Transport shares advance 1.74%

Updated 09 January 2014

Transport shares advance 1.74%

Saudi Arabia’s benchmark Tadawul All-Share Index (TASI) dug in at 8,652.5 and ended its Wednesday’s trading up over 43 points or half percent.
While curving in the upward territory throughout the day it rose to a maximum gain of fifty points.
Eleven out of Tadawul's 15 sectors finished to the upside, accumulating an aggregate of 668 points.
Transport outperformed among the sectoral indices, advancing 1.74 percent to close the day at 6,712.44. Hotel & Tourism sector added considerable 255.6 points, up 1.58 percent.
Multi-Investment sector, on the other hand, posted the largest losses, falling 1.21 percent to 4,162.88.
Saudi Telecom Co. and the bellwether SABIC (Saudi Basic Industries Corp.) turned in a splendid performance among top ten heavyweight stocks, soaring up 2.67 percent and 2.43 percent respectively.
On the negative side, Kingdom Holding showing excessive losses of three and half percent became the major decliner at Tadawul.
Market breadth was positive, whereby 72 symbols closed in green and 58 closed in red, while 29 remained unchanged.
Rabigh Refining and Petrochemical Company again made the biggest jump among all Saudi equities, marching higher by 9.82 percent and closing at SR30.2. The company with a liquidity of SR718.3 million also topped the value chart, pumping 10.5 percent of Tadawul turnover.
Market activity remained a little high as compared to previous day; turnover went up by 13.8 percent on volume basis and 16.8 percent in terms of liquidity.
Roughly 248 million shares worth SR6.8 billion were poured into the market. The 50-day average for trading turnover is closer to 184.8 million shares worth SR5.1 billion.
Alinma Bank with trades roughly 28 million topped the volume chart, closing green at SR15.35.

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

Updated 10 min 42 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.