| Exchange | Status | Index | Change | ||||
 | TASI (Saudi Stock Market) | 6896.1 | 0.20% | ||||
 | DFM (Dubai Financial Market) | 1604.02 | -0.31% | ||||
| ADX (Abudhabi Securities Exchange) | 2647.44 | 0.48% | ||||
 | KSE (Kuwait Stock Exchange) | 5971.83 | -0.05% | ||||
 | BSE (Bahrain Stock Exchange) | 1079.3 | 0.05% | ||||
 | MSM (Muscat Securities Market) | 5602.29 | 0.71% | ||||
 | QE (Qatar Exchange) | 8535.81 | 0.15% | ||||
 | LSE (Beirut Stock Exchange) | 1117.32 | 0.01% | ||||
 | EGX 30 (Egypt Exchange) | 5611.77 | -0.68% | ||||
 | ASE (Amman Stock Exchange) | 1905.86 | -0.22% | ||||
 | TUNINDEX (Tunisia Stock Exchange) | 4892.93 | -0.73% | ||||
 | CB (Casablanca Stock Exchange) | 9403.28 | -1.26% | ||||
 | PSE (Palestine Securities Exchange) | 436.56 | -0.52% | ||||
Tuesday, 2 October 2012
MENA stock markets close - October 2, 2012
MIDEAST STOCKS-Property stocks boost Abu Dhabi; Egypt down - Yahoo! News Maktoob
The Abu Dhabi index hit a 14-month on Tuesday, lifted by real estate stocks which gained on the prospect of consolidation in the struggling sector.
Aldar Properties and Sorouh Real Estate were the main drivers, together accounting for nearly 75 percent
of all shares traded on the bourse.
The firms said due diligence on their proposed merger was ongoing but the discussions were at an advanced state, in a joint statement to the stock exchange on Tuesday. This followed a senior Sorouh executive saying on Sunday that an announcement would be made within a month.
Aldar Properties and Sorouh Real Estate were the main drivers, together accounting for nearly 75 percent
of all shares traded on the bourse.
The firms said due diligence on their proposed merger was ongoing but the discussions were at an advanced state, in a joint statement to the stock exchange on Tuesday. This followed a senior Sorouh executive saying on Sunday that an announcement would be made within a month.
Glencore-Xstrata: just another notch on Qatar's bedpost
Sainsbury's, Harrods, Barclays Bank, Total and Paris-Saint-Germain FC – what do all these well-known European businesses have in common? They are all wholly or partly owned by Qatari investors.
The long running discussions concerning the multibillion dollar Glencore-Xstrata super commodities merger are just the latest example highlighting Qatar’s ever expanding worldwide influence.
Qatar Holding, Xstrata’s second-largest shareholder, is asking the Swiss firm Glencore for 3.25 shares to each Xstrata share to sign off the deal and pledge it will not accept Glencore' lower bid at 2.8. This fusion will create an industry giant. A herculean company whose revenues are estimated to be around $175bn.
The long running discussions concerning the multibillion dollar Glencore-Xstrata super commodities merger are just the latest example highlighting Qatar’s ever expanding worldwide influence.
Qatar Holding, Xstrata’s second-largest shareholder, is asking the Swiss firm Glencore for 3.25 shares to each Xstrata share to sign off the deal and pledge it will not accept Glencore' lower bid at 2.8. This fusion will create an industry giant. A herculean company whose revenues are estimated to be around $175bn.
STOCKS NEWS MIDEAST-Saudi rises for 3rd day, vols low - Yahoo! News Maktoob
Saudi Arabia's bourse rises for the third straight session but volumes are subdued on the Gulf Arab region's largest exchange.
The index rises 0.2 percent to 6,896 points.
However, the number of shares changing hands is the second-lowest amount since Feb 4 - only Sept 22 saw fewer stocks traded.
The index rises 0.2 percent to 6,896 points.
However, the number of shares changing hands is the second-lowest amount since Feb 4 - only Sept 22 saw fewer stocks traded.
Qatar Islamic Bank plans 5-yr benchmark sukuk; pricing this week - Yahoo! News Maktoob
Qatar Islamic Bank (QIB), the Gulf state's largest sharia-compliant lender, is planning to issue a five-year benchmark-sized Islamic bond, or sukuk, this week, arranging banks said on Tuesday.
Price guidance for the dollar-denominated issue was set at a spread of 190 basis points over midswaps.
Benchmark-sized is understood to be at least $500 million. HSBC, Standard Chartered, Deutsche Bank
and Qinvest, part-owned by QIB, are arranging the deal.
Price guidance for the dollar-denominated issue was set at a spread of 190 basis points over midswaps.
Benchmark-sized is understood to be at least $500 million. HSBC, Standard Chartered, Deutsche Bank
and Qinvest, part-owned by QIB, are arranging the deal.
Dubai commercial property proving more attractive to regional investors says Cluttons « ArabianMoney
Estate agent Cluttons says the outlook for Dubai commercial property is one of ‘cautious optimism’ with increased investment activity from foreign buyers. The empty office towers are starting to fill up.
Recent Dubai Economic Department figures stated that $5.9 billion of foreign investment has been injected into the real estate sector in the first half of 2012 alone, with Indian, Pakistani, Iranian and Russian investors dominating the figures.
Recent Dubai Economic Department figures stated that $5.9 billion of foreign investment has been injected into the real estate sector in the first half of 2012 alone, with Indian, Pakistani, Iranian and Russian investors dominating the figures.
Abu Dhabi airport grows fast, but lags behind globally-connected Dubai - Globaltimes.cn
The ongoing 18th global air travel congress World Routes in Abu Dhabi exposes the domestic rivalry between the two major airports in the United Arab Emirates (UAE).
"With a year-to-date growth of 21 percent (as of August 2012), Abu Dhabi International Airport is one of the fastest growing airports in the world," said James Bennett, CEO of Abu Dhabi Airports Company (ADAC), at the three-day World Routes, which kicked off Sunday. With this rate, Abu Dhabi, whose airport just celebrated this year its 30th jubilee, hosted 9.68 million passengers from January through August.
In addition, the UAE capital outperformed its rival and neighboring emirate Dubai, whose airport grew by 20 percent in the same month.
"With a year-to-date growth of 21 percent (as of August 2012), Abu Dhabi International Airport is one of the fastest growing airports in the world," said James Bennett, CEO of Abu Dhabi Airports Company (ADAC), at the three-day World Routes, which kicked off Sunday. With this rate, Abu Dhabi, whose airport just celebrated this year its 30th jubilee, hosted 9.68 million passengers from January through August.
In addition, the UAE capital outperformed its rival and neighboring emirate Dubai, whose airport grew by 20 percent in the same month.
BREAKINGVIEWS-Qatar's sovereign funds: A guide for the perplexed - Yahoo! News Maktoob
Cash-rich and outward looking Qatar is a gold mine for advisors. Yet for those hoping to land work on any of the multi-billion dollar transactions led by the Gulf state, it's no longer enough just to put in a call to its highest-profile sovereign wealth fund, the Qatar Investment Authority. Today, Qatar's financial activities are spread across different but related entities, with blurred dividing lines.
UPDATE 1-Qatar Airways to join oneworld alliance - sources - Yahoo! News Maktoob
Qatar Airways will become the first Gulf carrier to join the oneworld alliance of airlines with an agreement due to be announced early next week, according to sources close to the alliance.
The sources said Qatar Airways' membership of the alliance, which includes IAG's British Airways and American Airlines, will be announced at a press conference in New York on Monday.
The announcement will be made alongside IAG chief executive Willie Walsh, American boss Tom Horton and oneworldCEO Bruce Ashby, the sources said.
The sources said Qatar Airways' membership of the alliance, which includes IAG's British Airways and American Airlines, will be announced at a press conference in New York on Monday.
The announcement will be made alongside IAG chief executive Willie Walsh, American boss Tom Horton and oneworldCEO Bruce Ashby, the sources said.
RPT-Dubai utility DEWA plans to raise $1.23 bln in 2013 - CEO - Yahoo! News Maktoob
Dubai Electricity and Water Authority (DEWA) plans to raise 4.5 billion dirhams ($1.23 billion) in debt next year, the state-owned utility's chief executive said on Tuesday.
DEWA, which was recently upgraded to investment-grade by ratings agency Moody's, will raise the funds via Islamic bonds, or sukuk, export credit agencies and syndication with the proceeds used primarily for debt repayment as well as investments, Saeed Mohammed al-Tayer told reporters.
Last week, Tayer had said the utility planned a sukuk issue in 2013 as part of its refinancing plans.
When asked about the timeframe for raising funds next year, Tayer said on Tuesday it would be ongoing throughout the year. DEWA completed its first ECA-backed financing - worth $1 billion with a tenor of 13 years - in May 2009 with agencies from France, Germany and Italy.
DEWA, which was recently upgraded to investment-grade by ratings agency Moody's, will raise the funds via Islamic bonds, or sukuk, export credit agencies and syndication with the proceeds used primarily for debt repayment as well as investments, Saeed Mohammed al-Tayer told reporters.
Last week, Tayer had said the utility planned a sukuk issue in 2013 as part of its refinancing plans.
