Lack of catalysts and approaching Eid break dominate trading

UAE. Lack of catalysts coupled with the summer lull and the approaching Eid break dominated trading activities across the regional markets. Along with the end of earnings season, regional markets have been in a very thin range, trading volumes declining and no major macro or micro news affecting stocks’ prices. Over the previous week, four out of the eight indices were modestly up with Oman coming out as the best performer with +1.4%, however this didn’t change the fact that it is still one of the worst performers among its peers on a YTD basis with a negative performance of -14.5%.

Saudi Arabia, Dubai and Bahrain joined the gainers over the week with each advancing by +0.9%, +0.6% and +0.2%, respectively. Qatar remains the worst performer among its peers,continuing its slide from the repercussions of the geopolitical situation, losing -1.7% on the week and extending its YTD losses to -14.2%. Egypt lost -1.5% over the week which was expected given the recent euphoria that drove it close to the 14,000 level, the index all-time high, with the market retreating back to its support level at 13,000.

Abu Dhabi and Kuwait remained unchanged with Kuwait still maintaining its position as the best performer among its peers on a YTD basis, with upward performance of +19.8%. Only 4 trading days left in August for some of the regional indices and with Eid looming towards the end of the week, subdued trading volumes and minimal market activity may well be on the

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Funding squeeze hastens take-off of non-bank lending in Middle East

DUBAI (Reuters) – Middle East investment companies are ramping up their
lending to businesses, providing a lifeline for small and medium-sized firms
struggling to secure finance from banks that tightened credit after a suffering
rise in bad loans.
Industry participants estimate non-bank lenders in the region could provide
around $1 billion over the next three to five years, including secured loans,
mezzanine debt, preferred shares and convertible loans and bonds.

That’s a small slice of the global industry; private debt funds, the other name
for non-bank lenders, distributed $58 billion in capital worldwide in the first
half of 2016, according to financial data firm Preqin.
But a growing number of Middle Eastern borrowers are considering non-bank
finance, alongside other “shadow banking” options such as private equity,
venture capital funds and peer-to-peer lending.

In the Gulf, “low oil prices have caused lower liquidity in the market, and
combined with more onerous capital requirements for banks, this has led to a
decline in the financing available to mid-market companies,” said Mirza Beg,
managing director of private debt at Waha Capital.

UAE’s IPO drought is likely to ease from this year : MENA

Dubai: The IPO activity in the UAE has remained subdued for the past few years,
which can be broadly attributed to two factors — firstly and the most important one is the lack of favourable market conditions, and secondly the unfriendly regulatory requirements and procedures.Historically,the UAE stock markets, which have had a relatively drier spell compared to Saudi Arabia, witnessed a total of 10 companies being listed on respective UAE bourses between 2010 and 2014.

However, in the last two years, the region was confronted by the declining oil prices and heightened economic uncertainty, which had a significant impact on the IPO activity in the UAE.
As a result, there have only been two new additions since 2015 as most of the prospective companies either decided to shelve or defer their IPO plans because of deteriorating market conditions and dismal performance of recent IPOs.

The companies listed since 2010 were mostly quasi-government companies, which
suggest that capital markets are still elusive of attracting private companies.
Moreover, the UAE bourses do not reflect the dynamics of the economy, as the
banking, real estate and construction sectors dominate the overall market
capitalisation, which undermines other economic sectors, especially in light of UAE’s long term diversification strategy. Hence, there is a lack of peer comparison for private companies operating in other economic sectors, which might be another reason for the subdued IPO activity in the past few years.

Lack of catalysts and approaching Eid break dominate trading

Lack of catalysts coupled with the summer lull and the approaching Eid break dominated trading activities across the regional markets. Along with the end of earnings season, regional markets have been in a very thin range, trading volumes declining and no major macro or micro news affecting stocks’ prices. Over the previous week, four out of the eight indices were modestly up with Oman coming out as the best performer with +1.4%, however this didn’t change the fact that it is still one of the worst performers among its peers on a YTD basis with a negative performance of -14.5%. Saudi Arabia, Dubai and Bahrain joined the gainers over the week with each advancing by +0.9%, +0.6% and +0.2%, respectively.

