Did you know?
Did you know that Masdar City, located within the Emirate of Abu Dhabi is the world’s first zero-carbon, zero-waste, car-free city?
Locking-in profits ahead of summer uncertainty
Many equity markets closed at or near all-time closing highs last week, led by the US, and mainly in the aftermath of Janet Yellen’s dovish testimonies to Congress, which are fully discussed in the report. The Investment Summary details the latest changes made to investment policy by the Asset Allocation Committee, which decided to take some profits and reduce risk across the model portfolios, purely on a tactical basis. It could be that Trump’s revised healthcare proposals remain problematic, and this, together with other headwinds his Administration faces, provokes the equity correction we have been waiting for.(...)
Claude-Henri Chavanon, Head of Products & Services - Wealth & Private Banking
Interview – ADNOC considers IPO of its distribution unit
Mohammed Ali Yasin, the CEO of NBAD Securities
Commenting on ADNOC’s potential listing of its distribution unit, Mohammed Ali Yasin, the CEO of NBAD Securities, said that new IPOs in new sectors would add depth to the markets indeed, as well as help strengthen them and improve their performance in the long run. Asked about Etisalat’s pull out of Nigeria, Mr Yasin said that the company’s expansion outside the UAE has had a negative impact on its finances, and that Maroc Telecom could represent the company’s only growth opportunity going forward.
GCC Fixed Income Chart Book: 1H 2017 Review
FAB’s market insights team published their quarterly review of GCC bond and sukuk markets for 1H 2017. Click here to view the full report.
Chavan Bhogaita, Managing Director and Global Head of Market Insights & Strategy
Interview – No Enthusiasm for Qatari equities
Mohammed Ali Yasin, the CEO of NBAD Securities
Commenting on regional stocks, Mohammed Ali Yasin, the CEO of NBAD Securities, said that he did not see much enthusiasm for Qatari equities at the moment as local and regional investors fear political escalation. But Mr Yasin showed more concern for the bond market than for equities. “Qatari bonds are rated AA. Many banks [in this region] have them on their books.” According to the CEO, the prospect of lower ratings could put pressure on those bonds, especially as they are traded over-the-counter.
Egypt – Quiet Progress
While a number of major geo-political events such as the ongoing investigation into Russian meddling of the US elections, sabre-rattling by North Korea, Brexit and the more recent Qatar dispute, continue to take-up much of the global media headlines and analysis, Egypt has quietly been making progress on the economic front since it floated the pound and signed up to an IMF program late last year.(...)
Glenn Wepener, Executive Director & Geopolitical Analyst Middle East & Africa
VAT in the GCC
A quick primer on the VAT implementation in the GCC. There is of course much more information yet to come in terms of VAT – such as the granular details about how and when it will be implemented in each of the Gulf states. Please watch this space for further updates in this regard.
Alp Eke, Senior Economist
Omar Abdulhadi, Associate Director & Analyst
Daily Market News
Latest Global Market Reports
Oman Markets Its Debut US$ Sukuk Issue
Following on from its successful bond issue in March, the Sultanate of Oman is now back in the debt capital market – this time selling a debut 7-year sukuk transaction. NBAD’s Market Insights team has published its initial thoughts and relative value analysis in the attached document
Managing Director and Global Head of Market Insights & Strategy
Other Regional and Sector Insights
Strengthening UAE & Mena Markets
A strong performance from Mena equity markets over the past week with our Mena and UAE equity funds and portfolios registering between 2% and 4% return. Mena equity returns were supported by a stable global backdrop and higher oil prices(...)
Saleem Khokhar, Head of Equities Fund Management
Steady As She Goes
It was a better week for GCC, MENA and emerging market bonds/ sukuk last week following the weaker performance in June and early July that we wrote about last week. Yields, spread tightening and a firmer, underlying US Treasury market all contributed. We have also written about inflation recently,(...)
Ian Clarke, Head of Fixed Income Fund Management
Fixed Income 2017 – Being selective
At the beginning of the year, NBAD’s latest Global Investment Outlook said that 2017 would be better than 2016 for risk investing. As a result, we favoured equities over fixed income in our overall asset allocation. While it is not the end for fixed income in asset allocation, we believe that careful name selection is the key to returns in bonds.
Alain Marckus, NBAD’s Director of Investment Strategy