When asked about the timeframe for raising funds next year, Tayer said on Tuesday it would be ongoing throughout the year. DEWA completed its first ECA-backed financing - worth $1 billion with a tenor of 13 years - in May 2009 with agencies from France, Germany and Italy.
Goldman: oil could hit $130 over Iran | beyondbrics
Rising tensions between Israel and Iran, over Tehran’s nuclear development programme, could drive oil prices over $130 a barrel next year says Goldman Sachs’s chief economist in Moscow at a time when the consensus forecast is for a price decline to $80-$90 because of slowing global growth and the euro crisis.
“Goldman Sachs is bullish on oil, but it will driven by a one-off, not rising demand, by a tightening embargo on Iran that will take more and more oil out of the market,” says Clemens Grafe, Goldman Sachs’ managing director of new market economics in an interview with bne.
Separately, Robert McNally, the former chief energy advisor on US President George W. Bush’s National Security Council, and past advisor to Republican presidential candidate Mitt Romney, sees a “dangerous divergence” between market players and policymakers with regard to the risks of a conflict between Israel and Iran."
“Goldman Sachs is bullish on oil, but it will driven by a one-off, not rising demand, by a tightening embargo on Iran that will take more and more oil out of the market,” says Clemens Grafe, Goldman Sachs’ managing director of new market economics in an interview with bne.
Separately, Robert McNally, the former chief energy advisor on US President George W. Bush’s National Security Council, and past advisor to Republican presidential candidate Mitt Romney, sees a “dangerous divergence” between market players and policymakers with regard to the risks of a conflict between Israel and Iran."
STOCKS NEWS MIDEAST-Abu Dhabi gains again on property merger; Dubai dips - Yahoo! News Maktoob
Abu Dhabi's index edges up from the previous day's seven-month closing high as merger anticipation surrounding its two main property stocks continues, while Dubai slips back after Monday's rally.
The Abu Dhabi exchange rises 0.2 percent to 2,640 points, with Aldar Properties and Sorouh Real Estate
making up the vast majority of shares traded in the opening hour of business.
In a joint bourse statement on Tuesday, the firms said that due diligence was ongoing but the discussions were at an advanced state, following a senior Sorouh executive saying on Sunday a merger announcement would be made within a month.
The Abu Dhabi exchange rises 0.2 percent to 2,640 points, with Aldar Properties and Sorouh Real Estate
making up the vast majority of shares traded in the opening hour of business.
In a joint bourse statement on Tuesday, the firms said that due diligence was ongoing but the discussions were at an advanced state, following a senior Sorouh executive saying on Sunday a merger announcement would be made within a month.
Bahrain's Ithmaar Bank to merge with affiliate | Reuters
Ithmaar Bank, Bahrain's sixth-largest bank by market capitalisation, is in advanced talks to merge with an affiliate through a share swap agreement, the Islamic lender said in a statement on Tuesday.
Shareholders of Ithmaar and unlisted First Leasing Bank will vote on the merger at meetings scheduled to take place at the end of October after the boards of both banks agreed to the tie-up, the filing to the Bahrain stock exchange said.
The merger will be completed through a share swap arrangement, details of which will be discussed at the upcoming shareholder meeting.
Shareholders of Ithmaar and unlisted First Leasing Bank will vote on the merger at meetings scheduled to take place at the end of October after the boards of both banks agreed to the tie-up, the filing to the Bahrain stock exchange said.
The merger will be completed through a share swap arrangement, details of which will be discussed at the upcoming shareholder meeting.
Dubai Financial Hub Seeks Lower Telecom Costs to Attract Traders - Bloomberg
The Dubai International Financial Centre is seeking reduced telecommunications tariffs to entice global financial services companies to move trading operations to the tax-free business park.
The DIFC has started talks with the United Arab Emirates’ two telecommunications service providers after “enough” companies called for a drop of 20 percent to 30 percent in tariffs, the center’s Chief Executive Officer, Jeffrey Singer, said in an interview yesterday. Lenders including Deutsche Bank AG (DBK), Germany’s biggest bank, have indicated they would relocate some trading operations if rates were lower, he said.
The DIFC opened in 2004 to attract international banks, asset managers and insurers with promises of a zero-tax environment for 50 years. The regional offices of Goldman Sachs Group Inc (GS), Citigroup Inc (C) and Standard Chartered Plc (STAN) are located in the center, which was home to 817 companies at the end of last year, including 279 in financial services.
The DIFC has started talks with the United Arab Emirates’ two telecommunications service providers after “enough” companies called for a drop of 20 percent to 30 percent in tariffs, the center’s Chief Executive Officer, Jeffrey Singer, said in an interview yesterday. Lenders including Deutsche Bank AG (DBK), Germany’s biggest bank, have indicated they would relocate some trading operations if rates were lower, he said.
The DIFC opened in 2004 to attract international banks, asset managers and insurers with promises of a zero-tax environment for 50 years. The regional offices of Goldman Sachs Group Inc (GS), Citigroup Inc (C) and Standard Chartered Plc (STAN) are located in the center, which was home to 817 companies at the end of last year, including 279 in financial services.
Dubai takes over management of crown prince's firm - Shaibani | Reuters
State-owned Dubai Real Estate Corp. (DREC) has taken over the management of Zabeel Investments, the indebted firm owned by Dubai's crown prince, the chief executive of Investment Corporation of Dubai said on Tuesday.
Sources told Reuters last week that DREC had taken over the company, which owes about 6 billion dirhams ($1.6 billion) to mostly local banks.
"Zabeel is only managed by DREC, the ownership is still the same," Mohammed al-Shaibani told Reuters on the sidelines of a real estate conference.
Sources told Reuters last week that DREC had taken over the company, which owes about 6 billion dirhams ($1.6 billion) to mostly local banks.
"Zabeel is only managed by DREC, the ownership is still the same," Mohammed al-Shaibani told Reuters on the sidelines of a real estate conference.
EA WorldView - The Latest from Iran (2 October): A Currency in Free Fall?
0455 GMT: There is no doubt about today's lead story. Even international news outlets who think of "Iran" as the nuclear programme and possible war with Israel set these aside on Monday for the economic shock of the free fall of the currency.
By the end of Monday, currency websites such as Mesghal and Mazanex set the Iranian Rial at 34700:1 vs. the US dollar on the open market, a drop of 16% on the day and more than 40% on the week, with some Iranian media reporting the currency hitting the 35000:1 mark.
Already this morning there are indications beyond the numbers of the seriousness of the problem. Reports indicate that Tehran's major foreign exchange offices were closed early on Monday, and the opposition website Kalemeh is claiming that parts of the Bazaar were shut. One of Mesghal's currency websites has been "Account Suspended" since Monday morning; the other cannot be contacted this morning. Mazanex has suspended the posting of a dollar rate for the Rial.
By the end of Monday, currency websites such as Mesghal and Mazanex set the Iranian Rial at 34700:1 vs. the US dollar on the open market, a drop of 16% on the day and more than 40% on the week, with some Iranian media reporting the currency hitting the 35000:1 mark.
Already this morning there are indications beyond the numbers of the seriousness of the problem. Reports indicate that Tehran's major foreign exchange offices were closed early on Monday, and the opposition website Kalemeh is claiming that parts of the Bazaar were shut. One of Mesghal's currency websites has been "Account Suspended" since Monday morning; the other cannot be contacted this morning. Mazanex has suspended the posting of a dollar rate for the Rial.
Middle East airlines lead industry's recovery - The National
The profits of global airlines are set for an unexpected recovery of more than US$1 billion (Dh3.67bn) by the end of the year as the industry defies the global gloom to increase sales and earnings - even in the most adverse of cisrcumstances.
The International Air Transport Association (Iata) upgraded this year's anticipated global airlines earnings to $4.1bn from its June forecast of $3bn. Carriers in the Middle East helped the rise more than most, with profits expected to more than double.
The increase was a welcome sign of a return to health from the gloomy first half of the year but was still a far cry from last year's $8.4bn in profits. Forecast profits would rise further next year to $7.5bn, Iata said.
The International Air Transport Association (Iata) upgraded this year's anticipated global airlines earnings to $4.1bn from its June forecast of $3bn. Carriers in the Middle East helped the rise more than most, with profits expected to more than double.
The increase was a welcome sign of a return to health from the gloomy first half of the year but was still a far cry from last year's $8.4bn in profits. Forecast profits would rise further next year to $7.5bn, Iata said.
Dubai today, region tomorrow | GulfNews.com
Dubai’s standing as a global business and trade hub is long acknowledged and much celebrated. But what future historians might find most striking about Dubai could perhaps be its role as a crystal ball to gaze at the future of the region. Dubai has been a trend setter; so much so that the region appears to simply mimic its success.
Whether it is the modest renaming of a government department, or the launch of path-breaking concepts such as freehold property, Dubai has left an indelible impact on the rest of the region. The simple act of renaming the Dubai Economic Department as the Department of Economic Development has had such extraordinary appeal that every emirate within the UAE, like countries across the region, began adopting the new name. For Dubai, the change was not just in the name, but in the approach, and one does not know how far this was true of the other changes.
