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Regional M&A deal values drop by 59% in Q1 2010 over Q1 2009
June 15, 2010--However, deal value climbs by 30% in Q1 2010 over Q4 2009
Egypt, Saudi Arabia, Qatar, and Jordan saw the highest number of domestic deals announced in Q1 2010
Banking and Real Estate dominate domestic deals by announced deal value in Q1 2010
Dubai 15 June 2010: Mergers & Acquisitions (M&A) deal values announced in the Middle East and North Africa (MENA) region dropped by 59% to US$6.5Bn in Q1 2010 compared to deals worth US$15.8Bn announced in Q1 2009. According to Ernst & Young's MENA M&A update, the number of announced deals dropped by 16% from 91 in Q1 2009 to 76 in Q1 of this year.
But there were improvements over the previous quarter
The total number of M&A announced deals in Q1 2010 increased by six, from 70 announced deals in Q4 2009 to 76, while announced deal value jumped by 30% from US$5Bn in Q4 2009 to US$6.5Bn in Q1 2010.
Egypt, Saudi Arabia, Qatar and Jordan are the most active
Egypt (10 deals), followed by Saudi Arabia (8 deals), Qatar and Jordan (each with 4 deals) are the key target countries for domestic deals announced in Q1 2010 in terms of the number of transactions.
In terms of total disclosed deal value in the region, Qatar attracted 39% of M&A activity with deals valued at US$1,083.5Mn, followed by Lebanon with US$450Mn and Saudi Arabia with US$381.4Mn.
Kuwait bank shares buck index decline
June 15, 2010--The Kuwait Stock Exchange (KSE) closed at 6,528.60 points (down 0.38%) on Tuesday. The KSE bank index was the only industry sector which added value (up 0.86%).
Financial services bellwether National Bank of Kuwait (NBK) ended 1.72% higher at KD1.180. Commercial Bank of Kuwait (CBK), the number five in the northern Gulf state, jumped 4.65% and finished at KD0.900. Al-Themar International Holding Company posted the largest loss, plummeting 8.5% at KD0.108.
Energy stocks pull Abu Dhabi index down
June 15, 2010--The ADX General Index dropped 0.65% lower, closing at 2,510.69 points. Dana Gas plummeted 6.06% down to Dhs0.62. Abu Dhabi National Energy Company, dubbed Taqa, ended 0.93%, closing at Dhs1.08. Around 9% of the world's proven oil reserves are located in Abu Dhabi.
Real e state firms also underperformed on Tuesday. Abu Dhabi National Insurance Group (ADNIC) bucked the trends, jumping 10% and closing at Dhs6.60. Ras Al Khaima Ceramic, the world's largest ceramic producer form the emirate of Ras al-Khaima, finished 5.88% higher at Dhs1.44.
Qatar market hit by profit taking
June 15, 2010--Advances from earlier this week were stopped at the Qatar Exchange (QE), ending 0.61% lower at 6.981.79 points. Qatar National Bank (QNB) lost insignificantly and closed at QR136.90. Qatar National Bank (QNB), following a detailed compliance audit, has been certified against the global ISO 27001:2005 standard by Bureau Veritas, which issues international ISO-standard certifications.
This makes QNB the first bank in Qatar to have its disaster recovery operations certified. Barwa Real Estate was the most liquid share, losing 0.33% at QR29.70. According to Credit Suisse-analyst Mohamad Hawa, Qatar was a preferred market in the GCC due to its high economic growth.
Dubai bourse almost drops below 1,500 points
June 15, 2010--The step by step-crash continued at the Dubai Financial Market (DFM). Its main index lost 1.31%, closing at a 12-month low at 1,502.69 points. The DFM share ended 1.95% lower at Dhs1.51. Islamic bank Ajman Bank was the only share gaining value (up 1.33% at Dhs0.76), as 23 stocks weakened.
Ajman Bank yesterday announced that it has formed a strategic partnership with Al Futtaim GE, as Commercial Vehicle Finance providers. Gulf Navigation Holdings finished flat at Dhs0.55. The maritime services firm announced today that Gulf Mizhar Shipping Inc., its wholly owned subsidiary, has received full payment along with interest from SLS Shipbuilding Co. Ltd of Tongyeong, Korea in respect to the termination of the new building contract relating to a chemical tanker vessel bearing hull for $35m, bringing the total amount received in excess of $70m. Turnover was up at the DFM 22% with Dhs138.94m value traded. Volumes declined by 5% as some 84.15m stocks changed hands.
