New Saudi stock market opens with gains of 20%

Real estate investment trusts (REITs), which have been soaring since Al-Jazira Maten REIT listed in mid-February, continued to rise in heavy trade on Sunday. (Reuters)
Updated 27 February 2017
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New Saudi stock market opens with gains of 20%

RIYADH/DUBAI: Saudi Arabia on Sunday launched a parallel equity market designed to boost small and medium enterprises (SMEs) that closed up 20 percent, the maximum allowed in a single day, brokers said.
The index on the parallel market, Nomu, listing seven companies, closed at 6,000 points with trading of SR256 million (about $67 million).
Argaam, a Saudi economic website, put the total capitalization of the seven companies trading on Nomu at SR1.8 million ($479 million).
The companies listed are Raydan Restaurants, Baazeem Trading Company, Arab Sea, Al-Omran Trading, Abdullah Saad Abo Moati, Food Development Company and Al-Samaani Metal.
Argaam said Baazeem was the most active on Sunday with 2.2 million shares trading hands.
To be listed on Nomu, companies must have a market value of at least SR10 million ($2.7 million), a minimum of 35-50 shareholders and at least 20 percent of shares publicly owned.
Nomu’s launch was announced last Monday by Tadawul, which said the new equity market was “an alternative trading platform with lighter listing requirements.”
Saudi Arabia’s Vision 2030 for small- and medium- sized firms to account for 35 percent of the gross domestic product (GDP), up from 20 percent.
Tadawul, which has a capitalization of about $400 billion, opened to direct investment by qualified foreigners for the first time in 2015.

Tadawul
Meanwhile, the Tadawul All Share Index (TASI) edged up 0.1 percent. Real estate investment trusts (REITs), which have been soaring since Al-Jazira Maten REIT listed in mid-February, continued to rise in heavy trade; Al-Jazira climbed 9.8 percent and Riyad REIT gained 9.4 percent.
In Qatar, the index also edged up 0.1 percent but Qatar Navigation (Milaha) dropped 4.5 percent after it swung to a surprise fourth-quarter net loss of QAR47.7 million ($13.1 million).
Dubai’s index rose 0.2 percent in the lowest trading volume since Dec. 21. DAMAC Properties, the developer, which earlier this month opened a Donald Trump-branded golf course and residential project in Dubai, added 1.4 percent in unusually heavy trade.
Abu Dhabi’s index was 0.1 percent higher as First Gulf Bank gained 0.7 percent. Kuwait’s market was closed for a national holiday.
In Egypt, the index closed 0.2 percent higher, coming well off its intra-day high. Palm Hills Development rose 1.6 percent after local media said the company was obtaining a loan of 852 million Egyptian pounds ($54 million) from the National Bank of Egypt and National Bank of Abu Dhabi; the company subsequently said it was in talks with banks for such a loan but no agreement had been signed.
But Arab Cotton Ginning tumbled 8 percent as heavy profit-taking in the stock continued, and Global Telecomn lost 2.8 percent.


Pompeo says China is engaging in ‘predatory economics 101’

Would China have allowed America to do to it what China has done to America asked US Secretary of State Mike Pompeo. (AP)
Updated 18 June 2018
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Pompeo says China is engaging in ‘predatory economics 101’

  • He said China’s recent claims of “openness and globalization” are “a joke.”

DETROIT: China is engaging in “predatory economics 101” and an “unprecedented level of larceny” of intellectual property, Secretary of State Mike Pompeo told a business audience Monday.
Pompeo made the remarks at the Detroit Economic Club as global markets reacted to trade tensions between the US and China. Both nations started putting trade tariffs in motion that are set to take effect July 6.
He said China’s recent claims of “openness and globalization” are “a joke.” He added that China is a “predatory economic government” that is “long overdue in being tackled,” matters that include IP theft and Chinese steel and aluminum flooding the US market.
“Everyone knows ... China is the main perpetrator,” he said. “It’s an unprecedented level of larceny.”
“Just ask yourself: Would China have allowed America to do to it what China has done to America?” he said later. “This is predatory economics 101.”
The Chinese Embassy in Washington did not immediately respond to a request for comment.
Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.
“I reminded him that’s not fair competition,” Pompeo said.
President Donald Trump has announced a 25 percent tariff on up to $50 billion in Chinese imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.
Wall Street has viewed the escalating trade tensions with wariness, fearful they could strangle the economic growth achieved during Trump’s watch. Gary Cohn, Trump’s former top economic adviser, said last week that a “tariff battle” could result in price inflation and consumer debt — “historic ingredients for an economic slowdown.”
Pompeo on Monday described US actions as “economic diplomacy,” which, when done right, strengthens national security and international alliances, he added.
“We use American power, economic might and influence as a tool of economic policy,” he said. “We do our best to call out unfair economic behaviors as well.”