Bank of Israel Speeds Through Foreign-Currency Purchasing Plan - Bloomberg
The Bank of Israel bought $4.9 billion in foreign currency in February, adding to its record haul a month earlier in a bid to slow the appreciation of the shekel.
Purchases for the first two months of the year totaled about $11.7 billion, or almost 40% of the $30 billion program of interventions announced by the central bank for 2021. That helped bring reserves to a record $185 billion, or more than 45% of gross domestic product, according to a statement on Sunday.
The bank said separately that it also bought 4.4 billion shekels ($1.3 billion) in sovereign bonds last month, as part of its effort to drive down costs for government borrowing and inject liquidity in the local market. Total purchases of government bonds since the beginning of the program a year ago reached 54.8 billion shekels.
Sunday, 7 March 2021
Qatari banks defy pandemic's impact on 2020 earnings | Banking – Gulf News
Qatari banks defy pandemic's impact on 2020 earnings | Banking – Gulf News
The combined results of the eight Qatari banks remained strong despite the impact of COVID-19 on operating conditions and rise in provisions, according to rating agency Moody’s.
Aggregate profitability weakened marginally in 2020. The aggregate return on assets was 1.2 per cent, compared with 1.4 per cent in 2019. The banks’ combined net profit declined 12 per cent year-over-year to QAR20.4 billion.
Five of the eight banks reported lower net profit. The decline in bottom-line profitability mainly reflected higher pandemic-related provisioning, which was partly offset by cost savings and higher net interest income.
The combined results of the eight Qatari banks remained strong despite the impact of COVID-19 on operating conditions and rise in provisions, according to rating agency Moody’s.
Aggregate profitability weakened marginally in 2020. The aggregate return on assets was 1.2 per cent, compared with 1.4 per cent in 2019. The banks’ combined net profit declined 12 per cent year-over-year to QAR20.4 billion.
Five of the eight banks reported lower net profit. The decline in bottom-line profitability mainly reflected higher pandemic-related provisioning, which was partly offset by cost savings and higher net interest income.
#Saudi Stocks Turn Pricier Against EM Peers After OPEC+ Boost - Bloomberg
Saudi Stocks Turn Pricier Against EM Peers After OPEC+ Boost - Bloomberg
Saudi Arabia’s stocks are getting more expensive relative to their peers, buoyed by the recent oil-price rally.
Stocks in the kingdom have surged 7.6% this year, extending gains with oil after the Feb. 4 decision. That’s pushed the Tadawul index to 19 times its estimated earnings, about 27% higher than the MSCI EM Index.
While the gains are a sign of growing confidence that Saudi Arabia’s oil-dependent economy may be on the mend after crude prices slumped last year, a more sustained rally may start to drive investors to seek alternatives. Stocks in Russia, another energy-reliant economy, may prove more attractive because they have the added benefit of possible currency appreciation, according to Hasnain Malik, the head of research at Tellimer in Dubai.
Higher oil prices are key for Saudi revenues at a time when the pandemic has slowed down economic activity. Analysts from Goldman Sachs Group Inc. to JPMorgan Chase & Co. raised their estimates for Brent crude for the medium-term following the OPEC+ meeting, with the former seeing prices at $80 a barrel by the end of the third quarter. Brent ended at $69.36 a barrel last week.
As prospects for companies listed in Riyadh improve and the shares rise, their valuations will become even more disconnected from peers in the region and other emerging markets, Malik said in an interview with Bloomberg TV. Saudi shares are trading at about a 20% premium to their five-year historical average on the basis of their book value, compared with a roughly 15% discount for the United Arab Emirates, he said.
Looking at bigger comparable markets, Malik said that although Russian stocks also trade at a similar premium to historical levels, they may benefit from potential upside to currency, with the ruble “seen as between 10-15% too cheap.”
Since there is no expectation that Saudi Arabia will change the pegged regime for its riyal any time soon, “you don’t have that second kicker for those who want to play those higher oil prices in big, liquid equity markets,” Malik said.
Saudi Arabia’s stocks are getting more expensive relative to their peers, buoyed by the recent oil-price rally.
