In September, all major asset classes suffered losses.
Equity markets were hit the hardest; the MSCI World Index was down 2.7 per cent and the MSCI Emerging Markets Index tumbled 7.4 per cent. Geopolitical tension in Middle East, political unrest in Hong Kong, continuing tension between Russia and Ukraine and the strengthening of the US dollar were the main reasons for negative market sentiment.
On the positive side, growth in developed markets, particularly in the United States, is showing further improvement. The US GDP growth was revised upwards to 4.6 per cent from 4.2 per cent in the second quarter after recording negative growth of minus 2.1 per cent in the first quarter.
The second quarter growth was strong because of strong household spending on durable goods and higher business spending on new equipment and buildings. US consumer confidence also climbed to a 14-month high in September registering at 84.6 from 82.5.
The performance of markets in the Mena region last month was mixed, with Abu Dhabi and Qatar up 1 per cent, Oman up 1.6 per cent, Egypt up 3.9 per cent and Kuwait up 2.6 per cent, while Saudi Arabia was down 2.3 per cent and Dubai was down 0.4 per cent.
The Saudi market underwent some correction after a strong rally on the back of plans to open the kingdom’s bourse to foreigners next year. Oil prices continued to decline on excess supply and a strengthening US dollar.
The IMF recently lowered its growth forecast for the Mena region but acknowledged that many oil-exporting countries would continue to grow strongly. On a year-to-date basis, the Abu Dhabi Securities Exchange General Index is up 19 per cent and the Dubai Financial Market General Index has risen 50 per cent.
Meanwhile, volatility on the global markets increased on speculation as to the timing of likely US interest rate rises. The euro zone remains weak and its continuing political tensions with Russia over the Ukraine issue will have a significant effect on EU growth. Emerging markets fell 7.6 per cent on a strengthening dollar, expectations of early interest rate hikes in the US and weak economic data from China.
Last month the Emaar Malls Group initial public offering took centre stage. The IPO was 30 times oversubscribed for the institutional tranche and more than 20 times oversubscribed for the individual one. The offer was priced at Dh2.90 per share, at the top end of the price range, and on the first day of trading closed up 12 per cent.
The IPO market in the UAE is now gaining traction and more companies are expected to list, adding further depth and liquidity to the bourses
Coming to the UAE's banking industry, the system remains quite healthy and the retail sector continues to do well. Banks continue to benefit from strong economic growth and ample liquidity. However, retail loan growth may slow slightly in the next year as Al Etihad Credit Bureau exposes borrowers with bad credit history.
Most banks reported strong earnings ahead of market expectations in the second quarter of this year. Their profitability has been driven by a decline in provisioning and growth in fee income. Expectations in the coming quarters are for a slight decline in margins as competitive pressures remain. Last month share prices of ADCB and Dubai Islamic Bank increased 6 and 5 per cent respectively, while share prices of Emirates NBD, FGB and NBAD gained about 2 per cent.
During September the real estate sector was slightly down, with the DFM Real Estate Index and Abu Dhabi Real Estate Index underperforming the broader measures on the two exchanges. There is evidence of a slowdown in the real estate space, particularly in the finished property segment. However, it should be noted that there is less leverage in the system and that the regulatory environment is much stricter for both developers and buyers.
Shares of Dubai Financial Market, the only listed bourse operator in the region, fell 2.9 per cent in September, bringing its year-to-date gains to 36 per cent. The average daily traded value on the DFM was US$314 million during the month. The traded value, however, increased by 40 per cent compared to August.
Apart from Emaar Malls Group, Marka was the other listing during the month and future possible IPOs include Amanat Holding, Al Habtoor Group, Ithmar Capital and Damac, which should create further depth and liquidity in the market.
The telecoms sector performance in the Mena region was muted. We expect consolidation driving the industry, as rising competition has been affecting margins. The Mena petrochemicals sector was weak after the sharp correction in crude oil prices, renewed concern on additional oil supply from the US and a slowdown in global demand.
Our focus on UAE stocks has become more selective, and an increase in volatility is expected as concerns on the geopolitical environment remain and speculation on the timing and effect of US rate rises continue.
Saleem Khokhar is the head of equities at National Bank of Abu Dhabi’s asset management group
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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More on animal trafficking
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UAE SQUAD
Goalkeepers: Ali Khaseif, Fahad Al Dhanhani, Mohammed Al Shamsi, Adel Al Hosani
Defenders: Bandar Al Ahbabi, Shaheen Abdulrahman, Walid Abbas, Mahmoud Khamis, Mohammed Barghash, Khalifa Al Hammadi, Hassan Al Mahrami, Yousef Jaber, Salem Rashid, Mohammed Al Attas, Alhassan Saleh
Midfielders: Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Majed Hassan, Yahya Nader, Ahmed Barman, Abdullah Hamad, Khalfan Mubarak, Khalil Al Hammadi, Tahnoun Al Zaabi, Harib Abdallah, Mohammed Jumah, Yahya Al Ghassani
Forwards: Fabio De Lima, Caio Canedo, Ali Saleh, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
The specs
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed
Power: 720hp
Torque: 770Nm
Price: Dh1,100,000
On sale: now
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PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
Ponti
Sharlene Teo, Pan Macmillan
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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