Oil slips on COVID-19, data woes; stocks rebound | Reuters

Oil slips on COVID-19, data woes; stocks rebound | Reuters

World stocks rose on Wednesday as Wall Street and Europe bounced back from large drops, while oil prices continued to be weighed down by rising COVID-19 cases in Asia.

Concern that record coronavirus infections in India, likely restrictions in Japan and rising cases in Latin America will be a hurdle for the global economic recovery has weighed on investor sentiment, though the S&P 500 closed just 12 points below its record close.

On Wall Street, a 7% drop in Netflix weighed on the Nasdaq but indexes bounced back from their largest declines in a month.

“You take Netflix out of today’s equation, it’s simply a broad-based rally,” said JJ Kinahan, chief market strategist at TD Ameritrade.

The Dow Jones Industrial Average rose 316.01 points, or 0.93%, to 34,137.31, the S&P 500 gained 38.48 points, or 0.93%, to 4,173.42 and the Nasdaq Composite added 163.95 points, or 1.19%, to 13,950.22.

MSCI’s gauge of stocks across the globe gained 0.41% and the pan-European STOXX 600 index rose 0.65%.

Emerging market stocks lost 0.80%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.88% lower, while Japan’s Nikkei futures rose 0.86% after a 2% overnight drop in the Topix.

Oil prices were weighed by concerns that surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer and by a surprise build in U.S. stockpiles.

“Demand jitters were thrust back into the spotlight yesterday (Tuesday) amid a sharp rise in global coronavirus cases. Nowhere is this more obvious than in India,” PVM analysts said.

U.S. crude fell 2.49% to $61.11 per barrel and Brent was at $65.07, down 2.25% on the day.

FAB's Q1 net profit rises 3% on lower impairment charges | The National

FAB's Q1 net profit rises 3% on lower impairment charges | The National

First Abu Dhabi Bank, the UAE's largest lender by assets, reported a 3 per cent rise in net profit on the back of lower impairment charges and a broader economic recovery.

Net profit for the period ending March 31 rose to Dh2.5 billion ($680.6 million), the lender said in a statement to Abu Dhabi Securities Exchange, where its shares trade.

Total operating income was 4 per cent lower year-on-year at Dh4.4bn, as net interest income declined by 13 per cent to Dh2.7bn due to the lower interest rate environment. This was partially offset by higher non-interest income, which climbed 15 per cent to Dh1.7bn.

Net impairment charges during the period fell 36 per cent, indicating improving economic conditions and adequate provision buffers.

"FAB's strong foundations and competitive strengths continue to support the bank's ability to achieve a resilient performance in a challenging quarter characterised by a slower than expected recovery in business activity," said Hana Al Rostamani, group chief executive of FAB.

Banks across the Middle East are reporting improved performance due to lower impairments as the economic outlook improves on the back of an accelerated vaccine roll out.

Emirates NBD, Dubai's biggest lender by assets, said on Tuesday its first-quarter profit rebounded 12 per cent owing to lower impairment losses and operating expenses amid a broader economic recovery in its home market. Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets, reported a 40 per cent increase in first-quarter net profit on Wednesday.

FAB's total assets grew 13 per cent year-on-year to Dh941bn, the lender said.

Customer deposits grew 14 per cent to Dh568bn, while loans and advances were down 1 per cent year-on-year, according to the bank.

FAB, formed through the merger of National Bank of Abu Dhabi and First Gulf Bank in 2017, is at the forefront of Abu Dhabi’s economic development efforts. It is also expanding regionally.

On Wednesday, the lender said it received approval from regulators to transfer the shares of Bank Audi Egypt, which it agreed to acquire in January. Following the share transfer, it will begin integrating Bank Audi into its existing Egyptian operations.

The consolidation of Bank Audi Egypt into FAB's Egypt operations will make it one of the biggest foreign banks in the Arab world's most populous nation, the lender said.

#Dubai's DMCC to get GCC's biggest gold, precious metals refinery in 2022 | Markets – Gulf News

Dubai's DMCC to get GCC's biggest gold, precious metals refinery in 2022 | Markets – Gulf News

The blockchain movement is picking up speed in the UAE – and now it’s in precious metals refining too.

