Saudi stocks sees biggest fall in over a year after drone attacks | Reuters
Saudi Arabia's stock market posted its biggest one-day drop in more than a year on Sunday, a day after Yemen's Iran-aligned Houthis said they had fired 14 drones at several Saudi Arabian cities, including at Saudi Aramco facilities in Jeddah. read more
The Saudi-led coalition battling the Houthis in Yemen had on Friday said it destroyed three drones launched towards southern Saudi Arabia and a fourth over Yemen. It said the group "failed to launch two ballistic missiles" and they fell inside Yemen.
The benchmark index (.TASI) in Saudi Arabia slid 1.9%, its biggest intraday drop since Oct. 2020, with Al Rajhi Bank (1120.SE) losing 2.2%, while Saudi Aramco (2222.SE) retreated 1.9%.
The oil giant was also under pressure after India's Reliance Industries Ltd (RELI.NS) said on Friday it had decided with the Saudi company to reevaluate Aramco's proposed roughly $15 billion investment in Reliance's oil-to-chemicals (O2C) business. read more
The 20% stake sale in the unit was announced in 2019, but delayed as oil prices and demand crashed last year due to the pandemic.
In Abu Dhabi, the index (.ADI) eased 0.2%, hit by a 1.3% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) gave up early gains to close 0.2% lower, weighed down by a 0.5% drop in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
However, Amlak Finance (AMLK.DU) surged 15%, gaining for a seventh consecutive session.
Last week, the Islamic finance company swung to net profit of 887.1 million dirhams ($241.55 million) for the third quarter, from a loss of 151.4 million dirhams year ago.
The Qatari index (.QSI) fell 0.3%, extending losses for a second session, with Qatar National Bank (QNBK.QA) dropping 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended 0.6% lower, as most of the stocks in the index were in negative territory including Abu Qir Fertilizers (ABUK.CA), shedding 2.2%.
Egypt plans to sell additional shares in Abu Qir Fertilizers on the local stock exchange within one month at most, the minister of the public business sector told Reuters on Thursday.
Dubai Economic News: Growth as Europe Struggles With Covid - Bloomberg
Tables at Gaia, one of the hottest dining spots in Dubai, are booked two weeks in advance and the crush of businesspeople emerging from surrounding offices keeps staff on their toes.
“Every day feels like a Friday” said Evgeny Kuzin, chairman and co-founder of Bulldozer Group, which owns and runs several restaurants including Gaia. They’ve been hiring staff to keep up with renewed demand.
As infection rates in Europe explode and governments tighten restrictions once more, Dubai’s economy is rebounding faster than expected. Property sales are at decade highs, and streets so choked with traffic it’s hard to find an empty taxi.
Postponed as Covid-19 swept the globe last year, Expo 2020, one of the world’s biggest in-person events since the pandemic, is now in full swing, attracting both Dubai residents and visitors fleeing new lockdowns that have sparked unrest in Austria, the Netherlands and other European nations.
Colombia Financial Regulator Approves Takeover Bid for Nutresa - Bloomberg
Colombia’s financial regulator approved billionaire Jaime Gilinski’s takeover bid for a majority stake in food producer Nutresa SA, according to a person with direct knowledge of the transaction.
The approval follows a statement from the stock exchange that it received a standby letter of credit from Nugil SAS for $1.08 billion.
Gilinski is said to have partnered with Abu Dhabi’s Royal Group to offer to buy a minimum of 50.1% of shares and a maximum of 62.6%. The offer, at $7.71 per share, represents a 38% premium from where the stock had been trading before the announcement.
Having built the bulk of his fortune through banking and private equity investments, Gilinski is worth about $4.4 billion according to the Bloomberg Billionaires Index. He is a shareholder and board member of Bogota-based bank Banco GNB Sudameris and in 2019 he bought a stake in U.K. lender Metro Bank Plc.
Bank of Israel seen holding rates but some analysts call for a cut | Reuters
The Bank of Israel is expected to leave short-term interest rates unchanged this week, its 13th such decision in a row, though some analysts believe it should cut rates to halt the shekel that stands at a 26-year high versus the dollar.
All 16 economists polled by Reuters believe the central bank's monetary policy committee (MPC) will keep the benchmark rate (ILINR=ECI) at an all-time low of 0.1% when the decision is announced on Monday at 4 p.m. (1400 GMT).
Before the last meeting on Oct. 7, analysts had widely believed the next change would be a hike as early as 2022 on the heels of rising inflation and a rapid economic rebound amid a widespread COVID-19 vaccine roll-out. One MPC members voted to raise rates to 0.25% at that meeting.
