Oil prices gain 1%, boosted by U.S. economic data | Reuters
Oil prices rose 1% on Thursday, bolstered by strong U.S. economic data that offset investors’ concerns about the potential for a rise in Iranian supplies.
Brent rose 59 cents, 0.9%, to settle at $69.46 a barrel. U.S. West Texas Intermediate (WTI) crude rose 64 cents, or 1%, to settle at $66.85 a barrel.
The number of Americans filing new claims for unemployment benefits dropped more than expected last week, according to data from the U.S. Labor Department.
The U.S. economy, which in the first quarter notched its second-fastest growth pace since the third quarter of 2003, is gathering momentum, with other data on Thursday showing business spending on equipment accelerated in April.
“That’s given us more of a risk-on attitude about the markets,” said Phil Flynn, senior analyst at Price Futures Group in Chicago. “We’re back to focusing on supply and demand.”
Thursday, 27 May 2021
Mideast Stocks: #Qatar shares jump as investors cheer virus restrictions easing | ZAWYA MENA Edition
Mideast Stocks: Qatar shares jump as investors cheer virus restrictions easing | ZAWYA MENA Edition
Major stock markets in the Gulf ended mixed on Thursday, with the Qatari index outperforming the region as the country is set to ease coronavirus restrictions.
The Gulf Arab state said on Wednesday that leisure and education centres and restaurants can reopen at limited capacity as of Friday under a phased easing of measures.
The Qatari benchmark advanced 1.3%, as most of the stocks on the index were in positive territory including petrochemical maker Industries Qatar.
Qatar said earlier this month that it would gradually lift coronavirus curbs in four phases, with the first phase on May 28 and the fourth on July 30.
Saudi Arabia's benchmark index gained 0.5%, with Al Rajhi Bank rising 1.2%, while Saudi Basic Industries finished 1.6% higher.
Dubai's main share index fell 0.3%, hit by a 1.2% fall in sharia-compliant lender Dubai Islamic Bank and a 0.7% decrease in Emirates NBD Bank.
However, the index secured its fourth weekly gain followed by a recent rise in property shares and financial stocks.
House prices in Dubai are expected to rise for the first time in six years in 2021, supported by a swift vaccine rollout that has lifted hopes for economic recovery, a Reuters poll of property analysts showed.
In Abu Dhabi, the index lost 0.3%, weighed down by a 8.2% slide in Abu Dhabi National Company for Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates.
Abu Dhabi National Oil Company (ADNOC) said it raised $1.64 billion by issuing exchangeable bonds and additional shares to investors in its listed retail unit ADNOC Distribution on Wednesday.
This could increase ADNOC Distribution's free float to 30%, it said.
Elsewhere, the Omani index shrugged off ongoing protests to nudge down 0.1%.
Citizens of Oman took the streets on Wednesday for a fourth day of demonstrations, braving a heavy security presence to demand that the country's ruler follow through on promises to create thousands of jobs.
Outside the Gulf, Egypt's blue-chip index declined 1.2%, extending losses for a third straight session.
Exchange data on Thursday showed foreign investors as net sellers of Egyptian stocks.
Major stock markets in the Gulf ended mixed on Thursday, with the Qatari index outperforming the region as the country is set to ease coronavirus restrictions.
The Gulf Arab state said on Wednesday that leisure and education centres and restaurants can reopen at limited capacity as of Friday under a phased easing of measures.
The Qatari benchmark advanced 1.3%, as most of the stocks on the index were in positive territory including petrochemical maker Industries Qatar.
Qatar said earlier this month that it would gradually lift coronavirus curbs in four phases, with the first phase on May 28 and the fourth on July 30.
Saudi Arabia's benchmark index gained 0.5%, with Al Rajhi Bank rising 1.2%, while Saudi Basic Industries finished 1.6% higher.
Dubai's main share index fell 0.3%, hit by a 1.2% fall in sharia-compliant lender Dubai Islamic Bank and a 0.7% decrease in Emirates NBD Bank.
However, the index secured its fourth weekly gain followed by a recent rise in property shares and financial stocks.
