OPEC Report March 2010
March 12, 2010--Oil Market Highlights
The OPEC Reference Basket fell by $3.02/b or 4% to reach to $72.99/b in February. The
decline was mainly attributed to growing concern about the economic recovery triggered by sovereign debt issues in the Euro-zone, particularly in Greece.
However, market sentiment changed recently amid more positive economic data and rising equities, which provide support for crude prices as well. Following these developments, the OPEC Reference Basket rose to $77.86/b on 8 March before settling down to $77.38/b on 9 March.
The forecast for the world economy remains unchanged at 3.4% growth for 2010 following a contraction of 0.9% in 2009. Minor revisions were carried out for some economies. In the OECD, the US has been revised down slightly to 2.4% and Japan adjusted higher to 1.3%. In the developing countries, China was revised up to 9.3%. The global economy continues to be mostly supported by the governmental-led stimulus. Concerns remain regarding the level of public debt in almost all OECD regions, record-high unemployment levels across the globe and the ability of China to avoid an overheating
World oil demand is expected to grow by 0.9 mb/d in 2010, following a contraction of 1.4 mb/d in the previous year. This represents an upward revision of 0.1 mb/d from the previous assessment. Oil demand has been highly dependent upon the pace of the global economic recovery. OECD demand is still expected to remain at negative growth around 0.15 mb/d, while non-OECD demand is projected to grow by 1.0 mb/d, driven by China and the Middle East region.
Source: OPEC
Tadawul climbs 0.55%
March 11, 2010--Saudi Arabia's Tadawul All Share Index (Tasi) rose 0.55% to 6,565, with 71 stocks rising and 41 falling.
All sectors ended higher save Insurance, Real Estate Development, and Transport. Alinma Bank, the day's most active stock by value and by volume, climbed 0.78% to SR12.85, while fellow market leader Kingdom Holding gained 2.06% to SR9.75. [
Source: AME Info
Saudi inflation rises
March 11, 2010--Official statistics indicate that Saudi Arabia's annual inflation rate rose to its highest level since June, up from 4.1% in January to 4.6% in February, on rising food costs, Reuters has reported.
Month-on-month, the inflation rate in the world's largest oil exporter, as measured by the cost of living index, stood at 0.5% in February, up from 0.2% in January. The kingdom's index of cost of living rose to 126.1 points in February from 120.6 points a year earlier, the data showed.
Source: AME Info
DFM delays new tick system
March 10, 2010--The Dubai Financial Market has delayed the rollut of its new tick system for shares.
'The introduction of three decimal tick size system on securities with a market value below 1 dirham, which was due on March 11 will be postponed until further notice, in response to brokers' request,' the bourse said in a statement today.
The DFM said brokerage firms had asked for more time to complete their preparations in coordination with vendors.
Source: AME Info
Enhancing Financial Inclusiveness: CGAP, Deutsche Bank, Grameen-Jameel And Islamic Development Bank Partner To Launch ’Islamic Microfinance Challenge 2010’
March 9, 2010--CGAP, Deutsche Bank, Grameen-Jameel and Islamic Development Bank have joined forces to challenge the Islamic microfinance industry to develop new ideas for business models in the Islamic Microfinance Challenge 2010: Innovating Sustainable, Scalable, and Market-Driven Models.
Islamic microfinance has gained some traction over the past few years, with a swift rise in the number of institutions offering microfinance products in compliance with Islamic principles. But the fundamental challenge for the Islamic microfinance industry remains meeting client demand with affordable, authentic, profitable, and market-driven products.
“The competition will identify innovative product and business ideas that fulfill both Islamic and good business criteria, and thus have the potential to become self-sufficient and profitable,” said Alexander Schuetz, Managing Director and Chief Operating Officer for the Middle East and North Africa region of Deutsche Bank. The winner will be awarded with US $100,000 in grant funds to launch a pilot program of their proposed business, which the competition organizers will then showcase to garner further support for the program’s growth and development.
While conventional microfinance institutions (MFIs) have made significant inroads in creating a more inclusive financial system for the poor, many Muslims do not accept conventional microfinance products, on account of their dissonance with Islamic law (Shariah). Islamic finance principles prohibit interest-based contracts, and emphasize risk-sharing and asset-backed transactions.
