Feb 10 2015
DUBAI, Feb 10 (Reuters) – Gulf stock markets may come under
pressure on Tuesday after oil prices slipped and Standard and
Poor’s cut credit ratings and oitlooks for several countries in
the region.
Brent crude slipped 1.2 percent to $57.65 per barrel
by 0455 GMT as the International Energy Agency (IEA) said the
United States would remain the world’s top source of oil supply
growth until 2020, defying expectations of a more dramatic
slowdown in shale output growth.
Also, SP on Monday cut its sovereign debt ratings for
Bahrain and Oman, the two Gulf states set to come under most
stress from oil’s plunge, and revised to negative its outlook on
Saudi Arabia, where it said the government may face sustained
fiscal deficits in coming years.
At the same time, the agency affirmed the ratings of Qatar
and Abu Dhabi.
SP’s actions could have the most impact on entities from
those countries which borrow abroad, such as Bahraini and Omani
banks. Also, in Saudi Arabia SP revised to negative the outlook
for property developer Dar Al Arkan , citing its heavy
spending on land acquisitions last year.
Dar Al Arkan shares have surged 27.9 percent this year, well
ahead of Saudi Arabia’s stock index , which has gained
12.7 percent.
For Bahrain’s market, another negative factor is the
decision by Aluminium Bahrain (Alba), owner of one of
the world’s largest aluminium smelters, to cut its 2014 dividend
payout despite higher profit.
The firm proposed a total dividend of 37.9 million dinars
($100.5 million) for last year versus 2013’s payout of 50.7
million dinars. It did not give per-share numbers. Its annual
net profit for 2014 was 96.4 million dinars, up from 79.7
million dinars in 2013.
Meanwhile, rating agency Moody’s published a report on
Monday highlighting Egypt’s improving fiscal position thanks to
cheaper oil.
“Egypt’s spending on fuel subsidies in the current fiscal
year could be around 30 percent lower than budgeted,” it said.
On global markets, Asian shares are neutral-to-negative as
nervousness over Greece potentially withdrawing from the euro
and escalating conflict in Ukraine have sapped risk appetite.
(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)
((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters
Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
Keywords: STOCKS MIDEAST/
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