House prices in Dubai are expected to rise for the first time in six years in 2021, supported by a swift vaccine rollout that has lifted hopes for economic recovery, a Reuters poll of property analysts showed.
In Abu Dhabi, the index lost 0.3%, weighed down by a 8.2% slide in Abu Dhabi National Company for Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates.
Abu Dhabi National Oil Company (ADNOC) said it raised $1.64 billion by issuing exchangeable bonds and additional shares to investors in its listed retail unit ADNOC Distribution on Wednesday.
This could increase ADNOC Distribution's free float to 30%, it said.
Elsewhere, the Omani index shrugged off ongoing protests to nudge down 0.1%.
Citizens of Oman took the streets on Wednesday for a fourth day of demonstrations, braving a heavy security presence to demand that the country's ruler follow through on promises to create thousands of jobs.
Outside the Gulf, Egypt's blue-chip index declined 1.2%, extending losses for a third straight session.
Exchange data on Thursday showed foreign investors as net sellers of Egyptian stocks.
#Dubai property fund Emirates REIT already claims majority support for $400m Sukuk conversion | Property – Gulf News
Dubai property fund Emirates REIT already claims majority support for $400m Sukuk conversion | Property – Gulf News
After a tough few days of intense negotiations, the Dubai real estate fund Emirates REIT might have got enough investors to side with it on a change of status for its $400 million bond offering from 2017.
The fund manager of Emirates REIT, Equitativa, had initially set 7pm on Wednesday evening as the deadline for the investors to agree to its Consent Solicitation Memorandum. This has been changed to 3pm June 7.
This was for a plan to convert the current Sukuk certificates – from the $400 million debt offering – with new ones that would mature in a further two years. Emirates REIT had maintained the profit rate on the new issue. An ‘ad hoc’ grouping of investors had earlier this week said they are opposed to such a move, saying they wanted more clarity on the fund manager’s operations and the reasons for the plan to issue new certificates.
But in a statement issued on Thursday afternoon, Emirates REI said that “Close to 60 per cent of the Sukuk holders cast their vote before the early document review fee deadline with more than 75 per cent of those votes in favour of the consent solicitation presented by the company.”
What's the proposal?
The company proposed to maintain the "existing profit rate" for the new secured sukuk (the earlier one was unsecured). "The company believes that the enhanced security will lead to the Sukuk trading on more favourable terms," it said in a statement. "Since the launch of the CSM, the Sukuk has traded up 11 per cent to 69 points (as of 27 May 2021) vs 62 points (as of 17 May 2021). We are pleased to see the CSM proposal has been a catalyst for the improved trading price for the benefit of our Sukuk holders."
After a tough few days of intense negotiations, the Dubai real estate fund Emirates REIT might have got enough investors to side with it on a change of status for its $400 million bond offering from 2017.
The fund manager of Emirates REIT, Equitativa, had initially set 7pm on Wednesday evening as the deadline for the investors to agree to its Consent Solicitation Memorandum. This has been changed to 3pm June 7.
This was for a plan to convert the current Sukuk certificates – from the $400 million debt offering – with new ones that would mature in a further two years. Emirates REIT had maintained the profit rate on the new issue. An ‘ad hoc’ grouping of investors had earlier this week said they are opposed to such a move, saying they wanted more clarity on the fund manager’s operations and the reasons for the plan to issue new certificates.
But in a statement issued on Thursday afternoon, Emirates REI said that “Close to 60 per cent of the Sukuk holders cast their vote before the early document review fee deadline with more than 75 per cent of those votes in favour of the consent solicitation presented by the company.”
What's the proposal?
The company proposed to maintain the "existing profit rate" for the new secured sukuk (the earlier one was unsecured). "The company believes that the enhanced security will lead to the Sukuk trading on more favourable terms," it said in a statement. "Since the launch of the CSM, the Sukuk has traded up 11 per cent to 69 points (as of 27 May 2021) vs 62 points (as of 17 May 2021). We are pleased to see the CSM proposal has been a catalyst for the improved trading price for the benefit of our Sukuk holders."
