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RAK shares buck Abu Dhabi market dip
July 25, 2011--The ADX slipped 0.89% to 2,663.13 points. Only four shares gained, three of them from companies based in the emirate of Ras al-Khaima. RAK Ceramics gained the most (up 5.71% at Dhs1.85).
Shares of Agthia Group plummeted two percent to Dhs1.96. Earlier in the day, the food and beverage group reported a halfyear profit of Dhs40.33m, down from Dhs54m in the same period last year. Four shares ended flat and 20 declined, among them Aldar Properties (off 0.79% at Dhs1.27) and Abu Dhabi Islamic Bank (down 5.23% at Dhs3.23). Some 35.99m shares were traded, valued at Dhs63.39m.
Strong profit rise lifts Emirates NBD shares
July 25, 2011--The Dubai Financial Market (DFM) General Index closed 0.65% lower at 1,510.58 points.
Emaar Properties shares dived 2.03% to Dhs2.89. Bank Emirates NBD added 1.22% to reach Dhs4.15. Earlier in the day, the Middle East's largest bank in relation to assets reported a 43% higher halfyear net profit of Dhs2.2bn. Earnings per share were up 47% to Dhs0.36. Net profit for the second quarter (Dhs0.7bn) was 85% higher compared to the corresponding period last year. ENBD expanded its private banking division in the first half of 2011. The Network International strategic partnership transaction was completed during Q1 2011, resulting in a one-time gain of Dhs1.8bn. Shares of Dubai Islamic Bank declined one percent to Dhs2.00. Some 52.32m shares were traded, valued at Dhs79.75.
Bahrain and Oman removed from S&P's CreditWatch negative
July 25, 2011--Standard & Poor's Ratings Services has removed Bahrain and Oman from its CreditWatch negative, after the two Gulf countries have taken measures to ease political tensions, Bloomberg has reported.
Bahrain's long- and short-term local and foreign currency sovereign credit ratings were affirmed at 'BBB/A-3' with negative implications, S&P said. Oman's 'A/A-1' long-term and short-term local and foreign currency ratings were affirmed, S&P said.
DGCX to launch Indian Rupee Options Contract in September
July 25, 2011--The Dubai Gold and Commodities Exchange (DGCX) is set to expand its Indian Rupee (INR) product offering with the launch of an INR Options Contract on September 26, 2011. The contract will be the only exchange-traded INR Options product offered to markets outside India.
Eric Hasham, CEO of DGCX said: “The provision of an Indian Rupee Options contract will enable us to build on the exceptional volume growth achieved by our Indian Rupee futures contract over the last 12 months and meet member demand to further strengthen our INR offering".
“DGCX has been working closely with its members and market participants to develop this additional risk management tool. The new options contract is the result of this interaction and feedback process. Our unique new Indian Rupee Options contracts will provide our members with more flexibility to hedge risk and trade in the Indian Rupee in a transparent, regulated and cleared trading environment,” the DGCX CEO further said.
Each DGCX Indian Rupee Options contract represents 2 million Rupees. Prices will be quoted in US Cents per 100 Indian Rupees, with a minimum premium fluctuation of 0.000001 US Dollars per Rupee ($2 per contract). At launch, the October 2011 expiry month will be available to trade.
DGCX will hold workshops on the INR Options contract prior to its launch on 26 September. The dates of these workshops will be announced in due course.
Bahrain "Most Open Economy" in GCC, KPMG Report Says
July 24, 2011--Bahrain's comparative lack of hydrocarbons has lead to its status as one of the Gulf State's most "financially forward-thinking" countries, according to a new KPMG report.
In KPMG's "Succeeding in a Changing World" survey of 1,500 executives across 22 European, Middle Eastern and African countries, Bahrain earned the reputation of "regional trailblazer" with the "GCC's most open economy."
"Having long since realized that it cannot rely on oil and gas exports to ensure its continuing prosperity, the kingdom has strived over the past several decades to diversify its economy away from the extraction of natural resources and towards a more sustainable model of development based on manufacturing and the provision of services, especially finance," the report said.
In fact, the building blocks of Bahrain's economy remain intact despite recent unrest, and investors are optimistic about the country's future, according to the report.
"Going forward, government and regional investments are expected to have an immediate impact on Bahrain's economic recovery," it said.
The report added that Bahrain's expected revision of the national economic strategy will be a vital measure to ensure long-term prosperity. To this end, organizations are reviewing their internal structure to enhance performance efficiency and are concentrating on business performance management.
