Oil dives late, hit by China supply plan, U.S. bond auction | Reuters
Oil prices fell to a two-week low on Thursday as China rolled out a plan to release state oil reserves, the U.S. weekly crude draw was smaller than expected and U.S. Treasuries rallied as investors sought safer assets.
In volatile trade, Brent futures fell $1.15, or 1.6%, to settle at $71.45 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.16, or 1.7%, to $68.14. That was the lowest settlement for both since Aug. 26.
"A tremendous auction in the 30-year bond with the lowest interest rate print since January put a significant scare into the (oil) market in what looks like a flight to safety," said John Kilduff, partner at Again Capital LLC in New York.
After falling over $1 a barrel early in the session, both benchmarks turned positive following reports that a ship was stuck in the Suez Canal. The ship was refloated and caused no delays. read more
Thursday, 9 September 2021
MIDEAST STOCKS #AbuDhabi bourse hits record high; #Saudi snaps 5-day rally | Reuters
MIDEAST STOCKS Abu Dhabi bourse hits record high; Saudi snaps 5-day rally | Reuters
Abu Dhabi stocks closed at an all-time high on Thursday, buoyed by a jump in First Abu Dhabi Bank (FAB), while the Saudi bourse snapped a five-day winning streak.
In Abu Dhabi, the index (.ADI) advanced 1.2%, boosted by a 4.8% rise in the United Arab Emirates' largest lender FAB (FAB.AD), which said on Wednesday it had hired Martin Tricaud as head of investment banking. read more
The appointment should give a notable boost to the bank's investment banking business, said Wael Makarem, senior market strategist at Exness: "Tricaud has a long-standing track record and diverse experience in investment banking in the Middle East from his time with HSBC."
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year, for which it received more than $9.75 billion in orders for two tranches, a bank document showed. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, ending five sessions of gains, weighed down by a 2% slide in Riyad Bank (1010.SE) and a 0.7% decline in the kingdom's biggest lender Saudi National Bank (1180.SE).
Brent crude slipped into negative territory, falling $1.05, or 1.56%, to $71.51 a barrel by 0123 GMT.
Oil prices were pressured by the U.S. Energy Information Administration cutting its 2021 global oil demand growth forecast on Wednesday, with little change to its 2022 estimate.
Moves in oil prices are a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) added 0.2%, helped by a 0.9% gain in petrochemical firm Industries Qatar (IQCD.QA).
The Dubai index (.DFMGI) traded flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.7%. Most stocks were in negative territory, with top lender Commercial International Bank (COMI.CA) down 1.6%.
The Egyptian bourse fell as investors kept track of economic developments in the United States and Europe. They remain worried that tighter monetary policy would undercut international investors' appetite for risk, said Daniel Takieddine, senior market analyst at FXPrimus.
In Abu Dhabi, the index (.ADI) advanced 1.2%, boosted by a 4.8% rise in the United Arab Emirates' largest lender FAB (FAB.AD), which said on Wednesday it had hired Martin Tricaud as head of investment banking. read more
The appointment should give a notable boost to the bank's investment banking business, said Wael Makarem, senior market strategist at Exness: "Tricaud has a long-standing track record and diverse experience in investment banking in the Middle East from his time with HSBC."
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year, for which it received more than $9.75 billion in orders for two tranches, a bank document showed. read more
Saudi Arabia's benchmark index (.TASI) lost 0.3%, ending five sessions of gains, weighed down by a 2% slide in Riyad Bank (1010.SE) and a 0.7% decline in the kingdom's biggest lender Saudi National Bank (1180.SE).
Brent crude slipped into negative territory, falling $1.05, or 1.56%, to $71.51 a barrel by 0123 GMT.
Oil prices were pressured by the U.S. Energy Information Administration cutting its 2021 global oil demand growth forecast on Wednesday, with little change to its 2022 estimate.
Moves in oil prices are a key catalyst for the Gulf region's financial markets.
The Qatari index (.QSI) added 0.2%, helped by a 0.9% gain in petrochemical firm Industries Qatar (IQCD.QA).
