest, as a number of firms commented on weaker demand trends due to stricter COVID-19 restrictions on areas such as retail and services.
David Owen, Economist at IHS Markit, said: "The tightening of COVID-19 restrictions in February had a notable impact on the UAE economy, according to
#Oman agrees $2.2 billion loan with large group of banks - sources | Reuters
Oman agrees $2.2 billion loan with large group of banks - sources | Reuters
Oman has raised $2.2 billion with a loan in a deal which attracted interest from a large group of regional and international lenders, sources said.
The Gulf state, rated sub-investment grade by all major credit rating agencies, had been working with a group of banks to raise a $1.1 billion loan, which could have gone up to $2 billion depending on market appetite, sources told Reuters in January.
The deal was eventually completed at $2.2 billion last week, the sources said. Oman’s ministry of finance did not immediately respond to a request for comment.
Oman expects a 2021 budget deficit of 2.24 billion Omani rials ($5.82 billion). To make up the shortfall, the government aims to raise about 1.6 billion rials through borrowing and draw 600 million rials from its reserves.
It was the first Gulf government to tap the international bond markets this year, raising $3.25 billion in three-part bonds in January, taking advantage of positive market conditions to replenish state coffers battered by the coronavirus crisis.
Oman has raised $2.2 billion with a loan in a deal which attracted interest from a large group of regional and international lenders, sources said.
The Gulf state, rated sub-investment grade by all major credit rating agencies, had been working with a group of banks to raise a $1.1 billion loan, which could have gone up to $2 billion depending on market appetite, sources told Reuters in January.
The deal was eventually completed at $2.2 billion last week, the sources said. Oman’s ministry of finance did not immediately respond to a request for comment.
Oman expects a 2021 budget deficit of 2.24 billion Omani rials ($5.82 billion). To make up the shortfall, the government aims to raise about 1.6 billion rials through borrowing and draw 600 million rials from its reserves.
It was the first Gulf government to tap the international bond markets this year, raising $3.25 billion in three-part bonds in January, taking advantage of positive market conditions to replenish state coffers battered by the coronavirus crisis.
Oil Takes Double Blow as OPEC+ to Loosen Taps, Stockpiles Expand - Bloomberg
Oil Takes Double Blow as OPEC+ to Loosen Taps, Stockpiles Expand - Bloomberg
Oil extended its retreat after taking a double blow, with the OPEC+ alliance said to be poised to agree a production increase on Thursday just as U.S. stockpiles were seen expanding by the most this year.
West Texas Intermediate declined for a fourth straight day in early Asian trading, after Brent closed on Tuesday at the lowest level since mid-February. The widespread view among the producer group is that the global market can absorb additional barrels, according to people familiar with the matter.
While oil’s powerful rally is facing a setback as investors and traders adjust to prospects for increased production, WTI remains 22% higher this year. Prices have been supported by the OPEC+ cuts and the vaccine-aided global recovery. However, the producer alliance could return the bulk of the 1.5 million barrel-a-day output hike that’s up for debate this week.
PRICES:
Oil extended its retreat after taking a double blow, with the OPEC+ alliance said to be poised to agree a production increase on Thursday just as U.S. stockpiles were seen expanding by the most this year.
West Texas Intermediate declined for a fourth straight day in early Asian trading, after Brent closed on Tuesday at the lowest level since mid-February. The widespread view among the producer group is that the global market can absorb additional barrels, according to people familiar with the matter.
While oil’s powerful rally is facing a setback as investors and traders adjust to prospects for increased production, WTI remains 22% higher this year. Prices have been supported by the OPEC+ cuts and the vaccine-aided global recovery. However, the producer alliance could return the bulk of the 1.5 million barrel-a-day output hike that’s up for debate this week.
PRICES:
- West Texas Intermediate for April delivery traded 0.7% lower at $59.36 a barrel at 7:27 a.m. in Singapore.
- Should the U.S. benchmark end lower for a fourth day that would be the longest losing run since September.
- Brent for May settlement fell 1.6% to $62.70 a barrel on Tuesday.
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