Compared to other countries, Bahraini executives place a higher weight on mitigating risk throughout organizations at 42 percent versus the average 30 percent. KPMG Fakhro and Bahrain's Head of Advisory Narayanan Ramachandran says this demonstrates Bahrain's "increasing emphasis on corporate governance and financial risk management."
Dubai Gold & Commodities Exchange Weekly Market Commentary-
July 24, 2011-- Economic Data Overview
The July 25 week finishes up with the release of the preliminary US estimate for second quarter GDP on Friday. So far markets expectations are for sluggish growth in line with the first quarter performance. While the data is likely to be disappointing overall, it does put the first half of 2011 in the rear view, and markets will be ready to move on to see how the second half of the year is shaping up. Before Friday arrives, however, there are a number of other reports that will round out the outlook for the housing market, manufacturing, and consumer confidence.
The second quarter earnings season continues with a large number of releases on the calendar. These will include a number of companies in the oil industry, aircraft manufacturers, and some drug and chemical companies. The preliminary estimate of second quarter GDP will be released on Friday. The number will include some assumptions for changes in inventories, net exports, and consumer spending since the available data for the quarter is not complete. Expectations are for growth similar to the anaemic 1.9% pace of the first quarter, albeit with a somewhat different composition for growth. This is a disappointing pace, but markets are prepared for a soft number.
The last monthly reports on consumer confidence in July will be released next week. The Conference Board's Consumer Confidence Index is due on Tuesday, and the final Reuters/University of Michigan Consumer Sentiment Index is at 9:55 ET on Friday (preliminary reading 63.8). Data available so far for July indicates that consumers' outlook took a turn downward at the start of the month. It may have regained some ground as July progressed, but overall should be down compared to June. Initial jobless claims for the week ended July 23 on Thursday should be past any distortions that might have been apparent in the seasonal adjustment factors early in July and the influx of government workers in Minnesota due to a government shutdown. The Employment Cost Index (ECI) for the second quarter on Friday will get lost behind the release of the GDP numbers at the same time. It should be consistent with slow growth in most wages and salaries, and show some moderation in rises in benefits. Data for the manufacturing sector will include the next round of surveys from the Fed District Banks. The Richmond Fed's Manufacturing Survey for July is set for 10:00 ET on Tuesday, and is the most closely watched after the New York and Philadelphia indexes. It tends to lead the other surveys by a month or two. In June, the Richmond general activity index moved back into positive territory after briefly turning negative in May. It will likely confirm..
DGCX Daily Volume Surpasses 20,000 Contracts for the First Time
July 24, 2011--Exchange Trades 20,112 contracts on July 21, valued at US $ 996.12 million
Trading on the Dubai Gold and Commodities Exchange (DGCX) surged to a new daily volume high of 20,112 contracts, valued at US $ 996.12 million on Thursday, July 21, 2011. The new record surpasses the previous best of 19,819 contracts set on July 12, 2011.
DGCX reached its overall highest ever daily total open interest of 16,530 on the July 22, 2011 beating the previous record of 16,257 set on July 21st, 2011. DGCX Indian Rupee futures also achieved its highest daily total open interest of 9,795 on the day.
Kuwait banks lift local stock market
July 21, 2011--The KSE Market Index surged 0.74% to reach 6,077.9 points, as National Bank of Kuwait,
known as NBK, re-captured the level at KD1.200 (up 1.69%) and Gulf Bank of Kuwait (gaining 2% at KD0.500.
Qatar Exchange index knocks at 8,400 points
July 21, 2011--The QE Index ended up 0.06% at 8,393.25 points. A partial recovery in banking and services shares helped the Doha-based market to stabilise.
The country's second largest lender by assets Commercial Bank of Qatar closed 1.12% higher at Dhs0.80. Gulf Warehousing surged 2.25%, finishing at QR34.10. The firms reviewed financial statements for the period ending June 30, 2011 revealed a net profit of QR30.5m in comparison to QR 7.4million for the same period last year.
Sharjah Islamic Bank ends flat despite rise in net profits
July 21, 2011--The Abu Dhabi-based ADX General Index ended up 0.18% at 2,693.27 points.
Sharjah Islamic Bank closed flat at Dhs0.88 after reporting a net profit of Dhs123.3m for the second quarter, up from Dhs118.5m in the same period last year. Shares of National Bank of Abu Dhabi (NBAD), the largest lender in the emirate, posted the highest advance, by climbing 1.81% to Dhs11.35. NBAD's net profit in Q2 was up 2.5%, reaching Dhs1.03bn. Only 21m shares valued at Dhs32.19m were traded.
