Tag Archives: MIDEAST

MIDEAST STOCKS-Shares retreat as investors reduce back exposure to oil-linked markets

* Oil’s drop to near 11 year lows drags down Gulf markets

* Saudi Arabia down 32 percent from 2015 peak

* Dubai worst performing Gulf market place in 2015

* Egypt monetary policy selection this week as inflation up

By Celine Aswad

DUBAI, Dec 13 Gulf bourses fell on Sunday as the crude price slumped to near 11-year lows and investors scurried to cut back their exposure to oil dependents markets.

Brent crude posted its biggest weekly percentage drop in over a year on Friday to settle at $ 37.93 soon after the International Power Agency (IEA) warned global oversupply of crude could worsen next year.

Saudi’s benchmark index plunged two.7 to 6,764 points. It is down 32 percent from a 2015 peak of 9,897 on April 30.

Brent has fallen 47 percent over the very same period.

“Low oil costs coupled with investors’ heightened nervousness about the kingdom’s spending budget has compounded volatility in the markets,” stated Hisham Tuffaha, head of equity investments at Riyadh-based Mulkia Investments.

“Overall we are in a downtrend, for some sectors this is justified, specially oil-linked industries like petrochemicals, other segments such as banks this is less so.”

Saudi Telecom Co (STC), the country’s largest telecommunications organization, dropped 1.9 %, regardless of the Kuwaiti industry regulator approving STC’s takeover strategy for Kuwait’s Viva.

The retail sector was down three.five %, with Saudi Business for Hardware (SACO) and Al Othaim losing six.three and 3.7 % respectively.

Recent retail data showed signs of weakness, as customers are shopping less and cutting back on spending at shops, according to a note by Saudi’s NCB Capital.

“The slowing development in sales transaction values is comparable to the period for the duration of the international financial crisis and oil value declines in 2008,” NCB Capital’s note added.

Dubai’s index fell two.1 % to two,883 points. It is down 23.6 percent in 2015, creating it the worst performing Gulf bourse this year.

Emirates NBD – Dubai’s biggest bank by market place value – tumbled 4.1 %, reversing earlier session gains. Dubai Islamic Bank fell three percent to five.42 dirhams, a 2015 low.

Arabtec retreated three.7 %, falling near a four-year low.

Abu Dhabi’s index dropped 2.1 % as blue-chip Etisalat, the largest stock by market value, slid two.5 %. The telecom company is up 57.2 percent this year, which has helped limit the benchmark’s year losses to 11.7 %.

Qatar’s benchmark slumped three.7 %, taking its losses for the year to 21.2 %, underperforming the MSCI emerging marketplace index which is down 19.1 %.

Economic sector heavyweights Masraf Al Rayan and Qatar National Bank dropped 6.3 and 2.1 percent respectively.

EGYPT DIPS, INVESTORS EYE CENTRAL BANK

Egypt’s bourse fell three.7 percent to six,395 points, within 93 points of November’s 2015 low.

“The sell-off is part of the declines in other Middle East markets following a drop in oil costs,” said Simon Kitchen, head of regional approach at Cairo’s EFG Hermes.

“The Egyptian marketplace is uncertain about the central bank’s interest price decision at the monetary policy meeting scheduled at the finish of this week,” Kitchen added.

Egypt’s annual urban customer inflation rose to 11.1 % in November from 9.7 percent in October, the official statistics agency CAPMAS mentioned on Thursday. That is the steepest increase in headline inflation because June.

The higher inflation figures are unlikely to influence Thursday’s central bank meeting to set interest rates, analysts told Reuters, noting the principal priority is probably to be advertising development.

Neighborhood and Arab traders had been net sellers even though foreign investors were net purchasers, exchange data showed.

Orascom Telecom and Industrial International Bank fell 7.three and four.2 percent respectively.

SUNDAY’S HIGHLIGHTS

SAUDI ARABIA

* The index fell two.7 percent to six,765 points.

DUBAI

* The index slid 2.1 percent to 2,883 points.