The Dubai index (.DFMGI) traded flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.7%. Most stocks were in negative territory, with top lender Commercial International Bank (COMI.CA) down 1.6%.
The Egyptian bourse fell as investors kept track of economic developments in the United States and Europe. They remain worried that tighter monetary policy would undercut international investors' appetite for risk, said Daniel Takieddine, senior market analyst at FXPrimus.
Aramco Weighs Opening $110 Billion Gas Project to Investors - Bloomberg
Aramco Weighs Opening $110 Billion Gas Project to Investors - Bloomberg
Saudi Aramco is considering a bold move to open up one of the world’s largest unconventional gas fields to foreign investors, as it looks to fund a $110 billion project to help it diversify from oil sales, people familiar with the matter said.
The state-controlled producer is working with an adviser as it explores raising new equity or debt for its vast Jafurah site, the people said, asking not to be identified because the information is private. It has started preliminary talks with potential investors including large commodity traders, according to the peope.
Deliberations are in the early stages and Aramco could decide to pursue other ways of gathering money to fund the Jafurah development, the people said. A representative for Aramco declined to comment.
Any deal involving Jafurah would mark a rare example of Aramco allowing external investors the chance to hold stakes in its upstream oil and gas assets. Previous attempts in the late 1990s to bring in Big Oil companies to help develop reserves failed. The company began a review of its upstream business earlier this year as a precursor to such a potential move, Bloomberg News reported in April.
Saudi Aramco is considering a bold move to open up one of the world’s largest unconventional gas fields to foreign investors, as it looks to fund a $110 billion project to help it diversify from oil sales, people familiar with the matter said.
The state-controlled producer is working with an adviser as it explores raising new equity or debt for its vast Jafurah site, the people said, asking not to be identified because the information is private. It has started preliminary talks with potential investors including large commodity traders, according to the peope.
Deliberations are in the early stages and Aramco could decide to pursue other ways of gathering money to fund the Jafurah development, the people said. A representative for Aramco declined to comment.
Any deal involving Jafurah would mark a rare example of Aramco allowing external investors the chance to hold stakes in its upstream oil and gas assets. Previous attempts in the late 1990s to bring in Big Oil companies to help develop reserves failed. The company began a review of its upstream business earlier this year as a precursor to such a potential move, Bloomberg News reported in April.
EXCLUSIVE #Dubai courier Aramex in talks to buy Turkey's MNG Kargo -sources | Reuters
EXCLUSIVE Dubai courier Aramex in talks to buy Turkey's MNG Kargo -sources | Reuters
Dubai-listed courier Aramex (ARMX.DU), partly owned by Abu Dhabi state investor ADQ, is in advanced talks to buy Turkish delivery company MNG Kargo, three sources said.
The potential deal, which one of the sources familiar with the matter said could be worth as much as $500 million, comes as relations between regional rivals the United Arab Emirates and Turkey show signs of improvement. read more
One of the sources said the talks were at an advanced stage and a second said the pair were engaged in due diligence.
"As a matter of course, we do not comment on rumour or speculation," an Aramex spokesperson said.
MNG Kargo declined to comment.
Dubai-listed courier Aramex (ARMX.DU), partly owned by Abu Dhabi state investor ADQ, is in advanced talks to buy Turkish delivery company MNG Kargo, three sources said.
The potential deal, which one of the sources familiar with the matter said could be worth as much as $500 million, comes as relations between regional rivals the United Arab Emirates and Turkey show signs of improvement. read more
One of the sources said the talks were at an advanced stage and a second said the pair were engaged in due diligence.
"As a matter of course, we do not comment on rumour or speculation," an Aramex spokesperson said.
MNG Kargo declined to comment.
Oil steady as U.S. output struggles and demand outlook dims | Reuters
Oil steady as U.S. output struggles and demand outlook dims | Reuters
Oil prices were steady on Thursday, with U.S. crude output still largely offline after Hurricane Ida while the spread of the coronavirus Delta variant continues to cloud the demand outlook.