Since then, the shekel has gained as much as 7% versus the dollar to late 1995 levels and is the top performing emerging currency since the pandemic began, while inflation in October and third-quarter GDP growth were lower than expected.
Abu Dhabi's Yahsat to join FTSE UAE Small Cap Index | ZAWYA MENA Edition
Abu Dhabi’s Al Yah Satellite Communications Company (Yahsat), along with all its subsidiaries, will be included in the FTSE UAE Small Cap Index, the company announced on Sunday.
With its inclusion in the index, Yahsat will also be added to the FTSE Global Small Cap Index, FTSE Global All Cap Index, FTSE Middle East & Africa Small Cap Index and the FTSE Middle East & Africa All Cap Index, among others, the Abu Dhabi Securities Exchange-listed company said in a bourse filing.
Yahsat’s inclusion will be effective on December 20, 2021.
Last week, MSCI announced that it had included Yahsat as a constituent of the MSCI Small Cap Indices, including the MSCI All Country World Index (ACWI) Small Cap Index, MSCI Emerging Markets Small Cap Index and the MSCI UAE Small Cap Index.
The company began trading on the ADX in July following its initial public offering (IPO).
It recently announced a profit of $13.2 million for the third quarter of 2021, down by 37.8 percent from $21.2 million in the same period in 2020.
EXCLUSIVE Abu Dhabi's ADNOC weighs IPO of logistics and services unit next year- sources | Reuters
State oil firm Abu Dhabi National Oil Company (ADNOC) is weighing an initial public offering (IPO) of its marine services, logistics and shipping arm next year, two sources familiar with the matter told Reuters.
ADNOC Logistics & Services (ADNOC L&S) has been selected for a potential float in Abu Dhabi in 2022, said the sources, declining to be named as the matter is not public.
A deal could follow after testing investor appetite and market conditions, they said.
ADNOC declined to comment when contacted by Reuters on Sunday.
Gulf oil producers are looking at sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors. read more
Saudi Stock Exchange Seeks to Raise Up to $1 Billion in IPO - Bloomberg
Saudi Arabia is keeping the home fires burning for regional public offerings, readying what could be the biggest sale of shares by a stock-exchange operator since Euronext NV.
Saudi Tadawul Group Holding is seeking to raise as much as $1 billion after setting the price range for an initial public offering at 95 riyals ($25.32) to 105 riyals per share, the company said in a statement Sunday. The Riyadh-based bourse, on which oil giant Saudi Aramco trades, plans to sell a 30% stake, or 36 million shares.
The offering comes amid a global IPO boom, with companies around the world raising a record of more than $600 billion this year. Against that backdrop, Saudi Arabia has been among the leaders in the Middle East, listing private and family-owned concerns as well as companies such as ACWA Power International, backed by the kingdom’s wealth fund, and Saudi Telecom Co.’s internet-services unit. Neighboring Abu Dhabi and Dubai have been stepping up efforts as well.
“This will surely keep investors on Tadawul excited,” said Junaid Farooq, a fund manager at Frontier Investment Management Partners Ltd. in Dubai. “Government policy is highly supportive of private businesses listing on the exchange and there are over 60 planned IPOs in the pipeline over the next three years.”
Saudi market tumbles in early trade after drone attacks | Reuters
Saudi Arabia's stock market fell sharply in early trade on Sunday, a day after Yemen's Iran-aligned Houthis said they had fired 14 drones at several Saudi Arabian cities, including at Saudi Aramco facilities in Jeddah. read more
Saudi Arabia's benchmark index (.TASI) dropped 1.6%, with Al Rajhi Bank (1120.SE) retreating 2.2% and Saudi Aramco (2222.SE) losing 1.6%.
The oil giant was also under pressure after India's Reliance Industries Ltd (RELI.NS) said on Friday it had decided with the Saudi company to reevaluate Aramco's proposed roughly $15 billion investment in Reliance's oil-to-chemicals (O2C) business. read more
The 20% stake sale in the unit was announced in 2019, but was delayed as oil prices and demand crashed last year due to the pandemic.
The Abu Dhabi index (.ADI) lost 0.2%, hit by a 1% decline in the country's largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) gained 0.2%, on course to rise for a sixth session in seven, with logistic firm Aramex (ARMX.DU) putting on 2.4%.
Elsewhere, Amlak Finance (AMLK.DU) surged 15%, extending gains for a sixth session.
On Sunday, the Islamic finance company swung to net profit of 887.1 million dirhams ($241.55 million) for the third quarter, from a loss of 151.4 million dirhams year ago.
In Qatar, the index (.QSI) eased 0.2%, hit by a 1.2% fall in Commercial Bank (COMB.QA).