Whether it is the modest renaming of a government department, or the launch of path-breaking concepts such as freehold property, Dubai has left an indelible impact on the rest of the region. The simple act of renaming the Dubai Economic Department as the Department of Economic Development has had such extraordinary appeal that every emirate within the UAE, like countries across the region, began adopting the new name. For Dubai, the change was not just in the name, but in the approach, and one does not know how far this was true of the other changes.
Lopsided recovery in sight for Dubai property? | GulfNews.com
Dubai’s freehold property market has put together its best three successive quarters since 2008, but new investors prefer only the established communities.
This factor is propelling value gains in communities such as Arabian Ranches, The Springs and Jumeirah Islands in recent weeks and is why a villa on the Palm Jumeirah could command Dh17,200 a square metre in a recent transaction.
Activity within the Burj Downtown was helped by the Arab Spring and the subsequent flight of capital to safe havens. Meanwhile, resident end-users had Business Bay in their sights, especially the set of high-rises fronting on to Shaikh Zayed Road.
This factor is propelling value gains in communities such as Arabian Ranches, The Springs and Jumeirah Islands in recent weeks and is why a villa on the Palm Jumeirah could command Dh17,200 a square metre in a recent transaction.
Activity within the Burj Downtown was helped by the Arab Spring and the subsequent flight of capital to safe havens. Meanwhile, resident end-users had Business Bay in their sights, especially the set of high-rises fronting on to Shaikh Zayed Road.
UAE, Morocco banks bid for BNP’s Egyptian arm - The Globe and Mail
Dubai’s Emirates NBD and Morocco’s AttijariWafabank have bid to buy BNP Paribas’s Egyptian retail arm, four banking sources said, as regional banks pick up assets being shed by European lenders.
BNP, the top French bank, put its retail banking business in Egypt on the block in June, seeking to shore up its capital base and exit non-core operations.
BNP, the top French bank, put its retail banking business in Egypt on the block in June, seeking to shore up its capital base and exit non-core operations.
Monday, 1 October 2012
The IMF's Interest Rate Is Low, But Can Egypt Really Afford It? - Al-Monitor: the Pulse of the Middle East
The fact that the interest rates on the loans provided by the International Monetary Fund (IMF) are small does not mean that we should be rushing to borrow from them. Our attitude towards borrowing from this fund should not depend on the interest rate. Rather, it should depend on the results that would come about as a result of this agreement.
It is true that the interest rate offered by the IMF is very low — both by domestic and international standards — and that the repayment plan is the most affordable plan available in the world's monetary market.
It is true that the interest rate offered by the IMF is very low — both by domestic and international standards — and that the repayment plan is the most affordable plan available in the world's monetary market.
Saudi Banks May Double Property Lending Amid New Laws, NCB Says - Businessweek
Saudi Arabia’s banks may double real- estate financing this year as the biggest Gulf Arab economy overhauls mortgage rules and demand for housing increases, National Commercial Bank said.
Financing may climb to 60 billion riyals ($16 billion) from 29.3 billion riyals in 2011, economists Said Al Shaikh and Albara’a Alwazir said in a research report. Total housing stock may expand by 2.4 million units in the next 10 years, with annual demand rising to 264,000 units by 2020 from 195,000 in 2011, they said. National Commercial Bank, which is owned by the government, is the biggest lender in the kingdom.
“This significant growth in real-estate bank lending highlights a historical shift away from the conservative lending that has been practiced in previous years,” they wrote. “The mortgage market, upon the implementation of the mortgage law, has the potential to attract non-bank lenders.”
Financing may climb to 60 billion riyals ($16 billion) from 29.3 billion riyals in 2011, economists Said Al Shaikh and Albara’a Alwazir said in a research report. Total housing stock may expand by 2.4 million units in the next 10 years, with annual demand rising to 264,000 units by 2020 from 195,000 in 2011, they said. National Commercial Bank, which is owned by the government, is the biggest lender in the kingdom.
“This significant growth in real-estate bank lending highlights a historical shift away from the conservative lending that has been practiced in previous years,” they wrote. “The mortgage market, upon the implementation of the mortgage law, has the potential to attract non-bank lenders.”
UAE's First Gulf Bank launches five-year $650 million bond | Reuters
Abu Dhabi-listed First Gulf Bank FGB.AD launched a $650 million five-year bond on Monday, the first major Gulf borrower to issue since the traditional summer lull, taking advantage of healthy investor demand for regional debt.
The bond launched at a spread of 210 basis points over midswaps, at the tighter end of final guidance released earlier in the day, indicating appetite for the lender's new issue was strong.
Order books had approached $3 billion ahead of launch, a banker familiar with the deal said, allowing FGB to issue $650 million. The borrower had indicated it would look to raise at least $500 million from the bond sale, which it said would be used for general funding purposes.
The bond launched at a spread of 210 basis points over midswaps, at the tighter end of final guidance released earlier in the day, indicating appetite for the lender's new issue was strong.
Order books had approached $3 billion ahead of launch, a banker familiar with the deal said, allowing FGB to issue $650 million. The borrower had indicated it would look to raise at least $500 million from the bond sale, which it said would be used for general funding purposes.
UPDATE 1-Egypt talks on $4.8 bln deal with IMF delayed - Yahoo! News Maktoob
Egypt's negotiations for a $4.8 billion loan from the IMF have been delayed to give the government more time to draw up its economic reform programme, the two sides said on Monday.
Egypt was due to receive a team from the International Monetary Fund at the end of September to discuss the terms of the loan. It urgently needs financial support to prop up state coffers weakened by economic turmoil since the popular uprising last year that ousted President Hosni Mubarak.
"The authorities are working on their economic programme and have indicated that they need some additional time to advance their preparations and be ready to receive a mission," IMF spokeswoman Wafa Amr said in emailed statement on Monday. "We are ready to send a technical team to Cairo to discuss possible financial support for a homegrown programme as soon as this process is completed."
Egypt was due to receive a team from the International Monetary Fund at the end of September to discuss the terms of the loan. It urgently needs financial support to prop up state coffers weakened by economic turmoil since the popular uprising last year that ousted President Hosni Mubarak.
"The authorities are working on their economic programme and have indicated that they need some additional time to advance their preparations and be ready to receive a mission," IMF spokeswoman Wafa Amr said in emailed statement on Monday. "We are ready to send a technical team to Cairo to discuss possible financial support for a homegrown programme as soon as this process is completed."
MENA stock markets close - October 1, 2012
| Exchange | Status | Index | Change | ||||
| TASI (Saudi Stock Market) | 6882.12 | 0.62% | ||||
| DFM (Dubai Financial Market) | 1608.94 | 1.91% | ||||
| ADX (Abudhabi Securities Exchange) | 2634.92 | 1.13% | ||||
| KSE (Kuwait Stock Exchange) | 5974.68 | -0.13% | ||||
| BSE (Bahrain Stock Exchange) | 1078.72 | -0.79% | ||||
| MSM (Muscat Securities Market) | 5562.91 | 0.52% | ||||
| QE (Qatar Exchange) | 8522.68 | 0.15% | ||||
| LSE (Beirut Stock Exchange) | 1117.21 | 0.15% | ||||
| EGX 30 (Egypt Exchange) | 5650.07 | -2.95% | ||||
| ASE (Amman Stock Exchange) | 1910.03 | 0.39% | ||||
| TUNINDEX (Tunisia Stock Exchange) | 4928.95 | -0.65% | ||||
| CB (Casablanca Stock Exchange) | 9455.64 | -0.17% | ||||
| PSE (Palestine Securities Exchange) | 438.86 | -1.55% | ||||
FT Alphaville » A Qatari sub-plot?*
A few nervous bid arbitrageurs have their eyes are on the Qataris right now — wondering, expectantly, whether the Gulf state’s sovereign wealth fund will now support the takeover merger of equals between Glencore and Xstrata.
The Glenstrata share ratio has been hiked and the Qataris, it is assumed, don’t really care about the size of retention bonuses at Xstrata. But a public endorsement of the deal was noticeably lacking on Monday…
That leaves us room to share the following speculation, which may or may not have a material impact on Glenstrata actually becoming a reality.
The Glenstrata share ratio has been hiked and the Qataris, it is assumed, don’t really care about the size of retention bonuses at Xstrata. But a public endorsement of the deal was noticeably lacking on Monday…
That leaves us room to share the following speculation, which may or may not have a material impact on Glenstrata actually becoming a reality.
MIDEAST STOCKS-Abu Dhabi property merger talks lift UAE; most Gulf mkts up - Yahoo! News Maktoob
Shares in Abu Dhabi's two largest property companies surged on Monday ahead of their planned merger, lifting the UAE capital's bourse to a seven-month high, while other Gulf markets also gained.
Sorouh Real Estate jumped 5.1 percent to 1.26 dirhams ($0.34) and Aldar Properties climbed 4.8 percent to 1.34 dirhams.
On Sunday, a senior Sorouh executive said a merger agreement announcement with Aldar was expected "within a month." "For Aldar, breaking the 1.30 level gives it a target of 1.47 dirhams," said Nabil Al Rantisi, managing director at MENA Corp. "Sorouh's next target is 1.38 dirhams."
Sorouh Real Estate jumped 5.1 percent to 1.26 dirhams ($0.34) and Aldar Properties climbed 4.8 percent to 1.34 dirhams.
