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Kuwait hires HSBC to assist with stock exchange privatisation
January 23, 2012--The government of Kuwait has hired HSBC Holdings to help with the privatisation of the country's stock exchange, and set up a new company that will own and operate the third-biggest bourse by market capitalisation in the Arabian Gulf, Bloomberg has reported. The government plans to sell 50% of the exchange to listed companies and the remainder to Kuwaitis in an initial public offering.
Currently, Dubai's stock exchange is the only publicly traded Gulf Arab stock market. The Kuwait exchange has been regulated since March 2011 by the CMA, the country's first stock-market regulator.
Dubai Gold & Commodities Exchange Weekly Market Commentary
January 22, 2012--Economic Data Overview
The highlight of the US economic data releases for the coming week will probably be the preliminary numbers for fourth quarter GDP on Friday.
Decent consumer spending, modest inventory building, higher net exports, and an improved residential housing market combined to increase the pace of growth as 2011 came to a close. While there are already doubts that it will signal significant upward momentum as the first quarter 2012 gets under way, it will still be a stronger number in a long string of lacklustre data.
The December numbers for new orders for durable goods on Thursday is likely to be quite strong, but it will be largely attributable to a massive increase in new orders at Boeing that will boost the transportation component for a second month. The underlying trend is for higher new orders for durable goods, and the ex-transportation reading should be for modest growth.
The Richmond Fed's Survey of Manufacturing on Tuesday should add to the perception that the factory sector retains some strength at the start of 2012. The general activity index in the reports from the New York and Philadelphia Feds both suggest that expansion continued at a moderate pace in January.
The Conference Board's Leading Economic Index for December on Thursday will include a number of methodological changes, and there will be revisions in the data. Nonetheless, the overall trend of gains should remain intact, and indicate that the recovery continues at a moderate pace.
The final reading of the Reuters/University of Michigan Consumer Sentiment Index for January on Friday could show some revision to the 74.0 in the preliminary report. Weekly measures of confidence suggest that it will be small. Although gasoline prices are on the rise, food prices have moderated. Conditions in the labor market are somewhat better. On balance, consumers remain quite cautious by historical standards, but are regaining some optimism in the near-term.
The BLS will report on state and regional unemployment in December on Tuesday, and mass layoff activity in December on Wednesday. In the former report, we will get some detail of where the declines in the national unemployment rate occurred. In the latter, we should get confirmation that large scale layoffs were less than usual at year-end.
The FOMC meets on Tuesday and Wednesday
Kuwait bourse ends a strong week unchanged
January 19, 2012--The KSE Market Index closed even at 5,798.5 points Thursday, but the Northern Gulf state's gauge added 0.90% during the week, the highest advance in the GCC.
Gulf Franchising Holding gained the most (up 11% at KD0.020). Kuwait Insurance Co. posted the largest day loss (off 6.6% at KD0.280).
Qatar Exchange measure loses the third day straight as banks take a beating
January 19, 2012--The Doha-based QE Index fell 1.1% to 8,461.77 points. Qatar Islamic Bank or QIB led the list of the financial losers Thursday, ending 3.14% lower at QR80.30, while Doha Bank dived 2.9% to QR63.
Earlier in the day, both lenders reported interim results for 2011. QIB reported a preliminary net profit of QR1.3bn in 2011, an 8% increase compared to the year before, but Q4 profits plummeted by a third. Doha Bank revealed a net profit of QR1.24bn in 2011 versus QR1bn in 2010. In late 2011, Doha Bank announced it considers acquisitions in emerging market countries. Both results, of QIB and Doha Bank, missed analysts' forecasts, according to Bloomberg.
Aldar, Dana Gas push Abu Dhabi gauge slightly higher
January 19, 2012--The ADX General Index (ADXGI) added 0.20% Thursday, finishing at 2,336.98 points. During the week the ADXGI dipped by around 28 points.
