Dubai stocks hit 2-year high

Updated 18 January 2013
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Dubai stocks hit 2-year high

DUBAI: Dubai’s bourse climbed to a new two-year high yesterday as investors shifted funds to stocks lagging an early-year rally, while other regional markets closed mixed.
In Dubai, contractor Drake & Scull jumped 5.6 percent and builder Arabtec gained 4.2 percent. Dubai Financial Market surged 6 percent.
“Local flows are going into stocks, like DSI, which were lagging compared to the market rally last week,” said Mohab Maher, senior manager — institutional desk at MENA Corp. “Foreign buying is also supporting (but) this is likely for short-term gains.”
Emirates NBD hit an 11-month high, rising 1.5 percent. The bank is trading at a price-to-book value of 0.53, while the other big lenders in the United Arab Emirates are above 1, according to Reuters data.
Traders said these indicators are a trigger for investors to buy ENBD shares.
Dubai’s index rose 1.9 percent to 1,775 points, its highest close since November 2010 and up 9.4 percent so far in January.
The market is close to completing a major technical reversal pattern — an inverse head-and-shoulders pattern — which, if successful, means a strong move higher.
“Currently the neckline is located at 1,785 level, which is considered being a tough resistance - the breakout of the neckline should occur on high volumes to confirm the pattern and confirm that the UAE markets will witness an extremely bullish move targeting 2,200 and 2,400 in the intermediate term,” said Musa Haddad, head of investment advisory services at National Bank of Abu Dhabi.
In Abu Dhabi, the benchmark slipped 0.1 percent, down for a second session since Tuesday’s nine-month high.
National Bank of Abu Dhabi and First Gulf Bank shed 0.9 and 0.8 percent respectively.
Elsewhere, Qatar’s index gained 0.5 percent, up 3.1 percent so far in January.
Shares in Vodafone Qatar advanced 4.6 percent to 8.84 riyals per share. The telecom operator reported a narrowing third-quarter loss on Wednesday.
“Vodafone Qatar reported solid December metrics that beat ours and consensus estimates — the beat was on the back of strong subscriber growth,” QNB Financial Services said in a research note. “We maintain our ‘accumulate’ rating with a price target of 9.36 riyals.”
In Egypt, the index slipped 0.5 percent as selling pressure from Egyptians and non-Arab foreigners increased, according to bourse data. Arab investors were net buyers.
The market is still up 3.6 percent so far in January.
Talaat Moustafa, losing 4.7 percent, was the main drag on the index. Investors booked profits from Wednesday’s rally triggered by a court postponing a case over the disputed sale of land for the property developer’s flagship Madinaty project until April 16.
Shares in National Societe Generale Bank bucked the market trend and gained 0.5 percent. Qatar National Bank, which hopes to complete the purchase of a 77 percent stake in the Egyptian lender within the next two months, said it would not be deterred by a currency crisis in the North Africa country.
QNB shares on Doha’s exchange gained 0.5 percent.
In Oman, Bank Muscat ended 0.2 percent lower, trimming January’s gains to 4.8 percent. Oman’s largest bank posted a 15.1 percent rise in fourth-quarter net profit, which came in line with analysts’ forecasts.


Ex-Nissan chief Ghosn charged, may face new allegations

Updated 53 min 23 sec ago
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Ex-Nissan chief Ghosn charged, may face new allegations

  • Authorities are also widely expected to re-arrest him later Monday over separate allegations that he also under-reported his income by a further four billion over the past three years
  • Under Japanese law, suspects can be re-arrested several times for different allegations, allowing prosecutors to question them for prolonged periods

TOKYO: Japanese prosecutors have formally charged Carlos Ghosn with financial misconduct for under-reporting his salary, local media reported on Monday, three weeks after the auto tycoon’s arrest stunned the business world.
Former Nissan chairman Ghosn, 64, has been in detention since his November 19 arrest on suspicion of under-declaring his income by some five billion yen ($44 million) between 2010 and 2015.
Authorities are also widely expected to re-arrest him later Monday over separate allegations that he also under-reported his income by a further four billion over the past three years.
Under Japanese law, suspects can be re-arrested several times for different allegations, allowing prosecutors to question them for prolonged periods — a system that has drawn criticism internationally.
Monday was the final day prosecutors can hold Ghosn and close aide Greg Kelly before either charging or re-arresting them, and a further arrest would allow them another 22 days of questioning.
In addition to charges against Ghosn, prosecutors also indicted Kelly and Nissan itself, according to local media, as the company submitted the official documents that under-reported the income.
Ghosn denies the charges and is in a “combative” frame of mind, according to sources at Renault, the company he still formally leads — even if the French car giant has appointed an interim chairman.
The Japanese firms in the three-way alliance with Renault — Nissan and Mitsubishi Motors — have both sacked the Franco-Lebanese-Brazilian as chairman.
The millionaire auto sector star, who attracted some criticism for a perceived lavish lifestyle, is now alone in a spartan cell in a Tokyo detention center, in a tiny room measuring just three tatami mats — around five square meters.
He has reportedly told embassy visitors he is being well treated but has complained of the cold, with Monday’s temperature in the Japanese capital hovering around five degrees Celsius.
He spends his time reading books and news reports and is said to be unhappy about the rice-based food.
According to local news agency Kyodo, he has admitted signing documents to defer part of his salary until after retirement but said this amount did not need to be declared as it has not yet been definitively fixed.
A source close to the investigation has said Ghosn and Kelly allegedly put the system in place after a new law came in obliging the highest-paid members of the firm to declare their salary.
Ghosn is suspected of deferring part of his pay to avoid criticism from staff and shareholders that his salary was too generous.
Nissan is appealing to a court in Rio de Janeiro to block access by Ghosn’s representatives to a luxury apartment on Copacabana Beach
“We are closely watching if he is actually indicted and then found guilty,” said Satoru Takada, an analyst at TIW, a Tokyo-based research and consulting firm.
“If he is exempted from prosecution or found innocent, it is going to create huge confusion in Nissan’s management,” Takada told AFP.
It is unclear if Ghosn can be bailed before a potential trial.
In Japan, prosecutors and defendants begin a trial at a district court and can appeal to a high court and the Supreme Court. It may take several years before reaching a final judgment.
If found guilty, Ghosn could face a 10-year prison sentence.
The affair represents a staggering turnaround for a figure celebrated for saving Nissan from the brink of bankruptcy and rebuilding it as a money-making subsidiary of Renault.
Nissan has begun a process of choosing Ghosn’s successor, with the final decision expected on December 17.
His arrest has sparked incredulity at Renault, which owns 43 percent of Nissan and says it has not seen a detailed account of the charges against Ghosn.
It has also fueled anger in Lebanon, with digital billboards around Beirut proclaiming “We are all Carlos Ghosn” under a picture of the magnate.
“A Lebanese phoenix will not be scorched by a Japanese sun,” Interior Minister Nohad Machnouk has declared.