On Sunday, a senior Sorouh executive said a merger agreement announcement with Aldar was expected "within a month." "For Aldar, breaking the 1.30 level gives it a target of 1.47 dirhams," said Nabil Al Rantisi, managing director at MENA Corp. "Sorouh's next target is 1.38 dirhams."
Turkey: world’s most expensive petrol underlines policy challenges | beyondbrics
Turkey won itself a dubious honour at the weekend: a fuel tax hike made it the mainstream economy with the most expensive petrol in the world. It all depends on the vagaries of the exchange rate of course, but the new price of TL4.83 a litre, or €2.08, outstrips Norway’s €2.06, according to AFP, leaving other high fuel tax economies such as Italy, the Netherlands and Spain some way behind.
Then the government followed by increasing gas and electricity rates by 10 per cent on Monday.
Such increases serve a twin purpose in Turkey, albeit at the risk of stoking inflation: they reduce the country’s current account deficit, more than 80 per cent of which is accounted for by energy imports, and also help plug the country’s much smaller budget deficit.
Then the government followed by increasing gas and electricity rates by 10 per cent on Monday.
Such increases serve a twin purpose in Turkey, albeit at the risk of stoking inflation: they reduce the country’s current account deficit, more than 80 per cent of which is accounted for by energy imports, and also help plug the country’s much smaller budget deficit.
WAM | ADIA appoints Head of Principal Investments, Private Equities Department
The Abu Dhabi Investment Authority (ADIA) announced today the appointment of Colm Lanigan as Head of Principal Investments in its Private Equities Department, with immediate effect.
In this new role, Lanigan will be responsible, alongside senior management, for developing strategy and overseeing the execution and management of principal investments, in which ADIA acquires equity stakes in private companies, typically alongside private equity sponsors or partners. Based in Abu Dhabi, Lanigan will report to Hareb Al Darmaki, Executive Director of ADIA's Private Equities Department.
With over 20 years of public and private markets experience, Lanigan's career has included senior roles in some of the world's largest and most respected financial institutions. Most recently, he served as Managing Partner of Tara Capital, a boutique private equity firm that he started in 2005. Prior to this, he was a partner at Caxton-Iseman Capital, the private equity affiliate of hedge fund Caxton Associates, where he helped to expand the firm's principal investment business.
In this new role, Lanigan will be responsible, alongside senior management, for developing strategy and overseeing the execution and management of principal investments, in which ADIA acquires equity stakes in private companies, typically alongside private equity sponsors or partners. Based in Abu Dhabi, Lanigan will report to Hareb Al Darmaki, Executive Director of ADIA's Private Equities Department.
With over 20 years of public and private markets experience, Lanigan's career has included senior roles in some of the world's largest and most respected financial institutions. Most recently, he served as Managing Partner of Tara Capital, a boutique private equity firm that he started in 2005. Prior to this, he was a partner at Caxton-Iseman Capital, the private equity affiliate of hedge fund Caxton Associates, where he helped to expand the firm's principal investment business.
Kuwait should take measures to cut spending: central banker | Reuters
Kuwait's government should take all necessary measures to cut spending and current monetary policy settings are in line with economic developments, Central Bank Governor Mohammad al-Hashel said on Monday.
"We think it (the government spending) is very high and we should take all the necessary actions to reduce the current expenditure and spend more on investment and capital expenditure because this is the way for the future and we have to secure sufficient funds for future generations in order to continue the prosperity of our country," he told reporters.
Hashel, who spoke after a meeting of Arab central bank governors in Kuwait, also said he will not hesitate to change policy settings when needed and that the OPEC member's economy could grow 5-6 percent this year.
"We think it (the government spending) is very high and we should take all the necessary actions to reduce the current expenditure and spend more on investment and capital expenditure because this is the way for the future and we have to secure sufficient funds for future generations in order to continue the prosperity of our country," he told reporters.
Hashel, who spoke after a meeting of Arab central bank governors in Kuwait, also said he will not hesitate to change policy settings when needed and that the OPEC member's economy could grow 5-6 percent this year.
STOCKS NEWS MIDEAST-Banks rebound as Saudi index rises for 2nd day - Yahoo! News Maktoob
Saudi Arabia's index is up for a second day since Saturday's one-month low as bargain hunters target banking and cement stocks.
Samba Financial Group and Riyad Bank each add 0.7 percent, while regional heavyweight Al Rajhi Bank
gains 1.1 percent.
"Sentiment is still strong on locally-driven sectors," says Hesham Tuffaha at Bakheet Investment Group head of asset management. "Banks are doing well. There is the upcoming mortgage law to be implemented - it will take time for banks to benefit, but there will be stronger growth in 2013 compared to this year."
Samba Financial Group and Riyad Bank each add 0.7 percent, while regional heavyweight Al Rajhi Bank
gains 1.1 percent.
"Sentiment is still strong on locally-driven sectors," says Hesham Tuffaha at Bakheet Investment Group head of asset management. "Banks are doing well. There is the upcoming mortgage law to be implemented - it will take time for banks to benefit, but there will be stronger growth in 2013 compared to this year."
UPDATE 1-UAE's First Gulf Bank eyes 5-yr bond issue, launch soon - Yahoo! News Maktoob
Abu Dhabi-listed First Gulf Bank plans to issue a five-year, benchmark-sized dollar-denominated bond imminently, arranging banks said on Monday.
Early price talk was seen at 220 basis points over midswaps but market sources expect this to tighten at launch, although this will depend on demand for the deal.
FGB's existing 2017 maturity - a $500 million Islamic bond, or sukuk, - was yielding about 2.7 percent on
Monday, according to Thomson Reuters data, at a spread of about 207.6 basis points.
Early price talk was seen at 220 basis points over midswaps but market sources expect this to tighten at launch, although this will depend on demand for the deal.
FGB's existing 2017 maturity - a $500 million Islamic bond, or sukuk, - was yielding about 2.7 percent on
Monday, according to Thomson Reuters data, at a spread of about 207.6 basis points.
FT Alphaville » The Glenstrata fudge
Here’s the key bit from Monday’s confirmation that Xstrata’s independent directors are once again recommending merger terms from Glencore…
1. To approve the New Scheme subject to the resolution to approve the Revised Management Incentive Arrangements to be put to the Further Xstrata General Meeting being passed. The Independent Xstrata Non-Executive Directors intend to recommend unanimously that eligible Xstrata Shareholders vote in favour of only this resolution at the New Court Meeting; and
2. To approve the New Scheme subject to the resolution to approve the Revised Management Incentive Arrangements to be put to the Further Xstrata General Meeting not being passed.
Business - FDI to Dubai jumps 7% in H1
Signalling the strong resurgence of investor confidence in Dubai’s economic growth, foreign direct investment, or FDI, to the emirate recorded a seven per cent jump in the first half of this year.
Dubai FDI, the foreign investment office at the Department of Economic Development, said on Sunday the emirate drew Dh16.5 billion in FDI during the first six months of 2012.
Statistics compiled by Dubai FDI showed that during the first half, 113 companies initiated 115 FDI projects. January saw the highest average capital investment while the highest number of projects in a single month — 26 — was recorded in April 2012.
Dubai FDI, the foreign investment office at the Department of Economic Development, said on Sunday the emirate drew Dh16.5 billion in FDI during the first six months of 2012.
Statistics compiled by Dubai FDI showed that during the first half, 113 companies initiated 115 FDI projects. January saw the highest average capital investment while the highest number of projects in a single month — 26 — was recorded in April 2012.
U.A.E. Central Bank Won’t Extend Deadline for Loan Cap - Businessweek
The United Arab Emirates won’t extend its deadline for banks to comply with new rules that cap lending to governments and state enterprises, said Saif Al Shamsi, assistant governor at the central bank.
“The decision stands as is,” though each bank will be dealt with individually, Al Shamsi told reporters in Kuwait today. The deadline expired yesterday.
The U.A.E. central bank said April 4 that banks must not lend more than 100 percent of their capital to local governments and the same amount to government-related entities to help reduce risk. There was no limit under previous rules.
“The decision stands as is,” though each bank will be dealt with individually, Al Shamsi told reporters in Kuwait today. The deadline expired yesterday.
The U.A.E. central bank said April 4 that banks must not lend more than 100 percent of their capital to local governments and the same amount to government-related entities to help reduce risk. There was no limit under previous rules.
Libya says pushing forward with Islamic finance plans | Reuters
Libya hopes to start implementing its new Islamic banking law by the end of the year and expects strong demand among the public for sharia-compliant financial services, Libyan central bank governor Saddek Omar Elkaber said on Monday.
The country approved an Islamic banking law in May and has been working to amend its legislation to attract foreign investment and stimulate its private sector following last year's war that ousted Muammar Gaddafi.
"The demand is so high in Libya so we set up a higher committee for Islamic finance...Now they are working to set up a road map for Islamic finance in Libya," Elkaber told reporters on the sidelines of an Arab central bankers' conference in Kuwait.
The country approved an Islamic banking law in May and has been working to amend its legislation to attract foreign investment and stimulate its private sector following last year's war that ousted Muammar Gaddafi.
