ADIA-backed Bajaj House Finance shares more than double on market debut
India’s Bajaj House Finance experienced a bumper opening on Monday’s market debut, with demand for the Abu Dhabi Investment Authority (ADIA) backed mortgage financier causing its shares to jump about 130% from the top end of the IPO pricing of 70 rupees ($0.83).
The company’s shares, which debuted on India’s National Stock Exchange, reflected strong demand from investors, surging to as much as INR 161 rupees apiece, with exchange data showing a market capitalisation of $15.6 billion.
The IPO last week drew bids worth $39 billion, with shares being oversubscribed nearly 64 times.
The $782 million IPO saw an anchor investor quota of $210 million, which drew the interest of Singapore’s GIC and ADIA.
The UAE sovereign fund invested INR 470 million in Bajaj Housing Finance, through its Monsoon subsidiary, accounting for a 2.67% anchor investor portion, with 6.7 million shares allotted at INR 70 apiece.
Bajaj Housing is a subsidiary of the larger Bajaj Group, an Indian conglomerate, which sells everything from consumer electronics to motorcycles.
Monday 16 September 2024
Gulf markets end mixed ahead of Fed rate decision | Reuters
Gulf markets end mixed ahead of Fed rate decision | Reuters
Stock markets in the Gulf ended mixed on Monday as investors await a likely cut to U.S. interest rates this week, with the Saudi index giving up early gains to conclude in negative territory.
The U.S. Federal Reserve is all but certain to cut rates on Wednesday, but the debate is over the size of the cut, with market bets inclining towards 50 basis points (bps), LSEG data showed.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Federal Reserve's decisions as most of the regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, with Dubai Taxi Company (DTC.DU), opens new tab advanced 7.5%, extending gains from the previous session.
The taxi operator on Friday announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.4% higher.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.3%, hit by a 1.7% fall in Alinma Bank (1150.SE), opens new tab and a 0.2% decrease in Al Rajhi Bank (1120.SE), opens new tab.
However, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets - edged higher as ongoing disruption to U.S. Gulf oil infrastructure balanced persistent demand concerns after a fresh round of Chinese data while investors await Fed rate decision.
The Qatari benchmark (.QSI), opens new tab eased 0.1%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 0.3%.
The Qatari stock market saw limited movements, as investors in the region await this week's central banks meetings, particularly the Federal Reserve's, said Ahmed Negm Head of Market Research MENA at XS.com.
"The market is close to its high from earlier this year, benefiting from a rebound."
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 0.8%, weighed down by a 1% fall in Commercial International Bank (COMI.CA), opens new tab.
Stock markets in the Gulf ended mixed on Monday as investors await a likely cut to U.S. interest rates this week, with the Saudi index giving up early gains to conclude in negative territory.
The U.S. Federal Reserve is all but certain to cut rates on Wednesday, but the debate is over the size of the cut, with market bets inclining towards 50 basis points (bps), LSEG data showed.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Federal Reserve's decisions as most of the regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, with Dubai Taxi Company (DTC.DU), opens new tab advanced 7.5%, extending gains from the previous session.
The taxi operator on Friday announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.4% higher.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.3%, hit by a 1.7% fall in Alinma Bank (1150.SE), opens new tab and a 0.2% decrease in Al Rajhi Bank (1120.SE), opens new tab.
However, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets - edged higher as ongoing disruption to U.S. Gulf oil infrastructure balanced persistent demand concerns after a fresh round of Chinese data while investors await Fed rate decision.
The Qatari benchmark (.QSI), opens new tab eased 0.1%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 0.3%.
The Qatari stock market saw limited movements, as investors in the region await this week's central banks meetings, particularly the Federal Reserve's, said Ahmed Negm Head of Market Research MENA at XS.com.
"The market is close to its high from earlier this year, benefiting from a rebound."
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 0.8%, weighed down by a 1% fall in Commercial International Bank (COMI.CA), opens new tab.
#UAE retailer LuLu Group plans IPO by November; to float on ADX, Tadawul
UAE retailer LuLu Group plans IPO by November; to float on ADX, Tadawul
UAE retail giant LuLu Group will open its IPO by the last week of October or early November and a dual listing is expected to raise between $1.5 billion and $1.85 billion, people familiar with the matter who asked not to be named, told Zawya.