Stocks in the kingdom have surged 7.6% this year, extending gains with oil after the Feb. 4 decision. That’s pushed the Tadawul index to 19 times its estimated earnings, about 27% higher than the MSCI EM Index.
While the gains are a sign of growing confidence that Saudi Arabia’s oil-dependent economy may be on the mend after crude prices slumped last year, a more sustained rally may start to drive investors to seek alternatives. Stocks in Russia, another energy-reliant economy, may prove more attractive because they have the added benefit of possible currency appreciation, according to Hasnain Malik, the head of research at Tellimer in Dubai.
As prospects for companies listed in Riyadh improve and the shares rise, their valuations will become even more disconnected from peers in the region and other emerging markets, Malik said in an interview with Bloomberg TV. Saudi shares are trading at about a 20% premium to their five-year historical average on the basis of their book value, compared with a roughly 15% discount for the United Arab Emirates, he said.
Looking at bigger comparable markets, Malik said that although Russian stocks also trade at a similar premium to historical levels, they may benefit from potential upside to currency, with the ruble “seen as between 10-15% too cheap.”
Since there is no expectation that Saudi Arabia will change the pegged regime for its riyal any time soon, “you don’t have that second kicker for those who want to play those higher oil prices in big, liquid equity markets,” Malik said.
OPEC+ Surprise Sees Oil Soar Past Gulf’s Budget-Balancing Levels - Bloomberg
OPEC+ Surprise Sees Oil Soar Past Gulf’s Budget-Balancing Levels - Bloomberg
Brent crude now trades above fiscal breakeven prices for the four biggest oil producers in the Middle East after Saudi Arabia convinced fellow OPEC+ members to keep output largely unchanged.
The shock move by OPEC+ triggered a rally in Brent prices, which rose to almost $70 a barrel. That’s higher than annual average levels needed for the cartel’s largest producers, including Saudi Arabia, to balance their budgets this year.
If oil prices stay at current levels, “we would see fiscal surpluses for the larger Gulf Cooperation Council economies,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “This provides more fiscal space to support economic activity and recovery.”
Analysts at Goldman Sachs Group Inc. and JPMorgan Chase & Co. raised their price forecasts for Brent after the OPEC decision, while Citigroup Inc. said crude could top $70 before the end of this month.
Brent crude now trades above fiscal breakeven prices for the four biggest oil producers in the Middle East after Saudi Arabia convinced fellow OPEC+ members to keep output largely unchanged.
The shock move by OPEC+ triggered a rally in Brent prices, which rose to almost $70 a barrel. That’s higher than annual average levels needed for the cartel’s largest producers, including Saudi Arabia, to balance their budgets this year.
If oil prices stay at current levels, “we would see fiscal surpluses for the larger Gulf Cooperation Council economies,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “This provides more fiscal space to support economic activity and recovery.”
Analysts at Goldman Sachs Group Inc. and JPMorgan Chase & Co. raised their price forecasts for Brent after the OPEC decision, while Citigroup Inc. said crude could top $70 before the end of this month.
Egypt outperforms as most markets in the region gain | Reuters
Egypt outperforms as most markets in the region gain | Reuters
Saudi Arabia’s stock market ended higher on Sunday, mirroring Friday’s jump in crude prices, while Egyptian shares outperformed the region as its COVID-19 vaccination programme was expanded.
Oil prices gained about 3% in the previous session, hitting their highest in more than a year after a stronger than expected U.S. jobs report and a decision by oil producer group OPEC and its allies not to increase supply in April.
Investors were surprised that Saudi Arabia had decided to maintain its voluntary cut of 1 million bpd through April.
The kingdom’s benchmark index advanced 1.2%, as the majority of stocks on the index were in positive territory, including oil behemoth Saudi Aramco which was up 1.7%.
Aramco would be well placed to implement higher dividend guidance beyond its $75 billion minimum thanks to higher oil output scenarios, Bank of America said in a research report.
Egypt’s blue-chip index climbed 2%, snapping five sessions of losses, with the country’s largest lender Commercial International Bank gaining 2.7%.
Egypt, the Arab world’s most populous country of more than 100 million, on Thursday expanded its coronavirus vaccination rollout to include the elderly and people with chronic diseases after several weeks of vaccinating medical staff, the cabinet said.