#SaudiArabia 2021: Women at Work Climbing Fast in Conservative Islamic Kingdom - Bloomberg
Saudi Arabia 2021: Women at Work Climbing Fast in Conservative Islamic Kingdom - Bloomberg
It looks like a woman’s world on the 29th floor of Tamkeen Tower, where a call center for Saudi Arabia’s General Authority for Statistics overlooks the beige sprawl of Riyadh. Past frosted glass doors, the few men to one side of the room are vastly outnumbered by female colleagues sitting at desks spread across the office.
The scene is the opposite of what most workplaces in the conservative Islamic kingdom looked like a few years ago, reflecting the growing influx of women into the job market. “Look where we were and where we are now,” says Reem Almuhanna, 31, who oversees the call center’s 74 employees as they gather data on households and businesses.
Keeping women at home is a luxury the world’s largest exporter of crude can no longer afford. Crown Prince Mohammed bin Salman, 35, is overhauling the economy to prepare for a post-oil future and striving to create jobs amid sputtering economic growth. With the cost of living on the rise as the government cuts gasoline and electricity subsidies and introduces new fees and taxes, including a 15% value-added tax, Saudi households increasingly depend on women working.
It looks like a woman’s world on the 29th floor of Tamkeen Tower, where a call center for Saudi Arabia’s General Authority for Statistics overlooks the beige sprawl of Riyadh. Past frosted glass doors, the few men to one side of the room are vastly outnumbered by female colleagues sitting at desks spread across the office.
The scene is the opposite of what most workplaces in the conservative Islamic kingdom looked like a few years ago, reflecting the growing influx of women into the job market. “Look where we were and where we are now,” says Reem Almuhanna, 31, who oversees the call center’s 74 employees as they gather data on households and businesses.
Keeping women at home is a luxury the world’s largest exporter of crude can no longer afford. Crown Prince Mohammed bin Salman, 35, is overhauling the economy to prepare for a post-oil future and striving to create jobs amid sputtering economic growth. With the cost of living on the rise as the government cuts gasoline and electricity subsidies and introduces new fees and taxes, including a 15% value-added tax, Saudi households increasingly depend on women working.
Major Gulf markets slip, but #Dubai set for another weekly gain | Reuters
Major Gulf markets slip, but Dubai set for another weekly gain | Reuters
Most major Gulf stock markets opened lower on Thursday, although the Dubai index was still set for its fourth weekly gain after recent gains in property shares and financial stocks.
Dubai’s main share index fell 0.4%, with sharia-compliant lender Dubai Islamic Bank off 1%, while blue-chip developer Emaar Properties dropped 0.7%.
House prices in Dubai are expected to rise for the first time in six years in 2021, supported by a swift vaccine rollout that has lifted hopes for economic recovery, a Reuters poll of property analysts showed.
The Abu Dhabi index fell 1.2%, extending losses from the previous session, weighed by a 2.1% fall in the country’s largest lender First Abu Dhabi Bank.
Among others, Abu Dhabi National Company for Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, dropped 7.2%.
Abu Dhabi National Oil Company (ADNOC) said it raised $1.64 billion by issuing exchangeable bonds and additional shares to investors in its listed retail unit ADNOC Distribution on Wednesday.
This could increase ADNOC Distribution’s free float to 30%, it said.
Saudi Arabia’s benchmark index eased 0.1%, hit by a 0.2% fall in Al Rajhi Bank.
In Qatar, the index gained 0.7%, with Qatar National Bank rising 1.7%, while petrochemical firm Industries Qatar increased 1.1%.
The Gulf Arab state said on Wednesday that leisure and education centres and restaurants can reopen at limited capacity as of Friday under a phased easing of coronavirus-related measures.
It said local and international sporting events can take place with fully vaccinated fans at 30% capacity in outdoor venues, with permission from the public health ministry.
Most major Gulf stock markets opened lower on Thursday, although the Dubai index was still set for its fourth weekly gain after recent gains in property shares and financial stocks.
Dubai’s main share index fell 0.4%, with sharia-compliant lender Dubai Islamic Bank off 1%, while blue-chip developer Emaar Properties dropped 0.7%.
