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Dubai’s Rasmala to shut retail brokerage Kuwait’s inflation data Investment bank Rasmala is to shut its retail broker- for a minimal return,” Ali al Shihabi, Rasmala’s founder Regional investment banks in the Gulf have suffered Kuwait’s statistics office released the following April age operations in the United Arab Emirates as part of and chairman said in the internal document. as a result of the financial crisis and also from inflation data for the Gulf Arab oil exporter on a restructuring programme begun in November last A spokeswoman for Rasmala confirmed the move to increased competition from foreign banks. Wednesday. Kuwait Consumer Inflation 04/11 03/11 year, an internal document seen by Reuters showed. close the retail brokerage in the UAE but did not give Last year, a slump in market turnover forced equity 04/10 pct change month/month 0.2 0.5 0.0 pct change Rasmala will now focus solely on institutional broker- any more details. Co-Chief Executive Officer David brokerages in the United Arab Emirates to cut staff. year/year 5.3 5.1 2.8 age and research, asset management and corporate Woods and the head of its brokerage business Khaled Turnover and trading volumes on the Dubai and Abu Details on CPI: (pct change month/month) 04/11 03/11 finance after its board approved the updated strategic Masri are to leave, the document showed. It was not Dhabi exchanges have fallen, extending a trend that Weight (pct) Housing 0.0 0.4 27 Food 0.8 1.3 18 plan, the document said. “We debated extensively known how many jobs might be affected in total. started as the global financial crisis struck in 2008. Transport & communication 0.0 0.0 16 Household goods whether to maintain the UAE retail brokerage opera- Anwar Abu Sbaitan, who was the Co-CEO along Earlier this month, Shuaa Capital said it would cut & services 0.0 0.3 15 Other goods 0.7 0.2 10 Note. tions and concluded that the infrastructure it requires, with Woods, will be the new chief executive of the 10.7 percent of its staff, or 39 jobs, to reduce costs Analysts polled by Reuters expected average inflation to in terms of staff, operations and risk management Dubai-based bank. Michael Kidd, head of private equi- after political unrest in the Gulf Arab region took a toll accelerate to 4.8 percent this year from 4.0 percent in exposes us to a heavy operational burden and high risk ty, will become the chief operating officer. on the investment bank’s quarterly results. (RTRS) 2010. (RTRS) Market Movements 25-05-2011 Business Points Closing pts Points Closing pts HONG KONG - Hang Seng +16.50 22,747.28 AUSTRALIA - All Ordinaries 46.70 4,661.60 GERMANY - DAX +20.28 7,170.94 JAPAN - Nikkei 225 -54.29 9,422.88 FRANCE - CAC 40 +12.11 3,928.99 SOUTH KOREA - KRX 100 -46.230 4,342.68 EUROPE - Euro Stoxx 50 +15.57 2,816.84 PHILIPPINES - All Shares -17.09 2,943.36 INDIA - Sensex -164.73 17,847.24 Saudi petchems seen volatile on oil price swings Egypt likely to rebound next week; UAE banks to fall CAIRO/DUBAI, May 25, (RTRS): cil have sent jitters through the market, Egypt to see how it can help. time Emirates NBD is trading at a higher “The commercial property market is Al Mal’s Annous. Multi-billion aid packages and the poten- weighing on shares. On Tuesday, UAE banks on a slippery slope else- price to book than Bank of America and taking a double hit from falling rent and Oil prices are expected to remain tial criminal trial of former ruler Hosni Mubarak was ordered to stand trial for where, weak first-quarter earnings and most of Japan’s financial sector.” falling occupancy levels, so even if occu- range-bound in the near term, with spot Mubarak should give Egyptian stocks a the killing of protesters and could face continuing provisioning will see UAE- Dubai’s banks have fallen as much as pancy levels on new buildings reach 50 WTI trading between $95 to $105 per boost next week. the death penalty, scotching speculation listed bank stocks on a slippery slope, 4.2 percent in May amid low buying percent, that would still mean cash flow barrel, according to Ankit Gupta, senior Politics will continue to be the main the former leader would be spared public while valuations dampen investor interest. interest that has led UAE bourses tumble to owners is down about 75 percent from research analyst at Securities & catalyst as investors assess Egypt’s abili- humiliation by Egypt’s military rulers. “Local banks are working through to near six-week lows. expectations,” said Raj Madha, Investment Co. ty to prove it can move smoothly to a Still, Egypt’s economy has