Dubai’s main share index declined 0.9%, hit by a 2.7% slide in Emirates NBD, extending losses from the previous session when the stock traded ex-dividend.
Elsewhere, the Abu Dhabi index concluded flat as the shares traded mixed.
Qatar was closed for an official holiday.
Saudi Arabia’s stock market ended higher on Sunday, mirroring Friday’s jump in crude prices, while Egyptian shares outperformed the region as its COVID-19 vaccination programme was expanded.
Oil prices gained about 3% in the previous session, hitting their highest in more than a year after a stronger than expected U.S. jobs report and a decision by oil producer group OPEC and its allies not to increase supply in April.
Investors were surprised that Saudi Arabia had decided to maintain its voluntary cut of 1 million bpd through April.
The kingdom’s benchmark index advanced 1.2%, as the majority of stocks on the index were in positive territory, including oil behemoth Saudi Aramco which was up 1.7%.
Aramco would be well placed to implement higher dividend guidance beyond its $75 billion minimum thanks to higher oil output scenarios, Bank of America said in a research report.
Egypt’s blue-chip index climbed 2%, snapping five sessions of losses, with the country’s largest lender Commercial International Bank gaining 2.7%.
Egypt, the Arab world’s most populous country of more than 100 million, on Thursday expanded its coronavirus vaccination rollout to include the elderly and people with chronic diseases after several weeks of vaccinating medical staff, the cabinet said.
Dubai’s main share index declined 0.9%, hit by a 2.7% slide in Emirates NBD, extending losses from the previous session when the stock traded ex-dividend.
Elsewhere, the Abu Dhabi index concluded flat as the shares traded mixed.
Qatar was closed for an official holiday.
Tellimer's Malik on OPEC+, Soaring Oil Prices, and the Delisting of Public Companies in #Dubai - Bloomberg video
Tellimer's Malik on OPEC+, Soaring Oil Prices, and the Delisting of Public Companies in Dubai - Bloomberg
Hasnain Malik, Head of Equity Research at Tellimer, discusses OPEC+, soaring oil prices, and whether Dubai risks driving out investors as public companies delist. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Aramco $75 Billion Payout No Problem as Oil Recovers, BofA Says - Bloomberg
Aramco $75 Billion Payout No Problem as Oil Recovers, BofA Says - Bloomberg
The rally in oil prices has all but expunged any likelihood that Saudi Aramco will fail to meet its $75 billion dividend payout next year, according to Bank of America Corp.
Far from missing the payment, the company may even boost it in 2022 as it increases production and benchmark crude prices head back toward $70 a barrel, the bank said.
Aramco’s pledge to pay an annual $75 billion to shareholders during its first five years as a publicly traded company was thrown into doubt last year as oil tumbled amid the Covid-19 pandemic, prompting the company to slash spending and increase borrowing. It also put an additional strain on Saudi Arabia’s finances. The government, which owns 98% of Aramco after selling shares in a December 2019 initial public offering, has depended on the dividend to help plug its budget deficit.
“Aramco would be well-placed to implement its higher dividend distribution guidance given during the IPO and even increase dividends beyond its minimum $75 billion pledge,” Bank of America analysts including Houston-based Doug Leggate and Karen Kostanian in Moscow said in a report. “Aramco is one of the few companies globally that can substantially boost output without committing additional capex.”
The rally in oil prices has all but expunged any likelihood that Saudi Aramco will fail to meet its $75 billion dividend payout next year, according to Bank of America Corp.
Far from missing the payment, the company may even boost it in 2022 as it increases production and benchmark crude prices head back toward $70 a barrel, the bank said.
Aramco’s pledge to pay an annual $75 billion to shareholders during its first five years as a publicly traded company was thrown into doubt last year as oil tumbled amid the Covid-19 pandemic, prompting the company to slash spending and increase borrowing. It also put an additional strain on Saudi Arabia’s finances. The government, which owns 98% of Aramco after selling shares in a December 2019 initial public offering, has depended on the dividend to help plug its budget deficit.