Moody's: Arabian Gulf corporates face challenge of 2012 'Wall of Maturity'
June 14, 2010--The credit environment for corporate issuers in the GCC region will remain challenging, especially for selected vulnerable corporate issuers that need to address significant debt maturities by 2012, says Moody's Investors Service in a new report on the GCC corporate sector.
"The 2012 wall of maturing debt poses a major challenge for GCC corporate as $28bn worth of debt -- nearly one fifth of an estimated $145bn of total debt outstanding -- will mature that year," explains Martin Kohlhase, Assistant Vice President-Analyst at Moody's Middle East in Dubai.
The majority of this maturing debt is held by entities based in Dubai and Abu Dhabi, especially investment holding companies and real estate developers and related companies.
"Moody's notes the apparent lack of a catalyst that could stabilise the credit environment in the region," says Mr. Kohlhase. A stabilisation would require a number of soft and hard factors to come into play.
Lebanon expects debt to be cut
June 14, 2010--Lebanese central bank governor, Riad Salameh has said the country's fourth year of strong economic growth should reduce public debt to 139% of gross domestic product, down from about 147%, Bloomberg has reported.
Our main focus is going to be on getting the government to reduce the country's debt, of which 60% is held in Lebanese pounds and 40% in dollars," he told the news service. Lebanon is expected to see a growth of around 8% in 2010, he added.
New DGCX currency futures contracts launching on June 15th, 2010
June 14, 2010--On June 15th, 2010, DGCX is introducing three new currency futures contracts; the Australian Dollar (AUD), Canadian Dollar (CAD) and Swiss Franc (CHF), all paired to the US Dollar.
DGCX is the only regulated exchange in the Middle East which currently offers currency futures trading and clearing.
The exchange lists the world’s six top traded currencies, as well as the only Indian Rupee futures contract outside of India. The new DGCX currency futures are well suited to both short and long-term trading strategies and provide investors with more opportunities to trade FX from the advantageous tax environment of Dubai.
Dubai Gold And Commodities Exchange Weekly Views-June 13, 2010
June 13, 2010--Commodities Overview
Gold continues to signal that investors are concerned about European sovereign debt issues, and the potential that these problems could derail global economic recovery. There is concern that the recovery could be halted and that the world could return to recessionary conditions due to the credit constraints and lack of investor confidence brought on by the European governments’ debt and deficit issues.
The European situation has driven home to investors that the euro does not have the international stature of the U.S. dollar, and that no real alternative currency yet exists. Thus, investors are held captive by the dollar. As much as the U.S. Treasury may have lost stature in recent years around the world, it still is seen as more credible than the European network of central banks and finance ministries. Thus, investors are turning to gold and silver, as a hedge against currencies in general. Investors, including institutional managers, will continue to add gold to their portfolios
Currencies Overview
Currency market volatility may lighten this week after several weeks of heightened activity. The euro continued its strong declines early last week, but by the middle of the week had recovered as investor sentiment improved over euro zone sovereign debt problems. Recovering equity values in developed economies bolstered investor confidence, providing a boost to developing economy equity markets. Last week better than expected data for China, Japan, and India provided additional positive investor sentiment, but was weighed down by weaker than anticipated economic figures for the United Kingdom and the United States. Monetary policy officials in developed economies meanwhile tried to convey confidence in financial markets, and economic developments and prospects. Currency market volatility may be reduced this week, but could quickly surge on shifting investor sentiment. The euro is likely to face continued selling pressure, while safe have currencies remain supported by ongoing concerns over financial markets, economic conditions, and political stresses. Euro zone sovereign debt and deficit problems should be expected to remain in the spotlight in the near to medium term.
Too soon to relax at Kuwait market
June 10, 2010-The Kuwait stock market KSE failed to extend its modest gain from yesterday and ended 0.44% lower at 6,639.8 points (price index).
The insurance sector index (up 0.12%) was the only segment which rose while weak industrials (off 0.78%) underperformed the main index. International Financial Advisors (IFA) advanced 3.27%, closing at KD0.063.
