Egypt & Kuwait in Talks Over $4B Natural Gas Deal, ME Markets Mixed

Egypt & Kuwait in Talks Over $4B Natural Gas Deal, ME Markets Mixed
<a href="">3dman_eu</a> / Pixabay

The Middle East is one of the only regions with markets open on Sunday. Among the noteable countries where markets are open today; Saudi Arabia, Qatar, Kuwait, Oman, UAE (countries which are part of the GCC) Egypt and Israel. Below is a list of notable financial and market news from most of those countries. The biggest news is a possible deal between Egypt and Kuwait for a $4 billion natural gas agreement.

Egypt &amp; Kuwait in Talks Over $4B Natural Gas Deal, ME Markets Mixed

Saudi Arabia

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Saudi Arabia’s Tadawul All Share Index (TASI)  was down -25.97, -0.37%.

Saudi Arabia aims to liberalize its power industry, beginning with the privatization of the electricity sector by 2014, The Saudi Gazette reported, citing experts attending the MEED Saudi Mega Infrastructure Projects Summit. The privatization move aims to create a competitive market for electricity generation in Saudi Arabia where, at present, the Saudi Electricity Company (SEC) SECO TOOLS AB AKT B (PINK:SOOOF), which is majority owned by the government, generates, transfers, and distributes electricity on a national level. The restructuring will involve establishing four electricity generation companies and one distribution company by 2014, Amer Al Swaha, head of SEC’s IPP program said. The new companies will compete with each other and SEC’s independent power providers (IPPs). The SEC will also set up a single power supply buyer from the four generation companies and the IPPs. The move is part of national plans to meet electricity demand in Saudi Arabia, which is seen rising from 51,000MW in 2011 to 120,000 MW in 2030, Al Swaha added.

Canada’s Bombardier, Inc. (TSE:BBD.B)  (TSE:BBD.A)has signed contracts worth SAR 1.37 billion (USD367 million) with Talgo SA to develop and supply components for 36 high-speed trains for the Kingdom’s Haramain Railway, Arab News reported, citing an a company statement. Talgo, a member of a consortium led by Spanish railway operator RENFE and railway infrastructure company ADIF, was recently contracted to build and operate the 450-km railway linking the holy cities of Mecca and Medina via Jeddah. The deal includes Bombardier’s propulsion and control package, Flexx Power 350 high-speed bogies, and 12-year maintenance services for the trains and their components.


Qatar’s QE Index (DSM) was down 0.4%.

Denmark’s Maersk Oil is in talks with Qatar Petroleum to extend a production sharing contract for the offshore al-Shaheen oilfield by another 13 years to 2030, Reuters reported, citing industry sources. Crude production at the field could rise to 400,000 barrels per day (bpd) in 2017 from the current 300,000 bpd, one source said, with new equipment such as a floating storage and offloading unit (FSO) possibly being installed if the contract is extended. Maersk Oil spokesman Paul Taylor did not confirm the talks to lengthen the production sharing contract by another 13 years, but said the two companies were together evaluating the potential for additional development of the field. Maersk Oil entered into an Exploration and Production Sharing Agreement (EPSA) with Qatar Petroleum for Block 5 including the Al Shaheen discovery off the shore of Qatar in 1992.


Kuwait’s Stock Exchange Price Index (KWSEIDX) rose 0.2%.

Combined Group Contracting Co (CGC) (CGCK.KW) signed a new contract worth KWD35.9 million for the
installation of water pipes in Kuwait. More below under Egypt and Qatar, about a natural gas deal between the two countries.

The Kuwait Market Price Index closed on a positive note at 5,892 points, a gain of 0.21%. The Weighted Index closed at 406.63, a gain of 0.32%. The KSE 15 Index closed at 966.5, a gain of 0.21%. 57 stocks advanced while 53 declined. The Financial Services Index witnessed highest volume traded at 185.6 Mn and the highest value traded at KD 11.4 Mn. Several indices were positive. Industrials Index was the top gainer, up 1.41%. Basic Materials Index was the top loser, down 0.21%. Blue-chips were mixed. Agility was the top gainer, up 3.13%, closing at KD 0.495. CBK was the top loser, down 1.47%, closing at KD 0.67.