The DMCC free zone has entered a deal with real estate fund to build a 100,000 square feet precious metals refinery and storage facility – the largest of its kind in the GCC. It will be the first such to “completely enabled” by blockchain. As part of the agreement, REIT Development, which is the real estate fund, has acquired industrial land in Jumeirah Lakes Towers (JLT) vibrant business district.

The facility will be completed in the last quarter of 2022. The facility will refine and store precious metals - gold, silver, platinum, palladium and rhodium - which will be tokenised on goldexchange.com.

Gold Exchange DMCC, a trading platform, will provide access to financial assets in the form of 'stablecoins', namely GoldCoin, SilverCoin, PlatinumCoin, PalladiumCoin and RhodiumCoin. Each Ethereum-based token will represent the current value of one gram of each metal and can be traded on the exchange. The tokens will be physically backed by the precious metals at DMCC’s secure storage facility, "meaning they can be traded with confidence".

3IQ's $1.5 Billion Bitcoin Fund Set for Nasdaq #Dubai Listing - Bloomberg video

3IQ's $1.5 Billion Bitcoin Fund Set for Nasdaq Dubai Listing - Bloomberg

It was the first Bitcoin fund in the world to be listed on a major exchange, in Toronto last year. Now 3IQ, which is valued at $1.5 Billion dollars, plans to list in the Middle East on Nasdaq Dubai in May. Chairman & founder Fred Pye is hoping to quench investors' thirst for Bitcoins. He spoke with Bloomberg's Manus Cranny. (Source: Bloomberg)

#SaudiArabia to Speed Privatizations to Ease Budget Deficit - Bloomberg

Saudi Arabia to Speed Privatizations to Ease Budget Deficit - Bloomberg

Saudi Arabia is hoping to speed up privatizations to narrow a budget deficit that ballooned last year due to the pandemic and a slump in oil revenue.

The kingdom aims to strike around 15 billion riyals ($4 billion) worth of infrastructure deals with private investors this year, the head of the National Center for Privatization, Rayyan Nagadi, said in an interview. That would be the most since the body was established to accelerate privatizations in 2017. It also aims to complete several asset sales this year, he said, declining to give a value for how much could be raised.

Progress on Saudi Arabia’s privatization plan has been much slower than anticipated when Crown Prince Mohammed Bin Salman launched his economic transformation plan in 2016 and outlined plans to sell stakes in utilities, soccer clubs, flour mills and medical facilities. Since then the government has managed to sell stakes in assets including Saudi Aramco and flour mills. It has also signed deals with private investors to build new schools, but it has fallen short of hopes of raising $200 billion in the first few years of its privatization push.

“We have high expectations for the number of public-private partnerships and divestments that we’re going to see in 2022 and 2023,” Nagadi said. “We have a clear pipeline of transactions. We just need to set the priority for them. We now have a lot more clarity than we did two or three years ago.”

Nagadi, a former HSBC Holdings Plc banker, was hired by the Finance Ministry in 2019 to set up a privatization unit before taking over NCP later that year.

Mideast Stocks: Oil price fall hurts major Gulf markets | ZAWYA MENA Edition

Mideast Stocks: Oil price fall hurts major Gulf markets | ZAWYA MENA Edition

Major stock markets in the Gulf ended lower on Wednesday, as oil prices were weighed down by concerns that surging COVID-19 cases in India would pressure fuel demand in the world's third-biggest oil importer.

India on Wednesday reported another record increase in the daily death toll from COVID-19.

Brent crude futures for June declined $1.15, or 1.7%, to $65.42 a barrel at 0100 GMT.

The movement in oil prices is a key catalyst for the Gulf region's financial markets.

Saudi Arabia's benchmark index eased 0.2%, with Riyad Bank shedding 1.4% and oil behemoth Saudi Aramco down 0.4%.

In Dubai, the main share index fell 0.9%, with its top lender Emirates NBD and blue-chip developer Emaar Properties losing more than 1% each.

The Abu Dhabi index retreated 1.5%, dragged down by a 2% fall in First Abu Dhabi Bank (FAB) and telecoms giant Etisalat.

The United Arab Emirates had warned that it could impose restrictions on people who have not been vaccinated against COVID-19 as the region's business and tourism hub pushes its immunisation campaign.

The Gulf Arab state on Tuesday recorded 1,903 new infections to bring its total to 500,860 cases.