Brent crude firmed slightly, rising 11 cents, or 0.2%, to $72.71 a barrel by 1227 GMT while West Texas Intermediate (WTI) crude was virtually flat at $69.35.
"Brent has maintained a holding pattern during the month of September as conviction in the oil complex has eased given the array of conflicting fundamentals within the market," said StoneX analyst Kevin Solomon.
"The market is seemingly digesting the supply disruptions in the United States, the recent revival in the dollar index ... as well as the fluid dynamics of COVID-19 globally."
Oil prices were steady on Thursday, with U.S. crude output still largely offline after Hurricane Ida while the spread of the coronavirus Delta variant continues to cloud the demand outlook.
Brent crude firmed slightly, rising 11 cents, or 0.2%, to $72.71 a barrel by 1227 GMT while West Texas Intermediate (WTI) crude was virtually flat at $69.35.
"Brent has maintained a holding pattern during the month of September as conviction in the oil complex has eased given the array of conflicting fundamentals within the market," said StoneX analyst Kevin Solomon.
"The market is seemingly digesting the supply disruptions in the United States, the recent revival in the dollar index ... as well as the fluid dynamics of COVID-19 globally."
#Dubai’s non-oil sector sees quickest business growth in August in nearly two years | Analysis – Gulf News
Dubai’s non-oil sector sees quickest business growth in August in nearly two years | Analysis – Gulf News
The pace of growth in non-oil activity across Dubai accelerated again in August, reaching its highest level for almost two years, according to the Purchasing Managers’ Index (PMI) by IHS Markit.
The report showed Dubai’s economy continued its run of solid improvements in business conditions over the third quarter of the year. As a result, firms increased their employment levels at the fastest rate since November 2019.
“The Dubai non-oil economy enjoyed another strong overall improvement in August, driven by a marked rise in output levels that was the fastest seen since September 2019. This suggests that the economy is solidifying its recovery from the pandemic, especially as a relaxation of travel measures drove tourism numbersf higher and boosted consumer demand,” said David Owen, Economist at IHS Markit.
The headline PMI ticked up from 53.2 in July to 53.3 in August, signaling another solid upturn in operating conditions in the non-oil sector. Moreover, the index has registered higher only once in the last 21 months, in April 2021.
The pace of growth in non-oil activity across Dubai accelerated again in August, reaching its highest level for almost two years, according to the Purchasing Managers’ Index (PMI) by IHS Markit.
The report showed Dubai’s economy continued its run of solid improvements in business conditions over the third quarter of the year. As a result, firms increased their employment levels at the fastest rate since November 2019.
“The Dubai non-oil economy enjoyed another strong overall improvement in August, driven by a marked rise in output levels that was the fastest seen since September 2019. This suggests that the economy is solidifying its recovery from the pandemic, especially as a relaxation of travel measures drove tourism numbersf higher and boosted consumer demand,” said David Owen, Economist at IHS Markit.
The headline PMI ticked up from 53.2 in July to 53.3 in August, signaling another solid upturn in operating conditions in the non-oil sector. Moreover, the index has registered higher only once in the last 21 months, in April 2021.
#AbuDhabi expected to raise $3 billion via bonds | Reuters
Abu Dhabi expected to raise $3 billion via bonds | Reuters
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year for which it received more than $9.75 billion in orders for two tranches, a bank document showed.
The emirate sold $1.75 billion in 10-year bonds at 63 basis points (bps) over U.S. Treasuries (UST) and $1.25 billion in 30-year paper at 3%, settling at the lower end of final price guidance, the document from one of the banks on the deal showed.
It had given an initial price guidance of about 90 bps over UST for the 10-year tranche and around 130 bps over UST for the 30-year notes.
BNP Paribas (BNPP.PA), First Abu Dhabi Bank (FAB.AD), JPMorgan (JPM.N), Morgan Stanley (MS.N) and Standard Chartered (STAN.L) arranged the deal.
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year for which it received more than $9.75 billion in orders for two tranches, a bank document showed.
The emirate sold $1.75 billion in 10-year bonds at 63 basis points (bps) over U.S. Treasuries (UST) and $1.25 billion in 30-year paper at 3%, settling at the lower end of final price guidance, the document from one of the banks on the deal showed.