ABU DHABI

* The index dropped two.1 % to 4,001 points.

QATAR

* The index plunged three.7 % to 9,644 points.

EGYPT

* The index stumbled 3.7 % to six,395 points.

KUWAIT

* The index dipped 1 % to 5,633 points.

BAHRAIN

* The index fell .1 percent to 1,212 points.

OMAN

* The index slid .7 % to 5,415 points. (Editing by Matt Smith and Mark Potter)

MIDEAST STOCKS-Oil slump strengthens market sell-off in UAE, Qatar

DUBAI Dec 13 Gulf markets fell in early trade on Sunday as the oil cost slump fuelled a broad stock sell-off.

Brent crude posted its greatest weekly percentage drop in over a year on Friday to settle at $ 37.93 right after the International Power Agency (IEA) warned that global oversupply of crude could worsen next year.

Qatar’s stock index tumbled three.8 %, taking its losses for the year to 21.7 percent, underperforming the MSCI emerging market index which is down 19 percent in 2015.

Monetary sector heavyweights Masraf Al Rayan and Qatar National Bank declined four.eight and 2.3 % respectively.

Dubai’s bourse fell 1.6 percent. It is down 23.2 percent in 2015, creating it the worst performing Gulf market index this year.

Losers outnumbered gainers 19 to three. Blue-chips Emaar Properties and Dubai Islamic Bank dropped 3 and 2.5 % respectively, whilst Emirates NBD – Dubai’s largest bank by market worth – rose 2.7 % as 7,000 shares have been traded to ease the main benchmark’s losses.

Drake and Scull slid .eight percent to .38 dirhams, hitting a new record low. One more construction firm, Arabtec retreated two.6 percent, falling to a 4-year low.

Abu Dhabi’s index dropped 1.eight % as blue-chips tugged the index lower. First Gulf Bank and telecom giant Etisalat declined 1.7 and 1 % respectively, providing back Thursday’s gains. (Reporting by Celine Aswad Editing by Matt Smith)

MIDEAST STOCKS-Gulf markets slip after oil cost drop

DUBAI Dec 6 Gulf markets declined on Sunday following a renewed slump in oil rates.

Brent crude dropped 2 percent on Friday to $ 43 per barrel after an OPEC policy meeting in Vienna failed to agree on a new production quota.

Dubai’s stock index declined 1.four percent, resuming trading following a 5-day holiday.

Emirates NBD see-sawed, obtaining been up more than 5 % in early trade before slipping 1.3 % lower as of 0908 GMT. Other monetary stocks also retreated, with Dubai Islamic Bank down 4.7 percent and Amlak Finance losing three.five percent.

Abu Dhabi’s index slid 1.1 percent. Etisalat , the newest Emarati constituent in MSCI’s emerging market index, tumbled five.2 percent following surging 10 percent the previous session.

National Bank of Abu Dhabi (NBAD) climbed five.two percent, obtaining dropped 11.6 % last week. 1st Gulf Bank rose 2.5 %.

The Qatar and Kuwait benchmarks every slipped .two percent. (Reporting by Celine Aswad Editing by Matt Smith)

MIDEAST DEBT-Qatar loan launched into crowded marketplace wary on Oman -IFR

LONDON, Dec 6 (IFR) – The government of Qatar has launched a US$ 5.five billion loan into common syndication, becoming the latest Gulf borrower to hit the marketplace as countries, banks and corporates in the region seek to lock in money before the year-finish.

Qatar’s 5-year loan offers all-in pricing of 90 basis points more than Libor. The country had initially hoped to raise up to $ 10 billion with pricing of around 80 bps, but had to revise expectations against a backdrop of tightening liquidity and an upward trend in pricing in the region as the massive number of Middle East bargains began to saturate the market.

Bank of Tokyo-Mitsubishi UFJ, Mizuho, SMBC, Deutsche Bank, Barclays and Qatar National Bank are arranging the loan and as it now stands Qatar is anticipated to successfully conclude the deal by the end of December, bankers stated, with any industry uncertainty already factored into the smaller sized deal size.