“Aramco would be well-placed to implement its higher dividend distribution guidance given during the IPO and even increase dividends beyond its minimum $75 billion pledge,” Bank of America analysts including Houston-based Doug Leggate and Karen Kostanian in Moscow said in a report. “Aramco is one of the few companies globally that can substantially boost output without committing additional capex.”
Al Ramz's Shurrab on OPEC+ Alliance, Soaring Oil Prices, and #Dubai's Emaar Properties - Bloomberg video
Al Ramz's Shurrab on OPEC+ Alliance, Soaring Oil Prices, and Dubai's Emaar Properties - Bloomberg
Marwan Shurrab, Senior Vice President/Head of HNW and Retail Equities at Al Ramz, discusses the OPEC+ alliance's keeping oil output in check, soaring oil prices, and Dubai's Emaar Properties' plan to delist its malls unit at a 36% discount to its 2014 IPO. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#UAE's Shuaa Capital to sell over 28mln treasury shares | ZAWYA MENA Edition
UAE's Shuaa Capital to sell over 28mln treasury shares | ZAWYA MENA Edition
UAE’s publicly listed financial services firm Shuaa Capital is expected to divest more than 28 million treasury shares.
The company’s board of directors has just passed a resolution approving the sale of 28,107,748 shares, subject to the approval of the Securities and Commodities Authority (CMA), the company said in a bourse filing to the Dubai Financial Market (DFM) on Sunday.
No further details were disclosed regarding the sale.
The company earlier said it is expected to boost its financial results following a merger deal and listing of Anghami, a homegrown Arab music streaming platform, on Nasdaq. Shuaa had acted as the lead arranger and committed $30 million for the transaction.
It had a profitable year in 2020, when net profit went up by 166 percent to 125 million dirhams ($34 million) from 47 million dirhams in 2019.
Shuaa had been reducing its non-core assets to strengthen its balance sheet. It has just completed its 2020 funding plan by issuing $150 million bond, the first high-yield bond issuance in the Middle East and North Africa (MENA) region since the COVID-19 pandemic.
UAE’s publicly listed financial services firm Shuaa Capital is expected to divest more than 28 million treasury shares.
The company’s board of directors has just passed a resolution approving the sale of 28,107,748 shares, subject to the approval of the Securities and Commodities Authority (CMA), the company said in a bourse filing to the Dubai Financial Market (DFM) on Sunday.
No further details were disclosed regarding the sale.
The company earlier said it is expected to boost its financial results following a merger deal and listing of Anghami, a homegrown Arab music streaming platform, on Nasdaq. Shuaa had acted as the lead arranger and committed $30 million for the transaction.
It had a profitable year in 2020, when net profit went up by 166 percent to 125 million dirhams ($34 million) from 47 million dirhams in 2019.
Shuaa had been reducing its non-core assets to strengthen its balance sheet. It has just completed its 2020 funding plan by issuing $150 million bond, the first high-yield bond issuance in the Middle East and North Africa (MENA) region since the COVID-19 pandemic.
Mideast Stocks: #Saudi leads gains as oil buoys markets | ZAWYA MENA Edition
Mideast Stocks: Saudi leads gains as oil buoys markets | ZAWYA MENA Edition
The Saudi Arabian stock market rose in early Sunday trade after Friday's jump in oil prices.
Oil prices gained about 3% in the previous session, hitting their highest in more than a year after a stronger than expected U.S. jobs report and a decision by oil producer group OPEC and its allies not to increase supply in April.
Saudi's benchmark index was up 1.3%, aided by a 1% rise for Al Rajhi Bank and a 2.3% gain for Saudi Basic Industries (Sabic).
Oil major Saudi Aramco advanced 1.9% after Bank of America said Aramco would be well placed to implement higher dividend guidance beyond its $75 billion minimum thanks to higher oil output scenarios.
Elsewhere, Fitaihi Holding Group surged 10% after it swung to profit in 2020.
The Abu Dhabi index rose 0.4% after two sessions of losses, with the index firming largely thanks to financial stocks including a 0.4% gain for largest lender First Abu Dhabi Bank.