"The demand is so high in Libya so we set up a higher committee for Islamic finance...Now they are working to set up a road map for Islamic finance in Libya," Elkaber told reporters on the sidelines of an Arab central bankers' conference in Kuwait.
Qatar's Barwa Bank eyeing potential Doha IPO: CEO | Reuters
Qatari lender Barwa Bank is planning an initial public offering on the Doha stock exchange and is being advised by local investment bank QInvest in the process, Barwa's top executive said on Monday.
"We have been working with QInvest on a listing advisory relationship for quite some time," Chief Executive Steve Troop told Reuters by phone, declining to give specific details.
Barwa Bank is 37.3-percent owned by Barwa Real Estate Co BRES.QA while Qatar Holding, the investment arm of the Gulf state's sovereign fund, has a 12.1 percent stake. The remaining shares are owned by several individuals and corporates, according to the lender's 2011 results.
"We have been working with QInvest on a listing advisory relationship for quite some time," Chief Executive Steve Troop told Reuters by phone, declining to give specific details.
Barwa Bank is 37.3-percent owned by Barwa Real Estate Co BRES.QA while Qatar Holding, the investment arm of the Gulf state's sovereign fund, has a 12.1 percent stake. The remaining shares are owned by several individuals and corporates, according to the lender's 2011 results.
John Templeton’s Investment Rules | PRAGMATIC CAPITALISM
Here’s a good list of legendary investor John Templeton’s investment rules. Barry Ritholtz has more details on each rule at his site, but the summary is below. It’s a nice addition to our growing list of rules and guidelines.
1. Invest for maximum total real return
2. Invest — Don’t trade or speculate
3. Remain flexible and open minded about types of investment
4. Buy Low
5. When buying stocks, search for bargains among quality stocks.
6. Buy value, not market trends or the economic outlook
7. Diversify. In stocks and bonds, as in much else, there is safety in numbers
8. Do your homework or hire wise experts to help you
9. Aggressively monitor your investments
10. Don’t Panic
11. Learn from your mistakes
12. Begin with a Prayer
13. Outperforming the market is a difficult task
14. An investor who has all the answers doesn’t even understand all the questions
15. There’s no free lunch
16. Do not be fearful or negative too often
Will the Dubai property market trust a major off-plan launch by a foreign developer? « ArabianMoney
The huge Indian real estate developer Sobha is to launch a billion-dollar mega project at the Cityscape Global 2012 property show in Dubai this week. To be known as the Meydan Sobha City this middle-class district will comprise 280 villas, 13 towers, low-rise apartments, a shopping mall, hotels, retail complex and schools.
It will be in a secondary location between the Al Khail and Emirates Road next to the Meydan Godolphin Parks, 15 minutes from Dubai International Airport, Emirates 24/7 website reported. Officials said construction work would begin early next year. Sobha, however, is well known to Indians who are the biggest buyers of Dubai property and often treat the emirate as an offshore Indian real estate market.
It will be in a secondary location between the Al Khail and Emirates Road next to the Meydan Godolphin Parks, 15 minutes from Dubai International Airport, Emirates 24/7 website reported. Officials said construction work would begin early next year. Sobha, however, is well known to Indians who are the biggest buyers of Dubai property and often treat the emirate as an offshore Indian real estate market.
Xstrata, Glencore make headway in takeover talks | GulfNews.com
Xstrata Plc is set to recommend shareholders vote in favour of a £20.5 billion (Dh121.68 billion or $33 billion) sweetened takeover offer by Glencore International Plc after revising the voting structure and winning assurances it will have a majority of the board.
Xstrata, the largest exporter of coal used by power stations, will make changes to secure the loyalty of top managers and balance investor demands, in order to create the world’s fourth-largest mining company, according to a person familiar with the deal, who asked not to be identified as the talks are private.
Glencore earlier this month raised its offer to 3.05 of its shares for each one in Xstrata from 2.8, after investors said the original bid undervalued the Swiss mining company. The Baar, Switzerland-based commodities trader invited Xstrata to propose changes to the bonus package to ensure shareholder backing for the year’s biggest takeover.
Xstrata, the largest exporter of coal used by power stations, will make changes to secure the loyalty of top managers and balance investor demands, in order to create the world’s fourth-largest mining company, according to a person familiar with the deal, who asked not to be identified as the talks are private.
Glencore earlier this month raised its offer to 3.05 of its shares for each one in Xstrata from 2.8, after investors said the original bid undervalued the Swiss mining company. The Baar, Switzerland-based commodities trader invited Xstrata to propose changes to the bonus package to ensure shareholder backing for the year’s biggest takeover.
Sunday, 30 September 2012
Vale, Oman Oil Company to strengthen partnership | Oman Observer
Vale and Oman Oil Company will reaffirm their long-term partnership today in the presence of Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil and Gas and Chairman of Oman Oil Company, and Jose Carlos Martins, Vale’s Executive Director for Iron Ore and Strategy. The ceremony will also be attended by Marcos Beluco, Vale’s Country Manager and Ahmed al Wahaibi, Chief Executive Officer of Oman Oil Company as well as Members of the Board.
Since establishing its Middle East Office in Muscat in 2007, the global diversified mining company has created a ‘virtual iron ore mine’ in the Sultanate, utilising its extensive world-class logistics network to set up a strategic hub for its business in the region. With sustainability underpinning all aspects of its operations, Vale maintains an Omanisation rate that is above the industry standard and has been building the capacities of the Omani youth by empowering them with the means to lead the Sultanate’s steel base in the future.
Since establishing its Middle East Office in Muscat in 2007, the global diversified mining company has created a ‘virtual iron ore mine’ in the Sultanate, utilising its extensive world-class logistics network to set up a strategic hub for its business in the region. With sustainability underpinning all aspects of its operations, Vale maintains an Omanisation rate that is above the industry standard and has been building the capacities of the Omani youth by empowering them with the means to lead the Sultanate’s steel base in the future.
Call to make UAE trading hub for Chinese yuan - The National
The UAE should be the Middle East's trading hub for the Chinese yuan, says the head of the Dubai International Financial Centre.
Jeff Singer, the chief executive of the DIFC Authority, said financial firms should lobby the Central Bank for changes in regulations to allow for this.
He said financial firms should join together to assist transactions using the Chinese currency, also called the renminbi, as Chinese firms were eager to enter the emirate's financial free zone.
Jeff Singer, the chief executive of the DIFC Authority, said financial firms should lobby the Central Bank for changes in regulations to allow for this.
He said financial firms should join together to assist transactions using the Chinese currency, also called the renminbi, as Chinese firms were eager to enter the emirate's financial free zone.
Egypt signs $1 billion Turkish loan deal - Yahoo! News Maktoob
Egypt signed a deal on Sunday to loan $1 billion from Turkey, half of the aid package Ankara promised Cairo earlier this month, Egypt's state news agency reported.
President Mohamed Mursi signed the loan agreement with Turkish Prime Minister Recep Tayyip Erdogan after giving a speech at Turkey's ruling AK Party conference.
"President Mohamed Mursi and Prime Minister Recep Tayyip Erdogan agreed on signing a loan worth $1 billion dollars from Turkey," MENA state news agency said, quoting Egypt's finance minister. It did not give further details of the agreement.
President Mohamed Mursi signed the loan agreement with Turkish Prime Minister Recep Tayyip Erdogan after giving a speech at Turkey's ruling AK Party conference.
"President Mohamed Mursi and Prime Minister Recep Tayyip Erdogan agreed on signing a loan worth $1 billion dollars from Turkey," MENA state news agency said, quoting Egypt's finance minister. It did not give further details of the agreement.
Dubai court calls Sunland executives
AN AUSTRALIAN businessman facing bribery charges in Dubai has been given permission to call senior executives of Gold Coast property developer Sunland to give evidence at his trial.
The Rulers Court has given Matthew Joyce, who is detained in Dubai, permission to call Sunland executive chairman Soheil Abedian and development manager David Brown.
However, a Sunland spokesman said the company had not received a request from the Dubai prosecutor to attend the hearing, which resumes on October 18.
The Rulers Court has given Matthew Joyce, who is detained in Dubai, permission to call Sunland executive chairman Soheil Abedian and development manager David Brown.
However, a Sunland spokesman said the company had not received a request from the Dubai prosecutor to attend the hearing, which resumes on October 18.
MIDEAST STOCKS-Saudi rebounds; Gulf mixed on euro zone woes - Yahoo! News Maktoob
Saudi Arabia's bourse rebounded from a two-month low on Sunday despite concerns over third-quarter earnings, while other Gulf markets were mixed in cautious trade.
Bargain hunters returned to lift Saudi petrochemical stocks. Saudi Basic Industries Corp (SABIC) gained 2.2
percent, although Bakheet Investment Group expects the petrochemicals and chemicals producer to post a 33 percent year-on-year drop in profit for the quarter. Third-quarter earnings are expected to be announced next week. Yanbu National Petrochemical slipped 1.4 percent and Saudi Kayan Petrochemical shed 0.8 percent.
"Many of the traders are worried about petrochemical companies' results, especially SABIC because of lower demand from their main markets of Europe and the U.S.," said Tarik Al Mady, an independent Riyadh-based analyst.
