2005
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Saudi shares lose ground
Saudi shares dropped 1.72% Tuesday, as a big fall in industrial sector stocks sent the Tadawul All-Share Index down 287.12 points to close at 16,448.56. Analysts say the market to be heading for a correction after surging to a record high last week, but could turn around once Q4 company financial results start coming in.
Istithmar, $50m SpiceJet investment
UAE-based Istithmar has raised its stake in SpiceJet, the low-cost Indian carrier, to $50m. The investment house had previously invested $12.5m, and says it is extremely bullish about the prospects of low cost carriers in India.
Sorouh opens in AD
Sorouh Real Estate traded heavily on debut on the Abu Dhabi Securities Market as more than 68.1m shares changed hands sending the price of the stock to Dhs6.72. Trades in the company accounted for over two thirds of the total trades on the bourse. Sorouh has a capital of $680m of which 55% was offered to the public via an IPO in June 2005.
Dubai Holding, new subsidiary
Dubai Holding has set up a company called Tatweer to manage some of its biggest investments in leisure, energy and industry, reported Reuters. Its portfolio of companies includes Dubailand, Dubai Industrial City, and the Dubai Mercantile Exchange.
UAE, 2005 budget surplus
The UAE is set to post a budget surplus for 2005, its first for 20 years, due to increased revenues from high oil prices, EFG-Hermes economist Hany Genana told Gulf News. The surplus is projected at $1.9bn to 2.7bn. But analysts warn that the UAE must diversify its revenue sources in the event of a downturn in oil prices.
GCC criteria for monetary union
GCC leaders have endorsed criteria for a monetary union and have agreed to forge a common policy on negotiating trade agreements, according to Reuters. The criteria cap budget deficits at 3% and public debt at 60% of GDP, inflation at the GCC average plus 2%, interest rates at the average of the lowest three states plus 2%, and require foreign exchange reserves to cover 4-6 months of imports. But there are doubts that individual states will meet criteria by 2007.
NSCSA, $1.3bn expansion plan
Saudi Arabia's National Shipping Company is planning to raise $1.3bn in 2006 to fund its five-year development plan, which includes doubling its fleet. HSBC has been retained to finalise the plan, which will include a capital increase, by March 2006.
Home finance to hit $750bn
The value of home finance in the GCC is expected to cross $750bn in the near future as investment is channelled into the real estate sector, according to Amlak Finance CEO Mohammed Al Hashimi. He says innovation in sharia-compliant instruments to raise debt and capital would ensure that Islamic finance will be the repayment method of choice for the homeowner of the future.
Lloyds TSB IPB opens at DIFC
Lloyds TSB International Private Banking is opening an office at the Dubai International Financial Centre after being granted a license to operate as an authorised firm. The bank provides high net worth individuals personalised investment and wealth planning services.
DIFX gets new chairman
The Dubai International Financial Exchange has announced that Henry Azzam, who has a background in banking and finance, will take over from Lynton Jones as chairman from 1 January 2006. Jones, who will stay on as a director, led the exchange from its inception to launch in September 2005.
Pakistan, PTCL deadlock offer
Pakistan has agreed in principle to allow Etisalat pay for a 26% stake in Pakistan Telecom over two to five years, in order to break a three-month deadlock over the privatisation, reported the UK's Financial Times. It is unclear whether Etisalat would agree to the compromise. Etisalat has reportedly raised a number of issues since it won the bid, particularly in relation to deferred payments and tax exemptions.
DP World, P&O tactical move
Dubai port operator DP World is expected to make a straight out bid of $5.8bn for British Maritime Group P&O rather than the scheme of arrangement it had previously announced, according to the UK's Telegraph newspaper. The move would mean the bid need only be approved by 50% of P&O shareholders, not 75% under a scheme.
Kuwait stocks slip
The Kuwait Stock Exchange index dipped 1.83% yesterday, its biggest decline since 12 November, but which analysts say is an expected correction on some overpriced stocks, reported Reuters. The Kuwaiti bourse has been in an extended bull run since July, and is up 74% for the year.
GIC, Merill Lynch $751m CDO
Gulf Investment Corporation and Merrill Lynch have signed a $751m collateralised debt obligation transaction for Khaleej 2, the second debt security issue in the successful Khaleej investment programme. Khaleej 2 is designed to meet the needs of investors across the GCC. The CDO has an estimated maturity of five years.
UAE stocks fall again
Shares on the Dubai Financial Market closed down by 2% today at 1,080 points, while Abu Dhabi Securities Market was down 0.8% at 5,244. The UAE bourse is in a correction phase and is approaching 20% off its November high, with some traders shifting their money to the Kuwaiti and Saudi bourses.
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