Tadawul wavers in narrow range
Tadawul wavers in narrow range
Saudi Arabia’s benchmark stock index continuing its sideways movement for most of the session ended red at 7,205.75 points, dropping 8.31 points or 0.12 percent for the entire day.
On year-to-date basis, it showed a yield of 5.95 percent.
The market cap indices all finished to the downside.
Most of the sector indices ended negatively, paring an aggregate of 495 points.
The Hotel & Tourism sector posted the largest losses, shedding 368.7 points or over three percent to close the day at 11,575.44.
Only four sectors including Multi-Investment, the best performer (up 0.4 percent), moved higher from previous day’s level.
SABB outdid rest of its heavyweight peers, advancing 1.7 percent and closing at SR 35.6.
The market breadth was negative as the total number of falling stocks exceeded to the total number of rising stocks by a margin of 91 to 47 and the prices of 18 companies remained unchanged.
Astra Industrial Group turned in a splendid performance among all Saudi stocks, soaring up 6.82 percent for the day.
Malath Cooperative Insurance & Reinsurance was another significant advancer, surging by 5.56 percent.
Most of the trading was concentrated in Dar Al-Arkan Real Estate, which liquidated about 18.5 million shares, a relative market share of 10.4 percent.
National Agriculture Marketing Co. with a turnover of SR 395.5 million appeared to be the most liquid stock but it ended in red, down more than three percent.
Oil prices fall on expected output rise after OPEC deal
SINGAPORE: Brent crude oil prices fell over 1.5 percent on Monday as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna on Friday.
Brent crude futures, the international benchmark for oil prices, were at $74.21 per barrel at 0343 GMT, down 1.8 percent from their last close.
US West Texas Intermediate (WTI) crude futures were at $68.40 a barrel, down 0.3 percent, supported more than Brent by a slight drop in US drilling activity.
Prices initially jumped after the deal was announced late last week as it was not seen boosting supply by as much as some had expected.
OPEC and non-OPEC partners including Russia have since 2017 cut output by 1.8 million barrels per day (bpd) to tighten the market and prop up prices.
Largely because of unplanned disruptions in places like Venezuela and Angola, the group’s output has been below the targeted cuts, which it now says will be reversed by supply rises especially from OPEC leader Saudi Arabia. Although analysts warn there is little space capacity for large-scale output increases.
“Several ministers suggested that (rises) would correspond to a 0.7 million bpd increase in production,” said US bank Goldman Sachs following the announcement of the agreement, although it added that were risks “that Iran production may be even lower than we assume” and that its output could fall further due to looming US sanctions.
Still, Britain’s Barclays bank said OPEC’s and Russia’s commitments would take “the market from a -0.2 million bpd deficit in H2 2018 to a 0.2 million bpd surplus.”
Energy consultancy Wood Mackenzie said the agreement “represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and prevent harming their economies.”
In the United States, US energy companies last week cut one oil rig, the first reduction in 12 weeks, taking the total rig count to 862, Baker Hughes said on Friday.
That put the rig count on track for its smallest monthly gain since declining by two rigs in March with just three rigs added so far in June, although the overall level remains just one rig short of the March 2015 high from the previous week.