Qatar remains the worst performer among its peers, continuing its slide from the repercussions of the geopolitical situation, losing -1.7% on the week and extending its YTD losses to -14.2%. Egypt lost -1.5% over the week which was expected given the recent euphoria that drove it close to the 14,000 level, the index all-time high, with the market retreating back to its support level at 13,000. Abu Dhabi and Kuwait remained unchanged with Kuwait still maintaining its position as the best performer among its peers on a YTD basis, with upward performance of +19.8%. Only 4 trading days left in August for some of the regional indices and with Eid looming towards the end of the week, subdued trading volumes and minimal market activity may well be on the cards.

The lack of incentives and holiday holiday approaches have dominate the tranding activities

The lack of incentives and holiday holiday approaches have dominated the trading activities in the regional markets. With the end of the earnings season, trading in the regional markets has fallen sharply as no major news has affected stock prices.
Almasa Capital said four out of eight indexes saw modest gains last week. Oman achieved the best performance of + 1.4%, but this did not change the fact that it remains one of the worst performance among its peers since the beginning of the year so far with a negative performance of -14.5%. Saudi Arabia, Dubai and Bahrain were the top gainers for the week, gaining + 0.9%, + 0.6% and + 0.2%, respectively. Qatar is still the worst among its peers, continuing to fall due to the repercussions of the geopolitical situation and fell by -1.7% during the week, bringing its losses since the beginning of the year to -14.2%. Egypt fell -1.5% during the week, which was expected given the recent jump to close to 14000 points, where the index reached its maximum level, and then the market rebounded to resistance levels at 13000 points.
Kuwait and Abu Dhabi remained unchanged, with Kuwait maintaining the highest performance among its peers on an annual basis since the beginning of the year, up 19.8%. There are only days left to trade in August for some regional indices. By the end of the week, regional markets are likely to experience weak trading volumes with minimal market activity.

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The lack of incentives and approaching holiday leave dominate the trading activities

The factor of absence of motivating forces and moving toward Eid occasion ruled exchanging exercises in territorial markets. With the finish of the increases season, exchanging the territorial markets fell pointedly as there was no real news influencing stock costs.170731-BPW

Four out of eight pointers saw unassuming ascents a week ago, the Almasa Capital report said. Oman accomplished the best execution of + 1.4%, yet this did not change the way that it is as yet one of the most noticeably bad execution, which demonstrated a negative execution of 14.5% since the start of the year. In the mean time, Riyadh, Dubai and Bahrain were the best gainers for the week, picking up + 0.9%, + 0.6% and + 0.2%, individually. Qatar is as yet the most noticeably awful of its associates, proceeding to fall because of the repercussions of the geopolitical circumstance and fell by – 1.7% amid the week, bringing its misfortunes since the start of the year to – 14.2%. Egypt fell – 1.5% amid the week, which was required because of the last bounce to near 14000 focuses, where the record achieved its most extreme level, and afterward the market bounced back to resistance levels at 13000 focuses.

Kuwait and Abu Dhabi stayed unaltered, with Kuwait keeping up its best performing execution on a yearly premise since the start of the year, up 19.8%. There are just days left to exchange August for some territorial records. Before the week’s over, provincial markets are probably going to encounter frail exchanging volumes with insignificant market movement.

Strong macroeconomic and demographic trends are encouraging investors : MENA

Any financial specialist taking a gander at the MENA district is probably going to be struck by its macroeconomic essentials. Net residential item for the locale (barring Turkey) is anticipated to twofold to $2.3 trillion by 2015. Its 200 million-in number populace – of which almost 60 percent are less than 30 years old – is among the world’s most prosperous, and it is likewise anticipated that would develop at a rate of around 2 percent to 2.5 percent for every annum.

Given these actualities, it is obvious that the restricted accomplices we addressed for the white paper recorded these two factors – solid financial development and intense socioeconomics – as by a long shot the most convincing reasons to put resources into MENA private value today. “On the off chance that you can catch that [economic growth], there is a comment increase,” expressed one resource chief. A US-based financial specialist in the locale’s private value reserves concurred: “As we think about the district, what’s fascinating to us, obviously, is the development story, especially as for buyer ways of managing money.”

The third most convincing motivation to put resources into the locale’s private value stores – one hailed as especially imperative for assets of assets and benefits bunches – was portfolio enhancement, trailed by resource costs and the district’s administrative condition…..

In third place on our list of sought-after MENA countries was Saudi Arabia, the largest country andeconomy in the region. This was largely down to a repeatedly stated belief that there would be strong growth and opportunity in sectors including infrastructure and healthcare, as the kingdom continues to open up to foreign investors.