House prices in Dubai are expected to rise for the first time in six years in 2021, supported by a swift vaccine rollout that has lifted hopes for economic recovery, a Reuters poll of property analysts showed.
The Abu Dhabi index fell 1.2%, extending losses from the previous session, weighed by a 2.1% fall in the country’s largest lender First Abu Dhabi Bank.
Among others, Abu Dhabi National Company for Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, dropped 7.2%.
Abu Dhabi National Oil Company (ADNOC) said it raised $1.64 billion by issuing exchangeable bonds and additional shares to investors in its listed retail unit ADNOC Distribution on Wednesday.
This could increase ADNOC Distribution’s free float to 30%, it said.
Saudi Arabia’s benchmark index eased 0.1%, hit by a 0.2% fall in Al Rajhi Bank.
In Qatar, the index gained 0.7%, with Qatar National Bank rising 1.7%, while petrochemical firm Industries Qatar increased 1.1%.
The Gulf Arab state said on Wednesday that leisure and education centres and restaurants can reopen at limited capacity as of Friday under a phased easing of coronavirus-related measures.
It said local and international sporting events can take place with fully vaccinated fans at 30% capacity in outdoor venues, with permission from the public health ministry.
#UAE Oil Firm Adnoc Raises $1.6 Billion in Stock, Bond Sale - Bloomberg
UAE Oil Firm Adnoc Raises $1.6 Billion in Stock, Bond Sale - Bloomberg
Abu Dhabi’s state oil firm raised $1.64 billion through a stock and bond sale to institutional investors as the emirate continues to leverage energy assets to generate funds.
The capital of the United Arab Emirates, contains almost all the OPEC member’s hydrocarbon reserves. The government, along with others in the region such as Saudi Arabia and Oman, is seeking to use money from energy assets to build new industries and diversify the economy.
Both deals were completed on Wednesday and saw “significant demand” from regional and international investors, Adnoc said. They came a day after Abu Dhabi’s government raised $2 billion through seven-year bonds, attracting almost $7 billion in demand.
Abu Dhabi National Oil Co. sold 375 million shares in Adnoc Distribution PJSC, offering them at 4.36 dirhams ($1.19) each, a roughly 10% discount to Wednesday’s close. The fuel-retail unit fell as much as 9.3% in early trading on Thursday before paring losses to 4.64 dirhams -- down 4.3% -- by 10:12 a.m. in Abu Dhabi.
Adnoc also issued $1.195 billion of senior bonds that mature in 2024 and are exchangeable into the distributor’s stock.
Abu Dhabi’s state oil firm raised $1.64 billion through a stock and bond sale to institutional investors as the emirate continues to leverage energy assets to generate funds.
The capital of the United Arab Emirates, contains almost all the OPEC member’s hydrocarbon reserves. The government, along with others in the region such as Saudi Arabia and Oman, is seeking to use money from energy assets to build new industries and diversify the economy.
Both deals were completed on Wednesday and saw “significant demand” from regional and international investors, Adnoc said. They came a day after Abu Dhabi’s government raised $2 billion through seven-year bonds, attracting almost $7 billion in demand.
Abu Dhabi National Oil Co. sold 375 million shares in Adnoc Distribution PJSC, offering them at 4.36 dirhams ($1.19) each, a roughly 10% discount to Wednesday’s close. The fuel-retail unit fell as much as 9.3% in early trading on Thursday before paring losses to 4.64 dirhams -- down 4.3% -- by 10:12 a.m. in Abu Dhabi.
Adnoc also issued $1.195 billion of senior bonds that mature in 2024 and are exchangeable into the distributor’s stock.
GlobalFoundries Is Said to Tap Morgan Stanley for Jumbo IPO - Bloomberg
GlobalFoundries Is Said to Tap Morgan Stanley for Jumbo IPO - Bloomberg
GlobalFoundries is working with Morgan Stanley on an initial public offering that could value the chipmaker at about $30 billion, according to a person familiar with the matter.
No final decision has been made and the company’s plans could change, said the person, who asked to not be identified because the matter isn’t public.