been get- their problems, says Akram Annous, UAE banks are likely to see conserva- Rasmala’s senior banking analyst. “We expect regional petrochemical functioning government in coming ting a steady boost in the past few days by MENA strategist at Al Mal Capital. tive loan growth this year partly due to Saudi Arabia’s petrochemicals are seen shares’ to evince near-term volatility months. a string of support packages announced “But if you look at bank stocks strug- new central bank regulations restricting volatile in the coming week as they track driven by volatile oil prices and global “The key to Egypt’s future is how the by the United States, Saudi Arabia, Qatar, gles in other markets that have experi- certain lending practices and because of fluctuating oil prices, while medium-term economic concerns,” Gupta says. politics develops in the near term, and the World Bank and the European Bank enced a difficult deleveraging cycle in exposure to a battered real estate sector. outlook is positive. The petrochemical index has risen as what sort of balance emerges between the for Reconstruction and Development. property you will realize that the UAE is Analysts are expecting mid-single digit “If oil falls lower, you will see a re-rate much as 5.2 percent in 2011. forces at play,” Royal Bank of Scotland More support is expected to be not unique — there is just not that much loan growth for the year and elevated in petrochemicals - 10 percent will come “High plants’ operating rates coupled said in a May 23 research note. announced at the Group of Eight meeting investor interest in this space. non-performing loans throughout 2011, out of that space if we work our way back with margins of regional petrochemicals Plans by activists to stage protests on in France this week, and the International “Global bank stocks look cheap based in part linked to the commercial property down to $85. But if we stay right around will boost 2Q11 earnings, in our view,” May 27 against the interim military coun- Monetary Fund now has a mission in on historical standards, but at the same market. a $100, that’s a sweet spot for them,” says Gupta says. S&P revises DP World outlook to positive; ‘BB/B’ rtgs affirmed Dubai port operator to list shares on LSE PARIS, May 25: Standard & Poor’s Rating Services said Firm’s shares suspended today that it has revised its out- look on Dubai-based port opera- tor DP World Ltd. (DPW) to positive from stable. We also affirmed our ‘BB’ long-term Saudi Atheeb Telecom corporate credit and senior unsecured debt ratings, and our ‘B’ short-term corporate credit blames rival for losses rating on DPW. The recovery DUBAI, May 25, (RTRS): Saudi monopoly laws. STC refuted the alle- rating on the senior unsecured Arabia’s Atheeb Telecom on gations. debt is unchanged at ‘3’, indicat- Wednesday said unfair competition Atheeb posted a loss of 575 million ing our expectation of meaning- was to blame for mounting losses riyals ($153.3 million) for the finan- ful (50 -70 percent) recovery in that led to its shares being suspended cial year ended March 31, prompting the event of a payment default. on the kingdom’s bourse. the Capital Market Authority (CMA) The outlook revision reflects our The fixed line provider, which is to halt trading in the shares from view that DPW’s financial risk pro- 15 percent-owned by Bahrain Wednesday. file will improve when it has com- Telecommunications Co, now has The suspension will be in place pleted the sale of 75 percent of its accumulated losses of 95 percent of “until the company changes its situa- shares in DPW Australia. DPW has its capital, according to a statement tion”, the statement said. announced that the $1.5 billion of on the Saudi bourse website. Saudi Atheeb’s board has recommended proceeds will be used for debt repay- market rules call for a suspension if cutting its capital to 400 million ment. In addition, DPW’s operating losses exceed 75 percent. riyals from 1 billion riyals to wipe performance remains healthy and “The company incurred in the out some of its losses. This will like- supportive, in our view, with 8.5 per- recent period large losses of capital ly be followed by a 600 million riyals cent throughput growth across con- as a result of uncompetitive behav- rights issue, Abdul-Aziz added, with solidated terminals for the first-quar- iour and practices from the control- the founding shareholders pledging ter 2011 relative to the corresponding ling operator,” Atheeb chairman to cover 65 percent of the rights period of the previous year. Prince Abdul-Aziz Ahmed bin issue. Late in the first quarter of 2011, Abdul-Aziz said in a statement to Atheeb’s shares ended Tuesday at DPW’s ultimate majority sharehold- Reuters. 