Archive for May, 2008

08
May

Kuwait Investment Authority to enter China

By C&N 4 Comments
Categories: analysis, economy, investment, kuwait, news reports, research, sovereign funds and speculation
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News sources are confirming that Kuwait Investment Authority (KIA) is considering investing into the booming China market. A delegation headed by KIA’s managing director, Bader al-Saad, are planning a visit late next week to discuss various investment opportunities with Chinese officials.

The KIA will be concentrating on the following sectors:

  • Banking
  • Industrial
  • Agriculture

Previous investments commenced last year in the Industrial and Commercial Bank of China for $720 million have been very profitable for the sovereign fund.

08
May

Euro is finally back down

By C&N 1 Comment
Categories: analysis, economy, investment and news reports
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Following a record high in the Euro 2 weeks ago, the currency is back down to a 2 month low. The European Central Bank (ECB) is expected to keep interest rates steady at 4% in a meeting later today.

“The euro may test lower below $1.52 over the next week as markets seek adjustments after the recent dollar selling and euro buying… The focus today is on the ECB. If Trichet makes hawkish comments as usual, the euro will be bought back at once.”

- Kengo Suzuki, Shinko Securities

The Euro/Kuwaiti Dinar rate today is 1 Euro for .410 fils

08
May

Blacklisted by my bank for living in Iran

By C&N 0 Comments
Categories: analysis, banking, gcc, news reports, politics and random
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I came across this very interesting article. It ties together politics and banking. The original article came across Reuters News service, I could not find a link.

—-
    By Fredrik Dahl

   TEHRAN, May 8 (Reuters) - “Your account has been blocked because of your address … It’s not personal.”
   The bank employee in Brussels sounded almost apologetic when she told me my business was no longer wanted since I live in Iran, which is under tightening U.N. and U.S. sanctions over its disputed nuclear plans. 
   Continue reading ‘Blacklisted by my bank for living in Iran’

08
May

Investment Dar confirms sale offer for Cham Bank

By C&N 0 Comments
Categories: analysis, banking, economy, investment, kuwait, news reports, research, rumors, speculation and stock markets
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Following rumors from last week Commercial Bank of Kuwait (CBK) officially announced its offer to boost its stake in Syria’s Cham Bank by buying the Investment Dar shares. On Sunday a newspaper said that Investment Dar had agreed to sell its 12.5% stake in Cham to CBK, which offered 700 lira ($15.32) per share. Commercial Bank of Kuwait already owns 27%.

“These are all speculation. There’s still no fixed price nor details… We have an offer (from CBK) yes… but there’s no price or details yet… Now it is at the studying stage. I expect within two weeks to reach a ground we can decide on… They are very preliminary talks, might happen, might not happen. We might get other offers… but because CBK has the biggest stake (in Cham), they could be more interested.”
- Amr Abou El-Seoud, Executive Vice President
Amr Abou El-Seoud confirmed Dar owns a 12.5% stake in Cham Bank, which was established in 2006 with capital of 5 billion Syrian pounds ($97.85 million), but said there was no decision yet on whether it would sell its entire stake.
07
May

CBK calling to free Kuwaiti land

By C&N 1 Comment
Categories: analysis, banking, economy, inflation, investment, kuwait, news reports, research and speculation
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The central bank of Kuwait is urging the government to tackle record inflation by giving away more land
and resisting calls to boost spending since inflation levels jumped to a record of 9.5 percent in January, driven by a 16.1 percent rise in rents and 7.7. percent rise in food costs. 

“Monetary tools alone won’t be able to curb inflation… This helps bring down prices of production of goods and providing of services… This helps in lowering the impact of severe fluctuations in prices of major international currencies on local inflation”

- Sheikh Salem Abdul-Aziz al-Sabah, Central Bank of Kuwait Governer

Inorder to lower inflation the government should provide more land, which is almost entirely owned by the state, to businesses and individuals. By permitting the sale of lands, not only will it control the surging inflation, but will also increase health care facilities, decrease road congestion, allow more housing, control prices of housing, among much, much more.

 

05
May

CBK to take over Egyptian Gulf Bank

By C&N 1 Comment
Categories: analysis, economy, kuwait, news reports, private equity, rumors, speculation and stock markets
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Rumors have spread that Commercial Bank of Kuwait is planning a takeover bid to take Egyptian Gulf Bank. The information comes at a time when investments in North Africa are expected to continue their remarable returns.

Although it seems that CBK is in the news daily in talks about expansion, its just that investors are betting when and where it will be. The National Bank of Kuwait is taking over the Alwatany Bank of Egypt plus the large share for the Kuwaiti side in the Arab African Internationl Bank.

CBK shares have remained unchanged by the news, investors seem to be awaiting official statements.

04
May

Kuwait stock exchange rises to life-time high

By C&N 1 Comment
Categories: analysis, economy, investment, kuwait, news reports, research, speculation and stock markets
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The Kuwaiti Stock Exchange rises to a life-time high, lifted by investor hopes that elections this month are viewed as a positive sentiment in the market. The Kuwait Stock Exchange’s benchmark index increased .62% on Sunday and is at 14,847 points (after hitting a record high of 14,859.20 points). The market is expected to increase and hit new highs throughout the coming days to the election on May 17.

“Investors are waiting to see what will happen in the election. If it’s positive, then the market will remain in good shape” 
- Abdulmohsen al-Bahar, Noor Investment
04
May

Gulf countries dismiss threats in Iraq & Iran

By C&N 0 Comments
Categories: analysis, economy, gcc, investment, kuwait, news reports, research, speculation and stock markets
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Iran’s supreme leader has stated that Tehran would not give up its rights in the face of Western pressure, two days after major powers said they would make a new offer to convince Tehran to halt its nuclear plans. The Kuwaiti economy has evidently dismissed the threats from Iran sending the Kuwait Stock Exchange to an all-time high.

“We will continue with our path with power and we will not allow the arrogant ones to step on the right of this nation… Threatening the Iranian nation will not (make it) retreat.” 

- Ayatollah Ali Khamenei, Iran’s supreme leader

News of political instability in the country, coupled with the threats in Iraq and Iran have been seen as positive aids in extending the economic boom in the Middle East.

 

04
May

Investment Dar selling stake in Cham Bank

By C&N 0 Comments
Categories: banking, investment, kuwait, news reports, rumors, speculation and stock markets
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Investment Dar is looking to sell its stake in Syrian Islamic lender Cham bank but has yet to reach a deal. An unsourced report surfaced today stating that the firm ‘had agreed’ to sell its 12.5% to Commercial Bank of Kuwait (CBK). Investment Dar was forced to accept or deny the statement prior to this mornings stock market opening, inwhich the company stated, “The issue is still in the process of being studied, submitting requests to regulatory bodies and approval of the firm’s board.” It gave no more details.

Interesting Notes:

04
May

KIA to increase islamic investments

By C&N 0 Comments
Categories: analysis, economy, investment, kuwait, news reports, research, sovereign funds, speculation and stock markets
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Kuwait Investment Authority (KIA) is planning to boost its shariah compliant investments. The KIA already abides by ‘moral’ investments and ethically does not invest in alcohol production or porography based companies.

“Returns from Islamic financial activities are currently very high due to the growth of the islamic banking industry and the issue of sukuks (Islamic bonds),”

- Bader al-Saad, Head of Kuwait Investment Authority

As of March 31, 2007 the KIA had $213 billion assets under management.