GlobalFoundries is backed by Abu Dhabi sovereign fund Mubadala Investment Co. Mubadala had started preparations for a U.S. IPO of the company and is in discussions with potential advisers, Bloomberg News reported in April.
A representative for GlobalFoundries declined to comment. Mubadala didn’t respond to a request to its general inquiry email outside regular business hours while a representative for Morgan Stanley didn’t immediately have a comment.
The chipmaker is coming to market as numerous industries complain they can’t get enough semiconductor supply and governments across the globe gear up to provide financial support for expansions in production.
Globalfoundries’ biggest rivals, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, are struggling to keep up with demand for outsourced chipmaking demand.
The Philadelphia Stock Exchange Semiconductor Index has been on a tear, tripling since 2016.
GlobalFoundries was created when Mubadala bought Advanced Micro Devices Inc.’s manufacturing facilities in 2009 and later combined them with Singapore’s Chartered Semiconductor Manufacturing Ltd.
GlobalFoundries is working with Morgan Stanley on an initial public offering that could value the chipmaker at about $30 billion, according to a person familiar with the matter.
No final decision has been made and the company’s plans could change, said the person, who asked to not be identified because the matter isn’t public.
GlobalFoundries is backed by Abu Dhabi sovereign fund Mubadala Investment Co. Mubadala had started preparations for a U.S. IPO of the company and is in discussions with potential advisers, Bloomberg News reported in April.
A representative for GlobalFoundries declined to comment. Mubadala didn’t respond to a request to its general inquiry email outside regular business hours while a representative for Morgan Stanley didn’t immediately have a comment.
The chipmaker is coming to market as numerous industries complain they can’t get enough semiconductor supply and governments across the globe gear up to provide financial support for expansions in production.
Globalfoundries’ biggest rivals, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, are struggling to keep up with demand for outsourced chipmaking demand.
The Philadelphia Stock Exchange Semiconductor Index has been on a tear, tripling since 2016.
GlobalFoundries was created when Mubadala bought Advanced Micro Devices Inc.’s manufacturing facilities in 2009 and later combined them with Singapore’s Chartered Semiconductor Manufacturing Ltd.
#AbuDhabi fiscal strength will stay resilient to pandemic risks | ZAWYA MENA Edition
Abu Dhabi fiscal strength will stay resilient to pandemic risks | ZAWYA MENA Edition
The strength of the government's balance sheet, a very high per capita income, vast hydrocarbon reserves and superior infrastructure will support the credit profile of Abu Dhabi, said Moody’s Investors Service.
In addition, domestic politics are stable and the UAE (UAE, Aa2 stable) has good relations with the international community, the ratings agency noted in its annual credit analysis.
“A very high per capita income, vast hydrocarbon reserves and superior infrastructure also support creditworthiness. We expect Abu Dhabi’s fiscal strength will remain resilient to risks related to pandemic, particularly given the world-leading vaccination efforts by Abu Dhabi, the federal government and other emirates’ health authorities,” said Thaddeus Best, a Moody’s analyst.
However, Abu Dhabi's main credit challenges lie in a lack of institutional data transparency, particularly the absence of public figures on prospective budgets and on the composition of offshore assets managed by Abu Dhabi Investment Authority's (ADIA). Regional geopolitical tensions present event risks, and the emirate's dependence on hydrocarbons is also a significant vulnerability, the report said.
That said, the investment returns from ADIA provide an additional source of stable revenue for Abu Dhabi. “We estimate that total government debt is equivalent to 5 percent of the total value of the ADIA gross assets under management,” Moody’s noted.
On economic strength, Moody’s scores Abu Dhabi at “a1,” similar to Saudi Arabia (A1 negative), Hong Kong (Aa3 stable), and Qatar (Aa3 stable). The rating moved up from an initial “a3”.
Abu Dhabi’s institutions and governance strength score is “a2”. There have been some improvements in governance in recent years, particularly just after the 2015 oil price shock that demonstrated the government's willingness and ability to implement new fiscal measures, in contrast to other GCC sovereigns, the report said.
