Middle East ETF News Older than One Year
MSCI Upgrades UAE & Qatar
June 12, 2013--UAE and Qatar's upgrade to membership in the index is expected to take effect around May 31, 2014. Qatar would account for 0.45% of the weighting of the Emerging Markets index, with the UAE accounting for 0.4%.
The said exchanges had first sought index inclusion in the emerging markets index in 2008 and had been denied entry to the grouping five times since the first review in 2009. The move is a major sign of approval from institutional investors for the countries' stock markets, and is expected to attract more stable sources of capital to local equities. Dubai and Abu Dhabi have been the top performing markets in 2013. The major reason for such an exceptional growth has been the rebound in real estate and construction market. Not only Real Estate stocks have rallied but the same has been witnessed in Banking and Construction companies as both the sectors are highly associated with Real Estate. On the other hand Qatar has been a late starter but has recently picked up pace and currently stands at low end of the table amongst GCC in terms of return. MSCI upgrade has also been a prime reason for the run up in both the countries. Although the news would be taken very positively by the investors, foreign funds tracking the MSCI benchmarks will likely start to invest only after the reclassification takes effect in May next year. The market seems to have given a thumps up to the news evident by the 2%+ opening jump today. Although this is related particularly to UAE and Qatar, the upgrade will also bring other regional markets into the focus of EM fund managers leading to a positive sentiment overall.
Source: Zawya
Saudi market ends trading week positively
June 12, 2013--Despite market bellwether Sabic falling 0.53% to SR93.75, the Tadawul All-Share Index rose 0.54% to reach 7,623.89 points on Wednesday.
The last trading day of the Saudi Arabian working week witnessed ample interest in shares of Dar Al Arkan Alarkan Real Estate Development Company, closing 3.94% higher at SR10.50. Dairy food producer Almarai Company gained 0.36% to reach SR70.25. Earlier in the day, Almarai said following to the announcement dated March 30th 2013, regarding the agreement of the boards of United Farmers Holding Co. (UFHC) the terms of a recommended cash offer to acquire all the share capital of CFG, "Almarai is pleased to announce to its shareholders that ,at a hearing on June 11th 2013 in the High Court of Justice of the Isle of man, which is common practice in dealing with this type of transactions, the Court granted an order sanctioning the scheme of arrangement under section 157 of the Isle of Man Companies Act 2006 to effect the recommended cash acquisition by UFHC of the entire issued and to be issued ordinary share capital of CFG on the terms set out in a circular dispatched by CFG to its shareholders on April 25th 2013."
Source: AME Info
Egypt Stocks Drop as MSCI Says FX Shortage May Trigger Downgrade
June 12, 2013--Egypt's shares headed for a year low after MSCI Inc. said it may review the nation's emerging-market status if the foreign-currency situation worsens.
Morocco’s index was little changed as it was cut to frontier status.
The EGX 30 Index tumbled 3.8 percent to 4,662.94 as of 12:32 p.m. in Cairo, poised for the lowest close since June 2012. The measure, the second-worst performer today among 94 indexes tracked by Bloomberg, has fallen 22 percent since a September 26 peak. A drop of 20 percent or more signals a so-called bear market to some investors. read more
Source: Bloomberg
Kuwait Stock Exchange climbs over 8,000
June 11, 2013--The KSE Market Index advanced 1.30% to close at 8,029.31 points.
Financials were mostoy driving the surge as National Bank of Kuwait (up 1.05%), Burgan Bank (gaining 3.17%) and Kuwait Finance House (1.47% higher). The telecommunications sector and the healthcare segment were the sole sectors which ended in the red.
Source: AME Info
MSCI may exclude Egypt from Emerging Market Index
June 11, 2013--MSCI Inc. has said it is closely monitoring the situation in Egypt, in particular the negative developments in the foreign exchange market.
"MSCI may launch a public consultation on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index were the situation to worsen in the coming months," it said.