Abu Dhabi’s ADX General Index (ADSMI) was down 0.2%.

Emirates has mandated JPMorgan Chase & Co. (NYSE:JPM) for AED2.3bn bond. Dubai-based airline Emirates will use proceeds from bond sale to buy Airbus A380 and The Boeing Company (NYSE:BA) 777 aircraft. Export-Import Bank of the US will guarantee the bond.

Nomura Holdings, Inc. (NYSE:NMR) (TYO:8604) is aiming to cut investment banking jobs in Dubai. The job cuts in Dubai are confined to the investment banking business, while the capital markets business is not undergoing any reduction. Nomura Holdings, Inc. (NYSE:NMR) (TYO:8604) also plans to shed jobs in Europe.


Oman’s  fell 0.3 percent.

Oman’s stock market MSM30 Index (MSM30), was down 4.62 ( 0.26%)

National Bank of Oman (NBO) has launched its Portfolio Management Services in the Indian capital market. NBO has signed an agreement with Reliance Wealth Management (RWM), to provide distinct Indian investment products to its valued private banking customers. The bank is focused on servicing the investment needs of high net worth clients and considers this service a significant leap forward.


Egypt’s stock market EGX 30 (EGX30) was down 12.51 ( 0.21%). Egypt’s thirty largest companies trade on the NYSE, under Market Vectors Egypt Index ETF (NYSE:EGPT)

Egypt’s Minister of Petroleum Osama Kamal arrived in Qatar on 21 September to negotiate a gas-importing contract, the
state-run Al-Ahram newspaper reported. Official sources familiar with the situation told Al-Ahram that the Egyptian
government would import 400-500 million cubic feet on a daily basis. A member of Egypt’s Federation of Investors for
petroleum and gas affairs, Mohamed Saad Eddin revealed to Ahram Online that negotiations with Qatar were regarding
liquefied gas, not dry. “The natural gas pipelines do not reach all areas in Egypt and that explains why we need liquefied
gas to be transported by trucks,” he added. Several factory owners complain of disruptions in gas supply because supply has
been diverted to meet the demands on Egypt’s electricity grid during the hot summer – which often saw power cuts. Once operational, the state-of-the-art refinery will produce more than 4.2 million tons of refined products and oil derivatives annually, including more than 2.3 million tons of high quality and environment friendly diesel per year. This is expected to cut Egyptian diesel imports by up to 50%.

The Supreme Administrative Court (SAC) ruled on Saturday to uphold the verdict of the Supreme Constitutional Court (SCC)
deeming the Lower House of Parliament unconstitutional. The assembly was dissolved on the basis of that verdict.

Egypt’s Central Bank Governor Farouk al Okdah said he plans to retire by the end of the year, Al Mal quoted him as saying.
Al Okdah added that he is retiring for health reasons having sought medical treatment three times over the past few
months.  Dr. Farouk El Okdah, governor of CBE denied a rumor about the intention of devaluating the Egyptian pound.


Israel’s TA-25 Index (TA-25) climbed 0.9%.

Radware Ltd. (NASDAQ:RDWR)  stock spiked the most in four months on a report that Cloud Computing revenue will more than double in the next four years. Mellanox Technologies Ltd.

Cellcom Israel Ltd. (NYSE:CEL) rallied close to 10% after receiving an upgrade from Barclays Plc (LON:BARC) (NYSE:BCS).

The European Medicines Agency (EMA) has recommended approval of burn treatment  medicine, NexoBrid. Analysts expect Teva Pharmaceutical Industries Ltd (NYSE:TEVA) (TASE:TEVA) to begin selling the drug in 2013.

Israel has agreed to open talks with the Palestinian Authority to develop BG Group plc (LSE; NYSE: BG)’s Marine natural gas field offshore near the coast of Gaza, according to an official Israeli report, according to Globes.

Mellanox Technologies, Ltd. (NASDAQ:MLMX) also rose in today’s trading.

Three armed terrorists slipped into Israel from Egypt’s Sinai peninsula, killing an Israeli soldier and wounding another before
being shot dead, the army said. It was at least the fourth crossborder attack in just over a year – violence that has persisted despite a supposed Egyptian army and police crackdown on Sinai terrorists begun last month.

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