Banking stocks continue to gain

Updated 10 January 2013

Banking stocks continue to gain

The Saudi stock market ended yesterday's trading session solidly in the green. The Tadawul All-Share Index (TASI) closed up 73.42 points or 1.04 percent to 7,126.71 yesterday, after being up as much as 84 points earlier.
On year-to-date basis, the index showed a sharp uplift of 4.79 percent.
Large cap with 1.34 percent upward jump remained prominent among market cap indices.
Most of the major sectors closed in the green territory, accumulating an aggregate of over 800 points. The banks and financial services sector continued its upward march for the third straight day, adding 373 points or 2.45 percent further. The Saudi Investment Bank, SABB and Alinma Bank played well, advancing 4.19 percent, 3.68 percent and 3.42 percent respectively. Alinma with trades over 44.6 million shares also topped the volume chart, closing the day at SR 13.6. It captured 19.4 percent of the total volume set sold at Tadawul.
On the negative side, four sectors ended in red, trimming roughly 60 points for the day. Insurance sector posted the largest losses, falling 1.67 percent to 1,320.51.
The advancers outnumbered declining stocks on the Tadawul (market); as for 55 percent stocks that gained, 32 percent ended lower and 13 percent remained unchanged.
Dallah Healthcare Holding Company made the biggest jump among all Saudi equities, surging by 6.34 percent to close at SR 75.5.
On the other hand, Amana Cooperative Insurance has been showing a volatile performance for the previous few days, flip-flopping in the top and worst positions consecutively. Again the company plunged to a maximum of 9.95 percent to SR 99.5.
Seven out of top ten heavyweight equities finished to the upside, with Al-Rajhi Bank increasing by 3.27 percent, bellwether SABIC (Saudi Basic Industries Corp.) 2.15 percent and Samba Financial Group 1.73 percent.

Saudi Arabia, Russia and China give EU trade reforms thumbs down at WTO

Updated 11 min 17 sec ago

Saudi Arabia, Russia and China give EU trade reforms thumbs down at WTO

  • China is suing US and EU at WTO
  • Kingdom warns new rules are concerning

The EU’s new rules against countries dumping cheap goods on its market got a rough ride at a World Trade Organization meeting, where China, Russia and Saudi Arabia led a chorus of disapproval, a trade official said on Thursday.

The EU, which is in a major dispute with China about the fairness of Chinese pricing, introduced rules last December that allow it to take into account “significant distortions” in prices caused by government intervention.

A Chinese trade official told the WTO’s anti-dumping committee that Beijing had deep concerns about the new methodology, saying it would damage the WTO’s anti-dumping system and increase uncertainty for exporters, an official who attended the meeting said.

China argued that the concept of “significant distortion” did not exist under WTO rules, and the EU should base its dumping investigations on domestic prices in countries of origin, such as China.

The EU reformed its rules in the hope they would allow it to keep shielding its markets from cheap Chinese imports while fending off a Chinese legal challenge at the WTO.
China said that when it joined the WTO in 2001, the other member countries agreed that after 15 years they would treat it as a market economy, taking its prices at face value.

But the US and the EU have refused, saying China still subsidises some industries, such as steel and aluminum, which have massive overcapacity and spew vast supplies onto the world market, making it impossible for others to compete.

China is suing both the US and the EU at the WTO to try to force them to change their rules.

Legal experts say the dispute is one of the most important in the 23-year history of the WTO, because it pits the major trading blocs against each other with fundamentally opposing views of how the global trade rules should work.

In the WTO committee meeting, Saudi Arabia said the new rules were very concerning, and it challenged the EU to explain how EU authorities could ensure a fair and objective assessment of “significant distortion.”

Russia said the EU rules violated the WTO rulebook and certain aspects were unclear and created great uncertainty for exporters. Bahrain, Argentina, Kazakhstan and Oman also expressed concerns.

But a US trade official said the discussion showed that appropriate tools were available within the WTO to address distortions affecting international trade.