Dana Gas edged 2.70% higher as investors continued to regain trust in the Sharjah-based energy firm after it announced Tuesday it has hired an advisory firm on how to deal a Dhs3.38bn ($920m) convertible sukuk which expires in October later this year. Real estate bellwether Aldar Properties added 1.20%, closing at Dhs0.82. Meanwhile, the management of the ADX denied claims made by some media, that Israeli hackers had launched a successful cyber attack on the ADX website. Some 65.4m shares were traded, valued at Dhs54.9m.
Trading volumes pick up at Dubai Financial Market (DFM)
January 19, 2012--The DFM General Index (DFMGI) lost a quarter per cent Thursday, closing at 1,327.75 points, driven by a fall in bellwether Emaar Properties (down 0.40% at Dhs2.45).
The DFMGI currently fluctuates around the mid-Bollinger Bands. Bollinger Bands are a chart technical overlay based on the 20-day moving average of a share or index chart. Shares of Air Arabia added 0.34% to reach Dhs0.582. Earlier in the week, Air Arabia announced it completed its first indoor maintenance of an Airbus A320 aircraft. Air Arabia started operations in October 2003. The Sharjah-based low-cost carrier currently operates a total fleet of 29 new Airbus A320 aircraft, serving 70 routes from three hubs in UAE, Morocco and Egypt. Trading volumes increased 15% today, as 116.1m stocks were traded, valued at Dhs91.6m.
Egypt prepares Islamic bond issue
January 19, 2012--Egypt: Egypt is preparing for a debut sovereign Islamic bond, after the government has been forced to rely on local banks for funds in the wake of last year's popular revolt, Reuters has reported, citing a person familiar with the matter. "Egypt is preparing one," he said.
"But the government is studying a new legal structure that will allow them to issue a sovereign sukuk. They're working on both at the same time." Analysts say Egypt is in desperate need of international support to avert a financial crisis, but any agreement is unlikely to prevent a drop in its currency or see any quick revival of the investment needed to fuel growth. [AMEInfo.com]
Sabic shares drop to seven-week low after quarterly results miss forecasts
January 18, 2012--Sabic, Saudi Arabia's first petrochemical and metals producer, fell 0.27% to SR91.75 Wednesday.
On Tuesday, Sabic reported it achieved a net profit of SR5.24bn in the fourth quarter 2011, compared with SR5.81bn in the same period the year before. According to Reuters Thomson, Sabic missed analysts' forecasts.
Fourth quarter profit increase drives Saudi Industrial Development Co. share higher
January 18, 2012--The Saudi Tadawul gauge closed 0.13% higher at 6,377.99 points Wednesday, although market bellwether Sabic (Saudi Basix Industries Corporation) slipped 0.27% to SR91.75, hitting a seven-week low. Saudi Industrial Development Company or SIDC jumped 3.44% higher to reach SR19.50. Earlier in the day, SIDC announced that its net profit during the fourth quarter reached SR2.9m compared to net loss of SR10.3m for the same quarter last year.
Net profit during the period of twelve months reached SR24.8m compared to net profit of 100.6m for the corresponding period of previous year, a decrease of 75.3%. SIDC commented on the results: "The reason for increase of company's profit in the fourth quarter of 2011 compared to previous year was due to increase of sales, decrease of operating expenses and low burden zakat. The reason for decrease in net profit for the twelve months compared to the corresponding period of the previous year was to achieve company's net capital gains by SR101.7m during the twelve months of 2010 resulting from the sale of its investments in (petrochemical company) Yansab."
Qatar Exchange remains in stutter mode, gauge falls below 8,600 points
January 18, 2012--The QE Index declined half a per cent to 8,555.22 points. Shares lost across all sectors, with insurances underperforming in particular.
Bellwether Industries Qatar fell 1.30%, while the Gulf state's largest lender Qatar National Bank or QNB dipped 0.14%. Earlier in the day, QNB announced it has signed a partnership agreement for the Morocco-based Union Marocaine des Banques (UMB), with plans to acquire a majority stake of its capital.
