Docstoc

38

Document Sample
38 Powered By Docstoc
					                                                                                                            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.