However, the Dubai index slipped 0.3%, dragged down by a 1.3% fall for largest lender Emirates NBD and a 1.5% drop for developer Damac Properties.
The Qatari index was closed for an official holiday.
The Saudi Arabian stock market rose in early Sunday trade after Friday's jump in oil prices.
Oil prices gained about 3% in the previous session, hitting their highest in more than a year after a stronger than expected U.S. jobs report and a decision by oil producer group OPEC and its allies not to increase supply in April.
Saudi's benchmark index was up 1.3%, aided by a 1% rise for Al Rajhi Bank and a 2.3% gain for Saudi Basic Industries (Sabic).
Oil major Saudi Aramco advanced 1.9% after Bank of America said Aramco would be well placed to implement higher dividend guidance beyond its $75 billion minimum thanks to higher oil output scenarios.
Elsewhere, Fitaihi Holding Group surged 10% after it swung to profit in 2020.
The Abu Dhabi index rose 0.4% after two sessions of losses, with the index firming largely thanks to financial stocks including a 0.4% gain for largest lender First Abu Dhabi Bank.
However, the Dubai index slipped 0.3%, dragged down by a 1.3% fall for largest lender Emirates NBD and a 1.5% drop for developer Damac Properties.
The Qatari index was closed for an official holiday.
#UAE's first independent digital banking platform launches | Reuters
UAE's first independent digital banking platform launches | Reuters
The first independent digital banking platform in the United Arab Emirates launched on Sunday, a neobank hoping to become a leader in the Middle East, Africa and South Asia.
Dubai-based YAP does not have a banking licence itself but has partnered with RAK Bank which provides international bank account numbers for YAP users and secures their funds under its own banking licence.
YAP, like other neobanks which do not have physical branches, does not offer traditional banking services like loans and mortgages, but offers spending and budgeting analytics, peer-to-peer payments and remittances services and bill payments.
YAP is in the process of partnering with banks in other countries, head of product Katral-Nada Hassan said, including a bank in Saudi, in Pakistan and in Ghana.
The first independent digital banking platform in the United Arab Emirates launched on Sunday, a neobank hoping to become a leader in the Middle East, Africa and South Asia.
Dubai-based YAP does not have a banking licence itself but has partnered with RAK Bank which provides international bank account numbers for YAP users and secures their funds under its own banking licence.
YAP, like other neobanks which do not have physical branches, does not offer traditional banking services like loans and mortgages, but offers spending and budgeting analytics, peer-to-peer payments and remittances services and bill payments.
YAP is in the process of partnering with banks in other countries, head of product Katral-Nada Hassan said, including a bank in Saudi, in Pakistan and in Ghana.
#SaudiArabia’s Plan to Rule $700 Billion Hydrogen Market - Bloomberg
Saudi Arabia’s Plan to Rule $700 Billion Hydrogen Market - Bloomberg
Sun-scorched expanses and steady Red Sea breezes make the northwest tip of Saudi Arabia prime real estate for what the kingdom hopes will become a global hub for green hydrogen.
As governments and industries seek less-polluting alternatives to hydrocarbons, the world’s biggest crude exporter doesn’t want to cede the burgeoning hydrogen business to China, Europe or Australia and lose a potentially massive source of income. So it’s building a $5 billion plant powered entirely by sun and wind that will be among the world’s biggest green hydrogen makers when it opens in the planned megacity of Neom in 2025.
The task of turning a patch of desert the size of Belgium into a metropolis powered by renewable energy falls to Peter Terium, the former chief executive officer of RWE AG, Germany’s biggest utility, and clean-energy spinoff Innogy SE. His performance will help determine whether a country dependent on petrodollars can transition into a supplier of non-polluting fuels.
“There’s nothing I’ve ever seen or heard of this dimension or challenge,” Terium said. “I’ve been spending the last two years wrapping my mind around ‘from scratch,’ and now we’re very much in execution mode.”
Sun-scorched expanses and steady Red Sea breezes make the northwest tip of Saudi Arabia prime real estate for what the kingdom hopes will become a global hub for green hydrogen.
