Middle East ETF News Older than One Year
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.
Source: AME Info
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.
Source: AME Info
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.
Source: DGCX
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.
Source: Dubai Gold And Commodities Exchange (DGCX)
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.
Source: AME Info
Qatar Exchange adds 0.75%
June 10, 2010-Prices and turnover were slightly up in Dubai, with the QE Index ending 0.75% higher at 6,853.63 points. Industries Qatar posted the largest gain, up 5.02% at QR102.10.
Qatar Islamic Bank (QIB)added 0.28% and finished at QR70.70. QIB's London-based subsidiary, European Finance House (EFH)'s Liquidity Subfund received a rating of 'AAf' in fund credit quality and 'S1+' in fund volatility from the Standard and Poor Ratings Service. 19 shares advanced, 10 declined and 8 shares ended flat in Doha.
Source: AME Info
Dubai Market ends the week positively
June 10, 2010--With a plus of 0.10% and an advance decline ratio of 14 to 10 (three shares ended flat), the DFM Index closed the week at 1,514.23 points. District cooling specialist Tabreed rebounded 3.67% and finished at Dhs0.367. Tabreed is currently in talks with its creditor banks to restructure Dhs5.4bn in debt.
End of May, shareholders gave approval for Tabreed, whose stocks declined by 44.44% in the last six months, to raise up to Dhs4.2bn in bonds or Sukuk. Weak performing banks weighed in the DFM, with Dubai Islamic Bank posting one of the largest losses among them (down one percent at Dhs2.00).
Source: AME Info
Bahrain bourse remains at 6-month low
June 10, 2010--The Bahrain All Share Index closed 0.74% lower at 1,411.61 points.
Not a single sector indec managed to gain ground. Islamic bank Ithmaar advanced four per cent to $0.130, rebounding from a year-low which it touched on Wednesday.
Sourcfe: AME Info
FX futures manage volatility and provide exposure to commodity economies
June 9, 2010--FX futures, such as the Australian and Canadian Dollar serve as a good proxy for exposure to a range of commodities, given the strong correlation, said John Anderson, Acting Head, School of Finance & Banking, The British University, at a seminar organised by the Dubai Gold & Commodities Exchange (DGCX).
John Anderson was addressing members, institutions and private investors at the seminar, held as a prelude to the upcoming launch of DGCX’s new currency futures contracts. Speaking on ‘FX Futures Trading Techniques & Strategies’, Anderson said that an Australian Dollar futures product, allows participants to not only tap into trends in commodities, but as with other FX futures, also gain exposure to world economies and interest rates.
Citing examples, Anderson said the Australian Dollar and the Canadian Dollar often move closely with world commodity prices, given the strong focus on export of commodities by these economies.
The new DGCX currency contracts – Australian Dollar/US Dollar, Canadian Dollar/US Dollar and Swiss Franc/US Dollar – will go live on June 15, 2010 marking a significant expansion of the exchange’s currency portfolio. DGCX currently offers Euro/US Dollar, Sterling/US Dollar, Yen/US Dollar and Indian Rupee/US Dollar futures contracts. Year to date currency volume on DGCX has increased by 132%.
Source: Dubai Gold & Commodities Exchange (DGCX)
IMF increases Lebanon growth forecast to 8%
"Lebanon is reaping the benefits of improved domestic stability and prudent policies," IMF mission chief, Andreas Bauer told a press conference. "The economy is still very strong and the momentum is carrying on."
Source: AME Info
June 9, 2010-The economic growth forecast for Lebanon has been raised by the International Monetary Fund (IMF) to at least 8% from a previous estimate of 6%, Reuters has reported.
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