Oil dips 2% on economic woes and stronger dollar | Reuters
Oil dropped 2% on Tuesday after two sessions of gains as deepening concerns of an economic slowdown and a stronger dollar outweighed hopes of higher Chinese demand and lower U.S. crude stocks.
Brent crude fell by $1.96, or 2.4%, to settle at $80.77 a barrel. U.S. West Texas Intermediate crude dropped $1.69, or 2.2%, to settle at $77.07. On Monday, both contracts rose by more than 1%.
U.S. consumer confidence dropped to a nine-month low in April, feeding worries about a recession the day after regional lender First Republic (FRC.N) reported a flight in deposits of more than $100 billion, stoking fears of a potential banking crisis.
Tuesday, 25 April 2023
#Saudi shares advance after Eid while #AbuDhabi dips on oil uncertainty | Reuters
Saudi shares advance after Eid while Abu Dhabi dips on oil uncertainty | Reuters
Saudi Arabia's stock market ended higher on Tuesday after a five session break for the Muslim festival of Eid al-Fitr, while the Abu Dhabi index, which resumed trading on Monday, closed lower.
Saudi Arabia's benchmark index (.TASI) advanced 0.9%, buoyed by a 3.9% jump in oil giant Saudi Aramco (2222.SE).
However, Sahara International Petrochemical Co (2310.SE) dropped 1.8% after a sharp decline in its quarterly profit.
In Abu Dhabi, the index (.FTFADGI) slipped 0.1%, hit by a 3.1% slide in Multiply Group (MULTIPLY.AD).
The holding company, which counts state-linked International Holding Co (IHC.AD) as a major shareholder, on Monday submitted a binding offer to acquire a majority stake in Media 247.
Farah Mourad, Senior Market Analyst of XTB MENA, said movement on the Abu Dhabi stock market was being held back by uncertainty over the direction of oil prices.
"However, the market could see some support as it awaits another initial public offering. The listing could drive liquidity and attract new investors, helping move a market that was little changed during the last few trading sessions."
Oil, a key catalyst for Gulf financial markets, slipped after two sessions of gains as uncertainty about the global economic outlook and a firmer dollar countered investor optimism about demand in China and expectations of a drop in U.S. crude inventories.
Dubai's main share index (.DFMGI) added 0.2%, helped by a 3.5% jump in toll operator Salik Co (SALIK.DU).
Saudi Arabia's stock market ended higher on Tuesday after a five session break for the Muslim festival of Eid al-Fitr, while the Abu Dhabi index, which resumed trading on Monday, closed lower.
Saudi Arabia's benchmark index (.TASI) advanced 0.9%, buoyed by a 3.9% jump in oil giant Saudi Aramco (2222.SE).
However, Sahara International Petrochemical Co (2310.SE) dropped 1.8% after a sharp decline in its quarterly profit.
In Abu Dhabi, the index (.FTFADGI) slipped 0.1%, hit by a 3.1% slide in Multiply Group (MULTIPLY.AD).
The holding company, which counts state-linked International Holding Co (IHC.AD) as a major shareholder, on Monday submitted a binding offer to acquire a majority stake in Media 247.
Farah Mourad, Senior Market Analyst of XTB MENA, said movement on the Abu Dhabi stock market was being held back by uncertainty over the direction of oil prices.
"However, the market could see some support as it awaits another initial public offering. The listing could drive liquidity and attract new investors, helping move a market that was little changed during the last few trading sessions."
Oil, a key catalyst for Gulf financial markets, slipped after two sessions of gains as uncertainty about the global economic outlook and a firmer dollar countered investor optimism about demand in China and expectations of a drop in U.S. crude inventories.
Dubai's main share index (.DFMGI) added 0.2%, helped by a 3.5% jump in toll operator Salik Co (SALIK.DU).
#UAE Says Escape From Gray Listing Hinges on Policy Effectiveness - Bloomberg video
UAE Says Escape From Gray Listing Hinges on Policy Effectiveness - Bloomberg
The United Arab Emirates needs more time to show it’s done enough to be removed from a global financial crimes watchdog’s “gray list,” a senior government official said, as the Gulf country remains under scrutiny as a haven for dubious money dealings.
A major issue left to tackle to escape the designation is “the effectiveness of the implementation,” Abdullah bin Touq Al Marri, the UAE’s minister of economy, said in an interview with Bloomberg Television on Tuesday.
“We provided a lot of our policies, a lot of our regulations, but effectiveness means that you need to enforce fines and so forth,” he said. “That will only come through time.”
A major issue left to tackle to escape the designation is “the effectiveness of the implementation,” Abdullah bin Touq Al Marri, the UAE’s minister of economy, said in an interview with Bloomberg Television on Tuesday.
“We provided a lot of our policies, a lot of our regulations, but effectiveness means that you need to enforce fines and so forth,” he said. “That will only come through time.”
