Property props up Dubai stocks

In Dubai, the index climbed 1.2 percent, with Emaar Properties advancing 2.5 percent and DAMAC Properties rising 3.6 percent. (Shutterstock)
Updated 11 October 2018

Property props up Dubai stocks

  • In Dubai, the index climbed 1.2 percent, with Emaar Properties advancing 2.5 percent to 5 dirhams and DAMAC Properties rising 3.6 percent
  • Arqaam Capital said that while there were no real signs of improvement in the Dubai property market in the third quarter, earnings might be nearing the trough of their cycle

DUBAI: Dubai’s stock market rose sharply on Wednesday, helped by real estate shares, while Qatar gained on the back of its banks, even as the rest of the Middle East was largely quiet.
In Dubai, the index climbed 1.2 percent, with Emaar Properties advancing 2.5 percent to 5 dirhams and DAMAC Properties rising 3.6 percent.
Arqaam Capital said in a report on Tuesday that while there were no real signs of improvement in the Dubai property market in the third quarter, earnings might be nearing the trough of their cycle. It recommended a “buy” rating for Emaar with a target price of 8.40 dirhams. Dubai Islamic Bank added 0.2 percent after its third-quarter profit rose 10.8 percent, in line with analysts’ estimates. Emirates NBD gained 2.5 percent.

 

The Saudi Arabian index fell 0.9 percent, weighed down by blue chips such as Al Rajhi Bank, which fell 1.9 percent, and SABIC, which dropped 1.3 percent.
But Bawan Co, which has been trading at record lows, climbed 3.5 percent after its unit signed an agreement to supply Saudi Electricity Co. with substations for SR269.8 million ($72 million). The company said the financial impact of the deal would appear in the first half of 2019.
Saudi Industrial Export jumped 10 percent after approving a capital increase through a rights offer. The rights issue will begin trading on Oct. 15.
Egypt’s blue-chip index, which has fallen 15 percent since the end of August, was up 0.2 percent as Commercial International Bank rebounded 1 percent.

FASTFACTS

Saudi Industrial Export jumped 10 percent after approving a capital increase through a rights offer. The rights issue will begin trading on Oct. 15


Saudi-led group reinstated as builder of Bulgaria gas pipeline

Updated 16 September 2019

Saudi-led group reinstated as builder of Bulgaria gas pipeline

  • Bulgaria’s Supreme Administrative Court announced that the Saudi-led group’s main competitors for the project had dropped a legal challenge relating to the award
  • Bulgaria’s state gas operator Bulgartransgaz had initially chosen the Saudi-led group — made up of Saudi Arabia’s Arkad Engineering and a joint venture including Switzerland’s ABB

SOFIA: A Saudi-led consortium was definitively reinstated on Monday as the builder of a new gas pipeline through Bulgaria, intended to hook up to Gazprom’s TurkStream project.
Bulgaria’s Supreme Administrative Court announced Monday that the Saudi-led group’s main competitors for the project had dropped a legal challenge relating to the award.
The latest development brings to an end a long-running tussle between the Saudi-led consortium and its competitors for the project, a consortium of Luxembourg-based Completions Development, Italy’s Bonatti and Germany’s Max Streicher.
Bulgaria’s state gas operator Bulgartransgaz had initially chosen the Saudi-led group — made up of Saudi Arabia’s Arkad Engineering and a joint venture including Switzerland’s ABB — to build the 474-kilometer (294-mile) pipeline.
But Bulgartransgaz later decided to strike the winner off the tender for failing to supply documents needed to sign off the contract.
Instead it accepted the offer of the second-placed consortium led by Completions Development.
However, Bulgaria’s competition watchdog ruled in July that the operator should honor its previous commitments and sign a contract with the Saudi-led group.
The watchdog’s verdict was subject to a final appeal in the courts but the Supreme Administrative Court announced Monday that the appeal had been withdrawn, meaning that the Arkad-led group has now been definitively reinstated.
Bulgartransgaz is in a hurry to complete the pipeline as soon as possible in a bid to enable Russian gas giant Gazprom to hook it up to its TurkStream pipeline after it becomes operational at the end of this year.
Bulgaria, which is heavily dependent on Russian gas for its domestic needs, has been repeatedly criticized by both the EU and the United States for failing to diversify both its gas sources and its delivery routes.
The Balkan country hopes to start receiving Caspian Sea gas from Azerbaijan’s Shah Deniz field as well as liquefied natural gas from various sources via terminals in Greece through a 182-kilometer (113-mile) interconnector expected to be ready by the end of 2020.