Middle East ETF News Older than One Year
Kuwait approves $56bn budget
July 1, 2010--Kuwait has approved a 2010/11 state budget which increases spending by 67.2% from the previous fiscal year as the country aims to reduce its dependence on oil, Reuters has reported. The new budget projects a deficit of KD7.55bn with expenditure set at KD16.3bn, up from the KD9.75bn the OPEC member spent in the 2009/10 fiscal year.
However, analysts believe the budget will eventually register the biggest surplus in the Gulf as the government has assumed a very conservative price of $43 a barrel for oil in its calculations.
Source: AME Info
Kuwait market weakens 1.70%
July 1, 2010--Sell-outs at real state shares and industry stocks triggered another day of decline in Kuwait. The KSE Price or Market Index ended at 6,4317 points. Shares of Grand Real Estate Projects (down 27.78% at KD0.026) and Mena Real Estate Company (falling 16.39% at KD0.051) weighed on the market in particular.
Kuwait Real Estate Holding Co., dubbed Alaqaria, on the other hand, advanced 3.48%, finishing at KD0.0445.
Source: AME Info
Dubai bourse rebounds 0.56%
July 1, 2010--Investors saw an encouraging start into the second half of 2010 as the DFM Index gained 0.56%, closing at 1,469.98 points. Global Investment House from Kuwait led the list of the winnin shares, jumping 8.33% higher at Dhs1.30. Other strong financials were Bank Emirates NBD (up 2.06% at Dhs2.48) and the DFM itself (advancing 1.40% atDhs1.45). Shuaa Capital ended flat at Dhs1.05.
The Dubai-based investment bank informed the DFM today that its private equity Shuaa Partners Fund 1 has agreed a share purchase for the sale of its ca. 22% in Rotana Hotel Management Corp. which goes back to the year 2006. The offer was made to an existing Rotana Hotel Corp. shareholder. Traded value declined at the DFM by 45% to Dhs146.01m , while volumes plummeted by 61% to around 123.277m shares changing hands.
Source: AME Info
Qatar exchange opens higher, ends in the red
July 1, 2010--The Doha-located QE Index declined slightly (down 0.78%), finishing at 6,845.81 points. Banks and industry shares posted mostly losses. Doha Bank (0.89% lower at QR44.50) decided today to disclose its semi-annual results July 19.
The media will be informed on July 25. Telecom operator Qtel (up 1.16% at QR165.40) and Vodafone Qatar (flat at QR8.10) were not affected by the general bearish mood.
Source: AME Info
Banks weigh on Bahrain market
July 1, 2010--The Manama-based Bahrain All Share Index was pulled down 1.17% to 1,379.98 points by weak performing banks. The country's largest financial instutute Arab Banking Corporation (ABC) posted the largest loss, plummeting 9.82% at $0.505.
Inovest bucked the baisse by advancing 4.35% at $0.480.
Source: AME Info
DGCX Volume Hits All-Time Monthly High in June
July 1, 2010--Volume scales a new monthly high in June at 192,138 contracts
June also sees the highest ever monthly volume for Indian Rupee/Dollar futures at 12,159 contracts
Total volume on Dubai Gold & Commodities Exchange (DGCX) rose to an all-time high in June at 192,138 contracts, surpassing the previous peak achieved in November 2009.
The strong activity was led by significant increases in volume across all product suites - precious metals, currencies and crude oil. Month-on-month volume rose by 24% for gold, 95% for Euro/Dollar, 40% for INR and 187% for WTI futures.
Setting yet another record, the volume of Indian Rupee/Dollar futures also scaled a new monthly high in June, at 12,159 contracts, demonstrating robust demand for the product.
Trading and participation on the Exchange has continued to expand since the start of 2010, borne out by a year-to-date June 2010 volumes of 934,403 contracts compared to 631,850 contracts over the same period in 2009, a growth of 48%.
The underlying value of total commodity and currency futures transactions in June was US$ 10.846 billion.
Commenting on the activity in June, Eric Hasham, Chief Executive Officer, DGCX, said, "June marked several milestones for DGCX. In addition to achieving the highest traded overall and Indian Rupee volumes, June also saw the launch of three new currency contracts."