In Qatar, the index closed 0.7% lower, hit by a 2.1% fall in petrochemical maker Industries Qatar.

Elsewhere, Qatar National Bank, the Gulf's largest lender, slipped 0.5% after EFG Hermes cut its price target on the lender's shares.

Oil Drops on Resurgent Virus, Reported Build in U.S. Stockpiles - Bloomberg

Oil Drops on Resurgent Virus, Reported Build in U.S. Stockpiles - Bloomberg

WTI for June delivery declined 2.1% to $61.33 a barrel at 8:53 a.m. in New York Brent for June settlement was down 1.9%, trading at $65.33 a barrel Oil fell amid concern that a resurgent virus will hurt demand in some economies, while industry data showed a slight build in U.S. inventories. West Texas Intermediate retreated 2.1%, extending Tuesday’s decline. The renewed spread of Covid-19 in countries such as India is casting a pall over the global economic rebound, even as signs of an improvement in energy demand elsewhere continue to mount. Prices also responded to a slightly stronger dollar, which curbs the appeal of commodities priced in the currency.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

Kuwait's Equate Petrochemical tightens guidance for dollar bonds - document | Reuters

Kuwait's Equate Petrochemical tightens guidance for dollar bonds - document | Reuters

Kuwait's Equate Petrochemical Company has tightened price guidance for seven-year U.S. dollar-denominated bonds to 150-155 basis points (bps) over U.S. Treasuries, a document showed on Wednesday.

Guidance was tightened from initial price thoughts of around 170 bps over Treasuries after Equate received over $2.3 billion in orders for the bonds that are expected to launch later on Wednesday, the document from one of the banks showed.

#Saudi Tadawul Group narrows banks for IPO process -sources | Reuters

Saudi Tadawul Group narrows banks for IPO process -sources | Reuters

Saudi Tadawul Group has short-listed three local and three foreign banks for potential advisory roles in the financial market company’s upcoming initial public offering (IPO), three sources said.

Citigroup, JPMorgan and Morgan Stanley were chosen, along with the securities unit of Saudi National Bank, Saudi Fransi Capital and HSBC Saudi Arabia, the sources said.

Tadawul, the kingdom’s bourse operator, is expected to chose one local bank and potentially one or two international banks for its listing, they said. A final round of pitching for roles is taking place this week, they added.

Tadawul did not immediately respond to a request for comment when contacted by Reuters on Wednesday. Citigroup, JPMorgan, Morgan Stanley and HSBC declined to comment. The units of Saudi National Bank and Saudi Fransi Capital were not immediately available for comment.

Tadawul said earlier this month it had received proposals from 10 local and international firms for the advisory roles.

Saudi Arabia’s stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of the listing this year, Group Chief Executive Khalid al-Hussan said previously.

The group will have four subsidiaries - its bourse Saudi Exchange, securities clearing and depository businesses and technology services.

#AbuDhabi Said to Weigh Sale of $4 Billion Stake in Utility Taqa - Bloomberg

Abu Dhabi Said to Weigh Sale of $4 Billion Stake in Utility Taqa - Bloomberg

Abu Dhabi is weighing the sale of a stake in its biggest state-owned utility, as the oil-rich emirate continues to bring in international investors to some of its marquee assets, people familiar with the matter said.

The government is working with an adviser as it considers selling about 10% of Abu Dhabi National Energy Co., according to the people, who asked not to be identified because the information is private. The stake in the company, known as Taqa, could be worth more than $4 billion based on its current market price, data compiled by Bloomberg show.

Shares of Taqa have fallen 5.6% this year, giving it a market value of about $42 billion. The sale could attract interest from large global utility companies and other financial investors, the people said. Initial non-binding bids are expected to be submitted in May, according to the people.

The government has been pushing to turn Taqa, which has a monopoly on power and water distribution in Abu Dhabi, into a regional utility champion. Last year, Abu Dhabi orchestrated a plan for Taqa to receive assets from state-owned holding company Abu Dhabi Power Corp., known as ADPower, in return for stock.

The size of the Taqa stake being sold could change depending on investor interest, the people said. Deliberations are ongoing, and there’s no certainty they will lead to a transaction, according to the people. A representative for Taqa couldn’t immediately comment.

