Home Trends Higher Oil Prices to Boost Broader Middle East Economy: Daman Investments

Higher Oil Prices to Boost Broader Middle East Economy: Daman Investments

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it’s an uncomfortable piece that the oil market has made ali good morning to you in terms of where we trade at the moment still no deal from opec plus um what are you hearing from clients are they comfortable with this oil price what does it mean for the deployment of capital across the gcc uh good morning manus uh i think uh what’s happening here market is trying uh is trying to price and uh a deal and opec plus um although we’re still seeing higher demand uh on uh frog from oil and for oil and this is actually impacting positively gc economies as you rightly said gc economies are in the right place in terms of higher oil prices which is impacting positively their their current account services and fiscal uh fiscal services at the same time it’s gonna uh they have very high vaccination rates which is which is boarding well to opening up the economies and this is where we think the governments have more muscle to uh to start spending in order to protect um a rebound in the economy in the near future okay let’s just break some of that down because i look at what’s going on with um saudi stocks and dubai stocks the tada will die in what five days in a row the longest losing streak since the start of this year and dubai uh the longest losing streak uh since july of last year ellie ali is this a value repricing have we run into a little bit of a brick wall in terms of the value trade which is implicit in both of of these markets globally we’ve seen the value trade like slowing a bit we’ve seen correction across uh value and cyclical names globally and the gcc uh uh has has been impacted because as part of that because mainly most of our companies that are listed in the in the gc region as are our cyclical companies however what’s modding well versus uh versus emerging markets is that the oil prices is actually giving more strength to gc uh to gcc uh companies and this is where we think that there’s more value in some of the cyclical uh sectors or names in in the region and part of that are the banks now we’re going into reporting season in the united states and in europe uh as far as the banks are concerned here is that i suppose floor in oil one could say or as you say searching for a deal trying to hold this level does that play into the credit quality and the lending at the banks here in the region i think banks here are uh supported by strong shareholders they have highly uh highly high they are highly capitalized and plus they have they have been able to weather through the um the crisis the the um the covet crisis through having higher cost of risk which actually impacted earnings however and if you’re going looking forward i think cost of risk will will start reducing and low growth will start going back to the average normal that we’ve we should we should start seeing link to the economies and this is where we think local regional banks should should benefit especially the big banks such as in nue we have a enbd adcb and partly fab because of the valuation and also in saudi er linking that linking banks to corp to uh government spending such as ncb and even on the corporate side uh such as uh saudi bridge bank so i think those those banks in general should do well in the near term especially with earnings seasons uh coming in and they should post good good results in general now the satellite company yasada called up with masaba just as they announced this ipo in abu dhabi on the exchange for me it’s about bolstering the liquidity of abu dhabi if you look what adnock are doing in terms of the pipelines if you look at the murban futures and now this next ipo do you think it’s going to be locally held or do you think it’s going to draw a little bit more attention who’s going to trade this stock who’s going to own it definitely the uh the ue exchanges are thirsty for new ipos quality and rightly priced ipos and i think uh international and regional uh international and local investors will be will be interested in such uh and such ipos because it’s fascinating did you buy anything of course of course we’ve bid and we’ve we’ve bid for the ipo and actually we have did you get your allocation located exactly we got our locations and less than what we asked for because it was highly demanded so will you come back into the secondary market on that will you pick up more stock on the secondary of course of course we didn’t get the full allocation so most probably will have to get it from from the from the secondary market


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Higher Oil Prices to Boost Broader Middle East Economy: Daman Investments
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