The deal has been helped by the deep pockets and less expensive funding of Japanese banks, which make up half of the lead bank group.

“Banks have a huge appetite to hold this paper,” 1 banker stated. “Qatar is a premium credit: it has a single of the highest GDP per capita levels in the planet. Banks have huge country limits for Qatar.”

By contrast, the growing list of Gulf entities looking to borrow funds has made it far more hard for some to close loans before the year-finish, bankers say. Transactions locating it challenging going include the US$ 1 billion deal for Oman that is in the market.

“Oman is completely underwritten but it is not going so effectively in syndication – it is not getting great support.”

Oman is hunting for a five-year facility paying a margin of 110 bps more than Libor, which is getting coordinated by Citigroup, Natixis and Gulf International Bank. The deal is fully underwritten by the three leads and commitments from other banks are due in the subsequent handful of days.

Bankers say Oman is a really distinct prospect to Qatar. Oman’s deal was not helped by the reality that it was downgraded by Normal and Poor’s to BBB+ on Nov. 21, just after the providing was launched and, as a outcome, take-up so far has been sluggish.

“Oman is completely underwritten but it is not going so effectively in syndication – it is not receiving great assistance,” a second banker said. “There are as well several deals in the market place and pricing is also tight – banks are beginning to hold back.”

Nevertheless, with commitments not yet due, bankers close to the deal say there is still time. “It is too early to pass judgement. The situation may well modify,” mentioned a third banker.

BUSY Times

Joining Oman and Qatar are numerous Gulf-primarily based banks and corporates looking to raise loans this side of Christmas as low oil prices continue to bite into the region’s profitability.

Offers include a $ 800 million facility for Industrial Bank of Qatar, a $ 500 million deal for Doha Bank, a deal of up to $ 400 million for Gulf International Bank, a whopping $ six billion loan for petrochemicals organization Equate and a $ 5 billion loan for Emirates International Aluminium.

Whilst several of these transactions will get carried out, which includes those from CBQ and Equate, according to a number of bankers, there will also be losers in the line-up as banks have to make choices about which partnership will yield them most profit. Bankers stay uncertain about Doha Bank’s option of deal structure, even though other folks say that Gulf International Bank has left it also late to complete a transaction this year.

In the previous, Gulf banks may well have played a bigger function in arranging such loans, but they have grow to be significantly less capable to lend freely as low oil prices have lowered fresh flows of oil money into deposits.

Final month, Oman began advertising its $ 1 billion sovereign loan, while Bahrain raised $ 1.five billion in bonds.

Local lenders priced out of a lot of of these deals have now shut up shop to any new commitments till the 1st quarter of 2016 and have been told internally that their minimum pricing guidance has also elevated, the second banker mentioned.

This could also be reflected in international banks’ appetite, he mentioned: “It is obtaining near the finish of the year, liquidity is tight and the oil predicament is not obtaining any far better. International banks will query these offers as a lot as local banks.

“There will not be a large list of banks joining Qatar’s deal in general, and after it is carried out, banks will take a lesson from it and pricing will shift upwards.”

MIDEAST STOCKS-Oil’s tumble might dampen Gulf Egypt may possibly test resistance

DUBAI Dec 3 A fresh tumble of oil rates overnight looks probably to dampen Gulf stock markets on Thursday, even though Egypt may continue testing technical resistance.

Brent oil, hit by expectations that OPEC will preserve its output ceiling unchanged at this week’s meeting, sank far more than four % to under $ 43 a barrel overnight – to just above a six-year low.

Also, hawkish comments by U.S. Federal Reserve Chair Janet Yellen reinforced the case for a U.S. interest rate hike later this month.

The markets had already been expecting a rate hike, but it could be damaging for the Gulf by slightly increasing pressure for capital outflows and top eventually to tighter monetary policy in the area.

Saudi Arabia’s index, which last closed at 7,347 points, is technically brief-term bullish and has been in an uptrend given that mid-November, but the threat of oil hitting fresh lows could hurt sentiment at least temporarily. The index has technical help at its mid-November high of 7,161 points.