Abu Dhabi, the capital of the United Arab Emirates, has been seeking to attract foreign capital by selling stakes in some of its largest companies. In recent years, international and local funds have invested more than $20 billion in the operations of state-owned oil producer Adnoc. Taqa is also considering options for its oil and gas assets, including a potential sale, people familiar with the matter said in March.

Emirates may need to raise cash if air travel does not pick up | Reuters

Emirates may need to raise cash if air travel does not pick up | Reuters

Emirates may need to raise more cash this year, possibly through another equity injection from the Dubai government, if demand for air travel does not pick up soon, its president said on Wednesday.

The state carrier had hoped the global vaccine rollout would renew confidence in air travel but demand remains at very low levels, leaving many airlines to ground planes or fly them near-empty.

“We are good for another six, seven or eight months in terms of cash. We have sufficient cash coming in to be able to keep the day-to-day operation at a neutral basis,” Tim Clark told the online World Aviation Festival.

“But like everybody else, if in six months global demand is where it is today then we are all going to face difficulties. Not just Emirates”

Emirates, which lost 12.6 billion dirhams ($ 3.4 billion) in the first half of the year, got $2 billion in equity in 2020 from the Dubai government, its sole shareholder.

Oil prices drop as India's COVID-19 surge dents demand outlook | Reuters

Oil prices drop as India's COVID-19 surge dents demand outlook | Reuters

Oil prices fell for a second day on Wednesday, weighed down by concerns that surging COVID-19 cases in India will drive down fuel demand in the world's third-biggest oil importer.

Brent crude futures for June declined 95 cents, or 1.4%, to $65.62 a barrel at 0941 GMT, heading for their biggest daily drop in over two weeks.

U.S. West Texas Intermediate (WTI) crude futures for June fell 93 cents, or 1.4%, to $61.74 a barrel. The May contract expired on Tuesday down 1.5% at $62.44.

"Demand jitters were thrust back into the spotlight yesterday amid a sharp rise in global coronavirus cases. Nowhere is this more obvious than in India," PVM analysts said.

#SaudiArabia's Al Rajhi Bank reports 40% increase in Q1 | ZAWYA MENA Edition

Saudi Arabia's Al Rajhi Bank reports 40% increase in Q1 | ZAWYA MENA Edition

Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, reported a 40.1 % rise in net profit, boosted by an increase in financing and investment income.

Saudi Arabia's biggest Islamic lender said net profit in the three months ended March 31 to 3.34 billion riyals ($890.60 million). It made net profit of 2.38 billion riyals in the same period year earlier.

Al Rajhi, which has traditionally focused on consumer banking, said that profit was also helped by an increase from fees for banking services and income from other operations.

Net income from special commissions, financing and investments grew 2.9% to 4.77 billion riyals.

Total operating expenses decreased by 3.7% in the quarter, while impairment charges declined 16.7% to 577 million riyals.

#Dubai Investments buys 21.5% stake in NGI from Emirates NBD, becomes biggest shareholder | ZAWYA MENA Edition

Dubai Investments buys 21.5% stake in NGI from Emirates NBD, becomes biggest shareholder | ZAWYA MENA Edition

UAE real estate firm Dubai Investments has taken over the controlling stake in National General Insurance (NGI) from Dubai’s biggest lender Emirates NBD.

In a “direct deal” executed before 9 am at the Dubai Financial Market (DFM) on Wednesday, the company bought more than 32.3 million NGI shares from Emirates NBD. The sale represents 21.53 percent of the issued shares of NGI.

With the deal, Dubai Investments has increased its aggregate ownership in the insurance firm to 29.9 percent, making it the majority shareholder in the company.

The transaction has been confirmed by DFM, Dubai Investments and Emirates NBD in separate statements.

Emirates NBD clarified that it continues to hold more than 22.7 million shares in NGI, representing more than 15 percent of the issued share capital of the company.

The transaction value was pegged at more than 105.6 million dirhams ($28.8 million) at a price of 3.27 dirhams per share.

Commercial Bank of Dubai is now the second-biggest shareholder of NGI, accounting for 17.74 percent, followed by Emirates NBD (15.19 percent) and Malika Ahmed Merdas Alzarouni (10.94 percent).

