ESCA inaccurate media reporting

[sharewadi]

Hmmm. I wonder if this is a reference to the Air Arabia listing on DFM last Thursday - as reported by Emirates Today (incorrectly).

Also today, Khaleej Times quoted ESCA saying all companies had filed 2007 Q1 results on time, however there are still some companies without statements available on ESCA's website .

So who's inaccurate there? KT? ESCA? Or me because I can't add properly ?

Gulf News 21 May 2007:

Market watchdog calls for accurate reporting By Ahmed A. Elewa, Staff Reporter Abu Dhabi: The Emirates Securities and Commodities Authority (ESCA) yesterday asked the media to maintain objectivity and accuracy when reporting on UAE markets or listed firms. The warning follows reports with alleged misleading information for promoting specific stocks or new issues. "We hope the media do not exaggerate the market sentiment for the listed shares as this will negatively affect the markets' performance," said Abdullah Al Torreifi, Esca's chief executive officer. He called on the media to maintain objectivity in reporting on the markets.

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[sharewadi]

[edit] See also this topic (forgot I'd started it). Will merge the two one day ...
UAE Insider Trading and poor Corporate Governance? April / May 2007 [/edit]

Hmmm.... there was a bit of discussion on Dubai Eye's Business Breakfast this morning about this. A good effort from ESCA to try and improve reporting standards in this region. But is the problem with the media? Or with the markets? Or with ESCA? Or with the companies themselves? Here's a few examples of some misinformation or conflicting information recently. Perhaps they'll help ESCA sort out what it is they want to do...

ESCA may consolidate DFM & ADSM investors - News from ESCA statement 04 June 2007 apparently, but no ESCA statement available on their website.
ESCA says 100% success with 2007 Q1 filings but they do not have all accounts available on their website - 21 May 2007

... and even big names like Reuters and The Times don't always seem to get it right.

• DIFC to counterbid against NASDAQ for Scandanavia's OMX - 27 May 07. To bid or not to bid is the question. Yes says The Sunday Times & the Financial Times. Yes and no say Reuters. No says the Gulf News. Not No, but No Comment says KT. No Comment says Bloomberg. What would ESCA say (yes, I know ESCA are not the regulator for DIFC / DIFX).
  
• ADIB stock split [rumour] Gulf Times gets story from brokers - 01 Jun 2007
  
• ADSM IPO - Bloomberg reports the Acting DG says it's being considered, then ADSM denies the reports - 13 June 2007
  
• Air Arabia 2005 profit reported as AED 29 billion - 13 June 2007
  
• Air Arabia listing on DFM 17 May 2007, and incorrect oversubscription amounts - reported by ET, clarification error printed the next day - 17/18 May 2007
  
• AMLAK bank licence application 29 Mar 2007. Failed says Bloomberg. Failed says AMLAK. Failed says the UAE Central Bank. Possible says Amlak. No more bank licences say the Central Bank. New licence for CBD say the Central Bank. Licence application in progress says AMLAK. Bank licences possible says the UAE Finance and Industry Minister in GN...
  
• ARTC contract for ADNEC phase II - disclosed on 04 June 2007, disclosure dated 04 May 2007.
  
• Deyaar IPO - several conflicting estimates of oversubscription amounts given, more than 10x says the CEO to KT and GN, between 5-10x says the CEO to Reuters, 25-50x says Al Rostamani Group financial division. Actual figure was more than 14x.
  
• DFM stock market game 2007 - 30 May 2007 reports / press releases make dubious claims about successful investment strategies
  
• DRIVE denies knowing why share price up in April 2007, in June 2007 announcement of meeting to discuss DRIVE share capital increase.
  
• FGB meeting 30 May 2007 - foreign ownership limit and AED 1.8 bn loan. FGB announces meeting early May, then says no pertinent information after big rise and trading in shares.
  
• FGB MoU with Amiantit denied - GN 23 Aug 2006 - an older one.
  
• IFA claims a positive performance in 2006 - PR 10 Apr 2007. Chairman says positive performance. IFA 2006 accounts say AED 420m loss.
  
• MASQ to buy Egypt's Al Watany Bank ... or not? 30 May 2007 - yes says Mashreq VP and Emirates Today, no says Mashreq spokesman and Reuters.
  
• MASQ denies rumours of National Bank of Egypt acquistion 30 May 2007. Says Shuaa Capital. But what rumours?
  
• NBS (SIB) shares limit up on high volumes 03 & 04 Jun 2007 but NBS deny knowing why.
  
• OILC denies press report - not clear which one, perhaps the one about 2007 revenue increase and name change.
  
• TAMWEEL dividend yield highest in the market - claims the Tamweel CEO - 01 Apr 2007. Maybe the date is significant but he restates the dividend yield claim at a later date. If the CEO is correct, then that means all newspapers (and websites eg sharewadi.com) are reporting dividend yields incorrectly. No wonder ESCA is annoyed with the standard of reporting.
  
• TAMWEEL bank license - similar story to Amlak (see above). CEO expects approval according to the GN, Central Bank says no according to the GN.
  
• TAQA sells AED 33 bn bonds or not? 28 June 2007 statement on ADSM site says they did, 29 June 2007 report in ET from ZDJ says TAQA denied media reports of sale.
  
• TAQA to buy Northrock from Pogo Producing for AED 7.34 bn - 28 May 07. Taqa says no pertinent information after big rise and trading in shares. Two days later acquisition is announced.
  
• TAQA may allow foreign ownership - says their Investor Relations department to Reuters 03 Jun 2007, then TAQA denies the report, then Taqa CEO says yes but not within a year, then Taqa CEO says yes by next year.
  
• UAE stockmarkets will not merge (June 2007) ... Borse Dubai - DFM and DIFX merger (Aug 2007)

There may be a few more floating about , I'll add them later...
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[sharewadi]

Updated previous post with

ADIB stock split rumour
DFM stock market game
ESCA statement not available
TAQA foreign ownership story
NBS share trading information denial
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[sharewadi]

I see. This is the only bit of news on ESCA's site today. What are they trying to say? Ignore other news sources because they're inaccurate?

The previous news item on ESCA's website is from 31 May 2007. So if we're just going to rely on ESCA for stock news, well I guess we'll have a lot more spare time ...

ESCA 05 June 2007:

Starting June 3, 2007, please check the official web sites of the UAE Securities Markets for any new companies' disclosures and news. 05/06/2007 11:03:56

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[sharewadi]

It looks like ESCA posted that news notice because they're not updating their own news section anymore . I haven't seen any further updates this week. Annoying because, although they didn't add much and were sometimes slow, they did occasionally have something that wasn't seen elsewhere.

ESCA seem to be sending mixed messages here. On the one hand you have the markets trying to attract foreign investers, as evidenced by the DFM roadshow to London and the ADSM trip to London and New York, along with ESCA themselves demanding more accurate media coverage and attempting to improve transparency and regulatory standards. But then on the other hand, ESCA suddenly decides they can't be bothered to update their own news section ?

And just in the past week, there has been a reduction in the amount of information from ADSM also.

However, ShareWadi will attempt to keep you informed . Have updated second post with links and information related to

ADSM IPO added - first yes, then no
Air Arabia - 2005 profit reported as AED 29 billion
Air Arabia - oversubscription and listing date errors
Deyaar IPO - discrepancies in reported oversubscription rates
OILC - denial of newspaper reports
TAQA - continuing foreign ownership flip flop
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