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NASDAQ Dubai routes trading via DFM platform
July 11, 2010--NASDAQ Dubai today started trading of all its listed equities through the trading platform of Dubai Financial Market (DFM) in a bid to boost the number of shares changing hands. The move, under preparation since December 2009, is part of a consolidation between the two exchanges that is unique in the Gulf Cooperation countries that comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
Clearing, settlement and custody functions for NASDAQ Dubai equities also migrated to DFM''s systems today, under an outsourcing structure which is designed to substantially increase liquidity on NASDAQ Dubai in due course.
In May 2010, DFM acquired two thirds of the shares of NASDAQ Dubai through an acquisition of shares from Borse Dubai and NASDAQ OMX, the international exchange group. Jeff Singer, Chief Executive of NASDAQ Dubai, said: "This new structure brings together more than half a million individual investors on DFM with NASDAQ Dubai''s institutional investors, many of them based outside the region.
It positions Dubai as a leading international capital markets hub, providing investors with excellent liquidity and issuers with a choice of regulatory frameworks." NASDAQ Dubai remains a separate exchange regulated to international standards by Dubai Financial Services Authority (DFSA), which gave approval for the outsourcing last week.
DFM is regulated by the UAE''s Securities and Commodities Authority. NASDAQ Dubai remains a separate company inside the Dubai International Financial Centre (DIFC).
It retains its own legal framework, listing rules and Members. Essa Kazim, Managing Director and Chief Executive Officer of DFM, said: "Cooperation between the two exchanges will increase, driving the expansion of Dubai as a centre of capital markets dynamism and innovation.
Today''s outsourcing is a major step for us and the region. "Through these growing links, DFM gains a wider array of product offerings and international expertise, while NASDAQ Dubai benefits from DFM''s high liquidity and enormous base of over 552,000 investors.
" DFM and NASDAQ Dubai equities are now displayed together on the DFM website www.dfm.
ae. NASDAQ Dubai equities also continue to be displayed separately on the NASDAQ Dubai website www.
Dubai Gold And Commodities Exchange Weekly Views
July 11, 2010--Commodities Overview
This week commodities prices could move sideways in a more volatile range than last week. Gold, silver, and crude oil in particular may test highs and lows this week, as investors, speculators, and traders battle to see which direction has the most power.
This week, the battle may be contained within recent ranges. Oil might bounce between $72 and $75 per barrel, basis WTI, while gold might test the lows around $1,185 and $1,215 - $1,220 on the high side. Silver may have a one-dollar trading range. While these ranges may contain these three main commodities this week, each of them has the capacity to break out of these ranges on short notice. At this point, it seems that there is a greater likelihood that prices break out on the high side of recent ranges than fall below them, for gold, silver and petroleum at least.
Currencies Overview
Currency markets may trade largely sideways this week, continuing the overall pattern of the past few weeks. Investors are relatively balanced in their views toward the major traded currencies at present. They both like and dislike the economic prospects across the industrialized economies in roughly equal amounts. In light of this, the consensus view is to try to balance one’s portfolio across these markets, and to hedge the entire exposure to the industrialized economies with increased investments in India and other emerging economies. There is a view that the U.S. economy may be somewhat stronger than economic prospects in Europe and Japan, but not so much stronger as to warrant further sharp appreciations of the dollar against these currencies at this time. Meanwhile, reduced investor anxiety over
Kuwait market dips 0.28%
July 8, 2010--Closing 0.28% lower at 6,430.9 points, the KSE Index was the only composite in the GCC which lost on Thursday.
Shares of United Gulf Bank (UGB) extended its decline, finishing 8.2% lower at KD0.280. During the first week of July, UGB shares were almost reduced by the same value they gained in June.
Qatari bourse eyes 7,000 points level
July 8, 2010--The Doha-located Qatar Exchange (QE) continued its step-by-step tactics and climbed 0.42% higher at 6,910.18 points. Real estate leader United Development Company (UDC) surged 2.14%, finishing at QR24.20.
Barwa Real Estate Company (unchanged at QR29.20) announced that Barwa City Real Estate Company, a 100% owned subsidiary shall enter, subject to the fulfillment of certain conditions, into a Murabaha financing, with Qatari Diar Finance a 100% owned subsidiary of Qatari Diar Real Estate Investment Company Barwa City shall, in turn, enter into Sharia compliant financing arrangements with Barwa Financial District WLL and Barwa Commercial Avenue Company WLL. Under a Murabaha financing a bank or financier buys a good and resells it to the customer on a higher price which the client then pays back on equal installments during a predefined period in order to avoid the under Sharia forbidden payment of interest.
Abu Dhabi bank shares fickle
July 7, 2010--After two flat trading days, the ADX General Index showed some forms of a revival and closed 0.24% higher at 2,528.34 points. First Gulf Bank (FGB) stood 1.05% higher at Dhs14.50 as of the close of trading.
The Abu Dhabi-based bank announced today details of its share buy bank from July 7. FGB bought 1.418m shares of 0.1031% of its total share capital back at a price of Dhs14.20 per stock back. The financial sector market leader National Bank of Abu Dhabi (NBAD) weakened 0.90% at Dhs11.00. NBAD is expected to report earnings for the second quarter on July 27. Credit Suisse research expects a slight quarter-on-quarter decline of 6.2%.
DFM finishes the week on a positive note
July 8, 2010--Driven by positive inputs from the Wall Street and Asia, the Dubai Financial Market (up 1.19% at 1,499.81) points finished the week on a stronger note. Stock markets in East and West surged on Wednesday as a stronger Euro boosted commodity shares.Emaar Properties was the most liquid stock and the top gainer, closing 3.21% higher at Dhs3.22.