Point72 Alum Scores in Bidding War for £2 Billion Payments Firm - Bloomberg
Point72 Alum Scores in Bidding War for £2 Billion Payments Firm - Bloomberg
Former Point72 Asset Management trader David Rosen has emerged as one of the biggest winners from the bidding war for Middle East credit card processor Network International Holdings Plc.
Rosen’s hedge fund Rubric Capital Management revealed in mid-March it was one of Network’s top holders with a 5% interest. News of takeover approaches came out weeks later, driving the London-listed firm’s market value up to £2.1 billion ($2.6 billion) as a buyout consortium backed by CVC Capital Partners started battling it out with Canadian giant Brookfield Asset Management Ltd.
That was a boon for New York-based Rubric, which had a position in Network for years before the public disclosure, according to people with knowledge of the matter. Shares of Network, which closed at 248 pence on the day Rubric crossed the disclosure threshold, have since jumped about 60% through this past Friday’s close as they approached the potential Brookfield bid of 400 pence per share.
Rubric sold amid the rally, offloading its position at prices ranging from 300 pence to 399 pence and had exited its investment by the end of last week, according to a series of regulatory filings.
Former Point72 Asset Management trader David Rosen has emerged as one of the biggest winners from the bidding war for Middle East credit card processor Network International Holdings Plc.
Rosen’s hedge fund Rubric Capital Management revealed in mid-March it was one of Network’s top holders with a 5% interest. News of takeover approaches came out weeks later, driving the London-listed firm’s market value up to £2.1 billion ($2.6 billion) as a buyout consortium backed by CVC Capital Partners started battling it out with Canadian giant Brookfield Asset Management Ltd.
That was a boon for New York-based Rubric, which had a position in Network for years before the public disclosure, according to people with knowledge of the matter. Shares of Network, which closed at 248 pence on the day Rubric crossed the disclosure threshold, have since jumped about 60% through this past Friday’s close as they approached the potential Brookfield bid of 400 pence per share.
Rubric sold amid the rally, offloading its position at prices ranging from 300 pence to 399 pence and had exited its investment by the end of last week, according to a series of regulatory filings.
Vodafone’s Top Backer E& Discusses Board Changes and Ups Stake - Bloomberg
Vodafone’s Top Backer E& Discusses Board Changes and Ups Stake - Bloomberg
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Vodafone Group Plc’s biggest shareholder, Emirates Telecommunications Group Co., has opened talks with the troubled British telecom group to push for changes on its board.
The investor, also known as e&, began discussions with Vodafone on April 12 about the non-executive directors in order to engage “on a variety of topics,” it said in a regulatory filing late Monday. The Abu Dhabi-based company, which is majority owned by the United Arab Emirates’s sovereign wealth fund, now owns 14.6% of Vodafone, up from 14%.
Vodafone’s shares, which have been steadily declining for years, have dropped about 25% since e& announced its initial holding in May. The telecom company in December ousted Chief Executive Officer Nick Read — who struggled to appease investors with moves to streamline the business and sell assets — and the board hasn’t yet named a replacement to lead Vodafone’s turnaround.
Vodafone rose 2% to 91.51 pence at 10:30 a.m. in London trading on Tuesday.
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Vodafone Group Plc’s biggest shareholder, Emirates Telecommunications Group Co., has opened talks with the troubled British telecom group to push for changes on its board.
The investor, also known as e&, began discussions with Vodafone on April 12 about the non-executive directors in order to engage “on a variety of topics,” it said in a regulatory filing late Monday. The Abu Dhabi-based company, which is majority owned by the United Arab Emirates’s sovereign wealth fund, now owns 14.6% of Vodafone, up from 14%.
Vodafone’s shares, which have been steadily declining for years, have dropped about 25% since e& announced its initial holding in May. The telecom company in December ousted Chief Executive Officer Nick Read — who struggled to appease investors with moves to streamline the business and sell assets — and the board hasn’t yet named a replacement to lead Vodafone’s turnaround.
Vodafone rose 2% to 91.51 pence at 10:30 a.m. in London trading on Tuesday.
#AbuDhabi Royal-Led Firm Ethmar to List After Capital Raise - Bloomberg
Abu Dhabi Royal-Led Firm Ethmar to List After Capital Raise - Bloomberg
Ethmar International Holding, which is led by a son of the United Arab Emirates’s ruler, is set to go public in Abu Dhabi after it raises as much as 700 million dirhams ($191 million).
EIH, an investment vehicle with dozens of subsidiaries, plans to offer investors a 13% to 15% stake through a capital raise of 600 million dirhams to 700 million dirhams, according to an investor presentation seen by Bloomberg News. It will then list on the Abu Dhabi stock exchange on May 1.
The firm, which holds more than 25 subsidiaries spanning real estate, energy, technology, health care, sports and investments, is chaired by Sheikh Hamdan bin Mohammed bin Zayed Al Nahyan, whose father is Sheikh Mohammed bin Zayed, known as MBZ.