As governments and industries seek less-polluting alternatives to hydrocarbons, the world’s biggest crude exporter doesn’t want to cede the burgeoning hydrogen business to China, Europe or Australia and lose a potentially massive source of income. So it’s building a $5 billion plant powered entirely by sun and wind that will be among the world’s biggest green hydrogen makers when it opens in the planned megacity of Neom in 2025.
The task of turning a patch of desert the size of Belgium into a metropolis powered by renewable energy falls to Peter Terium, the former chief executive officer of RWE AG, Germany’s biggest utility, and clean-energy spinoff Innogy SE. His performance will help determine whether a country dependent on petrodollars can transition into a supplier of non-polluting fuels.
“There’s nothing I’ve ever seen or heard of this dimension or challenge,” Terium said. “I’ve been spending the last two years wrapping my mind around ‘from scratch,’ and now we’re very much in execution mode.”
Middle East Stocks: #Saudi Stocks Lead Gulf Gains on Surging Oil Bets - Bloomberg
Middle East Stocks: Saudi Stocks Lead Gulf Gains on Surging Oil Bets - Bloomberg
Saudi stocks climb the most in the Gulf, tracking a surge in oil prices after OPEC+ shocked the markets with a decision to keep supply in check. Aramco advanced the most in five months.
The Tadawul All Share Index rose as much as 1.4%, extending gains this year to 7.9%. Saudi Basic Industries, Saudi Aramco and Al Rajhi Bank contributed the most to the advance. Benchmarks in Abu Dhabi, Kuwait and Oman also rose, while those in Dubai and Bahrain slipped.
The OPEC+ decision represents a victory for Riyadh, which has advocated for tight curbs to keep prices supported. Oil, the kingdom’s biggest export, jumped last week to $69.36 per barrel in London, the highest since May 2019. Goldman Sachs Group Inc. raised its second- and third-quarter forecasts for Brent to $75 and $80 a barrel, respectively.
Saudi Aramco rose as much as 2.3%, the most since Sept. 2. Bank of America Corp. said the world’s largest oil company is “uniquely positioned” to meet potential resurgence of oil demand, and could generate close to $100 billion in free cash flow next year should bullish assumptions materialize.
Dividend upside is also seen as possible at higher oil prices and output “given Aramco’s stellar FCF generation,” analysts led by Karen Kostanian wrote in a note. Aramco will report 2020 earnings on March 21.
MIDDLE EASTERN MARKETS:
Saudi stocks climb the most in the Gulf, tracking a surge in oil prices after OPEC+ shocked the markets with a decision to keep supply in check. Aramco advanced the most in five months.
The Tadawul All Share Index rose as much as 1.4%, extending gains this year to 7.9%. Saudi Basic Industries, Saudi Aramco and Al Rajhi Bank contributed the most to the advance. Benchmarks in Abu Dhabi, Kuwait and Oman also rose, while those in Dubai and Bahrain slipped.
The OPEC+ decision represents a victory for Riyadh, which has advocated for tight curbs to keep prices supported. Oil, the kingdom’s biggest export, jumped last week to $69.36 per barrel in London, the highest since May 2019. Goldman Sachs Group Inc. raised its second- and third-quarter forecasts for Brent to $75 and $80 a barrel, respectively.
Saudi Aramco rose as much as 2.3%, the most since Sept. 2. Bank of America Corp. said the world’s largest oil company is “uniquely positioned” to meet potential resurgence of oil demand, and could generate close to $100 billion in free cash flow next year should bullish assumptions materialize.
Dividend upside is also seen as possible at higher oil prices and output “given Aramco’s stellar FCF generation,” analysts led by Karen Kostanian wrote in a note. Aramco will report 2020 earnings on March 21.
MIDDLE EASTERN MARKETS:
- Adding to the positive sentiment, Saudi Arabia said it’ll ease some coronavirus-related restrictions from Sunday as new cases in the kingdom stabilized
- Indoor dining can resume in restaurants, while cinemas, gyms and sports centers will be allowed to reopen
- Clothing retailer Fawaz Alhokair +4.6%, fitness clubs chain company Leejam Sports +5.1%
- In the United Arab Emirates, the DFM General Index falls 0.2%, while the ADX General Index rises 0.1%
- Qatar’s market is closed for a public holiday