Posted on October 23, 2014


US stocks retreat as energy shares decline with oil

US stocks retreated, after the Standard & Poor's 500 Index rose the most in a year on Tuesday 21 October 2014 , as energy shares led losses amid a drop in oil prices. Cimarex Energy Co. and Helmerich & Payne Inc. lost more than 4.6% to lead all 43 energy stocks in the S&P 500 lower. Biogen Idec Inc. slid 5.4% as sales of its top drug missed analyst estimates. Yahoo! Inc. added 4.5% after sales topped estimates. Broadcom Corp. jumped 5.5% after reporting earnings that beat estimates and giving a forecast that eased concern chip orders might be drying up. The S&P 500 slipped 0.7% to 1,927.11. The Dow Jones Industrial Average slid 153.49 points, or 0.9% to 16,461.32. The Nasdaq Composite Index lost 0.8%. Crude oil slid 2.4% to USD80.52/barrel, the lowest level on a closing basis in more than two years, after a US report showed inventories increased by 7.11mn barrels last week.


UAE : Dubai announces crude oil price for January

The Department of Oil Affairs of the Government of Dubai has announced that it has notified its customers that the official price of Dubai crude oil, to be delivered in January 2015, will be USD0.004 (0.4 cents) lower than the average daily settlement price of the Oman Crude Oil Financial Contract in Dubai Mercantile Exchange for contracts being traded over the next month. The official monthly price of Dubai crude oil - with the transition to the pricing of futures contracts - is determined in advance, wherein a differential price is set 3 months in advance, while the official final monthly price is determined at the end of the second month. (Zawya, 22-Oct-14)

Qatar : GNI estimates for Q2 up by 7.9%

Qatar's Gross National Income (GNI) estimates for Q2 2014 stood at QAR182.6bn (USD50.14bn), up 7.9% YoY. Qatar's gross saving of the nation has been estimated at QAR111.76bn in Q2 2014 showing a rise of 5.7% YoY (-4% QoQ). (The Peninsula Qatar, 22-Oct-14)

Egypt : Documents requested for stock market listing reduced

To encourage more listings on the Egyptian Exchange (EGX), EGX Chairman announced that documents needed for companies to list will be cut to the half. The total number of documents now demanded for listing is 12, having previously been 24. Omran's decision eliminated the need for copies of banking deposits showing the evolution of capital, copies of general assembly meeting minutes and the list of the board of director who participated in the capital increase. (Daily News Egypt, 22-Oct-14)

Egypt: Finance Minister sentenced to a year in jail

A Cairo Misdemeanor Court sentenced Egypt's Minister of Finance Hany Kadry to a year in jail on Wednesday for failing to abide by a previous court ruling.The minister was accused of failing to implement an administrative court order to re-instate an employee of the Finance Ministry who had been sacked. The Minister can appeal the decision. (Ahram online, 22-Oct-14)

Egypt : Negotiating with BPI to set up power plant

A memorandum of understanding with Benchmark Power International (BPI) was signed to construct power plant in the governorate of Kafr al-Sheikh. The new plant's capacity will be 2,300MW and will operate using natural gas and diesel fuel as an alternative fuel. (Egypt Independent, 22-Oct-14)

Bahrain : Inflation rate reaches 2.50% YoY in September

The inflation rate in Bahrain was recorded at 2.50% YoY in September 2014. Inflation Rate in Bahrain averaged 2.27% from 2008 until 2014, reaching an all time high of 5.22% in January 2009 and a record low of -2.06% in March 2011. Meanwhile, food Inflation in Bahrain increased to 3.20% YoY in September 2014 from 2.15% in August 2014. (Mubasher, 22-Oct-14)

Jordan : Exports and re-exports rise 5.9% in 8M 2014 to JOD3.93bn

Jordan's trade balance soared 4.1% YoY during 8M 2014, reaching JOD6.82bn. The value of Jordan's exports and re-exports surged to JOD3.93bn in 8M 2014, growing by 5.9% YoY. (Mubasher, 22-Oct-14)