It had given an initial price guidance of about 90 bps over UST for the 10-year tranche and around 130 bps over UST for the 30-year notes.
BNP Paribas (BNPP.PA), First Abu Dhabi Bank (FAB.AD), JPMorgan (JPM.N), Morgan Stanley (MS.N) and Standard Chartered (STAN.L) arranged the deal.
MIDEAST STOCKS Most Gulf markets track Asia lower; #AbuDhabi hits record high | Reuters
MIDEAST STOCKS Most Gulf markets track Asia lower; Abu Dhabi hits record high | Reuters
Most Gulf stock markets were subdued on Thursday, in line with Asian stocks, although Abu Dhabi bucked the trend to touch a record peak.
Asian shares were set for their worst day in two weeks, weighed down by the latest regulatory crackdown in China and global investors worries' about a looming reduction in central bank stimulus.
"This week's nervousness in equity markets is a sign that investors are beginning to reprice some of the known risks. Investors who are relying on central banks, particularly the Federal Reserve, may also need to have second thoughts, given the taper talk," said Hussein Sayed, chief market strategist at Exinity Group.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 0.8% slip in the Kingdom's biggest lender Saudi National Bank (1180.SE) and a 0.7% slide in Saudi Telecom Company (7010.SE).
However, shares in Prince Alwaleed bin Talal's Kingdom Holding (4280.SE) rose about 3% after it signed an agreement with Bill Gates' Cascade Investment to sell half of its interest in Four Seasons Hotels and Resorts for $2.21 billion. read more
The Abu Dhabi benchmark index (.ADI) rose 0.2% to hit a record high, with the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) advancing 1.3%, after it said on Wednesday it had hired Martin Tricaud as head of investment banking. read more
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year, for which it received more than $9.75 billion in orders for two tranches, a bank document showed. read more
Dubai's main share index (.DFMGI) dropped 0.6%, as most of the stocks on the index were in negative territory, including blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI), however, traded flat, as gains in industrial stocks were offset by declines in banking shares.
Most Gulf stock markets were subdued on Thursday, in line with Asian stocks, although Abu Dhabi bucked the trend to touch a record peak.
Asian shares were set for their worst day in two weeks, weighed down by the latest regulatory crackdown in China and global investors worries' about a looming reduction in central bank stimulus.
"This week's nervousness in equity markets is a sign that investors are beginning to reprice some of the known risks. Investors who are relying on central banks, particularly the Federal Reserve, may also need to have second thoughts, given the taper talk," said Hussein Sayed, chief market strategist at Exinity Group.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 0.8% slip in the Kingdom's biggest lender Saudi National Bank (1180.SE) and a 0.7% slide in Saudi Telecom Company (7010.SE).
However, shares in Prince Alwaleed bin Talal's Kingdom Holding (4280.SE) rose about 3% after it signed an agreement with Bill Gates' Cascade Investment to sell half of its interest in Four Seasons Hotels and Resorts for $2.21 billion. read more
The Abu Dhabi benchmark index (.ADI) rose 0.2% to hit a record high, with the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) advancing 1.3%, after it said on Wednesday it had hired Martin Tricaud as head of investment banking. read more
Abu Dhabi locked in $3 billion on Wednesday with its second bond sale of the year, for which it received more than $9.75 billion in orders for two tranches, a bank document showed. read more
Dubai's main share index (.DFMGI) dropped 0.6%, as most of the stocks on the index were in negative territory, including blue-chip developer Emaar Properties (EMAR.DU).
The Qatari index (.QSI), however, traded flat, as gains in industrial stocks were offset by declines in banking shares.
#AbuDhabi asset manager Al Dhabi Capital launches MENA-focused equities fund | Reuters
Abu Dhabi asset manager Al Dhabi Capital launches MENA-focused equities fund | Reuters
Abu Dhabi-based asset manager Al Dhabi Capital (ADC) said on Thursday it has launched a Middle East and North Africa (MENA)-focused equities fund.