The stock will be listed on the Abu Dhabi Securities Exchange (ADX) and Saudi Arabian stock exchange, Tadawul.
“The IPO offering should open in the window between the last week of October and early November, making it an ideal period before the December holidays set in,” a source said.
Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup have been tapped as book runners for the IPO, a source said, adding, the offering “will be four to five times bigger than another retail IPO the UAE saw earlier this year.”
UAE retail giant LuLu Group will open its IPO by the last week of October or early November and a dual listing is expected to raise between $1.5 billion and $1.85 billion, people familiar with the matter who asked not to be named, told Zawya.
The stock will be listed on the Abu Dhabi Securities Exchange (ADX) and Saudi Arabian stock exchange, Tadawul.
“The IPO offering should open in the window between the last week of October and early November, making it an ideal period before the December holidays set in,” a source said.
Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup have been tapped as book runners for the IPO, a source said, adding, the offering “will be four to five times bigger than another retail IPO the UAE saw earlier this year.”
Gulf Sukuk Rally Grows as Fed Rate Cuts Outweigh Oil’s Plunge - Bloomberg
Gulf Sukuk Rally Grows as Fed Rate Cuts Outweigh Oil’s Plunge - Bloomberg
Islamic securities from the oil-rich Persian Gulf notched their longest weekly winning streak since February 2021 last week as investors shrugged off plunging crude prices, instead turning their attention to imminent Federal Reserve easing.
A Bloomberg gauge of sukuk returns for the six-nation Gulf Cooperation Council posted its 11th successive week of gains, while hitting an all-time high on Friday. The certificates have handed investors 3.9% gains this quarter even as oil and gas prices tumbled more than 17%, to trade near three-year lows.
With a decision from the US central bank just days away, fixed-income instruments around the world are preparing for a lower interest-rate regime with widespread yield declines. A rate cut could boost risk appetite and push investors to snap up assets across emerging markets.
GCC countries — Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar and Bahrain — are witnessing rallies in their dollar bonds and sukuk, with the Islamic-compliant securities outperforming global bonds this year as their fiscal and political stability make them some of the safest in the developing world.
Islamic securities from the oil-rich Persian Gulf notched their longest weekly winning streak since February 2021 last week as investors shrugged off plunging crude prices, instead turning their attention to imminent Federal Reserve easing.
A Bloomberg gauge of sukuk returns for the six-nation Gulf Cooperation Council posted its 11th successive week of gains, while hitting an all-time high on Friday. The certificates have handed investors 3.9% gains this quarter even as oil and gas prices tumbled more than 17%, to trade near three-year lows.
With a decision from the US central bank just days away, fixed-income instruments around the world are preparing for a lower interest-rate regime with widespread yield declines. A rate cut could boost risk appetite and push investors to snap up assets across emerging markets.
GCC countries — Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar and Bahrain — are witnessing rallies in their dollar bonds and sukuk, with the Islamic-compliant securities outperforming global bonds this year as their fiscal and political stability make them some of the safest in the developing world.
German Stocks Near Record Highs Get First ETF in Gulf - Bloomberg
German Stocks Near Record Highs Get First ETF in Gulf - Bloomberg
Investors in the Gulf are about to get their first exchange-traded fund tracking the German market which has been trading near record highs.
Lunate Capital Limited is launching the Chimera S&P Germany UCITS ETF that will focus on the top 30 most liquid stocks listed in the country. It will replicate the S&P Germany BMI Liquid 35/20 Capped Index which includes equities like Siemens AG and Mercedes-Benz Group AG. The index climbed 14% this year.
Scheduled to list on the Abu Dhabi Securities Exchange on Sept. 26, the ETF will allow Middle Eastern investors to gain exposure to Europe’s largest economy. German stocks are defying pessimism over the country’s economy, which shrunk last quarter amid geopolitical headwinds involving decreased demand from China, one of its biggest trading partners.
Lunate Capital’s parent company, Lunate Holding RSC Ltd., manages $105 billion through its subsidiaries. The Abu Dhabi-based company is part of 2PointZero, a unit of International Holding Co. which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of its president. The alternative investment manager counts the emirate’s sovereign wealth fund ADQ as one of its largest clients.
International Securities, Arqaam Securities, BHM Capital, and EFG-Hermes are the fund’s authorized participants. Germany’s benchmark DAX Index slipped 0.4% on Monday.
