Real estate sector stays in limelight

Updated 23 June 2013
0

Real estate sector stays in limelight

The Saudi stock market recorded nominal gains yesterday, as the Tadawul All-Share Index (TASI) closed higher to 7,527.36, adding nearly a single point or 0.01 percent for the entire day.
After falling over ninety points earlier yesterday the index bottomed out at 7,435.98 points level and started to rise again and finally crossed the break-even line.
Among market cap indices only Large cap went slightly downward. Sectoral performance was positive, as 11 out of the Tadawul's fifteen sectors finished to the upside, accumulating an aggregate of 210.4 points.
Real Estate outdid rest of the sectors, advancing 1.8 percent to close at 4,688.55. Building & Construction followed it, increasing by 0.71 percent.
Petrochemical Industries sector, on the other hand, posted the largest losses, falling 0.83 percent to 6,065.34.
Samba Financial Group and market leader SABIC (Saudi Basic Industries Corp.) came out as significant players among heavyweights, offsetting their performance by one percent positive-negative change.
Advancers outnumbered the declining stocks by a margin of 71 to 57 and the prices of 28 companies remained unchanged.
Gulf Union Cooperative Insurance and Allianz Saudi Fransi Cooperative Insurance made the biggest jumps among all Saudi equities, marching higher by 9.8 percent and 8.8 percent respectively.
On the contrary, Wafa Insurance switched its position from top gainer of previous couple of days to the biggest loser of the day, down 9.95 percent.
Market activity remained a little high as compared to previous day; turnover went up by 21.8 percent on volume basis and 10.5 percent in terms of liquidity.
Roughly 272 million shares worth SR 6.2 billion changed hands on the Saudi stock market. The 50-day average for trading volume is closer to 252 million shares.
Dar Alarkan Real Estate and Saudi Mobile Telecommunications Co. (ZAIN) showed the best performance among most active stocks, surging over three percent and capturing more than 32 percent market volume jointly.


Oil prices fall as OPEC and Russia weigh output boost

Updated 25 May 2018
0

Oil prices fall as OPEC and Russia weigh output boost

  • Russian Energy Minister Alexander Novak has had talks with Saudi Energy Minister Khalid Al-Falih on an easing of the terms of the global oil supply pact that has been in place for 17 months
  • The energy ministers of Saudi Arabia, Russia and the United Arab Emirates are discussing an output increase of about 1 million barrels per day

LONDON: Oil prices fell below $78 a barrel on Friday as OPEC and Russia considered easing supply curbs to offset disruptions in Venezuela and an expected drop in Iranian exports.
Russian Energy Minister Alexander Novak has had talks with Saudi Energy Minister Khalid Al-Falih on an easing of the terms of the global oil supply pact that has been in place for 17 months, Novak said on Friday.
The energy ministers of Saudi Arabia, Russia and the United Arab Emirates are discussing an output increase of about 1 million barrels per day (bpd), sources told Reuters.
Speaking in St. Petersburg, Falih told Reuters that “all options are on the table” when asked about the targets on production cuts.
Brent crude futures were down 80 cents at $77.99 a barrel by 0914 GMT, having hit their highest since late 2014 at $80.50 this month.
US West Texas Intermediate (WTI) crude futures were at $70.18 a barrel, down 53 cents.
“The debate about a possible relaxation of the production restrictions should preclude any renewed price rise,” Commerzbank analysts said.
“The $80 mark is likely to pose an obstacle that is difficult to overcome because it would significantly raise the probability of a production increase.”
The Organization of the Petroleum Exporting Countries (OPEC) as well as a group of non-OPEC producers led by Russia started withholding output in 2017 to tighten the market and prop up prices.
Global crude supplies have tightened sharply over the past year because of the OPEC-led cuts, which were boosted by a dramatic drop in Venezuelan production.
The prospects of renewed sanctions on Iran after US President Donald Trump pulled out of an international nuclear deal with Tehran have also boosted prices in recent weeks.
As a result, compliance with the deal to reduce output by 1.8 million bpd by the end of 2018 has been at 152 percent, sources said.
Amrita Sen, chief oil analyst at consultancy Energy Aspects, said: “Addressing overcompliance was always likely to be on the agenda amid a tight market and low inventories, but the volume to bring back is still up for debate.”

HIGHER PRICES AT A COST
While Russia and OPEC benefit from higher oil prices, up almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up production and gain market share.
US crude oil production has risen by more than a quarter in the past two years, to 10.73 million bpd. Only Russia produces more, at about 11 million bpd.
Output from the likes of the United States, Canada and Brazil, which are not bound by the OPEC/Russian-led pact, is likely to rise further as crude prices rise.