Midday Commentary: GEMS stands out; Ukraine turmoil continues; IPIC tightens; Dubai, Bahrain widen

By Christine Van Dusen

Atlanta, March 7 - The recent issue of 12% perpetual notes from the UAE's Global Education Management Systems Ltd. was a top performer in trading on Friday morning, tightening by about 30 basis points to a 114 handle, a London-based trader said.

"Really impressive as the free float disappears," he said.

This came as turmoil continued in Ukraine, with U.S. president Barack Obama criticizing Russia's intervention in Crimea and Russian president Vladimir Putin asserting the country was acting in accordance with international law.

Other solid performers during the European session on Friday included Mumtalakat's 2015s and Dar al-Arkan Holdings. The latter had lagged in January, he said.

"For Lebanon I've seen good real-money interest this year, and that continues," he said. "This credit is very defensive. There is some talk of a new issue and tap coming up."

Also trading well on Friday was International Petroleum Investment Co. and its 2022s, which on Friday moved 6 bps tighter to about 112.875, a trader said.

"Kuwait Projects Co. is still trading well, as is Burgan Bank," he said. "Kipco's 2020s are 10 bps tighter on the week."

Supply from Kuwait and its corporates is likely to be limited going forward, he said.

Several bonds from the Middle East widened during the week, a trader said, including those from Qatar National Bank and Dubai.

"This is probably the first week this year where I can say there have been more credits widening than tightening," he said. "And ultimately I think that's healthy to have a bit more two-way, with more bonds moving around and differing views."

Bahrain's bonds were about 25 bps wider on the week.

"That makes Bahrain Telecommunications Co. an interesting one," he said. "They have traded between 96.87 and 97.50 over the past 48 hours."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.