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DFM loses 5.84%, led by Emaar
The Dubai Financial Market fell 5.84% today to close on 1,744, as the index pulled back following yesterday's gains. Declines were led by market heavyweight Emaar Properties, which dropped 10% to Dhs3.15. Other real estate stocks that saw big losses were Arabtec and Union Properties, which fell 9.75% and 9.33%, respectively. In other sectors, Dubai Islamic Bank fell 6.61% to Dhs2.12, while Air Arabia dipped 5.26% to Dhs0.90.
Dubai will not sell assets, says Al Saleh
Abdul Rahman Al Saleh, Director-General of Dubai's Department of Finance has said that the emirate will not sell any of its assets to bail out Dubai World. Dubai World's and Nakheel's problems originated from short-term lending on long-term projects, he said in an interview with Al Jazeera television. The group, however, will be able to overcome the situation through restructuring its debts and by selling its own assets, he added.
Kuwait's Noor to launch property fund
Kuwait-based Noor Financial Investment Co. (NOOR) has announced plans to launch a Shariah-compliant real estate fund for public subscription, in partnership with Al Riyada Finance and Investment, KUNA has reported. The KD50m fund's dividends are to be reimbursed in monthly payments ranging between 6% and 8% on an annual basis, the firm said. Al Riyada Board Chairman and Managing Director Mohannad al-Sanea said the fund had been made public following deep consideration of the economic situation in general and the real estate market in particular.
Kuwait sells stake in Citigroup for $4.1bn
The Kuwait Investment Authority (KIA), the country's sovereign fund, has sold the stake it took in Citigroup less than two years ago for $4.1bn, making a profit of $1.1bn, the Associated Press has reported. The preferred shares were sold after converting them to common stock, KIA said.
Weekly FX roundup: Dollar received US results boost
Heading towards the end of 2009, a significant reversal in the US currency happened last Friday after the release of a surprising Non-Farm Payrolls Report. A fall in unemployment figures to 10% down slightly from 10.2% and a much smaller than expected contraction in the job market resulting in a minimal 11,000 job loss against the projected 125,000, led an official of the National Bureau of Economic Research to declare that unemployment may be nearing its trough. The question now on most traders' minds is whether the strength of the US dollar is sustainable or just a temporary rebound.
Tadawul up 0.33%
Saudi Arabia's Tadawul All Share Index (Tasi) ended the day up slightly by 0.33% to 6,309.05, with all sectors save Banks and Financial Services and Transport posting increases. Ninety-nine stocks rose, while 23 fell.
DFM pushes up by 1.18%
The Dubai Financial Market (DFM) ended the day up by 1.18% to 1,853.13, with 19 stocks rising, five falling and two remaining unchanged. DarTakaful posted the largest rise, moving up by 9.47% to Dhs1.85. Emaar, the most active stock by value, also recovered slightly, moving up 3.55% to Dhs3.50.
ADX rises across all sectors
The Abu Dhabi Securities Exchange (ADX) moved up 3.89% to 2,673.12 by the end of trading, with all sectors rising. Seven stocks fell, two held steady and 26 rose. Abu Dhabi Islamic Bank posted the highest increases, moving up by 10% to Dhs2.95. Developers Aldar and Sorouh were the most traded stocks by value, moving up to Dhs4.74 and Dhs2.67 respectively.
Saudi Arabia begins Economic City works
Saudi Arabia has announced that construction of its Jazan Economic City (JEC) has started, in a bid to diversify the kingdom's economy, Arab News has reported. Located 60 km north of Jazan city, JEC is forecast to attract $30bn of industrial, commercial and residential investments, creating 500,000 direct and indirect job opportunities, according to the project's master developer, MMC Saudi Arabia. Investors in JEC are allowed 100% ownership of their projects within the city, CEO of MMC, Zaidan Yousef has said.
Zoellick: Dubai debt crisis 'manageable'
Robert Zoellick, President of the World Bank has said that Dubai's debt crisis is manageable and will be contained, Reuters has reported. 'Because of the nervousness in financial markets, the events in Dubai caused everybody to take a second and third look at fragilities,' he said. 'I personally think that the Dubai financial problems will be contained and manageable.'
Kingdom Holdings 'for sale' investments fall 4.8%
The value of Kingdom Holding's investments available for sale had dropped by 4.8% to SR5.81bn ($1.55bn) in November, compared to the previous month Reuters has reported. The Riyadh-based firm, owned by Prince Alwaleed bin Talal, has attributed the fall to declines of local and international stock markets.
Dubai, Kuwait recovery 'to lag behind'
Ahmet Akarli, an economist at Goldman Sachs has said that Dubai and Kuwait will lag behind other Gulf Arab countries as the region's economies recover, Bloomberg has reported. The economies of the UAE and Kuwait had contracted by around 2.5% in 2009, he said. The UAE will grow 2% in 2010 and 4% in 2011, driven by Abu Dhabi, he added.
Dubai World to meet creditors
Dubai World will meet its main creditors next week to discuss its request to delay payment on $26bn in debt, Reuters has reported. An Abu Dhabi bank executive, who asked not to be named, said Standard Chartered, HSBC, Lloyds and Royal Bank of Scotland, along with local lenders Emirates NBD and Abu Dhabi Commercial Bank were on the creditors panel.
AlWaleed: Dubai World lenders made 'wrong assumptions'
Prince Alwaleed bin Talal has said that banks that loaned money to Dubai World should have understood the risks and differentiated between a corporate loan and a sovereign loan, Bloomberg has reported. 'When things go sour, you can't have some banks in the West going to Dubai and saying 'oops' and crying wolf and saying, 'You should have guaranteed those loans,'' the prince said in an interview on Bloomberg Television.
IMF: Dubai World impact on banks 'manageable'
The director of the IMF's Middle East and Central Asia department has said that Dubai World's attempt to delay debt repayments, while slowing growth in the UAE, is 'contained and manageable' for banks that lent money to the state-run firm, Bloomberg has reported. The UAE is not expected to require the IMF's financial support, as it has the resources to 'easily deal with these issues,' Masood Ahmed added.
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