"The DGCX INR/Dollar futures contract is the only exchange-traded Rupee futures outside of India, and is witnessing new interest from businesses, arbitrageurs and investors," said Hasham. "This is spurred by the contract’s higher liquidity, competitive trading costs, guaranteed settlement and reduced counterparty risk."
Source: Dubai Gold & Commodities Exchange (DGCX)
Funds tap into GCC's carbon market
June 30, 2010--As news of some clean development mechanism projects initiated by the GCC governments begins to spread, funds managed by banks and financial institutions are descending on the region to tap CERs, or Certified Emission Reduction units, that can be traded on European climate exchanges.
The GCC as a source of CERs is still at a fledgling stage and cannot be compared to Europe or even to China and India.
"You have funds trying to tap into the CERs from the GCC. These funds are managed by professional bodies and they may have banks and financial institutions behind them," said Anthony M Dols, CEO, Avantis 4E, a member company of the Dubai Multi Commodities. The Dubai-based firm provides sustainable energy solutions and advisory services in the UAE.
Funds that collect CERs sell them on European exchanges that record the highest volumes of carbon trade in the world. The London-based European Climate Exchange sees 2.2 billion such units being traded as futures and options annually.
The carbon trade market in Europe is estimated to be worth €100bn (Dh448.54bn) and is expected to grow to €800bn by 2020.
Source: Zawya
Saudi market falls on oil price decline
June 29, 2010--The Riyadh-located Tadawul market plummeted 2.65%, closing at 6,135.86 points as oil prices were hit by worrying data from East Asia and by comments made by the Bank of International Settlements (BIS) about an alleged weak status quo of the global financial sector. Consequently market leader and petrochemical giant Saudi Basic Industries Corporation (Sabic, off 3.87% at SR87) and a number of banks posted heavy losses.
But there were also gainers in Riyadh: Amana Cooperative Insurance Co. and Gulf General Cooperative Insurance Company which both added two percent and closed at SR15.00 and SR30.90, respectively, were the top gainers.
Source: AME Info
S&P Report Outlines Possible Corrective Steps For Gulf Investment Companies As They Seek To Revamp For Recovery
June 28, 2010--Some investment companies in the Gulf will likely find it difficult to pursue their operations without dramatic changes in the wake of the global financial downturn, said Standard & Poor's Ratings Services in a new report published today, titled "Gulf Investment Companies Face The Need To Rethink Their Business Models And Financial Policies."
"The main reasons behind this deterioration, in our opinion, are Gulf investment companies' generally high maturity mismatches they carry in their funding profiles and the ensuing weakened liquidity, weak business profiles, high leverage, and high exposure to real estate for some of them," said Standard & Poor's credit analyst Mohamed Damak.
Investment companies in the Gulf Cooperation Council (GCC) countries, including those with banking licenses and private equity firms, navigated through testing times in 2009, some more successfully and some less. A few defaulted on their financial obligations. And their moves to raise capital met with far higher obstacles than in the past. This has consequently called into question the sustainability of their business models.
We believe that the GCC countries will continue to be net exporters of capital in the medium term, thanks to high oil prices that prevailed over the past five years and that we expect will likely remain high in the future. A substantial portion of this oil money will likely continue to find its way to local, government-sponsored projects and to global investment banks offering solutions for wealth management; we think the remainder will likely still flow to smaller investment companies in the Gulf.
"But in the short term, we see some major hurdles for Gulf investment companies to overcome on the potential road to recovery. These consist essentially in corrective measures that are, in our view, necessary to enable these companies to enhance the maturity profiles of their funding bases and reduce their leverage, as a means to prepare for better days, " said Mr. Damak.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com
Source: Standard & Poors
Saudi GDP to rise 4% in 2010
June 28, 2010--Saudi Arabia's Samba Financial Group has said that real GDP and the non-oil sector in the kingdom will grow by 4% this year as oil production increases, while inflation will stabilise at an annual average of 5%, Reuters has reported.
"The recovery in economic activity is gathering pace, with renewed strength in corporate finance flows," economists at Samba Financial Group said in a report.
Source: AME Info
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