Bahrain's stock exchange, its central bank and some banks reopened yesterday in an attempt by the government to bring back normality to the kingdom amid a widening crackdown on protesters.
The stock market resumed trading at its emergency premises as access to Manama's financial hub remained blocked by police.
The index, the smallest and most illiquid in the Arab world, was forced to close on Wednesday after a three-month state of emergency was declared in Bahrain. It could reopen at its Financial Harbour headquarters on Sunday, a spokesman for the exchange said yesterday.
Fitch Ratings cut the sovereign credit rating of Bahrain, which already postponed its planned US$1 billion (Dh3.67bn) government bond, by two notches to "BBB" on Tuesday on soaring political risks.
The strain on Bahrain's $20.6bn economy has sent the cost of insuring the country's debt against default to highs not seen since July 2009 and there were fears a massive capital outflow from the smallest Gulf economy could shake the financial centre further.
Mahmood Akbar, an analyst at Securities & Investment Company, based in Manama, said the "recent downgrade in Bahrain's sovereign debt and spike in credit default swaps reflects more of a sudden investor reflex to the recent political events" than the illiquid stock market.
An average of 10 stocks are traded daily, but yesterday just four stocks were traded on volumes of about 830,000 in total, compared with peaks that averaged 1 million to 1.5 million in the past.
An exodus of office workers has been under way in the past few days as international banks evacuated staff to Dubai and Europe.
Emirates Airline cancelled all flights to Bahrain in light of the political upheaval.
Some banks and financial services also reopened specific branches yesterday. Clashes between security forces and demonstrators intensified earlier in the week and had forced branches to shut down temporarily.
Standard Chartered, the UK bank that earns most of its profit in Asia and employs 500 people in Bahrain, reopened two of its seven branches in the kingdom yesterday and aimed to open the rest soon after, Bloomberg News reported.
One of HSBC's four branches was opened to customers yesterday, but the bank said evacuation assistance to the families of international employees was being offered. Seven families had left Bahrain as a result.
"It doesn't make a real difference for [international banks] because they are only physically located in Bahrain but most activities take place in their back office in Dubai or elsewhere in the world," said Raed Himmo, a banker speaking from his home in Manama.
The reopening of local bank branches yesterday also coincided with Bahrain's central bank resuming operations. It was also forced to shut along with the most other financial organisations on Wednesday.
Local banks rely on the central bank to provide basic banking services such as cheque clearing and bank transfers.
The central bank "is fully prepared to co-operate with all the banks … to assure the continued operation of banks and that they are able to meet the needs of individuals customers and institutions," it said.
The UK's foreign office has called on Britons "without a pressing reason to remain, to leave by the available commercial means if it is safe to do so".
The US state department has "strongly" urged US citizens in the kingdom to avoid demonstrations, and discouraged travel to the country.
Industry has also been heavily hit as a nationwide strike is continuing.
The trade union at Aluminium Bahrain (Alba), however, ended its strike after a meeting with its board members, its chairman Ali al bin Ali said yesterday. "You don't want to be in the middle of a political party situation, it is very dangerous to be in-between," he said.
"The labourers' feeling for a few weeks was to show support for the protests but then it was either the future of Alba or nothing and the future of Alba is the welfare of the labourers," Mr bin Ali said.
An Alba annual meeting will be held on March 30 and the attendance of the trade union is "integral" to the meeting, a spokeswoman for the company said.
fhalime@thenational.ae
The Bio
Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.
- It’s So Easy
- Mr Brownstone
- Chinese Democracy
- Welcome to the Jungle
- Double Talkin’ Jive
- Better
- Estranged
- Live and Let Die (Wings cover)
- Slither (Velvet Revolver cover)
- Rocket Queen
- You Could Be Mine
- Shadow of Your Love
- Attitude (Misfits cover)
- Civil War
- Coma
- Love Theme from The Godfather (movie cover)
- Sweet Child O’ Mine
- Wichita Lineman (Jimmy Webb cover)
- Wish You Were Here (instrumental Pink Floyd cover)
- November Rain
- Black Hole Sun (Soundgarden cover)
- Knockin’ on Heaven’s Door (Bob Dylan cover)
- Nightrain
Encore:
- Patience
- Don’t Cry
- The Seeker (The Who cover)
- Paradise City
Company%20Profile
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EU's%2020-point%20migration%20plan
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RESULTS - ELITE MEN
1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40
6. Joao Silva (POR) 57:45
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57
9. Gustav Iden (NOR) 57:58
10. Richard Murray (RSA) 57:59
Bundesliga fixtures
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
UAE currency: the story behind the money in your pockets
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
Results:
5pm: Maiden (PA) Dh80,000 1,400m | Winner: Eghel De Pine, Pat Cosgrave (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 1,400m | Winner: AF Sheaar, Szczepan Mazur, Saeed Al Shamsi
6pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (PA) Group 3 Dh500,000 1,600m | Winner: RB Torch, Fabrice Veron, Eric Lemartinel
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (TB) Listed Dh380,000 1,600m | Winner: Forjatt, Chris Hayes, Nicholas Bachalard
7pm: Wathba Stallions Cup for Private Owners Handicap (PA) Dh 70,000 1,400m | Winner: Hawafez, Connor Beasley, Ridha ben Attia
7.30pm: Handicap (PA) Dh 80,000 1,600m | Winner: Qader, Richard Mullen, Jean de Roaulle
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
COMPANY%20PROFILE
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COMPANY%20PROFILE
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SPECS%3A%20Polestar%203
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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)
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