In Egypt, the index, which jumped 3.5 percent on Wednesday to 6,650 points, is set to test minor chart resistance on the late November peak of six,642 points. Any clean break would trigger a double bottom formed by the November lows and pointing up to just beneath 7,000 points.

Egypt’s central bank plans to inject dollar liquidity into the market this month and plans an exceptional foreign exchange auction, the Egyptian presidency said late on Wednesday, the latest move to end a lengthy-running currency crisis.

Authorities’ new energy in tackling the crisis is welcome to the industry, but it remains unclear exactly where Egypt will acquire the difficult currency to improve dollar supplies, and a lot of economists consider a devaluation at some point remains inevitable. So foreign investors could stay cautious.

Speculation might continue more than the fate of Global Telecom , which surged its ten % limit to 1.87 Egyptian pounds on Wednesday in its heaviest trading in five weeks.

In a brief statement, it mentioned a newspaper, which it did not name, had published a story on rumours that European firm Vimpelcom had offered to buy out Global at a price of two.30 pounds per share. Vimpelcom currently owns about 52 % of International, according to the most current data.

The business does not respond to rumours and confirms that the business does not have any material events unannounced,” Global mentioned with no elaborating. Contacted by Reuters in Amsterdam, Vimpelcom stated: “As a matter of policy, we do not comment on market rumours and speculation.”

Final Thursday, Vimpelcom mentioned it and Worldwide would combine their organization in Pakistan with Warid Telecom, which may have prompted speculation about further consolidation. (Added reporting by Anthony Deutsch in Amsterdam Reporting by Andrew Torchia)

EU says continues Mideast peace part in spite of Israel move

BRUSSELS EU foreign policy chief Federica Mogherini met Israeli Prime Minister Benjamin Netanyahu on Monday and the European Union said it would continue its role in Middle East peace diplomacy in spite of Israel saying it was suspending make contact with.

Asked about Israel’s move on Sunday to suspend contact with the EU over the bloc’s reinforcement of labeling guidelines on imports from Israeli settlements in the West Bank, a European Commission spokeswoman said Mogherini met Netanyahu in Paris on the sidelines of the global climate conference.

“EU-Israel relations are very good, broad and deep and this will continue,” the spokeswoman told a news briefing in Brussels, playing down the labeling decision as merely the implementation of an current policy currently being enforced by some EU states.

“When it comes to the Middle East peace process, the EU continues and will continue to perform on this in the Quartet with our partners with both parties because of course peace in the Middle East is of interest to the entire international community,” the spokesman added.

The European Union is one of the 4 members of the Quartet of peace brokers, along with the United Nations, United States and Russia.

(Reporting by Alastair Macdonald editing by Philip Blenkinsop)

Agen Sabung Ayam

MIDEAST STOCKS-Gulf markets move little though Dana soars on Kurdistan news

DUBAI Nov 29 Gulf bourses moved small in sluggish trade early on Sunday, weighed down by a lack of optimistic financial and corporate news, though Abu Dhabi’s Dana Gas soared following saying it won a significant court judgement in its dispute with Iraqi Kurdistan.

Dana jumped its 15 % everyday limit following saying a tribunal of the London Court of International Arbitration had directed the Kurdish regional government to pay $ 1.98 billion to a consortium which includes Dana within 28 days. There was no quick comment from the Kurdish government.

Elsewhere, there was small incentive to buy stocks Brent oil slipped back beneath $ 45 a barrel at the finish of final week whilst global equity markets have been soft.

Abu Dhabi’s stock index edged up .1 %. Dubai’s index slipped .3 % as house and building firms remained soft simply because of indicators of an financial slowdown in the region Emaar Properties dropped .7 %.

Qatar’s index lost .6 percent as Gulf International Services, due to be removed from MSCI’s emerging market place index at the end of this month, fell a further 1.9 percent. (Reporting by Andrew Torchia Editing by Dominic Evans)