Source: AME Info
United Arab Emirates-2013 Article IV Consultation Concluding Statement of the IMF Mission
June 11, 2013--I. Introduction
An International Monetary Fund (IMF) mission visited the United Arab Emirates from April 30 to May 15, 2013, to hold discussions for the 2013 Article IV consultation.1Against the backdrop of a strengthening economy, discussions focused on: pursuing appropriate near-term macroeconomic policies; managing old and new risks stemming from Government-Related Entities (GRE); and pursuing policies to support financial sector stability.
The mission would like to thank the authorities for the open and fruitful discussions and for their hospitality.
II. Recent Developments
1. The economic recovery has continued to strengthen amid favorable oil prices and capital inflows. Supported by a perceived safe haven status amid regional political and social unrest, capital flows have strengthened, demand from expatriates from the broader region has increased, and the real estate sector, which had been impaired since the 2009 crisis, has stabilized in Abu Dhabi and started to recover in Dubai. Oil prices remained high and economic confidence strengthened. The repair of balance sheets of government-related entities (GRE) that were at the center of the 2009 crisis continued but is not yet complete.
2. Economic growth is estimated to have reached 4.3 percent in 2012. Hydrocarbon production expanded by around 5.2 percent, and non-oil growth continued to accelerate to 3.8 percent, driven by growth in services sectors. Backed by high oil prices and production, as well as buoyant non-hydrocarbon exports, the external current account surplus rose to almost 17 percent of GDP in 2012.
Source: IMF
Dubai market dives over two percent as shares lose across the board
June 10, 2013--Desite positive input fom Asian markets on early Monday, the DFM General Index lost 2.30% to close at 2,344.76 points.
Logistics giant Aramex lost the most, ending down 6.78% at Dhs2.20. Emaar as the most liquid share headed 1.92% lower to finish at Dhs5.62. Gulf General Investment Co. (GGICO) and telecom provider Du advanced, ending up 4.04% and 0.35%, respectively. Deyaar Development, the Islamic real estate firm dived 4.57% at Dhs0.397. Deyaar opened earlier in the a new branch in the Business Bay in the heart of Dubai. Global index provider MSCI will release by tomorrow its verdict whether the UAE (and Qatar) will be upgraded to "emerging market" status form "frontier market".
Source: AME Info
Saudi bourse extends record-long gaining streak
June 5, 2013--For the 8th consecutive session, the Tadawul All-Share Index added value, closing half a percentage point higher at 7,613.35 on Wednesday.
Food and beverages producer Savola Group gained the most, finishing up 5.26% at SR52. Sabic fell 0.53% to SR94.50. Mobile Telecommunications Company Saudi Arabia, better known as Zain KSA, declined by 1.52% to SR9.70. Earlier in the day, Zain KSA said it has completed a new SR2.25bn long-term borrowing facility with three years maturity. This facility was provided by a syndicate of Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group. "This facility is subordinated to the main Murabaha facility amounting to SR9bn ($2.4bn), and will benefit from an unconditional and irrevocable guarantee by Zain KSA," said the telecom provider. On May 29, the maturity of the Murabaha (Islamic cost-plus financing) facility which was due on that day had been extended to June 26 2013 by the creditors.
Source: AME Info
Qatar Navigation gets nod for 5pct share re-purchase
June 5, 2013--The QE 20 Index ended Wednesday 0.05% lower at 9,305.81 points.
Qatar Navigation or Milaha (Arabic for navigation) jumped 4.12% to reach QR78.40. Milaha said it has received an approval from the Qatar Financial Markets Authority (QFMA) with regards to the company’s share re-purchase program. "Milaha’s Board of Directors had previously approved the share re-purchase program of up to 5% of the outstanding shares of the company," the firm said in an e-mailed statement. Milaha plans to fund this re-purchase by using its significant investment portfolio.
Source: AME Info
Aldar shares rebound ahead of Al Isra Wa Al Miraj
June 5, 2013--The ADX General Index closed 0.76% to reach 3,599.29 points ahead of the long weekend.
Aldar Properties bounced back by 2.29% to reach Dhs2.23. Dana Gas lost 1.67% to Dhs0.59. Like in Dubai, tradng volumes plummeted as 148.5m shares were traded, valued at Dhs276.8m.
Source: AME Info
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