EFG-Hermes offers equity swaps linked to Iraqi securities as market gains
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Mon February 27, 2012 4:12 pm
china wholesale market

INTERNATIONAL. EFG-Hermes Holding SAE (HRHO), the biggest publicly traded Arab investment bank, started offering an equity-swap product linked to Iraqi securities, potentially allowing investors to benefit from the nation's recovery from decades of war and sanctions.

“Despite the prevailing risk-averse nature of investment in the Middle East and North Africa region, we have seen a high level of demand for access to this new frontier market,” said Julian Bruce, the Dubai-based director of institutional sales trading at EFG-Hermes.

The product will remove “both the domestic Iraqi broker counter-party risk and the labor-intensive procedures involved in domestic execution.”

Almost a decade after a U.S.-led invasion toppled dictator Saddam Hussein, Iraq’s economy is set to expand 12.6 percent in 2012, the fastest among MENA countries, according to the International Monetary Fund. Regional markets were hurt last year amid uprisings that ousted leaders in Egypt, Libya and Tunisia and investor concern Europe’s debt crisis may spread.

The Iraq Stock Exchange’s ISX Index advanced 17 percent last year, according to data on the bourse’s website. The MSCI Emerging Europe, Middle East and Africa Index dropped 23 percent in the period. The Iraq index, comprising 87 companies, had a market value of 4,930 billion Iraqi dinars ($4.2 billion) at the end of 2011. Foreign investors bought shares valued at $147 million last year compared with $52 million in 2010.

The ISX index fell 0.2 percent to 123.37 yesterday, according to the bourse’s website.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: March 4, 2015
INTERNATIONAL. The real issue, that no one is fully prepared to address, is whether Greece's decades-long experiment with failed debt-financed socialism will be allowed to survive much longer.
date:Posted: March 4, 2015
UAE. The strong fiscal positions of most GCC sovereigns curb the need for debt or sukuk issuance to meet financing needs for infrastructure projects or deficits.
date:Posted: March 4, 2015
SAUDI ARABIA. Asset managers with best-of-breed technology able to provide sophisticated trading, risk management, portfolio accounting and reporting capabilities, set to take advantage.
dhgate