Visitors look at stock price information displayed on a digital screen inside the Saudi Stock Exchange, also known as the Tadawul, in Riyadh, Saudi Arabia, on Tuesday, April 10, 2018. Foreign investors bought more Saudi stocks in March than ever before in anticipation of the kingdom’s upgrade to emerging-market status. Photographer: Abdulrahman Abdullah/Bloomberg
Investors follow movements in the Arab world's largest stock market. Saudi Arabia has led the Middle East’s IPO activity by value and volume in the first quarter of 2018 raising US$ 603.2 million. AbdShow more

Saudi Arabia beats Qatar to market with $11 billion bond



Saudi Arabia is set to raise $11 billion with a triple-tranche dollar bond, while Qatar is meeting global investors ahead of its first appearance in the debt markets since the beginning of a diplomatic crisis last year.

The Saudi deal is Riyadh’s fourth international public bond sale.

The kingdom has established itself as one of the top global debt issuers after it began selling international sovereign bonds in 2016 with a $17.5bn debut sale, the largest bond issued across emerging markets.

The proceeds from the bonds are being used to help fill a budget deficit caused by low oil prices.

Saudi Arabia, acting through the ministry of finance, surprised the market earlier on Tuesday when it announced its plan to complete the transaction within the day and without a bond roadshow.

According to several fund managers and bankers, the timing of the Saudi deal could complicate Qatar’s planned bond.

“Issuing now, Qatar will get a lower order book, which will put them in a less competitive place to issue from,” which means Qatar may have to offer generous pricing to attract large demand, said a fund manager.

Saudi Arabia, along with the United Arab Emirates, Bahrain and Egypt, has been locked in a diplomatic dispute with Qatar since June last year, with the former countries accusing Qatar of funding terrorism, an assertion Doha denies.

“Tensions obviously remain between the two states, and I guess there will be some competition herein about pricing and size of any deal,” said Timothy Ash, senior emerging markets sovereign strategist at BlueBay Asset Management.

Saudi Arabia has marketed seven-year, 12-year and 31-year notes. It set the size of the seven-year notes at $4.5bn, and the spreads at 140 basis points over US Treasuries. The size of its planned 12-year notes has been set at $3bn, with spreads at 175 basis points over US Treasuries, while it plans to raise $3.5bn in 31-year notes at 210 basis points over the UST benchmark, a document from one of the banks leading the deal showed.

Combined order books for the debt issue went up to more than $50billion earlier on Tuesday.

Initial price guidance for the seven-year notes was in the 170 basis points area over US Treasuries, for the 12-year notes in the 200 bps area over UST and in the 235 bps area over UST for the 31-year paper.

The initial guidance was generous, fund managers said.

Mohieddine Kronfol, chief investment officer of Global Sukuk and Mena fixed income at Franklin Templeton Investments, said it was 30 to 40 basis points wide of the current yield curve, with the longest leg on offer looking more attractive, followed by the seven-year notes and the 12-year notes.

Citi, GIB Capital, Goldman Sachs International, HSBC and Morgan Stanley have been appointed as global co-ordinators for the issue. Bank of China, Industrial and Commercial Bank of China, JPMorgan Chase & Co and Mitsubishi UFJ Financial Group are working as joint lead managers.

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal

Rating: 2/5

Under 19 World Cup

Group A: India, Japan, New Zealand, Sri Lanka

Group B: Australia, England, Nigeria, West Indies

Group C: Bangladesh, Pakistan, Scotland, Zimbabwe

Group D: Afghanistan, Canada, South Africa, UAE

 

UAE fixtures

Saturday, January 18, v Canada

Wednesday, January 22, v Afghanistan

Saturday, January 25, v South Africa

The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 240hp at 5,500rpm

Torque: 390Nm at 3,000rpm

Transmission: eight-speed auto

Price: from Dh122,745

On sale: now

How to keep control of your emotions

If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.

Greed

Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.

Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.

Fear

The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.

Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.

Hope

While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.

Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.

Frustration

Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.

Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.

Boredom

Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.

Tip: Open an online demo account and get your thrills without risking real money.

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Museum of the Future in numbers
  • 78 metres is the height of the museum
  • 30,000 square metres is its total area
  • 17,000 square metres is the length of the stainless steel facade
  • 14 kilometres is the length of LED lights used on the facade
  • 1,024 individual pieces make up the exterior 
  • 7 floors in all, with one for administrative offices
  • 2,400 diagonally intersecting steel members frame the torus shape
  • 100 species of trees and plants dot the gardens
  • Dh145 is the price of a ticket

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