Mideast Stocks: Abu Dhabi bourse rebounds as IHC extends gains
Stock markets in the United Arab Emirates rebounded on Friday, a day after the index retreated on worries about the impacts of the global inflation.
In Abu Dhabi, the index gained 0.9%, buoyed by a 2.8% rise in conglomerate International Holding Co (IHC) . IHC, which rose for a fifth session in a row, on Tuesday announced the completion of a 7.3-billion dirham ($1.99 billion) investment deal for three Adani companies. The Abu Dhabi index posted a weekly gain of 4.7%, the first in four weeks.
The index continued to rise as investors ready themselves for the initial public offering (IPO) of Borouge next month, said Fadi Reyad, Market Analyst at CAPEX.com. According to Reyad this new listing could impact investors' appetite for risk. Abu Dhabi National Oil Company (ADNOC) and its Austrian chemicals partner Borealis plan an initial public offering of their petrochemicals joint venture Borouge, the latest step in the Abu Dhabi state energy group's asset monetisation programme.
Dubai's main share index edged up 0.1%, helped by a 1.5% increase in sharia-compliant lender Dubai Islamic Bank.
Friday 20 May 2022
Oil settles up as supply risks outweigh economic worries | Reuters
Oil settles up as supply risks outweigh economic worries | Reuters
Oil prices settled slightly higher on Friday as a planned European Union ban on Russian oil and easing of COVID-19 lockdowns in China countered concerns that slowing economic growth will hurt demand.
Brent futures for July delivery rose 51 cents, or 0.5%, to $112.55 a barrel. U.S. West Texas Intermediate (WTI) crude for June rose $1.02, or 0.9%, to settle at $113.23 on its on its last day as the front-month.
WTI notched its fourth straight week of gains, which it last did in mid-February. Brent gained about 1% this week after falling about 1% last week.
The more actively-traded WTI contract for July was up about 0.4% to $110.28 a barrel.
"The risks remain tilted to the upside ... given the Chinese reopening and continued efforts towards a Russian oil embargo by the EU," said Craig Erlam, a senior market analyst at OANDA.
Oil prices settled slightly higher on Friday as a planned European Union ban on Russian oil and easing of COVID-19 lockdowns in China countered concerns that slowing economic growth will hurt demand.
Brent futures for July delivery rose 51 cents, or 0.5%, to $112.55 a barrel. U.S. West Texas Intermediate (WTI) crude for June rose $1.02, or 0.9%, to settle at $113.23 on its on its last day as the front-month.
WTI notched its fourth straight week of gains, which it last did in mid-February. Brent gained about 1% this week after falling about 1% last week.
The more actively-traded WTI contract for July was up about 0.4% to $110.28 a barrel.
"The risks remain tilted to the upside ... given the Chinese reopening and continued efforts towards a Russian oil embargo by the EU," said Craig Erlam, a senior market analyst at OANDA.
StanChart Asks If ‘Umbilical Cord’ to Dollar Can Survive in Gulf - Bloomberg
StanChart Asks If ‘Umbilical Cord’ to Dollar Can Survive in Gulf - Bloomberg
The oil-rich monarchies of the Persian Gulf may eventually move to peg their exchange rates to a basket of currencies after decades of tethering them solely to the dollar, according to Standard Chartered Plc, opting for more flexibility as they diversify their economies away from energy.
Although the arrangements aren’t “under threat” right now, the currency regimes might become an ill fit during a period of economic transformation in the region, StanChart analysts including Carla Slim said in a research note on Thursday.
“The path from a fixed exchange-rate regime to a flexible one needs to occur gradually, with a likely transition through a basket peg,” they said. “Cutting the proverbial ‘umbilical cord’ would not only reflect the long-term outlook for the dollar, but also help local economies adjust to cyclical and structural shifts.”
Five of the six members of the Gulf Cooperation Council -- Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar -- maintain pegs to the dollar. Kuwait’s dinar already tracks the value of a basket of currencies believed to be dominated by the greenback.
The oil-rich monarchies of the Persian Gulf may eventually move to peg their exchange rates to a basket of currencies after decades of tethering them solely to the dollar, according to Standard Chartered Plc, opting for more flexibility as they diversify their economies away from energy.
Although the arrangements aren’t “under threat” right now, the currency regimes might become an ill fit during a period of economic transformation in the region, StanChart analysts including Carla Slim said in a research note on Thursday.
“The path from a fixed exchange-rate regime to a flexible one needs to occur gradually, with a likely transition through a basket peg,” they said. “Cutting the proverbial ‘umbilical cord’ would not only reflect the long-term outlook for the dollar, but also help local economies adjust to cyclical and structural shifts.”
Five of the six members of the Gulf Cooperation Council -- Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar -- maintain pegs to the dollar. Kuwait’s dinar already tracks the value of a basket of currencies believed to be dominated by the greenback.
#Dubai ruler dissolves Dubai World financial disputes tribunal | Reuters
Dubai ruler dissolves Dubai World financial disputes tribunal | Reuters
Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said on Friday he had issued a decree dissolving a tribunal hearing disputes related to Dubai World, the state conglomerate that was at the centre of Dubai's debt crisis more than a decade ago.
Dubai World, which restructured $23.5 billion in debt after the global financial crisis, said in June 2020 it had made a final payment to creditors of $8.2 billion.
Sheikh Mohammed, who is also Prime Minister of the United Arab Emirates, said in a statement on his website the tribunal would continue to review pending cases and claims until Dec. 13.
All future cases as well as those outstanding after Dec. 13 would be handled by specialised courts, the statement said.
Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said on Friday he had issued a decree dissolving a tribunal hearing disputes related to Dubai World, the state conglomerate that was at the centre of Dubai's debt crisis more than a decade ago.
Dubai World, which restructured $23.5 billion in debt after the global financial crisis, said in June 2020 it had made a final payment to creditors of $8.2 billion.
Sheikh Mohammed, who is also Prime Minister of the United Arab Emirates, said in a statement on his website the tribunal would continue to review pending cases and claims until Dec. 13.
All future cases as well as those outstanding after Dec. 13 would be handled by specialised courts, the statement said.
Oil steady on the week as oil supply risks meet economic headwinds | Reuters
Oil steady on the week as oil supply risks meet economic headwinds | Reuters
Oil prices edged lower on Friday on course for little change on the week as a planned European ban on Russian oil balanced out investor concerns about weakening economic growth hitting demand.
Brent futures for July were down10 cents, or 0.1%, to $111.94 a barrel by 0920 GMT, while U.S. West Texas Intermediate (WTI) crude for June fell 56 cents, or 0.5%, to $111.65 on its last day as the front-month.
The more actively traded WTI contract for July was down 0.23 cents at $109.66 a barrel.
The International Monetary Fund (IMF) urged Asian economies to be mindful of spillover risks from monetary tightening.
Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilise debt and inflation, IMF Deputy Managing Director Kenji Okamura said. read more
Oil prices edged lower on Friday on course for little change on the week as a planned European ban on Russian oil balanced out investor concerns about weakening economic growth hitting demand.
Brent futures for July were down10 cents, or 0.1%, to $111.94 a barrel by 0920 GMT, while U.S. West Texas Intermediate (WTI) crude for June fell 56 cents, or 0.5%, to $111.65 on its last day as the front-month.
The more actively traded WTI contract for July was down 0.23 cents at $109.66 a barrel.
The International Monetary Fund (IMF) urged Asian economies to be mindful of spillover risks from monetary tightening.
Asian economies faced a choice between supporting growth with more stimulus and withdrawing it to stabilise debt and inflation, IMF Deputy Managing Director Kenji Okamura said. read more