Tadawul: Tourism stocks stay in the limelight

Updated 25 May 2014
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Tadawul: Tourism stocks stay in the limelight

Saudi Arabia’s benchmark Tadawul All-Share Index (TASI) ended its Sunday's trading up over 21 points, closing at 9,772.48.
Mid cap remained prominent among market cap indices. Only five out of Tadawul’s 15 sectors witnessed a negative change, dropping 428.4 points for the day. Remaining twofold sectors closed in the green territory, accumulating an aggregate of 619 points.
Hotel & Tourism sector advanced 306 points or 1.35 percent over the day, posting the biggest gains among all sectors.
On the other hand, Media and Publishing continued its downward fall, marking another dip of 6.44 percent. Tihama Advertising & Public Relations Company was among the top decliners, showing excessive losses of 9.96 percent.
Heavyweights closed in a mixed fashion, where Saudi Electricity rose 0.31 percent and SABB fell 0.71 percent. Market breadth with advance-decline ratio of 0.86:1 remained slightly negative.
Saudi Hotels & Resort Areas Co. and Methanol Chemicals Company showed the best performance among all Saudi stocks, appreciating by 5.95 percent and 5.42 percent respectively. City Cement shares raced to a new all-time high, closing at SR28.66.
Saudi Kayan Petrochemical Company was a key gainer among most active stocks, surging 3.13 percent and closing at SR16.77. Its 52.5 million shares worth SR867.4 million were liquidated into the market. This turnover reflects a relative market share of 13.6 percent on volume basis and 7.7 percent in terms of liquidity.
Tadawul volume set sold approximately 387 million shares, a decrease of 12.5 percent as compared to previous level. But the volume was greater than 50-day average by same percentage.
Equity turnover reached to SR11.2 billion, an increase of 8.5 percent over the 50-day average value.


China’s ZTE slams US ban on sales, says company’s survival at risk

Updated 2 min 25 sec ago
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China’s ZTE slams US ban on sales, says company’s survival at risk

HONG KONG: China’s ZTE Corp. said on Friday that a US ban on the sale of parts and software to the company was unfair and threatens its survival, and vowed to safeguard its interests through all legal means.
The US this week imposed a ban on sales by American companies to ZTE for seven years, saying the Chinese company had broken a settlement agreement with repeated false statements — a move that threatens to cut off its supply chain.
“It is unacceptable that BIS insists on unfairly imposing the most severe penalty on ZTE even before the completion of investigation of facts,” ZTE said in its first response since the ban was announced, referring to the US Commerce Department’s Bureau of Industry and Security.
“The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE including a large number of US companies,” ZTE said in a statement.
ZTE said it regards compliance as the cornerstone of its strategy, adding it invested $50 million in export control compliance projects in 2017 and plans to invest more this year.
A senior US Commerce Department official told Reuters earlier this week that it is unlikely to lift the ban.
“We’re going to have to see how this unfolds. But there is no provision currently for that to occur,” the official said, who declined to be identified due to the sensitivity of the matter.
The Commerce Department has an appeals process for companies to try to get off the list, but it is unclear whether that would be available to ZTE because the case had been previously subject to a settlement, according to people familiar with the matter.
Even so, ZTE would have little recourse in the near term because appeals would have to be approved by the Bureau of Industry and Security, the same agency that issued the ban.
Companies must submit appeals to a committee that would issue a ruling within 30 days, according to the agency’s website.
ZTE said it will not give up efforts to solve problems through communication, and it is determined to take judicial measures to protect the legal rights and interests of the company.
The ban has ratcheted up tensions between China and the United States at a time when they have already threatened each other with tens of billions of dollars in tariffs, fanning worries of a full-blown trade war that.
In China, there has been a patriotic backlash with an outpouring of support for ZTE on social media and most domestic newspapers have chosen to put the lion’s share of the blame for ZTE’s troubles on the country’s heavy reliance on foreign semiconductors.
Meanwhile, the US government is considering using an emergency law to restrict Chinese investments in sensitive US technologies, a senior Treasury official said on Thursday.
Trade in ZTE shares has been suspended since Tuesday. As of Monday’s close, they were worth some $19 billion.