7.75 riyals. Their par value is 10 er, Dubai World Corporation DWC “The company was prevented from riyals and market rules prevent listed (not rated), announced the comple- offering some services such as inter- companies from issuing new shares tion of the restructuring of debt total- national calls and prepaid cards as at below this price. ing about $23.9 billion. In our opin- stipulated in the license.” The firm has six months to act, oth- ion the track record of no adverse He also blamed the telecoms regu- erwise the CMA could delist Atheeb interference by DWC since its debt lator, the Communication and if it believes “the level of operations moratorium was announced in Information Technology for the issuer or its assets do not jus- November 2009 is a supporting fac- Commission, saying a hearing tify continuous trading of securities tor for our rating on DPW. This track against this body would be held on on the bourse”. record, and our belief that DWC will May 28. Atheeb, which operates under the continue to allow DPW to operate on In February, Atheeb filed a case brand name GO, was awarded a a stand-alone basis and not subject it against incumbent Saudi Telecom Saudi fixed line services license in to material cash calls or asset trans- Co, claiming it had breached anti- 2009. Photo by Ehab Qurtal (Top) Ali Morad Behbehani marking the relaunch of new models and (above) some of the wrist watches on display at the fers to DWC mitigates the negative boutique. rating pressure arising from what we Exchange beginning next week. economic downturn and is now bene- believe to be a weaker parent. The cargo handler hopes to attract fiting from the rebounding global Briguet, Blancpain, Tiffany & Co and Omega unveiled The positive outlook reflects our expectation that DPW will not expe- a wider range of shareholders with economy. Its earnings jumped 22 per- the secondary listing, which will be a cent last year to $451.1 million. rience adverse interference from its key test of investor appetite for Meanwhile, Port & Free Zone Swatch Boutique launches 4 new models ultimate parent DWC, in line with the track record so far. We also expect DPW’s financial performance to Dubai government-linked invest- ments. It already trades on the World (P&FZ), the direct owner of global ports operator DP World is Nasdaq Dubai and will continue to considering refinancing options for By Iddris Seidu lar with some individuals, as they kept function known at that time, including improve, with FFO to debt increasing do so once its shares start changing an $850 million financing facility, the pouring into the boutique even at the time Clock, Perpetual calendar, Repeater, to the mid teens over the medium Arab Times Staff of the re launch. Blancpain started mak- Thermometer, Chronograph, Power- hands in London on June 1. prospectus for DP World’s London term. In addition, we are assuming “This is the next natural step in the listing showed. State-owned con- KUWAIT CITY, May 25: Briguet, ing watches in 1735 in Villeret, Reserve and Pare-Chute. that the company will shortly start a Blancpain, Tiffany & Co and Omega are Switzerland. The company has never pro- Tiffany & Co was founded by Charles evolution of DP World, as the compa- glomerate Dubai World is the parent Lewis Tiffany and Teddy Young in New process to successfully refinance the ny has developed into a global company of P&FZ, which owns 80.5 the four Swatch brand names that the duced watches with digital displays but produces fewer than 10,000 mechanical York City in 1837 as a stationery and US$3 billion loan facility falling due leader,” Chairman Sultan Ahmed bin percent of DP World and has two rep- Morad Yousuf Bahbehani refurbished in October 2012. Swatch Boutique can boast of at the re- watches a year with each watch being fancy goods emporium. The store initial- Sulayem told reporters. resentatives on the latter’s board of launch on Tuesday after having gone made by a single watchmaker. ly sold a wide variety of stationery items An upgrade will be contingent on DP World, though a subsidiary of directors, the prospectus, published through a complete renovation with Limited and operated as Tiffany, Young and Ellis DPW generating positive discre- troubled state conglomerate Dubai May 25, said. Tiffany & Co being an addition to its in lower Manhattan. The name was short- tionary cash flows (after payment of World, is considered to be one of the “The Company understands that Blancpain is also famous for