Saudi REITs surge after oversubscription

Updated 29 May 2017
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Saudi REITs surge after oversubscription

DUBAI: The Tadawul All Share Index (TASI) climbed 0.6 percent on Monday with real estate investment trusts (REITs) accounting for three of the top four percentage gainers after Saudi Fransi Capital said an offer of units in its new Taleem REIT this month was 890 percent subscribed, indicating strong demand for REITs.
Petrochemical shares were strong with Saudi Kayan gaining 1.3 percent, although small producer Nama Chemicals, which had plunged its 10 percent daily limit on Sunday, slid a further 1.6 percent.
The Dubai index added 0.7 percent. The four most active stocks were worth less than 1 dirham each, with Union Properties, the most heavily traded stock, gaining 2.4 percent.
Amusement park operator DXB Entertainments (DXBE), whose slide this year has weighed heavily on the Dubai market, edged up 0.5 percent after it said chief executive Raed Kajoor Al-Nuaimi had been appointed CEO of a new entity that will manage development projects for Dubai Holding and Meraas Holding. Al-Nuaimi will remain CEO of DXBE until a new chief is appointed, the company said without elaborating.
Loss-making builder Drake & Scull gained 1.5 percent after banking sources told Reuters about its recovery plan, including its projection that earnings before interest, taxes, depreciation and amortization will turn positive this year.
Qatar’s index edged down 0.1 percent but Qatar First Bank, the most heavily traded stock, climbed 5.8 percent. In the last several days, it has rebounded from record lows in unusually heavy trade.
In Kuwait, logistics giant Agility climbed 2.3 percent to 0.706 dinar, after a 6.2 percent surge on Sunday. The company said at the end of last week that it had agreed to pay $95 million in cash to settle a civil lawsuit accusing it of defrauding the US military on food supply contracts. The deal allows it to pursue US government contracts again.
SICO Bahrain called the resolution of the US case a major positive and upgraded the stock to a “buy” with a target price of 0.85 dinar.


Oil eases from 4-month high on global growth worries

Updated 13 min 37 sec ago
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Oil eases from 4-month high on global growth worries

  • The losses came amid worries over global economic growth after the US Federal Reserve highlighted signs of a slowing economy
SYDNEY: Oil prices edged lower on Thursday, retreating from a four-month peak, as fears of a slowing global economy weighed on market sentiment.
US West Texas Intermediate (WTI) crude futures were at $60.16 per barrel at 0040 GMT, down 7 cents, or 0.1 percent, from their last settlement. WTI had earlier hit a high of $60.19 a barrel — the highest since November 12.
International Brent crude oil futures were at $68.47 a barrel, down 3 cents from their last close. Brent touched $68.57 a barrel on Wednesday, its highest since November 13.
The losses came amid worries over global economic growth after the US Federal Reserve highlighted signs of a slowing economy.
Markets have been underpinned, however, by efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to curb supply, and losses were checked as widely watched US data showed supplies were tightening.
“Oil markets appear convinced that the continued effects of the Saudi Arabia oil production cuts and falling exports to the US will continue to outweigh the concerns of rising US production,” said Alfonso Esparza, senior market analyst at brokerage, OANDA.
US crude oil stockpiles last week fell by nearly 10 million barrels, the most since July, boosted by strong export and refining demand, the Energy Information Administration said on Wednesday.
Stockpiles fell 9.6 million barrels, compared with analysts’ expectations for an increase of 309,000 barrels. The draw brought stockpiles to their lowest since January.
Gasoline and distillate inventories both fell by more than expected. Gasoline stocks fell by 4.6 million barrels, while distillate inventories fell by 4.1 million barrels.