Tadawul fluctuates in narrow range

Updated 06 March 2013
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Tadawul fluctuates in narrow range

Saudi Stocks showed narrow fluctuations yesterday, as the Tadawul index with a negative change of 3.32 points remained almost flat, closing at 6,953.21.
The Tadawul All-Share Index (TASI) wavering in the green-red within a range of 38 points, closed just below the break-even line trimming a nominal 0.05 percent.
Among market cap indices only Large cap went slightly downward.
Sectoral performance was positive, with eleven sectors accumulating an aggregate of 198 points.
Industrial Investment outdid rest of the sectors, advancing exactly one percent to close at 6,455.43. Insurance — the worst performing sector of previous day — also turned green, increasing by 0.94 percent and ranking second.
On the negative side, four sectors including Banks & Financial Services (-0.96 percent) — the biggest decliner of the day — went downward, paring an aggregate of 224 points.
Samba Financial Group outperformed among large market cap companies, rising 0.9 percent for the day. Al-Rajhi Bank, however, remained significant decliner, going down further 2.6 percent to SR 66.25.
There were 56 net advancing issues, a strong market breadth.
Salama Insurance and Bupa Arabia Insurance made the biggest jumps among all Saudi equities, marching higher by 9.9 percent and 9.2 percent respectively.
On the other hand, Saudi Indian Company for Co-operative Insurance (WAFA Insurance) — the best performing company of previous day — posted the largest losses this time, falling over three percent to SR 71.
Northern Region Cement remained the most active stock of the day. Its volume set sold about 20.9 million shares, which equates 15.5 percent of the overall market volume. The company with a liquidity of SR 458.5 million also topped the value chart, closing at SR 21.75.


Oil prices rise on Iran sanctions worries, decline in Venezuelan output

Updated 6 min 59 sec ago
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Oil prices rise on Iran sanctions worries, decline in Venezuelan output

SINGAPORE: Oil prices rose on Thursday, supported by expectations the United States will re-impose sanctions against Iran, a decline in output in Venezuela and ongoing strong demand.
Brent crude oil futures were at 74.27 per barrel at 0643 GMT, up 27 cents, or 0.4 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were up 14 cents, or 0.2 percent, at $68.19 per barrel.
Traders said markets climbed on expectations that the United States will in May re-impose sanctions against Iran, a major oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC).
French President Emmanuel Macron said on Wednesday that he expected US President Donald Trump to pull out of a deal with Iran reached in 2015, in which Iran suspended its nuclear program in return for western powers lifting crippling sanctions.
Trump will decide by May 12 whether to restore US sanctions on Tehran, which would likely result in a reduction of its oil exports.
Further pushing oil prices has been declining output in Venezuela, OPEC’s biggest producer in Latin America.
Venezuela’s crude production has fallen from almost 2.5 million barrels per day (bpd) in early 2016 to around 1.5 million bpd due to political and economic turmoil.
US oil major Chevron Corp. has evacuated executives from Venezuela after two of its workers were imprisoned over a contract dispute with state-owned oil company PDVSA.
Venezuela’s plunging output and looming US sanctions against Iran come against a backdrop of strong demand, especially in Asia, the world’s biggest oil consuming region.
However, not all market indicators point toward tighter supplies.
US crude oil inventories rose by 2.2 million barrels in the week to April 20, to 429.74 million barrels. That’s almost 10 million barrels above the five-year average.
US crude production climbed by 46,000 barrels per day (bpd) on the previous week, to 10.59 bpd. That’s an increase of more than a quarter since mid-2016.
American crude oil output has overtaken that of top exporter Saudi Arabia. Only Russia currently produces more, at around 11 million bpd.
The soaring US output has made WTI crude around $6 per barrel cheaper than Brent, the international benchmark for oil prices.
Dutch bank ING said “the wide discount for WTI to Brent saw exports rising 582,000 bpd week-on-week to a record high of 2.33 million bpd.”
With US output and exports surging, some analysts warn that the 20-percent climb in Brent prices since February is starting to look overdone.
“The market does look a little toppish,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.