The company, which would be valued at more than 4 billion dirhams, is planning a range of acquisitions, according to the presentation. These include one of the top three financial services companies in the UAE, one of the largest tourism firms in Abu Dhabi, an engineering and construction company and one of the largest pharmacy chains in the capital.
Ethmar International Holding, which is led by a son of the United Arab Emirates’s ruler, is set to go public in Abu Dhabi after it raises as much as 700 million dirhams ($191 million).
EIH, an investment vehicle with dozens of subsidiaries, plans to offer investors a 13% to 15% stake through a capital raise of 600 million dirhams to 700 million dirhams, according to an investor presentation seen by Bloomberg News. It will then list on the Abu Dhabi stock exchange on May 1.
The firm, which holds more than 25 subsidiaries spanning real estate, energy, technology, health care, sports and investments, is chaired by Sheikh Hamdan bin Mohammed bin Zayed Al Nahyan, whose father is Sheikh Mohammed bin Zayed, known as MBZ.
The company, which would be valued at more than 4 billion dirhams, is planning a range of acquisitions, according to the presentation. These include one of the top three financial services companies in the UAE, one of the largest tourism firms in Abu Dhabi, an engineering and construction company and one of the largest pharmacy chains in the capital.
#Qatar's large fiscal, current-account surpluses expected to limit borrowing: EIU
Qatar's large fiscal, current-account surpluses expected to limit borrowing: EIU
Qatar's sovereign credit strengths are large fiscal and current-account surpluses, which are expected to limit borrowing, EIU said in its latest update.
Public debt has fallen sharply, to an estimated 44.4% of GDP at end-2022. High energy prices and a comfortable trade position are supporting external liquidity, and the balance-of-payments position is sound, EIU noted.
The riyal's peg to the dollar will continue to be backed by healthy foreign reserves and the huge assets of the Qatar Investment Authority (the sovereign wealth fund), the assets of which are estimated to be worth $475bn, EIU said.
The negative net foreign asset position of Qatar's banks remains large, but has shrunk over the past 12 months. The currency peg also limits overall risk.
The sector is well regulated and strong prudential indicators insulate banks from a deterioration in asset quality. The non-performing loan ratio is low, but higher interest rates pose a modest risk.
Public debt has fallen sharply, to an estimated 44.4% of GDP at end-2022. High energy prices and a comfortable trade position are supporting external liquidity, and the balance-of-payments position is sound, EIU noted.
The riyal's peg to the dollar will continue to be backed by healthy foreign reserves and the huge assets of the Qatar Investment Authority (the sovereign wealth fund), the assets of which are estimated to be worth $475bn, EIU said.
The negative net foreign asset position of Qatar's banks remains large, but has shrunk over the past 12 months. The currency peg also limits overall risk.
The sector is well regulated and strong prudential indicators insulate banks from a deterioration in asset quality. The non-performing loan ratio is low, but higher interest rates pose a modest risk.
Mideast Stocks: #Saudi bourse rises as it reopens after Eid; #Dubai eases
Mideast Stocks: Saudi bourse rises as it reopens after Eid; Dubai eases
Major stock markets in the Gulf were little changed in early trade on Tuesday, with the Saudi index - which reopened after a five session break for the Muslim festival of Eid Al Fitr - on course to gain for a fifth session.
Saudi Arabia's benchmark index gained 0.3%, with Retal Urban Development Co rising 0.7% and oil giant Saudi Aramco putting on 1.2%.
Dubai's main share index eased 0.1%, hit by a 1.2% slide in Emirates Central Cooling Systems Corporation .
In Abu Dhabi, the index added 0.1%, with Abu Dhabi Ports Co advancing 2.5% after the group's Maqta Gateway acquired TTEK Inc for $26.7 million.
Oil prices - a key catalyst for the Gulf's financial markets - held steady as investors weighed strong holiday travel in China that could boost fuel demand against the prospect of rising interest rates elsewhere, slowing economic growth.
A weaker U.S. dollar can help global demand for oil by making it cheaper for holders of foreign currencies in other countries.
** Qatar was closed for a public holdiday
Major stock markets in the Gulf were little changed in early trade on Tuesday, with the Saudi index - which reopened after a five session break for the Muslim festival of Eid Al Fitr - on course to gain for a fifth session.
Saudi Arabia's benchmark index gained 0.3%, with Retal Urban Development Co rising 0.7% and oil giant Saudi Aramco putting on 1.2%.
Dubai's main share index eased 0.1%, hit by a 1.2% slide in Emirates Central Cooling Systems Corporation .
In Abu Dhabi, the index added 0.1%, with Abu Dhabi Ports Co advancing 2.5% after the group's Maqta Gateway acquired TTEK Inc for $26.7 million.
Oil prices - a key catalyst for the Gulf's financial markets - held steady as investors weighed strong holiday travel in China that could boost fuel demand against the prospect of rising interest rates elsewhere, slowing economic growth.
A weaker U.S. dollar can help global demand for oil by making it cheaper for holders of foreign currencies in other countries.
** Qatar was closed for a public holdiday
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