Tadawul: Tourism stocks stay in the limelight

Updated 25 May 2014
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Tadawul: Tourism stocks stay in the limelight

Saudi Arabia’s benchmark Tadawul All-Share Index (TASI) ended its Sunday's trading up over 21 points, closing at 9,772.48.
Mid cap remained prominent among market cap indices. Only five out of Tadawul’s 15 sectors witnessed a negative change, dropping 428.4 points for the day. Remaining twofold sectors closed in the green territory, accumulating an aggregate of 619 points.
Hotel & Tourism sector advanced 306 points or 1.35 percent over the day, posting the biggest gains among all sectors.
On the other hand, Media and Publishing continued its downward fall, marking another dip of 6.44 percent. Tihama Advertising & Public Relations Company was among the top decliners, showing excessive losses of 9.96 percent.
Heavyweights closed in a mixed fashion, where Saudi Electricity rose 0.31 percent and SABB fell 0.71 percent. Market breadth with advance-decline ratio of 0.86:1 remained slightly negative.
Saudi Hotels & Resort Areas Co. and Methanol Chemicals Company showed the best performance among all Saudi stocks, appreciating by 5.95 percent and 5.42 percent respectively. City Cement shares raced to a new all-time high, closing at SR28.66.
Saudi Kayan Petrochemical Company was a key gainer among most active stocks, surging 3.13 percent and closing at SR16.77. Its 52.5 million shares worth SR867.4 million were liquidated into the market. This turnover reflects a relative market share of 13.6 percent on volume basis and 7.7 percent in terms of liquidity.
Tadawul volume set sold approximately 387 million shares, a decrease of 12.5 percent as compared to previous level. But the volume was greater than 50-day average by same percentage.
Equity turnover reached to SR11.2 billion, an increase of 8.5 percent over the 50-day average value.


Dubai property developers put bond plans on hold

Updated 21 January 2019
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Dubai property developers put bond plans on hold

  • Dubai property prices have fallen since a mid-2014 peak, hurt by a period of weak oil prices and muted sales
  • Residential prices fell 6 to 10 percent in 2018 and are expected to drop 5 to 10 percent more this year

DUBAI: Dubai’s Emaar Properties and state-owned developer Nakheel have put on hold plans to issue US dollar-denominated bonds, Emaar and sources familiar with the bond issues said, amid a real estate downturn and volatility in emerging markets.
Emaar told Reuters that it had put on hold a planned bond issue, blaming rising interest rates but did not elaborate. Nakheel declined to comment.
Three financial sources said the firms had planned dollar-denominated sukuk, or Islamic bonds, and would have had to pay a yield premium to attract enough investors due to concerns about Dubai’s property price slide and emerging market volatility.
Dubai property prices have fallen since a mid-2014 peak, hurt by a period of weak oil prices and muted sales, although the slide has not come close to the more than 50 percent plunge seen in 2009-2010, which pushed Dubai close to a debt default.
Residential prices fell 6 to 10 percent in 2018 and are expected to drop 5 to 10 percent more this year, according to Savills. The drop has hurt developer earnings.
Emaar, developer of Burj Khalifa, the world’s tallest building, reported a 29 percent fall in the third quarter last year, while Dubai’s second-largest listed developer DAMAC reported a 68 percent drop.
The financial sources said Emaar and Nakheel hired banks a few months ago to issue Islamic bonds but shelved the plans.
An Emaar spokesperson said its decision to put its plan on hold was not linked to the property market performance.
“The bond was considered more than a year ago and was put on hold due to increasing interest rates. The decision was not based on market conditions,” the spokesperson said.
Dubai government owns a minority stake in Emaar.
Nakheel, developer of palm shaped islands off Dubai, was one of the worst hit by Dubai’s 2009-2010 real estate crash, forcing it into a massive debt restructuring. It has not issued public debt since it nearly defaulted in 2009.
The market downturn has put pressure on property companies’ existing bonds, which investors use as a parameter to establish the price of new debt sales from borrowers in the same sector.
In secondary debt markets, yields of bonds issued by Dubai developers have risen significantly over the past few months, underperforming corporate debt from other sectors.
DAMAC’s $500 million sukuk due in 2022 and $400 million Islamic paper due in 2023 saw their yields spike by over 200 bps and 150 bps, respectively, since early November.
BofA Merrill Lynch last week forecasted weaker booked sales and gross margin for DAMAC, saying it was likely to be pressured by the property market and upcoming debt and land payments.
DAMAC did not immediately respond to a request for comment.
Yields on a $600 million sukuk issued by private developer Meraas, due in 2022, have jumped by around 120 basis points in the same period. Meraas declined to comment on the move.