Saudi Arabia's construction sector achieves 3.9% real growth in 2009
March 9, 2010--Real growth in the construction sector of Saudi Arabia reached 3.9% in 2009 with real estate growing by 1.8% according to a report from the Ministry of Finance.
Sustained government expenditure and continued private sector investments drive new real estate and construction projects across the country.
Source: AME Info
Dubai Financial Market: Three Decimal Tick Size To Be Applied On Securities With A Market Value Below AED 1, As Of March 11th 2010
March 8, 2010--Dubai Financial Market (DFM) announced today it will apply the three decimal Tick Size system only on securities with a market value below AED 1, as of Thursday, March 11th 2010. This will allow investors to trade in these securities with fractions of one Fills.
Meanwhile, the Tick Size will see no change for securities with a market value ranging from AED 1 to AED 10 which will continue to be traded with the unit of 1 Fills. Furthermore, securities with a market value above AED 10, will also continue to be traded with the unit of 5 Fills. It is noteworthy that the Tick Size for the two latter categories will be reviewed in light of the execution of the three decimal fractions on securities below one UAE Dirham.
Source: Dubai Financial Market (DFM)
Dubai Gold And Commodities Exchange Weekly Views March 7, 2010
March 7, 2010--Commodities Overview
Commodities prices have been showing strength in recent weeks. This reflects a combination of continuing investor interest in commodities and increasing fabrication demand. Petroleum prices have moved above their recent range. Prices may not have much further to rise in the near term, but might now trade in a somewhat higher range than has been seen in recent months. Gold and silver prices also rose in recent weeks. Investor buying has been a major factor.
The floor for gold prices may have moved somewhat higher, as investors raise their expectations. Prices may show more strength over the next week, and into late March. Gold continues to benefit from investors seeking to build bullion positions as an alternative asset and safe haven. Other commodities meanwhile are rising as fabrication demand recovers. Investors are keen on commodities, as many have tight balances between supply and demand, and the expectation is that prices will rise as global economic activity recovers. Commodities prices appear to have the capacity to rise in line with an economic recovery.
Currencies Overview
Global economic conditions continue to improve. So, too, do U.S. economic trends. There still are many risks prevalent in the U.S. and global financial markets and economies, but conditions continue to suggest economic recovery is spreading. Events in the European government debt market meanwhile have suggested that Europe may further lag the U.S. recovery. Financial markets showed strong concern that the Grecian debt tragedy could spread to the U.S. and other markets initially, but now have backed away from these views. The view is that the European debt situation is symptomatic of weaker government financial positions in Europe compared to the United States, suggesting U.S. growth may outpace European recovery by an even greater margin than had been expected. This has helped the dollar against the euro and some other currencies.
Source: Dubai Gold And Commodities Exchange (DGCX)
EFG-Hermes releases FY09 results
March 8, 2010--EFG-Hermes, the leading investment bank in the Arab world, today released its full-year 2009 results, reporting total consolidated revenues of EGP1.43bn, a 33.8% drop from the previous year.
EFG Hermes emerged from the market-wide challenges of 2009 as the only true regional investment bank in the MENA region — this despite trading volumes being down 40% market-wide in FY09, with resulting investor sentiment sapping the firm's ability to grow assets under management, book brokerage commissions, close investment banking deals and raise new private equity funds.
Source: AME Info
Dubai Mercantile Exchange hits new records in open interest and physical delivery
March 4, 2010--The Dubai Mercantile Exchange (DME) announced today that a new record total open interest of 19,867 was achieved in its flagship DME Oman Crude Oil Futures Contract (DME Oman) in February 2010. The DME also achieved a new record for physical delivery of 13.4 million barrels for delivery in April 2010, surpassing the previous high of 11.6 million barrels set in September 2009.
Open interest in DME Oman has been increasing steadily, the latest figure exceeding the previous open interest record in July 2009. The rise in open interest is a leading indicator of the market's continuing confidence in DME Oman as a transparent and effective mechanism for pricing Middle East sour crude oil.
DME Oman is the largest physically delivered crude oil futures contract in the world with an average of nine million barrels per month delivered through the Exchange in 2009. Since its launch in June 2007, more than 235 million barrels of Oman crude have been delivered through the DME.
Source: The Dubai Mercantile Exchange (DME)