Middle East ETF News Older than One Year
Nonperforming Loans in the GCC Banking System and their Macroeconomic Effects-IMF Working paper
October 4, 2010--According to a dynamic panel estimated over 1995–2008 on around 80 banks in the GCC
region, the NPL ratio worsens as economic growth becomes lower and interest rates and risk
aversion increase. Our model implies that the cumulative effect of macroeconomic shocks
over a three year horizon is indeed large.
Firm-specific factors related to risk-taking and efficiency are also related to future NPLs. The paper finally investigates the feedback effect of increasing NPLs on growth using a VAR model. According to the panel VAR, there could be a strong, albeit short-lived feedback effect from losses in banks’ balance sheets on economic activity, with a semi-elasticity of around 0.4.
Source: IMF
Dubai index down, traded volumes up
September 30, 2010--The Dubai Financial Market failed to stabilise above 1,700 and closed 1.10% lower at 1,683.69. Emaar was the liquid share, declining 1.84% to close at Dhs3.73. Emaar announced today that it has upsized a 7.5%-convertible note to $450m from $375m due to "strong investor demand.
The note will be issued by Emaar's wholly-owned Pyrus Ltd. and listed at Luxembourg's Euro MTF market. Traded value surged 50% to Dhs330.97m, as 147.24m stocks changed hands. The DFM General Index lost 6 points during last week but surged 13.26% during September.
Source: AME Info
Kuwait market gains 4.43% in September
September 30, 2010--Against the regional trend, the KSE Market or Price Index advanced on Thursday, closing 0.82% higher at 6,985 points. All sectors landed in the green, except the real estate index. Kuwait Hotels topped the market by ending 16.37% to finish at KD0.270.
Telecom giant Zain ended flat at KD1.360. UAE Telecom provider Etialat confirmed its bid of 46% in Zain today in a statement, adding that no final fulfilment has been made as yet, depending of further requirements and conditions.
Source: AME Info
Qatar bourse declines a quarter percent
September 30, 2010--The QE Index dipped 0.25% to close at 7,694.88 points. Financials lost in particular. Al Ahli Bank bucked the trend and gained 6.04% to finish at QR57.90.
The QE Index posted the third largest gain in September (behind the ADX in Abu Dhabi), adding 6.4%.
Source: AME Info
DIFC announces elimination and reduction to fees imposed by the Registrar of Companies
September 29, 2010--The Dubai International Financial Centre (DIFC), the financial and business gateway between the Middle East, Africa and South Asia region (MEASA) and the world, today announced a series of changes to its Registrar of Companies (ROC) fees.
The changes made by the DIFC Authority which came into effect on September 5 2010, included amendments to the Companies Regulations (COR) fees covering retail and non-retail companies. In addition there were also amendments to DIFC Limited Liability Partnership Regulations, General Partnership Regulations and Limited Partnership Regulations and Special Purpose Company Regulations. The changes include the elimination of fees in 61 categories, a reduction of fees in 10 categories and a slight increase in fees in 12 categories. Fees in 46 categories were maintained at the same levels.
Abdulla Al Awar, CEO of the DIFC Authority said:
“This review process is part of our wider initiative to reduce the cost of doing business in the DIFC. We are committed to working closely with our clients in order to help them achieve their business goals. These proposals are designed to help our clients grow their businesses by making the DIFC a more competitive business hub.”
The changes followed a review conducted in the first quarter of 2010 in relation to the fees imposed by the Centre’s ROC. The review’s aim is to make the DIFC a more attractive and cost effective centre for companies establishing and maintaining a presence in the region.
Source: Dubai International Financial Centre (DIFC)
Once-fertile Gulf proves a fundraising desert
September 29, 2010--International asset managers used to make regular journeys to the Gulf, where sovereign wealth funds, sheikhs and merchant families, flush with petrodollars, were eager investors.
Local asset managers also benefited from the region’s capital surplus, as many wealthy Arabs started to plough more money into their domestic economies after the 9/11 terrorist attacks.
However, the financial crisis sent oil prices plummeting, hammered local stock markets and precipitated real estate crashes in several countries, hurting sentiment across the region.
Source: FT.com
Dubai market rebounds 0.72% on high turnovers
September 29, 2010--The DFM General Index ended Tuesday at 1,702.43 as Arabtec, the most liquid share, surged two percent to reach Dhs2.03, along with gains at real estate developers Emaar (gaining 0.80% at Dhs3.80) and Deyaar (0.31% higher at Dhs0.321).
DP World and Depa Ltd., both listed at the Nasdaq Dubai and the DFM parallel, posted losses (down 1.73% at $0.511 and down three percent at $0.64 respectively). At the DFM, traded value surged 51% to Dhs220m. Some 120.8m shares changed hands, 45% more than on Monday.
Source: AME Info
Insurers boost Qatar exchange
September 29, 2010--Investors have sent the QE Index 0.88% higher to close at 7,714.34 points. The advance was mostly driven by advances in the financial segment. Shares of Qatar Insurance reached a 21-month high by finishing 1.78% higher at QR86.
Qatar Telecom gained (up 0.46% at QR174.40) due by news that the UAE's Etisalat aims to buy 46% in Kuwait's Zain Telecom.
Source: AME Info
Tadawul bourse remains in stutter mode
September 29, 2010--Saudi Arabia's Tadawul market declined 0.18% to close at 6,392.39. The talk of the day in the GCC were rumors that the UAE telecom giant Etisalat aims to buy 46% in Kuwait's Zain Telecom, worth around $11bn. Saudi Telecom (STC) failed to reap benefit from the buyont environment in the GCC telco sector
and ended off 0.77% to close at SR38.70. United International Transportation Company bucked the trend and surged 3.54%, ending at SR58.50.
Source: AME Info
Shariah-compliant Australian equity fund approved by Bahrain authorities
September 29, 2010--The Central Bank of Bahrain has authorized formation and marketing of the Hyperion Australian Equity Islamic Fund, the first Shariah-compliant offshore fund comprised of the country's stocks.
Investment manager for the fund is Hyperion Asset Management, a Brisbane-based, growth-style manager whose award-winning core investment team has worked together since 1997. Shariah advisors to the fund are Dr. Mohd Daud Bakar of Malaysia and Sheikh Nizam Yaquby of Bahrain.
Source: AME Info
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