Qatar Airways HQ 300x250

Oman : Budget preparations still on while oil prices for 2015 not fixed

Oman has gone through the phase of falling oil prices earlier and current trend is not a matter of serious concern at the moment. It is not possible to estimate the price of oil for next year's budget as the preparations are still in progress. The proposals have to still go through a process of being discussed at the Financial Affairs Energy Resources Council, the Cabinet and also the Council of Oman. Oil prices are determined by market forces and the country has to accept these prevailing rates. Certain measures would be needed to be put in place if there is no letup in the fall of oil prices but at this stage there is no room for any speculation. (Gulf Base, 22-Oct-14)


Saudi Arabia: NCB net income rises 13% in 9M 2014 to SAR6.83bn

National Commercial Bank (NCB) announced that net income attributable to equity holders of the bank for 9M 2014 increased 13% YoY to SAR6.83bn. Total assets grew to reach SAR438bn in 9M 2014 up 19% YoY. Loans and advances grew 16% YoY to SAR214bn, while customer deposits grew 17% YoY to SAR344bn. For Q3 2014, net income increased 7.8% to SAR1.87bn. (Company Press Release, 22-Oct-14)


Kuwait: Jazeera Airways posted 23% higher YoY earnings to KWD8.1mn in Q3 2014, on increased revenues

Jazeera Airways (JAZEERA.KSE) announced preliminary financial figures for Q3 2014, posting 23% YoY growth in earnings to KWD8.1mn, marking the best quarterly earnings in the company's history. Growth came on the back of 15% YoY increase in revenues to record KWD23.1mn, as the number of flown passengers grew 11% YoY for the same quarter . (Company Press Release, 22-Oct-14)

Egypt: KABO rebuts reports about doubling exports by end of June 2015

El Nasr Clothing & Textile Company (KABO.EGX) has rebutted the news that it plans to double exports to 80% of production by the end of June 2015. It was reported on Tuesday, 21 October 2014 that the company is intending to double exports to reach 80% of total production instead of 40% through restructuring production lines to boost production capacity to its maximum level. However, KABO is working on doubling sales this fiscal year through foraying into new markets like Turkey, Holland, Lebanon, Saudi Arabia, Jordan, and Kuwait, in addition to expanding local presence through setting up showrooms and contracting with new agents. (Mubasher, 22-Oct-14)


Saudi Arabia: Zamil recorded 15% YoY higher earnings in Q3 2014 to SAR56mn, missing consensus by 15%, on higher margins and decreased financial expenses and taxes

Zamil Industrial Investment "ZIIC" (2240.TDWL) announced its preliminary results for Q3 2014, reporting a 15% YoY higher earnings to SAR56mn, missing consensus earnings of SAR66mn by 15%. According to the company, higher YoY earnings were due to: (1) improved operating margins in the steel and air conditioning sectors, (2) a reduction in financial charges, and (3) lower taxes and zakat. On QoQ Basis, the company recorded a 23% decrease in earnings due to lower sales as the summer season ends, and lower operating margins. (Tadawul, 22-Oct-14)

Saudi Arabia: Petro-Rabigh Q3 earnings increased 21-folds to SAR294mn, beating consensus by 23%, on overall performance

Rabigh Refining and Petrochemical "Petro-Rabigh" (2380.TDWL) announced its preliminary results for Q3 2014, reporting a significant YoY earnings to SAR294mn (+21-folds), beating consensus earnings of SAR240mn by 23%. According to the company, this significant YoY earnings increase was mainly due to; (1) the higher sales price of petrochemical products, (2) better operation compared to last year when the company experienced a blackout event in September, and (3) the revised commercial arrangements with founding shareholders positively impacted the net profit, despite the decline of crude oil price which burdened net profit with carried forward inventory. On QoQ Basis, Petro-Rabigh recorded a 71% increase in earnings due to higher petrochemical sale prices and higher sales of high value refined products (gasoline, diesel and jet fuel). (Tadawul, 22-Oct-14)

Real Estate

UAE: Deyaar Q3 net profit nearly doubled to AED78.5mn, beating consensus by 118%

Deyaar Development (DEYAAR.DFM) reported a 94% rise in Q3 2014 net profit to reach AED78.5mn, beating market consensus earnings of AED36mn by 118%, as sales at a newly-launched residential project boosted earnings. The company concluded sales of residential units at tower-1 of its Montrose project, with the majority of units sold in Q3 2014. (Reuters news agency, 22-Oct-14)