Investors in the Gulf are about to get their first exchange-traded fund tracking the German market which has been trading near record highs.
Lunate Capital Limited is launching the Chimera S&P Germany UCITS ETF that will focus on the top 30 most liquid stocks listed in the country. It will replicate the S&P Germany BMI Liquid 35/20 Capped Index which includes equities like Siemens AG and Mercedes-Benz Group AG. The index climbed 14% this year.
Scheduled to list on the Abu Dhabi Securities Exchange on Sept. 26, the ETF will allow Middle Eastern investors to gain exposure to Europe’s largest economy. German stocks are defying pessimism over the country’s economy, which shrunk last quarter amid geopolitical headwinds involving decreased demand from China, one of its biggest trading partners.
Lunate Capital’s parent company, Lunate Holding RSC Ltd., manages $105 billion through its subsidiaries. The Abu Dhabi-based company is part of 2PointZero, a unit of International Holding Co. which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of its president. The alternative investment manager counts the emirate’s sovereign wealth fund ADQ as one of its largest clients.
International Securities, Arqaam Securities, BHM Capital, and EFG-Hermes are the fund’s authorized participants. Germany’s benchmark DAX Index slipped 0.4% on Monday.
British ministers head to Gulf for talks on new trade deal | Reuters
British ministers head to Gulf for talks on new trade deal | Reuters
Britain's new trade ministers visited the Gulf region on Monday in a first joint visit for talks on a possible trade deal, the government said.
Trade secretary Jonathan Reynolds and minister for trade policy Douglas Alexander will meet their counterparts from the Gulf Cooperation Council, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Trade has been a weak point in Britain's economy in recent years - with business groups pointing to Brexit as one cause.
The government, elected after a landslide win for Prime Minister Keir Starmer's Labour Party in July, is also targeting trade deals with India, Switzerland and South Korea as part of its plan to boost economic growth.
"I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it's great to be here to discuss exactly that," Reynolds said in a statement.
Britain's Business and Trade Department estimates a free trade deal with the Gulf Cooperation Council could boost the UK economy by 1.6 billion pounds ($2.10 billion) over the long run.
Out of the Group of Seven advanced economies, Britain ranks bottom for growth in goods and services exports since 2019, even when accounting for the country's large precious metals trade, according to national accounts data.
Britain's new trade ministers visited the Gulf region on Monday in a first joint visit for talks on a possible trade deal, the government said.
Trade secretary Jonathan Reynolds and minister for trade policy Douglas Alexander will meet their counterparts from the Gulf Cooperation Council, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Trade has been a weak point in Britain's economy in recent years - with business groups pointing to Brexit as one cause.
The government, elected after a landslide win for Prime Minister Keir Starmer's Labour Party in July, is also targeting trade deals with India, Switzerland and South Korea as part of its plan to boost economic growth.
"I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it's great to be here to discuss exactly that," Reynolds said in a statement.
Britain's Business and Trade Department estimates a free trade deal with the Gulf Cooperation Council could boost the UK economy by 1.6 billion pounds ($2.10 billion) over the long run.
Out of the Group of Seven advanced economies, Britain ranks bottom for growth in goods and services exports since 2019, even when accounting for the country's large precious metals trade, according to national accounts data.
Hong Kong-focused ETFs set to list on #Saudi exchange
Hong Kong-focused ETFs set to list on Saudi exchange
Saudi Arabia’s first exchange traded funds investing in Hong Kong’s equities market will be listed on the local stock exchange before the end of the year, as authorities try to strengthen financial ties between the two markets.
Saudi Arabia’s first exchange traded funds investing in Hong Kong’s equities market will be listed on the local stock exchange before the end of the year, as authorities try to strengthen financial ties between the two markets.
In a speech at the Bund Summit in Shanghai, Paul Chan, Hong Kong’s financial secretary, confirmed that the government is expecting “some reciprocal moves” to take place this year, which will include the listing of a pair of Hong Kong-focused ETFs on the Saudi Exchange.
The first ETF investing solely in Saudi Arabia’s equities market was listed on the Hong Kong exchange at the end of November last year, attracting $1bn in initial investment primarily from institutional investors.
The CSOP Saudi Arabia ETF, which tracks the FTSE Saudi Arabia Index and is the first such ETF with single-country exposure to the Saudi market anywhere in Asia Pacific, has seen its assets tick up to $1.25bn since launch.
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