Equity markets fall on concerns about global growth

Equity markets fall on concerns about global growth
Updated 18 December 2015

Equity markets fall on concerns about global growth

Equity markets fall on concerns about global growth

NEW YORK: Global equity markets fell on Friday, pulled lower by concerns about slumping crude oil prices, while the dollar slipped against the yen on views the Bank of Japan may not ease policy as much as expected.
Investors were cautious in the wake of the euphoria that followed the US Federal Reserve’s first interest rate hike in almost a decade earlier in the week.
The yen gained after the BoJ merely tweaked its monthly asset-purchase program, putting a pause in the dollar’s rise in recent months on views that the Fed’s likely decision to raise interest rates and the BoJ’s path of more potential stimulus would drive investment into higher-yielding US assets.
The Fed raised rates on Wednesday for the first time in almost a decade.
“The BoJ’s move shows a weak hand,” said Jens Nordvig, global head of FX strategy at Nomura in New York.
“It suggests the BoJ is out of ammunition, and will not be able to deliver anything meaningful going forward,” he said.
Equities suffered from fatigue after markets had risen in anticipation of the Fed move, while the price of oil was driving investor sentiment on concerns over global growth and a growing supply surplus.
“We had a couple of strong days as a result of the Fed,” said Andrew Wilkinson, chief market strategist at Interactive Brokers LLC in Greenwich, Connecticut.
“The market is getting sucked into a fear trade,” he said. It’s really oil — is it a glut or a global slowdown? But I don’t think it’s symbolizing a slowdown in the global economy.”
MSCI’s all-country world stock index fell 0.74 percent, while the FTSEurofirst 300 index of leading European share dropped 0.98 percent to 1,420.038.
On Wall Street, the Dow Jones industrial average fell 186.7 points, or 1.07 percent, to 17,309.14.
The S&P 500 slid 15.45 points, or 0.76 percent, to 2,026.44 and the Nasdaq Composite lost 21.57 points, or 0.43 percent, to 4,980.99.
Treasury prices rose. The benchmark 10-year US Treasury note rose 9/32 in price to yield 2.2058 percent.


NCB plans to issue dollar-denominated sukuk

NCB plans to issue dollar-denominated sukuk
Updated 17 January 2021

NCB plans to issue dollar-denominated sukuk

NCB plans to issue dollar-denominated sukuk
  • The number and value of any sukuk to be offered will be determined based on market conditions
  • Offering of the sukuk will be limited to qualified investors, the bank said

National Commercial Bank (NCB) announced the intention of NCB Tier 1 Sukuk Ltd., an exempted company with limited liability in the Cayman Islands, to issue US dollar-denominated additional Tier-1 sukuk, the bank said in a statement to Tadawul today, Jan. 17.

NCB mandated Citigroup Global Markets Ltd., Emirates NBD Capital, Goldman Sachs International, J.P. Morgan Securities, MUFG Securities (EMEA), NCB Capital and Standard Chartered Bank as joint lead managers and bookrunners for the potential offer.

The potential offer aims to enhance the bank's Tier-1 capital, and in addition it will be used for general corporate purposes.

The number and value of any sukuk to be offered will be determined based on market conditions, the statement said.

The potential offer will be subject to approvals from the relevant regulatory authorities and will be made in accordance with the applicable laws and regulations.

Offering of the sukuk will be limited to qualified investors, the bank said, adding that any material developments will be announced in due course.