Bargain hunters returned to lift Saudi petrochemical stocks. Saudi Basic Industries Corp (SABIC) gained 2.2
percent, although Bakheet Investment Group expects the petrochemicals and chemicals producer to post a 33 percent year-on-year drop in profit for the quarter. Third-quarter earnings are expected to be announced next week. Yanbu National Petrochemical slipped 1.4 percent and Saudi Kayan Petrochemical shed 0.8 percent.
"Many of the traders are worried about petrochemical companies' results, especially SABIC because of lower demand from their main markets of Europe and the U.S.," said Tarik Al Mady, an independent Riyadh-based analyst.
MENA stock markets close - September 30, 2012
| Exchange | Status | Index | Change | ||||
| TASI (Saudi Stock Market) | 6839.83 | 0.47% | ||||
| DFM (Dubai Financial Market) | 1578.79 | 0.59% | ||||
| ADX (Abudhabi Securities Exchange) | 2605.41 | 0.09% | ||||
| KSE (Kuwait Stock Exchange) | 5982.69 | -0.13% | ||||
| BSE (Bahrain Stock Exchange) | 1087.33 | 0.37% | ||||
| MSM (Muscat Securities Market) | 5534.38 | 0.09% | ||||
| QE (Qatar Exchange) | 8510.21 | 0.19% | ||||
| LSE (Beirut Stock Exchange) | 1115.56 | 0.08% | ||||
| EGX 30 (Egypt Exchange) | 5821.82 | -1.11% | ||||
| ASE (Amman Stock Exchange) | 1902.68 | -0.02% | ||||
| TUNINDEX (Tunisia Stock Exchange) | 4961.42 | -0.32% | ||||
| CB (Casablanca Stock Exchange) | 9471.8 | -1.10% | ||||
| PSE (Palestine Securities Exchange) | 445.76 | 2.05% | ||||
Deutsche Bank says Gulf Arab bond sales to remain strong - bi-me.com
Bond sales from the six-nation Gulf Cooperation Council will remain “strong” as companies in these countries seek a substitute for declining lending from European banks, the regional head of Deutsche Bank AG (DBK), said.
The pipeline for bond sales in the GCC is “very, very strong and I think will remain” that way, Ashok Aram, chief executive officer for the Middle East and North Africa for the bank, said at a news conference in Dubai today.
The GCC region has “relied a lot on bank loans but bank loans are going to be more constrained” as European lenders reduce debt and seek to raise capital to comply with more stringent rules, he said.
The pipeline for bond sales in the GCC is “very, very strong and I think will remain” that way, Ashok Aram, chief executive officer for the Middle East and North Africa for the bank, said at a news conference in Dubai today.
The GCC region has “relied a lot on bank loans but bank loans are going to be more constrained” as European lenders reduce debt and seek to raise capital to comply with more stringent rules, he said.
Qatar Airways has no plans to join oneworld alliance: CEO | Reuters
Qatar Airways has no plans to join the oneworld airline alliance, its Chief Executive Akbar al-Baker said on Sunday, dismissing reports that the airline had become the newest member of the group as "rumor."
Asked if the carrier would join oneworld, which includes British Airways, owned by IAG (ICAG.L), Baker said: "No, we will not. It's all rumors."
He was speaking on the sidelines of a conference in the UAE capital.
Asked if the carrier would join oneworld, which includes British Airways, owned by IAG (ICAG.L), Baker said: "No, we will not. It's all rumors."
He was speaking on the sidelines of a conference in the UAE capital.
Gulf stocks 'still down' four years after crisis - Yahoo! News Maktoob
All seven stock markets in the energy-rich Gulf states failed to recover four years after the global financial crisis despite high oil prices, a Kuwaiti economic report said on Sunday.
Although major bourses in the West, where the crisis began, have recovered successfully with Dow Jones now 17.8 percent higher than its level four years ago and Germany's DAX up 15.4 percent, Gulf shares remain way behind their levels in August 2008, Al-Shall Economic Consultants said.
The stock market in Dubai, where the crisis hit the economy hard, remains the worst in the Gulf at 67 percent below its level just before the crisis, followed by Bahrain's bourse which shed 60.2 percent, Al-Shall said.
Although major bourses in the West, where the crisis began, have recovered successfully with Dow Jones now 17.8 percent higher than its level four years ago and Germany's DAX up 15.4 percent, Gulf shares remain way behind their levels in August 2008, Al-Shall Economic Consultants said.
The stock market in Dubai, where the crisis hit the economy hard, remains the worst in the Gulf at 67 percent below its level just before the crisis, followed by Bahrain's bourse which shed 60.2 percent, Al-Shall said.
STOCKS NEWS MIDEAST-Small-caps help Dubai recover; Qatar snaps losses - Yahoo! News Maktoob
Dubai's bourse recovers early-session declines and ends higher but bluechips lag as investors remain wary of
euro zone and global growth concerns.
The emirate's index climbs 0.6 percent to 1,579 points, up for a second session since Wednesday's two-week low.
Contractor Arabtec gains 3.3 percent and Dubai Islamic Bank adds 1 percent. Emaar Properties ends flat and courier firm Aramex slips 2.5 percent, with other banks also supporting.
"It's more of a consolidation day. Volatility is high in international markets, which is causing jitters," says Marwan
Shurrab, vice-president and chief trader at Gulfmena Investments. "Even with high risk appetite after the various
stimulus packages, the volatility is affecting regional sentiment in terms of direction. The real momentum now will be from third-quarter company announcements."
euro zone and global growth concerns.
The emirate's index climbs 0.6 percent to 1,579 points, up for a second session since Wednesday's two-week low.
Contractor Arabtec gains 3.3 percent and Dubai Islamic Bank adds 1 percent. Emaar Properties ends flat and courier firm Aramex slips 2.5 percent, with other banks also supporting.
"It's more of a consolidation day. Volatility is high in international markets, which is causing jitters," says Marwan
Shurrab, vice-president and chief trader at Gulfmena Investments. "Even with high risk appetite after the various
stimulus packages, the volatility is affecting regional sentiment in terms of direction. The real momentum now will be from third-quarter company announcements."
Aldar, Sorouh merger news seen "within a month" - Sorouh exec - Yahoo! News Maktoob
A potential merger agreement between Abu Dhabi developers Aldar Properties and Sorouh Real Estate is expected to be announced "within a month," a senior Sorouh executive said on Sunday.
Indebted Aldar and Sorouh said in March they were in talks for a state-backed merger, creating a company with $15 billion in assets.
"We are moving (forward) in the process," Sorouh's Managing Director Abu Bakr Seddiqi al-Khoury told Reuters on the sidelines of a conference.
Indebted Aldar and Sorouh said in March they were in talks for a state-backed merger, creating a company with $15 billion in assets.
"We are moving (forward) in the process," Sorouh's Managing Director Abu Bakr Seddiqi al-Khoury told Reuters on the sidelines of a conference.
Investcorp to take 35-percent stake in Kuwaiti car leasing firm | Reuters
Bahrain-based Investcorp INVB.BH acquired a 35-percent stake in Kuwait's car leasing and rental firm Automak Automotive Co, marking the alternative asset manager's sixth investment through its $1 billion Gulf Opportunity Fund.
Investcorp did not give financial details of the transaction but said in a statement on Sunday that the deal will be done through a capital injection.
Co-founded in 2002 by Al Kharafi Projects Co., Automak has over 15-percent market share in Kuwait, operating a fleet of more than 4,500 vehicles and provides rental, car leasing and distribution services.
Investcorp did not give financial details of the transaction but said in a statement on Sunday that the deal will be done through a capital injection.
Co-founded in 2002 by Al Kharafi Projects Co., Automak has over 15-percent market share in Kuwait, operating a fleet of more than 4,500 vehicles and provides rental, car leasing and distribution services.
STOCKS NEWS MIDEAST-Kuwait slips from 15-wk high; Saudi rebounds - Yahoo! News Maktoob
Kuwait's index falls from Thursday's 15-week high as investors book gains, while other Gulf markets trade
flat-to-lower as euro zone woes dampen risk appetite.
Kuwait's index is 0.3 percent lower at 5,976 points, halting a rally driven by talk that government funds were buying in the market.
Telecom operator Zain falls 1.3 percent. Its Saudi affiliate Zain Saudi on Saturday said it had extended, for a second time, the maturity date of a 9.75 billion riyal ($2.6 billion) loan.
Zain Saudi's shares fall 2.8 percent, taking their losses to 9.1 percent since the announcement.
flat-to-lower as euro zone woes dampen risk appetite.
Kuwait's index is 0.3 percent lower at 5,976 points, halting a rally driven by talk that government funds were buying in the market.
Telecom operator Zain falls 1.3 percent. Its Saudi affiliate Zain Saudi on Saturday said it had extended, for a second time, the maturity date of a 9.75 billion riyal ($2.6 billion) loan.
Zain Saudi's shares fall 2.8 percent, taking their losses to 9.1 percent since the announcement.
Abu Dhabi's Etihad Airways open to more stake buys: CEO | Reuters
Etihad Airways, the Abu Dhabi-based carrier which has been on a recent acquisition spree, is eyeing further investments if the right opportunity arises, its chief executive said on Sunday, adding 2012 revenue could top $5 billion for the first time.
