Oil

How much more can KSA cut production

Saudi Arabia plans to pump about 9.77mbpd in November, which would be its lowest output since January 2015. According to the Saudi energy ministry, the decrease in allocations for November includes a full 290,000-bpd reduction over and above the 486,000 bpd that Saudi Arabia pledged to cut as part of its commitment. Table: Saudi Arabia Oil Supply (Jan-2015 to Sep-2017) Source: Reuters, Marmore Research Considering Saudi Arabia’s commitment to do whatever it takes to end the oil glut, it is...

Oil price recovery contributes to the regional markets’ rally in July

Value traded in July reflected the positive sentiments in the market, with volume traded increasing by 8% while the turnover in the market increased by 10%. All MENA markets, barring Abu Dhabi, Qatar and Egypt, witnessed gain in liquidity. Kuwait and Bahrain bourses evidenced 89% and 52% increase in value traded. The increase in liquidity attributed to the base-effect, especially due to poor trading activity in the previous month of Ramadan. In terms of valuation, P/E of Morocco (20.1x), Saudi...

GCC Petrochemical Industry: Move beyond cheap feedstock

The main source of current GCC feedstock is ethane which, along with methane, is naturally found in associated gas. Other significant feedstocks includes propane and butane, both of which are derived from LPG. Lastly, there is naphtha, which is a product of crude oil refining. In contrast it is important to highlight that Naphtha’s contribution in Global feedstock consumption is around 70% in the year 2015, according to Platts. GCC has a significant cost advantage in feedstocks as compared to...

GCC bond market story-Just beginning to unfold

While the GCC equity markets came into prominence in the early part of the millennium the bond market took a back seat, primarily due to the lack of urgency to raise funds, ample liquidity in the system at low cost and certain cultural taboos. Family run organisations which control the majority of the economy were reluctant to expose their books to outsiders and sovereigns never had a dearth of capital. The data collated by Marmore clearly indicates an uptrend in...

MENA markets tumble in line with oil

Value traded and volumes in March reflected a mixed market mood, with volume traded, dropping by 22% while the turnover in the market increased by 34.6%. All MENA markets, barring Saudi Arabia and Dubai, witnessed increase in turnover in March. Dubai and Abu Dhabi witnessed the maximum fall in liquidity with volume declining by 41% and 40% respectively. In terms of valuation, P/E of Morocco (19.18x), Kuwait (16.2x), and Qatar (15.06x) markets were at premium, 8while the markets of Dubai...

MENA Markets Mixed, Oil Retreats

The month witnessed the volume traded hitting the reds with a negative growth of 22%, in contrast with a hike of 34.6% in the market turnover, indicating a mixed market mood. All MENA markets witnessed an increased turnover in March, leaving behind Saudi Arabia and Dubai to battle a negative market environment. Dubai and Abu Dhabi hit the lows in liquidity, with volumes spiraling down by 41 and 40%, respectively. Drawing the limelight on valuation, the market witnessed the P/E...

Kuwait Price Index up by 19% in Jan 2017

According to Marmore’s recently released Monthly Market Review, MENA bourses had a positive start to the year 2017, with nearly all markets ending the first month in green. Kuwaiti Price and Weighted indices led the charge, rising by 18.9% and 12.4%, respectively, followed by Bahrain (6.8%). Saudi Arabia and Oman were the only markets to register a fall in January, falling by 1.5% and 0.1%, respectively. Various reasons are being touted for the 14-day consecutive rally in the Kuwait bourses,...

GCC Markets Mixed, OPEC Deal Uncertain

Selling pressure created by Foreign Institutional Investors (FIIs) led to the fall in the Muscat index, while sharp fall seen in the Dubai index was attributed to profit booking, due to volatility in the international commodities and currency market. In terms of valuation, P/E of Morocco (18x), Qatar (14.3x) and Jordan (14.2x) markets were the premium markets in the MENA region, while the markets of Egypt (8.5x), Dubai (8.8x), and Oman (9.3x) were the discount markets. Blue Chips also had...

GCC Markets Fall Despite Oil Price Rise

Although the oil price rose by over 4 per cent, on the back of the OPEC agreement to limit crude output, Saudi index fell considerably after the Saudi government announced that it was reducing salaries and allowances for public sector employees. Many investors believe that additional austerity steps, such as new fees or taxes on the kingdom's large workforce of foreigners, could also be approved soon. Middle East fund managers have turned negative towards Saudi Arabian equities for the next...

Oil Price Rebound Fails to Cheer GCC Markets

Blue Chips were mixed in August with DP World and Ooredoo gaining 8.8 percent and 8.1 percent respectively. Four of the top five gainers were from Qatar, with Qatar National Bank and Industries Qatar share prices up by 7.5 percent and 6.1 percent respectively. Investors flooded their investments into Qatari large caps after the announcement of FTSE to include them into the emerging markets index on 24th August 2016. Saudi stocks were at the bottom, National commercial bank (NCB) and...