On fiscal strength the emirate scored at “aa1”, reflecting the vast amount of wealth and resources at the government's disposal relative to debt. This comes above the initial outcome of “aa2” to reflect the credibility of the UAE's fixed-exchange regime, which significantly lowers exchange rate risk from Abu Dhabi's foreign currency borrowings.
Moody’s “baa” assessment of Abu Dhabi’s susceptibility to event risk is the same as the UAE’s and is primarily driven by geopolitical factors.
The strength of the government's balance sheet, a very high per capita income, vast hydrocarbon reserves and superior infrastructure will support the credit profile of Abu Dhabi, said Moody’s Investors Service.
In addition, domestic politics are stable and the UAE (UAE, Aa2 stable) has good relations with the international community, the ratings agency noted in its annual credit analysis.
“A very high per capita income, vast hydrocarbon reserves and superior infrastructure also support creditworthiness. We expect Abu Dhabi’s fiscal strength will remain resilient to risks related to pandemic, particularly given the world-leading vaccination efforts by Abu Dhabi, the federal government and other emirates’ health authorities,” said Thaddeus Best, a Moody’s analyst.
However, Abu Dhabi's main credit challenges lie in a lack of institutional data transparency, particularly the absence of public figures on prospective budgets and on the composition of offshore assets managed by Abu Dhabi Investment Authority's (ADIA). Regional geopolitical tensions present event risks, and the emirate's dependence on hydrocarbons is also a significant vulnerability, the report said.
That said, the investment returns from ADIA provide an additional source of stable revenue for Abu Dhabi. “We estimate that total government debt is equivalent to 5 percent of the total value of the ADIA gross assets under management,” Moody’s noted.
On economic strength, Moody’s scores Abu Dhabi at “a1,” similar to Saudi Arabia (A1 negative), Hong Kong (Aa3 stable), and Qatar (Aa3 stable). The rating moved up from an initial “a3”.
Abu Dhabi’s institutions and governance strength score is “a2”. There have been some improvements in governance in recent years, particularly just after the 2015 oil price shock that demonstrated the government's willingness and ability to implement new fiscal measures, in contrast to other GCC sovereigns, the report said.
On fiscal strength the emirate scored at “aa1”, reflecting the vast amount of wealth and resources at the government's disposal relative to debt. This comes above the initial outcome of “aa2” to reflect the credibility of the UAE's fixed-exchange regime, which significantly lowers exchange rate risk from Abu Dhabi's foreign currency borrowings.
Moody’s “baa” assessment of Abu Dhabi’s susceptibility to event risk is the same as the UAE’s and is primarily driven by geopolitical factors.
#AbuDhabi's Mubadala back in market with two-tranche bonds - document | ZAWYA MENA Edition
Abu Dhabi's Mubadala back in market with two-tranche bonds - document | ZAWYA MENA Edition
Abu Dhabi state fund Mubadala began marketing a two-tranche U.S. dollar-denominated bond deal on Thursday, a document showed, returning to the debt markets less than three months after it raised $1.1 billion.
A Mubadala unit through which the bonds are issued, Mamoura Diversified Global Holding, gave initial price guidance of around 130 basis points over mid-swaps for a 10-year tranche and around 3.7% for 30-year Formosa bonds, the document from one of the banks on the deal showed.
Abu Dhabi Commercial Bank, Citi, FAB, JPMorgan, Morgan Stanley and Standard Chartered are arranging the deal, which is expected to launch later on Thursday.
Abu Dhabi state fund Mubadala began marketing a two-tranche U.S. dollar-denominated bond deal on Thursday, a document showed, returning to the debt markets less than three months after it raised $1.1 billion.
A Mubadala unit through which the bonds are issued, Mamoura Diversified Global Holding, gave initial price guidance of around 130 basis points over mid-swaps for a 10-year tranche and around 3.7% for 30-year Formosa bonds, the document from one of the banks on the deal showed.
Abu Dhabi Commercial Bank, Citi, FAB, JPMorgan, Morgan Stanley and Standard Chartered are arranging the deal, which is expected to launch later on Thursday.