being the ened to Tiffany & Co. in 1853 when any dividends) and a ratio of FFO to existing brands of watches. creator of one of the most complicated city-state’s more profitable and well- Port & Free Zone World FZE is con- With two Swatch wearing done young Charles Tiffany took control and the fully adjusted debt in excess of 15 mechanical watches ever made, the firm’s emphasis on jewelry was estab- run companies. sidering refinancing its outstanding models holding the gold colored sod on Blancpain 1735, which is a true grand com- percent. We would also need to gain It is the world’s third-largest port net debt facilities of approximately lished. Tiffany & Co has since opened further insight into the ultimate par- each side, the refurbished boutique was plication with a limited edition of 30 pieces stores in major cities all over the world. operator, with operations at 49 cargo $850 million, secured in part against officially declared open for business with only, production of just one piece per year. Omega is a Swiss luxury watchmaker ent, DWC, concerning its strategy terminals on six continents, including certain of its shares in the Company, the sod cutting done by Ali Morad Breguet was founded in 1775 by based in Biel/Bienne, Switzerland, and policy in relation to DPW over Behbehani, the Managing Director and the Middle East’s busiest port in in the short to medium term,” DP Abraham-Louis Breguet at the Quai de owned by the Swatch Group. As one of the medium to long term. Dubai. It is primarily focused on fast- World said in the prospectus. Chairman of Behbehani Group of l’Horloge on the Île de la Cité in Paris the most known and recognized watches We could revise the outlook to sta- Companies accompanied by other compa- following his marriage to the daughter of growing markets in the developing “Options to refinance the facilities in the world, Omega watch was the ble, or lower the ratings, if, for exam- world. include, inter alia, further bank loans, ny executives, declaring “ We hope to see a prosperous French bourgeois. Her choice of NASA and the first watch on ple, there was negative interference more customers walk in big numbers into dowry provided the “financing” which the Moon in 1969 and also the official Dubai World has released only a asset disposals, public market bond the boutique and also to have them build from DWC, if financial performance fifth of DP World shares on the open issues (including equity-linked bonds) allowed him to open his own workshop. timekeeping device of the Olympic did not improve as expected or if the interest in the highest watch brands”. The connections Breguet had made Games. It is estimated that seven out of market. Executives say they have no or the sale of shares in the Company.” The medium-sized, redesigned bou- with scholarly people during his appren- company did not put in place a pro- plans to float a bigger stake despite The company was not immediately every ten people have heard of Omega tique with its new look is one of the ticeship as a watchmaker and as a student watches. gram to refinance its 2012 maturity in a timely manner. the larger pool of potential investors. available for comment when contact- numerous boutiques operated by the of mathematics soon paid off. Following The Behbehani group, formed in 1935 by “We are not releasing any shares ... ed by Reuters. Dubai has been company around various locations in his introduction to the court, whereupon late Morad Yousuf Behbehani has diverse Also: so we are not expecting a dramatic restructuring state-linked firms to Kuwait and situated in the middle of the Queen Marie-Antoinette grew fascinated interests covering Retail Trade, Wholesale, Salhiya Complex building in Kuwait City by Breguet’s unique self-winding watch, Vehicle Distribution, Engineering and DUBAI: DP World, the port operator change in DP World’s share price in deal with a debt pile estimated at with watches of the various Swatch Louis XVI bought several of his watches. Travel. In addition the Group is engaged in controlled by the Gulf emirate of London. It’s important people under- $115 billion built up during a boom brands displayed in glass shelves. Marie Antoinette commissioned the a significant Investment Activity across the Dubai, laid out plans Wednesday to stand this,” Bin Sulayem said. that put the emirate on the map for The watches seemed to be very popu- watch that was to contain every watch entire Kuwait. list its shares on the London Stock DP World cut spending during the extravagant construction projects.
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