"We see further equity investments only if it's the right opportunity, right partner, right market and right price," James Hogan, Etihad's chief executive said at an aviation conference in the United Arab Emirates' capital.
Unlisted Etihad has been on an acquisition drive in recent months, taking minority equity stakes in Virgin Australia VAX.AX and Aer Lingus (AERL.I) and raising its shareholding in Air Berlin (AB1.DE) and Air Seychelles.
"We see further equity investments only if it's the right opportunity, right partner, right market and right price," James Hogan, Etihad's chief executive said at an aviation conference in the United Arab Emirates' capital.
Unlisted Etihad has been on an acquisition drive in recent months, taking minority equity stakes in Virgin Australia VAX.AX and Aer Lingus (AERL.I) and raising its shareholding in Air Berlin (AB1.DE) and Air Seychelles.
UAE lenders left unsure over latest rules on banking - The National
New rules come into effect today limiting how much banks can lend to companies.
But banks are uncertain about what to do if they are already in breach of the new rules.
In April, the Central Bank capped the amount banks could lend to governments and their commercial holding companies in an effort to shield them from any financial fallout from a default at a big company.
But banks are uncertain about what to do if they are already in breach of the new rules.
In April, the Central Bank capped the amount banks could lend to governments and their commercial holding companies in an effort to shield them from any financial fallout from a default at a big company.
Saturday, 29 September 2012
STOCKS NEWS MIDEAST-Saudi stocks end 1 pct down, Zain tumbles - Yahoo! News Maktoob
Saudi shares closed lower on Saturday, dragged down by petrochemicals, banks and telecommunications stocks. One reason was the weakness of global markets on Friday, when they were hit by anxiety about Spain's debt crisis.
Another reason was Zain Saudi, which plunged 6.1 percent to 10.75 riyals after it announced earlier on Saturday
that it had extended, for a second time, the maturity date of a 9.75 billion riyal ($2.6 billion) loan.
The firm said it had paid back 750 million riyals on Aug. 27 and was finalising a long-term finance agreement to replace the current loan. But Zain Saudi has been posting losses and the delay in resolving the debt challenge may have disappointed some investors.
Another reason was Zain Saudi, which plunged 6.1 percent to 10.75 riyals after it announced earlier on Saturday
that it had extended, for a second time, the maturity date of a 9.75 billion riyal ($2.6 billion) loan.
The firm said it had paid back 750 million riyals on Aug. 27 and was finalising a long-term finance agreement to replace the current loan. But Zain Saudi has been posting losses and the delay in resolving the debt challenge may have disappointed some investors.
Iran's rial currency dives to historic low - Yahoo! News Maktoob
The Iranian rial slumped on Saturday to a historic low against the U.S. dollar, according to Iranian media and currency tracking websites.
The rial fell by 3.6 percent and was trading at about 27,900 per dollar, compared with about 26,920 on Thursday and about 26,200 on Wednesday, according to Persian-language currency tracking website Mazanex. Another financial site, Mesghal.ir, had the rial at about 27,650 to the dollar on Saturday.
There was no clear reason for the latest slide in the value of the rial, which is traded in an informal market of money changers, where ordinary Iranians go to access hard currencies.
The rial fell by 3.6 percent and was trading at about 27,900 per dollar, compared with about 26,920 on Thursday and about 26,200 on Wednesday, according to Persian-language currency tracking website Mazanex. Another financial site, Mesghal.ir, had the rial at about 27,650 to the dollar on Saturday.
There was no clear reason for the latest slide in the value of the rial, which is traded in an informal market of money changers, where ordinary Iranians go to access hard currencies.
Saudi Shares Fall on Quarterly Results Outlook, Global Economy - Bloomberg
Shares in Saudi Arabia declined for a second day ahead of quarterly company financial results and on concerns that Europe’s debt crisis is worsening.
Al-Rajhi Bank (RJHI), the kingdom’s largest lender by market value, dropped for a fourth day, while Samba Financial Group (SAMBA) fell for the second day. National Industrialization Co. (NIC) slipped to the lowest level since July 25. The Tadawul All Share Index lost less than 0.1 percent to 6,874.15 in Riyadh at 12:11 p.m. Saudi companies start reporting third-quarter results this week.
“We expect a weaker morning session as third-quarter results weigh on investors’ minds,” Asim Bukhtiar, head of research at Riyad Capital, said in an e-mail. “Subdued international sentiment will guide local direction.”
Al-Rajhi Bank (RJHI), the kingdom’s largest lender by market value, dropped for a fourth day, while Samba Financial Group (SAMBA) fell for the second day. National Industrialization Co. (NIC) slipped to the lowest level since July 25. The Tadawul All Share Index lost less than 0.1 percent to 6,874.15 in Riyadh at 12:11 p.m. Saudi companies start reporting third-quarter results this week.
“We expect a weaker morning session as third-quarter results weigh on investors’ minds,” Asim Bukhtiar, head of research at Riyad Capital, said in an e-mail. “Subdued international sentiment will guide local direction.”
Qatar Q2 real GDP rises 5 pct on an annual basis - Yahoo! News Maktoob
Qatar's second-quarter real gross domestic product (GDP) grew by 5.0 percent over the same period in 2011 and by 2.5 percent over the first quarter of 2012, the country's statistics authority said in a press release on
Saturday, citing preliminary data.
Nominal second-quarter GDP grew by 11.9 percent on the year, but dipped 1.1 percent on the quarter, Qatar Statistics Authority said.
Saturday, citing preliminary data.
Nominal second-quarter GDP grew by 11.9 percent on the year, but dipped 1.1 percent on the quarter, Qatar Statistics Authority said.
Zain Saudi extends $2.6 bln loan maturity for second time - Yahoo! News Maktoob
Indebted telecom operator Zain Saudi has for a second time extended the maturity of a 9.75 billion riyal
($2.6 billion) loan by two months, it said in a bourse statement on Saturday.
"The firm announces that on September 26 it has received approval from lenders to extend the maturity date for the joint Murabaha by two additional months, changing the maturity date to November 28," the statement said.
The loan was initially due in July but was extended to September 27.
($2.6 billion) loan by two months, it said in a bourse statement on Saturday.
"The firm announces that on September 26 it has received approval from lenders to extend the maturity date for the joint Murabaha by two additional months, changing the maturity date to November 28," the statement said.
The loan was initially due in July but was extended to September 27.
Dubai's Emaar sells hotel to Abu Dhabi firm - chicagotribune.com
Dubai's Emaar Properties , the builder of the world's tallest tower, has sold one of its hotel assets to an Abu Dhabi-based real estate firm for an undisclosed amount.
Eshraq Properties said in a statement on Saturday that it has acquired Nuran Marina, a serviced hotel apartment owned by Emaar and located in the up-market Dubai Marina area.
Emaar was not immediately available for comment.
Dubai's largest developer has looked to shift away from its home market where real estate prices have slumped by more than 60 percent in the aftermath of the debt crisis in 2009.
Eshraq Properties said in a statement on Saturday that it has acquired Nuran Marina, a serviced hotel apartment owned by Emaar and located in the up-market Dubai Marina area.
Emaar was not immediately available for comment.
Dubai's largest developer has looked to shift away from its home market where real estate prices have slumped by more than 60 percent in the aftermath of the debt crisis in 2009.
Oman to create 56,000 jobs for nationals | GulfNews.com
Finding suitable jobs for Omanis is a source of headache for Omani authorities and likely to remain the case in the foreseeable future, based on demographic statistics. Available statistics are alarming, with nearly 43 per cent of the local population below 15 years of age.
What’s more, unemployment among Omanis was a key reason behind the outbreak of unrest in the first quarter of 2011 in the context of the Arab Spring. The fact that the socio-economic uprising erupted in the industrial town of Sohar carried an economic message.
Against this backdrop, it is not surprising that the authorities have decided to embark on a major scheme to find employment opportunities for Omanis. The ambitious plan calls for creating around 56,000 jobs — divided between 36,000 and 20,000 in the public and private sectors respectively.
What’s more, unemployment among Omanis was a key reason behind the outbreak of unrest in the first quarter of 2011 in the context of the Arab Spring. The fact that the socio-economic uprising erupted in the industrial town of Sohar carried an economic message.
Against this backdrop, it is not surprising that the authorities have decided to embark on a major scheme to find employment opportunities for Omanis. The ambitious plan calls for creating around 56,000 jobs — divided between 36,000 and 20,000 in the public and private sectors respectively.
Arabian Aerospace - Qatar tipped to join Oneworld alliance
Speculation is mounting that a special meeting of the Oneworld Alliance - which includes British Airways and Qantas as its members - could see the unveiling of Qatar Airways as its newest member.
Following the tie-up between Emirates and Qantas earlier in the month there were suggestions that British Airways and the Doha airline could create a similiar deal - but that was dismissed by Qatar's CEO Akbar Al Baker.
Now reports in the US media suggest that the tie up will instead be through the alliance. Qatar would be the first of the major Gulf carriers to join an alliance. Emirates has always fervantly resisted the alliance route believing it would cost them customers. Etihad has created its own mini-alliance through aquisition and code share deals.