Contractor Drake and Scull gained 1.75% (ending at Dhs0.814) benefited from its announcement that it has been awarded an Dhs460m contract for the complete Mechanical, Electrical and Plumbing (MEP) works for the Information Technology and Communications Centre (ITCC) project in Riyadh, its second major contract in the Kingdom. DSI will be undertaking this project in a joint-venture with KSA's Al Zamil Group. Traded value surged 70% to Dhs126.32m and volumes climbed 36% to 78.48m stocks changing hands. The DFM added over the first week of July 0.88%.
Bahrain Reports Real GDP Growth of 70% in Last Decade
EDB Economic Review Forecasts Real GDP Growth of 7.2% in 2015
July 8, 2010--Bahrain enjoyed real GDP growth of 70 percent over the past decade according to a report out this week from the Kingdom’s Economic Development Board (EDB). This represents a sustainable growth rate in real GDP of more than six percent year-on-year.
The EDB’s first Annual Economic Review details Bahrain’s economic performance over the past decade and forecasts continued, sustainable growth over the coming ten years. In addition to the 70 percent GDP growth, exports increased 116 percent, Bahraini employment rose by 39 percent and Bahraini wages increased 54 percent.
From 2005 to 2008, Bahrain also achieved the highest amount of foreign economic investment as a proportion of nominal GDP among the six nations of the Gulf Cooperation Council (GCC) at around 35 percent. Real GDP is forecast to continue to grow sustainably with a four percent expansion in 2010, rising to 7.2 percent in 2015.
Whilst Bahrain’s economic expansion was against the backdrop of global economic growth, Shaikh Mohammed bin Essa Al Khalifa, Chief Executive of the EDB, believes the figures reflect the success of economic reforms. The measures – implemented under the guidance of His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince of Bahrain and Chairman of the EDB – have helped to build an open economy based on ethical values, he said.
“In Bahrain, our economic growth has been consistently strong, with a real average growth rate of over six percent during the last decade. Prudent economic reform has played a key role in strengthening the long term prosperity of the Kingdom. Our plan has always been about building sustainable growth through a sound and flexible economic and fiscal policy and diversified economy, with an emphasis on transparent, sound regulation.
“In today’s world, our ongoing reform programme – driven by Vision 2030 – is helping us to deliver sustainable prosperity by making the private sector the engine of growth and creating the optimum business environment for international companies looking to access the trillion dollar market of the Gulf.”
The five years to the end of 2008 were of particularly strong growth for Bahrain. Output in the finance sector nearly doubled and at the end of the period accounted for over one quarter of output, compared to less than a fifth five years previously. Manufacturing output improved 80 percent, while the education services, tourism and logistics sectors also grew. Today, the Kingdom is recognised as the most diversified economy in the Gulf and is ranked in the top 20 globally in the World Bank’s Doing Business Report.
Although Bahrain’s growth slowed during 2008 and 2009 as a result of the global economic downturn, the Kingdom avoided the worst of the recession apparent in Europe and North America. Bahrain’s success in continuing to expand during the sharpest global downturn in well over half a century is further testament to the strength of the economy and the value of the extensive reforms undertaken in the preceding decade, Shaikh Mohammed added.
Thomson Reuters report: Middle East investment banking sector shows strong start in 2010
July 7, 2010--The Middle Eastern Investment Banking Industry continues to grow with second quarter activity contributing to an impressive overall first half of 2010. The analysis, compiled by Thomson Reuters, shows that although the second quarter activity was at a lower level than the first quarter, there is still a strong foundation for which to build on for the remainder of 2010.
Analysis of the Thomson Reuters Middle East Investment Banking data for the first half of 2010 shows that:
The volume of Middle East targeted M&A in Q2 dropped 70% on Q1 2010, but contributed to a H1 that reached US$11.7bn - the busiest start to a year since 2008.
Investment banking and adviser fees reached $247m during Q2 contributing to $429m for H1 2010 - up 19% year on year.
Middle Eastern debt issuance reached $5.6bn during Q2, driven by the Financials, Governments/Agencies, and Telecommunications sectors.
Equity issuance reached $2.57bn during Q2 to contribute to $5.6bn for H1, resulting in 64% year on year growth.
Loan activity in Q2 was recorded at $3.3bn, down from $9bn during Q1. Despite this, loan activity for H1 reached $12.4bn, a 92% year on year increase.
The analysis shows that M&A fees account for 40.4% of activity during the first half of 2010, with DCM activity accounting for 13% of Middle East fees, in the most active first half since 2007. HSBC holds the top spot in Middle Eastern DCM fee raking for the first half of 2010, with Central Bank of Libya topping the Middle Eastern ECM ranking. Credit Suisse leads the M&A rankings with Standard Chartered leading the Syndicated Loans ranking.
Too soon to relax at Nasdaq Dubai
July 7, 2010--After two days of encouraging advances at the Nasdaq Dubai, the FTSE NASDAQ Dubai UAE 20 Index closed at 1514.460 today, down -26.880, or -1.74%, from the previous close as most regional indices took a dive on Wednesday.
Shares of DP World were the only securities posting a price change, plummeting 3.94% to $0.415.
Dubai market hit by profit booking
July 7, 2010--Ending with 14 decliners and seven gaining shares, the DFM Index failed to sustain its upward momentum from the start of the week and ended 0.86% lower at 1,482.12 points. The DFM share lost 2.67% (finishing at Dhs1.46).
Credit Suisse analyst Mohamad Hawa said yesterday in a statement that the Swiss bank estimates at DFM "a significant (41%) decline in 2Q net income of AED32mn, with total revenues of AED49 mn (based on Q2 total trading value of AED19 bn)." Emirates NBD gained two percent and finished at Dhs2.50. Traded value declined 31% with 74.3m stocks worth changing hands.