#Saudi, South Korea Lead, Latin America Lags in EM Recovery: Map - Bloomberg

Saudi, South Korea Lead, Latin America Lags in EM Recovery: Map - Bloomberg

A renewed outbreak of the virus is underway, but not all emerging-market and frontier economies are hit equally hard. Bloomberg Economics’ ranking of 75 economies -- based on confirmed Covid-19 deaths, vaccination rates, mobility levels and the policy space available to cushion the economic damage -- shows those in the Gulf Cooperation Council and East Asia performing better than the rest of the Middle East, Central and Eastern Europe and Latin America. Saudi Arabia, South Korea, the United Arab Emirates, China, Qatar and Taiwan are performing best, while Jamaica, Lebanon and Ukraine are struggling under the strain of the pandemic.

#UAE Overtakes China in $17 Billion U.S. Treasuries Buying Spree - Bloomberg

UAE Overtakes China in $17 Billion U.S. Treasuries Buying Spree - Bloomberg

The United Arab Emirates bought more U.S. Treasuries than China in February, breaking with other top oil exporters in the Persian Gulf region that cut back on their exposure to one of the world’s safest assets.

OPEC’s third-biggest producer raised its stockpile by almost 50% to $50.6 billion at the end of February, an increase of nearly $17 billion that made it the second-biggest buyer of the securities that month after the U.K., according to the latest figures from the U.S. Treasury Department. The monthly haul was the biggest ever for the UAE.

The reasons behind the rise weren’t clear and the UAE central bank didn’t immediately respond to a request for comment. But the UAE, whose capital Abu Dhabi is home to almost 6% of the world’s oil reserves, may have built up enough of a buffer to commit the spare petrodollars toward the $21 trillion Treasuries market.

The move took UAE holdings to levels last seen in 2019 before the global pandemic and the crash in oil prices put pressure on its finances. China bought $9 billion of Treasuries in February to bring its total to $1.1 trillion, the highest since mid-2019.

Oil prices drop as India's COVID-19 surge dents demand outlook | Reuters

Oil prices drop as India's COVID-19 surge dents demand outlook | Reuters

Oil prices fell for a second day on Wednesday, weighed down by concerns that surging COVID-19 cases in India will drive down fuel demand in the world's third-biggest oil importer.

Brent crude futures for June declined 29 cents, or 0.4%, to $66.28 a barrel at 0645 GMT, after dropping 48 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures for June fell 34 cents, or 0.5%, to $62.33 a barrel. The May contract expired on Tuesday down 1.5% at $62.44.

"India is a major crude oil consumer. So rising virus cases and thereby restrictions to limit the spread will dampen the demand outlook," said Ravindra Rao, vice president for commodities at Kotak Securities.

MIDEAST STOCKS Major Gulf markets fall tracking oil, Asian shares | Reuters

MIDEAST STOCKS Major Gulf markets fall tracking oil, Asian shares | Reuters

Major Gulf markets were subdued in early trading on Wednesday, mirroring Asian stocks, due to weak oil prices as concerns over a resurgence in coronavirus cases in some countries cast doubt on the strength of global growth and demand for crude oil.

India, the world's third-largest oil user, on Wednesday reported another record increase in the daily death toll from COVID-19, at 2,023, and another record rise in cases at more than 295,000. read more

Brent crude futures for June declined 29 cents, or 0.4%, to $66.28 a barrel at 0645 GMT.

The movement in oil prices is a key catalyst for the Gulf region's financial markets.

Saudi Arabia's benchmark index (.TASI) eased 0.1%, with oil behemoth Saudi Aramco (2222.SE) losing 0.3%, while Saudi National Bank (1180.SE), the kingdom's largest lender, was down 0.4%.

Dubai's main share index (.DFMGI) lost 0.4%, hit by a 0.8% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.4% decrease in Emirates NBD (ENBD.DU).

In Abu Dhabi, the index (.ADI) dropped 0.7%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) losing 1% ahead of its board meeting to approve first-quarter earnings.

The Qatari index (.QSI) fell 0.5%, pressured by a 1.3% fall in petrochemical maker Industries Qatar (IQCD.QA).

Elsewhere, Qatar National Bank (QNBK.QA), the Gulf's largest lender, slipped 0.6% after EFG Hermes cut its price target on the lender's shares.