The Al Dhabi Capital MENA Fund is seeded with $100 million from its United Arab Emirates-based parent company, Al Dhabi Investment.
ADC, which manages over $600 million in public equities on behalf of institutional investors, said the new fund "follows a bottom-up stock-picking process and seeks to invest in liquid equities with a long-term, buy-and-manage approach."
The asset manager is based in Abu Dhabi Global Market, an international financial centre in the capital of the Emirates.
Its fund is domiciled in the Cayman Islands.
Abu Dhabi-based asset manager Al Dhabi Capital (ADC) said on Thursday it has launched a Middle East and North Africa (MENA)-focused equities fund.
The Al Dhabi Capital MENA Fund is seeded with $100 million from its United Arab Emirates-based parent company, Al Dhabi Investment.
ADC, which manages over $600 million in public equities on behalf of institutional investors, said the new fund "follows a bottom-up stock-picking process and seeks to invest in liquid equities with a long-term, buy-and-manage approach."
The asset manager is based in Abu Dhabi Global Market, an international financial centre in the capital of the Emirates.
Its fund is domiciled in the Cayman Islands.
National Bank of #Kuwait starts selling dollar senior bonds - document | Reuters
National Bank of Kuwait starts selling dollar senior bonds - document | Reuters
National Bank of Kuwait (NBKK.KW), the Gulf country's largest lender, has given initial price guidance for six-year U.S. dollar-denominated bonds of around 115 basis points over U.S. Treasuries, a bank document showed on Thursday.
Citi (C.N), JPMorgan (JPM.N) and NBK Capital are global coordinators and BofA Securities (BAC.N), Goldman Sachs International (GS.N), HSBC (HSBA.L), MUFG (8306.T) and Standard Chartered (STAN.L) are joint lead managers and bookrunners.
The bonds will be non-callable for five years and are expected to launch later on Thursday, the document from one of the banks on the deal showed.
National Bank of Kuwait (NBKK.KW), the Gulf country's largest lender, has given initial price guidance for six-year U.S. dollar-denominated bonds of around 115 basis points over U.S. Treasuries, a bank document showed on Thursday.
Citi (C.N), JPMorgan (JPM.N) and NBK Capital are global coordinators and BofA Securities (BAC.N), Goldman Sachs International (GS.N), HSBC (HSBA.L), MUFG (8306.T) and Standard Chartered (STAN.L) are joint lead managers and bookrunners.
The bonds will be non-callable for five years and are expected to launch later on Thursday, the document from one of the banks on the deal showed.
Oil gains for 2nd session as lower U.S. output supports | Reuters
Oil gains for 2nd session as lower U.S. output supports | Reuters
Oil prices rose for a second session on Thursday, recovering from earlier losses as a decline in U.S. Gulf of Mexico output following damages from Hurricane Ida underpinned the market.
Brent added 26 cents, or 0.36% to $72.86 a barrel at 0616 GMT and West Texas Intermediate (WTI) crude rose 12 cents, or 0.17%, to $69.42 a barrel.
"U.S. production is struggling to recover from Hurricane Ida," ANZ said in a note. "Extensive damage to infrastructure and power outages mean Ida has knocked off more supply after nine days than any other storm."
About 77% of U.S. Gulf production remained offline on Tuesday, or about 1.4 million barrels per day (bpd). The market has lost about 17.5 million barrels of oil so far. read more
Oil prices rose for a second session on Thursday, recovering from earlier losses as a decline in U.S. Gulf of Mexico output following damages from Hurricane Ida underpinned the market.
Brent added 26 cents, or 0.36% to $72.86 a barrel at 0616 GMT and West Texas Intermediate (WTI) crude rose 12 cents, or 0.17%, to $69.42 a barrel.
"U.S. production is struggling to recover from Hurricane Ida," ANZ said in a note. "Extensive damage to infrastructure and power outages mean Ida has knocked off more supply after nine days than any other storm."
About 77% of U.S. Gulf production remained offline on Tuesday, or about 1.4 million barrels per day (bpd). The market has lost about 17.5 million barrels of oil so far. read more