Following the tie-up between Emirates and Qantas earlier in the month there were suggestions that British Airways and the Doha airline could create a similiar deal - but that was dismissed by Qatar's CEO Akbar Al Baker.
Now reports in the US media suggest that the tie up will instead be through the alliance. Qatar would be the first of the major Gulf carriers to join an alliance. Emirates has always fervantly resisted the alliance route believing it would cost them customers. Etihad has created its own mini-alliance through aquisition and code share deals.
Where Is the Qatar Wealth Fund Investing? - US Business News - CNBC
With the Federal Reserve providing extraordinary stimulus to get the economy growing again and the European Central Bank offering to buy bonds to limit the damage from the euro zone debt crisis, Qatar Prime Minister Sheikh Hamad Bin Jassim Bin Jabr al-Thani said in a CNBC interview he’s worried about what it will mean for the value of the two major global currencies.
“I believe the value of money is diminishing,” the prime minister told CNBC’s “Closing Bell.” He said that without a comprehensive strategy to deal with the problems in the U.S. and Europe the value of the dollar and euro will decline.
Dealing with the issues piecemeal also has created anxiety for investors like the Qatar Investment Authority (QIA), al-Thani said.
“I believe the value of money is diminishing,” the prime minister told CNBC’s “Closing Bell.” He said that without a comprehensive strategy to deal with the problems in the U.S. and Europe the value of the dollar and euro will decline.
Dealing with the issues piecemeal also has created anxiety for investors like the Qatar Investment Authority (QIA), al-Thani said.
Friday, 28 September 2012
BUSINESS - Iran buys Turkish gold via UAE, economists say
Turkey’s trade deficit fell 30 percent in August, reportedly on the back of strong gold sales to Iran even though the United Arab Emirates was the leading gold buyer from Turkey in the given period.
The trade deficit fell to $5.86 billion, according to the Turkish Statistical Institute, compared with a $7.89 billion deficit in July and a forecast of $8.10 billion in a Reuters poll.
“This data is a result of soaring gold exports, which broke a record with $2.3 billion in August,” Oyak Securities economist Mehmet Besimoğlu said on Sept. 28. “Gold exports were generally to Iran, made via the United Arab Emirates.”
The trade deficit fell to $5.86 billion, according to the Turkish Statistical Institute, compared with a $7.89 billion deficit in July and a forecast of $8.10 billion in a Reuters poll.
“This data is a result of soaring gold exports, which broke a record with $2.3 billion in August,” Oyak Securities economist Mehmet Besimoğlu said on Sept. 28. “Gold exports were generally to Iran, made via the United Arab Emirates.”
American firms focus on UAE with revived energy | GulfNews.com
Not long ago, Gulf states used to look up to the global economic powerhouses to strengthen relationship to help their economies grow. In three decades, that has changed to a certain extent.
An increasing number of US companies are now looking at Dubai and the UAE to help boost their weak economy.
“Dubai is an important economic partner for us,” Betsy Price, Mayor of Fort Worth, tells Gulf News while wrapping up her visit to the emirate. “It is a gateway for $2.5 billion (Dh9.2 billion) of exports from Dallas-Fort Worth to the UAE.”
An increasing number of US companies are now looking at Dubai and the UAE to help boost their weak economy.
“Dubai is an important economic partner for us,” Betsy Price, Mayor of Fort Worth, tells Gulf News while wrapping up her visit to the emirate. “It is a gateway for $2.5 billion (Dh9.2 billion) of exports from Dallas-Fort Worth to the UAE.”
Saudi Arabia: Tribes, Oil, Religion Unite in Serving the Royal Family - Al-Monitor
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| Saudi King Abdullah (R) talks with newly appointed Saudi Crown Prince Salman bin Abdel-Aziz in Taif, June 19, 2012. Abdullah has appointed his defense minister, Salman, as heir apparent, opting for stability and a continuation of cautious reforms at a time of challenges for the world's biggest oil exporter. (photo by REUTERS/Saudi Press Agency/Handout) |
Xstrata shareholders to vote on pay, deal separately - sources - Yahoo! News Maktoob
Xstrata shareholders will vote on a proposed management retention package before deciding on Glencore's $32 billion bid, two people familiar with the talks told Reuters, a structure designed to secure maximum support for
the deal.
In the coming weeks, shareholders will first vote on the 140 million pound ($226.07 million) two-year pay package aimed atretaining Xstrata's key managers. They will then vote separately on the merger, the people said.
The new proposal was a condition a group of shareholders had imposed on Xstrata board to recommend the deal, the people said. Under UK takeover rules, the deal has to be announced by Monday at the latest.
the deal.
In the coming weeks, shareholders will first vote on the 140 million pound ($226.07 million) two-year pay package aimed atretaining Xstrata's key managers. They will then vote separately on the merger, the people said.
The new proposal was a condition a group of shareholders had imposed on Xstrata board to recommend the deal, the people said. Under UK takeover rules, the deal has to be announced by Monday at the latest.
Arabia Monitor Q4 MENA Outlook - Shifting Sands, Shifting Trade: Building the New Silk Route
Click through headline to presentation.
Xstrata haggles over management as Glencore deadline nears | Reuters
Xstrata's directors, facing a Monday deadline to deliver their verdict on Glencore's $32 billion bid, are hammering out a deal they hope will ensure the miner retains control of the combined group's board, even after the exit of its veteran boss.
All sides are working towards completing an agreement and announcing the board's recommendation by Oct. 1, sources familiar with the deal said on Friday. However, the struggle to reconcile wide-ranging shareholder views, to ensure the success of the current, last-ditch attempt to merge, meant Xstrata's board could still ask for more time.
Glencore, the world's largest diversified commodities trader, bid in February for the shares in Xstrata it did not already own, launching one of the resources sector's biggest ever takeover deals. But it was forced earlier this month to raise its price - offering 3.05 new shares for every share held, up from 2.8 - in an effort to rescue the tie-up after opposition from the miner's number two investor, Qatar.
All sides are working towards completing an agreement and announcing the board's recommendation by Oct. 1, sources familiar with the deal said on Friday. However, the struggle to reconcile wide-ranging shareholder views, to ensure the success of the current, last-ditch attempt to merge, meant Xstrata's board could still ask for more time.
Glencore, the world's largest diversified commodities trader, bid in February for the shares in Xstrata it did not already own, launching one of the resources sector's biggest ever takeover deals. But it was forced earlier this month to raise its price - offering 3.05 new shares for every share held, up from 2.8 - in an effort to rescue the tie-up after opposition from the miner's number two investor, Qatar.
Gulf States Lay Energy Foundation in North Africa - Forbes
While the last two years have done a lot to inspire those hoping for a long overdue political evolution across North Africa, its done little to build confidence among those with their eyes on the region’s rich energy potential. If anything, the collapse of political leadership and security in the region has shifted investors into a financial holding pattern – a wait-and-see routine.
What would it take to start investing in the capitals that stretch across the Southern Mediterranean, I asked one green energy financier from London earlier this year – 20 years of calm, he replied.
What would it take to start investing in the capitals that stretch across the Southern Mediterranean, I asked one green energy financier from London earlier this year – 20 years of calm, he replied.
UAE Faces Housing Glut
New properties coming on stream are expected to keep house prices and rents in the United Arab Emirates subdued and under pressure, it is claimed.
According to a new report from property advisor Tasweek only sought after locations in Dubai is likely to see any improvement because of the sheer number of releases in the real estate market.
Abu Dhabi is likely to see house prices and rents drop by between 2% and 10% while in Dubai less p-popular locations could see falls of 2% to 5%.
According to a new report from property advisor Tasweek only sought after locations in Dubai is likely to see any improvement because of the sheer number of releases in the real estate market.
Abu Dhabi is likely to see house prices and rents drop by between 2% and 10% while in Dubai less p-popular locations could see falls of 2% to 5%.
Emirates signals Kingfisher Airlines stake buy - The Times of India
Dubai carrier Emirates is believed to have signalled an early interest to acquire a stake in the troubled Kingfisher Airlines with riders that the latter hammers out long-term loan restructuring and revamp the business plan with a realistic chance of survival.
Kingfisher chairman Vijay Mallya met the consortium of lenders in Bangalore on Thursday to talk about plans to recapitalize the company after the government allowed foreign carriers to pick up 49% stake in domestic airlines. The lenders have decided to appoint SBI Capital Markets to recommend actions required to get the airline back on track.
"All that I would say is that we had a good meeting with the lenders. There are confidentiality clauses between the banks and the client, and I will not say any further," Mallya told TOI. Lenders said they have not been informed about any definitive FDI proposal by the Kingfisher management in the meeting.
Kingfisher chairman Vijay Mallya met the consortium of lenders in Bangalore on Thursday to talk about plans to recapitalize the company after the government allowed foreign carriers to pick up 49% stake in domestic airlines. The lenders have decided to appoint SBI Capital Markets to recommend actions required to get the airline back on track.
"All that I would say is that we had a good meeting with the lenders. There are confidentiality clauses between the banks and the client, and I will not say any further," Mallya told TOI. Lenders said they have not been informed about any definitive FDI proposal by the Kingfisher management in the meeting.
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