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Abu Dhabi bourse edges up by 0.32% on strong developers
April 18, 2012--The ADX General Index consolidated above 2,500 points Wednesday, closing at 2,513.
Real estate firms Eshraq (up over six percent) Aldar (1.80% higher) and Sorouh (gaining 0.90%) helped the gauge to add value. Banks also gained overall, while First Gulf Bank (down 0.21%) and Abu Dhabi Islami Bank (off 1.86%) failed to follow. Fourteen stock advanced, while seven declined and nine ended flat. Some 45m shares were traded, valued at Dhs66m.
Emaar Properties on the rise, while Dubai market remains sluggish
April 18, 2012--The DFM General Index closed at 1,642 (off 0.39%) Wednesday, as losses at Tamweel (down 9.50%) and Arabtec (3.34% lower) weighed on the gauge.
Market bellwether Emaar bucked the trend, closing 1.90% higher at Dhs3.21. Some 242.6m shares were traded, valued at Dhs308m.
Kuwait Stock Exchange gains half a percentage point on real estate firms, industrials
April 18, 2012--The KSE Market Index added 0.49% on Wednesday, ending at 6,268. Al-Aman Investment Co. advanced the most (up 9.6%).
The country's largest lender National Bank of Kuwait fell 1.8% to KD1.060. According to the IIF's GCC outlook released earlier today, "in Kuwait, the banking portfolio is highly exposed to real estate and investment companies, which have proliferated in recent years without adequate controls. The stressed domestic investment companies have put strains on the banking sector during the current crisis." Pearl of Kuwait Real Estate Co. posted the largest decline (down 12.3%).
Bullish first quarter results boost Saudi Telecom share price
April 18, 2012--The Riyadh-based Tadawul All Share Index added 0.03% Wednesday, closing at 7,513.85 points.
Market leader Sabic dipped a quarter percentage point and finished at SR102. Saudi Telecom Company or STC soared 2.50% to reach SR41.20. Earlier in the day, STC revealed its net income during the 1st quarter amounted to SR2.52bn compared to SR1.57bn for the corresponding quarter last year, with an increase of 60%, and compared to SR2.34bn for the immediately prior quarter, with an increase of 8% as per the audited annual financial statements. STC commented on the Q1 report: "The increase in net income for the first quarter of 2012 compared to the same period last year is attributed to the 12% increase in operating revenue which came as a result to the growth in all of the group services revenue, PSTN, ALJAWAL (mobile), Business sector and Wholesales." STC also claimed that "the overall improvement in operations efficiency have contributed to this increase." Since January 1, STC shares advanced by 21%, outperforming the market gauge Tasi (up 17.08% year-to-date).
Bahrain Bourse outperforms GCC indexes as IIF forecasts 'brighter prospects in 2012'
April 18, 2012--Bahrain: The Bahrain All Share Index advanced the most in the GCC Wednesday, closing 0.84% higher at 1,153.68. Aluminium Bahrain posted the largest gain in Manama, ending up 3.50% at BD0.595.
Earlier in the day, the Institute of International Finance or IIF said in its outlook report for the GCC, that due to unrest growth in Bahrain slowed to 2.2% in 2011, down from 4.5% in 2012. Looking ahead, the IIF added that "prospects for 2012 and 2013 are brighter, although continued simmering unrest and isolated outbreaks of violence suggest that growth is unlikely to return to levels in excess of 5% per year that were the norm before 2009. There are, however, some encouraging signs.". These encouraging signs are, according to the IIF: "The restoration of the F1 Grand Prix this year will provide a significant boost, both to economic activity as well as confidence, disbursements from the GCC Fund (set up last year to help Bahrain and Oman) will stimulate construction spending, and high oil prices and increased production will buoy government spending." As a result, the IIF expects growth in the Kingdom to rise to 3.3% in 2012, accelerating to about 4.6% next year as the recovery takes hold.
Saudi Arabia: Financial System Stability Assessment -Update
April 18, 2012--EXECUTIVE SUMMARY--Findings
Saudi Arabia confronted the global financial crisis from a position of strength. In the years before the crisis, the authorities strengthened the balance sheet of the government and
enhanced the financial sector's resilience.
