GOSI investments in 68 companies hit SR54bn

Updated 24 December 2014
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GOSI investments in 68 companies hit SR54bn

Domestic investments of the General Organization for Social Insurance (GOSI) exceeded SR54 billion in 1434 covering nearly 68 companies, local media said quoting a report released by GOSI.
The investments were distributed in six sectors including banking, industry, retail and real estate, telecommunications, cement, and insurance sectors, the report said.
The banking sector captured the biggest portion of the GOSI investments valued at SR19.51 billion, or 35.9 percent of the overall investments, in over 10 banks. The GOSI retains more than 840 million shares of the banks with their market capitalization reaching SR41.70 billion, the report said.
The industrial sector captured the second largest GOSI investments at SR19.09 billion, or 35.1 percent, which are distributed in 14 industrial projects with shares over 673 million shares with their market capitalization estimated at SR42.96 billion, the report said.
Meanwhile, investments of the GOSI in the cement sector were estimated at SR 3.50 billion, or 6.5 percent, in six cement plants with 91 million shares with their market capitalization estimated at SR 8.42 billion.
The telecom sector captured 12.9 percent of the GOSI domestic investments valued at SR 7.03 billion in two companies having 231.3 million shares with their market capitalization valued at SR 14.52 billion, the report said.
Retail and real estate sector took 8.7 percent of the GOSI investments valued at SR 4.75 billion while their market capitalization hit SR 6.37 billion, the report said.
On the other hand, the insurance sector captured 9 percent of the GOSI investments valued at SR493.42 million in 22 million shares with their market capitalization reaching SR 489.43 million, according to the report.
In the meantime, the market capitalization of the GOSI investments (SR 54bn) grew by 111 percent to hit SR 114.48 billion, the report said.


Oil up on OPEC uncertainty regarding production levels

Updated 22 June 2018
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Oil up on OPEC uncertainty regarding production levels

  • Saudi Arabia and Russia are in favor of raising output. Other OPEC-members including Iran have opposed this, resulting in a flurry of backdoor diplomacy ahead of the meeting
  • Phillip Futures said in a note that it expected “an approximate 300,000–600,000 barrels per day (bpd) hike by Saudi Arabia and Russia collectively”

SINGAPORE: Oil prices rose by around 1 percent on Friday, lifted by uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day.
Brent crude oil futures were at $73.78 per barrel at 0502 GMT, up 73 cents, or 1 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $66.26 a barrel, up 72 cents, or 1.1 percent.
The Organization of the Petroleum Exporting Countries (OPEC), a producer group with top exporter Saudi Arabia as the de facto head, is meeting together with non-OPEC members including No.1 producer Russia at its headquarters in the Austrian capital to discuss output policy.
The group started withholding supply in 2017 to prop up prices. This year, amid strong demand, the market has tightened significantly, pushing up crude prices and triggering calls by consumers to increase supplies.
Saudi Arabia and Russia are in favor of raising output. Other OPEC-members including Iran have opposed this, resulting in a flurry of backdoor diplomacy ahead of the meeting.
“The actual decision by OPEC and its partners — which may not actually become apparent until Saturday — is the big one traders are watching,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Phillip Futures, another brokerage, said in a note that it expected “an approximate 300,000–600,000 barrels per day (bpd) hike by Saudi Arabia and Russia collectively.”
US investment bank Jefferies said an increase in “the range of 450-750,000 bpd seems the most likely outcome” of the meeting, driven largely by Russia and Gulf OPEC members Saudi Arabia, the United Arab Emirates and Kuwait.
Jefferies said these increases “would essentially offset Venezuelan declines and falling Iranian exports,” but the bank warned that global “spare capacity could fall globally to around 2 percent of demand – its lowest level since at least 1984.”
That would leave markets prone to supply shortages and price spikes in case of large, unforeseen disruptions.
The other big uncertainty is potential Chinese tariffs on US crude imports that Beijing may impose in an escalating trade dispute between the United States on one side and China, the European Union and India on the other.
Asian shares hit a six-month low on Friday as tariffs and the US-China trade battle start taking their economic toll.
Should the 25 percent duty on US crude imports be implemented by Beijing, American oil would become uncompetitive in China, forcing it to seek buyers elsewhere.
Chinese buyers are already starting to scale back orders, with a drop in supplies expected from September.
“If China’s import demand dries up, more than 300,000 bpd of US crude will have to find a new destination,” energy consultancy FGE said.
“This will certainly depress US Gulf Coast prices,” it said.