The available fiscal space allowed the authorities to substantially reduce the impact of the crisis. The initial effect of the recent political
instability in the region has also been contained.
The authorities have made progress in implementing the 2004 FSAP recommendations.
In particular, they have taken numerous and substantial steps to strengthen the regulation and supervision of banks and securities activities.
The banking sector as a whole is well capitalized and appears able to withstand severe temporary shocks, but could be vulnerable to a large and prolonged oil price decline.
The aggregate solvency ratio remains above 8 percent for almost all of the individual shocks considered. However, the system could be vulnerable to a prolonged and deep oil price decline, especially if it were accompanied by a slowdown in domestic economic activity.
Although this would leave the banking system insolvent, the cost of recapitalization would be modest in macroeconomic terms.
view IMF Country report-Saudi Arabia: Financial System Stability Assessment- Update
Saudi bond sales hit record this year
April 17, 2012--Saudi Arabia: EFG-Hermes Holding has said sukuk sales in Saudi Arabia rose to a record this year, as the government's $500bn spending plan encourages companies to raise funds to invest,
Bloomberg has reported. Islamic bond offerings jumped to $6.55bn so far in 2012, about 77% of the Gulf region's total issuance and the most since 2003. The kingdom's General Authority of Civil Aviation was the Gulf's top bond issuer this year to help finance an airport in the Red Sea port city of Jeddah. "Over the last six to 12 months, economic activity has picked up and the government has stepped back a little from funding the projects directly because there is significant appetite to fill up that space," said EFG-Hermes analyst, Murad Ansari .
Saudi Arabia' Mobily advances as first quarter net profit jumps 21% year-on-year
April 17, 2012--The Saudi Stock Exchange's market index Tasi slipped 0.96% to 7,277.89 points Monday.
Market breadth improved slightly as 24 stocks gained and 117 declined. Shares of telecom provider Etihad Etisalat, known as Mobily, surged 1.15% to reach SR66.00. Mobily said its net income for the first quarter 2012 amounted to SR1.2bn, as compared to SR998m for the same period last year, with a growth of 21% and a decline of 29% over Q4 2011. Mobily added in the statement to the Tadawul bourse: "It should be noted that the results of the last quarter of the year are usually better than those of the first quarter of the year, as the fourth quarter coincides with the Hajj (main pilgrimage) season and other year-end events. Thus, for the sake of a fair comparison, showing the evolution of the company's financial performance, the results of the first quarter of 2012 should be compared with the same quarter of the previous year."
Dubai bourse decline halted, helped by Nakheel, Sabic figures and EU markets
April 17, 2012--The Dubai Financial Market General Index (DFMGI) ended roller coaster Tuesday flat at 1,649.14 points.
While market heavyweights Arabtec Construction (up 2.44%) and DFM (0.88% higher), the only listed Arab bourse, rebounded, bellwether Emaar Properties slipped 0.32%. Positive news from Dubai's state-owned developer Nakheel, which reported a 33% profit increase for 2011, and from Saudi petrochem giant Sabic, which reported earlier today a 39% quarter-on-quarter profit jump, helped the DFM to end a three-day long index decline. The slight rebound at European markets on early Tuesday also improved the sentiment. Twelve shares advanced, 16 declined and two securities finished flat. Trading turnover remained muted, as 134m stocks were traded, valued at Dhs202m.
Etisalat pushes Abu Dhabi market index back above 2,500 points
April 17, 2012--The ADX General Index closed 0.23% higher at 2,505.43 Tuesday.
Market bellwether Etisalat, the UAE's first telco firm, edged 1.27% higher. Investors at GCC market were keen on adding telco shares after Saudi Arabia's Mobily reported a 21% year-onyear jump in net profits. Abu Dhabi's largest real estate developer Aldar Properties fell 0.90%. Earlier in the day, Aldar announced it signed up for a Dhs4bn revolving credit facility with National Bank of Abu Dhabi or NBAD.
