Saudi and Egypt lead Mideast market rally

Saudi Arabia and Egypt led a rally of regional stock markets on Sunday as traders reacted to Brexit. (AFP)
Updated 10 December 2017
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Saudi and Egypt lead Mideast market rally

DUBAI: Major Gulf stock markets rose on Sunday in line with strength in global bourses at the end of last week, with Saudi Arabia and Egypt leading.
The Saudi index rose 0.8 percent to 7,145, bouncing for a second straight day from technical support around 7,000 points in very heavy trade.
After initially pulling out of the market in the wake of Saudi Arabia’s crackdown on corruption, announced early last month, retail investors have been coming back in after it became clear that damage to the economy due to the crackdown was not as serious as feared.
Real estate firm Dar Al Arkan, the most heavily traded stock, continued a spectacular uptrend. It surged 9 percent to SR14 ($3.73), having jumped from around SR7.50 in mid-November, when MSCI said it was adding the stock to its Saudi Arabia Index.
Petrochemical firm Saudi Kayan surged 6.2 percent to SR10.64. Many analysts consider it fully valued, however; the median target price of six analysts surveyed by Reuters is SR9.65.
Egypt’s index ended a four-day losing streak, climbing 0.7 percent, but trading volume remained light.
Cleopatra Hospital jumped 7.9 percent after saying its capital increase had been 99.8 percent subscribed, while Misr Cement soared 10 percent as the price of rights in its capital increase rocketed 11.7 percent.
The Qatari index climbed 0.7 percent; it has been trading near six-year lows for a month and appears to have established strong support in that area. Gulf International Services added 4.4 percent.
Dubai came off early highs to end just 0.1 percent higher while Abu Dhabi climbed 0.4 percent on the back of a 4.4 percent gain by Dana Gas, after the CEO of its major shareholder Crescent Petroleum told the Al Khaleej news service that the main documentation for Dana’s $700 million of outstanding sukuk was governed by UAE law.
Dana is seeking to avoid redeeming the sukuk after it matured in October, arguing that it is no longer valid under UAE law. A London court found against Dana last month, but Dana is continuing to fight its case in a UAE court.
— Reuters


Oil prices mixed as producers release more supply in the market

Updated 19 July 2018
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Oil prices mixed as producers release more supply in the market

  • The US Energy Information Administration also reported US oil production reached a record 11 million barrels per day
  • US crude stocks rose by 5.8 million barrels last week, compared with a forecast of a decline of 3.6 million barrels

TOKYO: Oil prices were mixed on Thursday as the market struggled to digest signs of strong gasoline demand in the US, the world’s biggest consumer of the fuel, with a statement from oil producers that they are putting more crude on the market.
Brent crude futures fell 11 cents, or 0.2 percent, to $72.79 a barrel at 0401 GMT. West Texas Intermediate (WTI) crude futures climbed 6 cents, or 0.1 percent, to $68.82.
Both benchmarks rose by 1 percent on Wednesday after inventory data from the US Energy Information Administration reported on Wednesday US gasoline stockpiles fell along with supplies of distillate fuels. Motor fuel demand also rose from the week before and was up from a year earlier.
However, the EIA also reported US oil production reached a record 11 million barrels per day (bpd). The US has added nearly 1 million bpd in production since November, thanks to rapid increases in shale drilling.
Also, a meeting of members of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producer monitoring their supply pact reported on Wednesday that compliance with the agreement has declined, meaning more oil is available to the market.
The bullish tone sparked by the gasoline data is unlikely to last, said Stephen Innes, head of trading APAC at brokerage OANDA.
“President Trump is doing everything in his power to lower gasoline prices,” he said.
“With Russia quick to offer the President a supply olive branch and Saudi Arabia mainly in his back pocket when it comes to increasing their supply, its challenging to see (the) gasoline numbers turning the bearish market’s tide,” he said.
Gasoline inventories fell by 3.2 million barrels last week, while distillate stockpiles, which include diesel and heating oil, dropped by 371,000 barrels, the EIA said on Wednesday.
A Reuters poll taken before the data release had forecast that gasoline stocks would be unchanged and distillate stockpiles would show a build of around 900,000 barrels.
A sharp jump in crude oil inventories in the US also added to the bearish tone in the market.
US crude stocks rose by 5.8 million barrels last week, compared with a forecast of a decline of 3.6 million barrels.
Oil markets have fallen over the last week as Saudi Arabia and other members OPEC member and Russia have increased production and as some supply disruptions have eased.
OPEC and non-OPEC’s compliance with oil output curbs has declined to around 120 percent in June from 147 percent in May, two sources familiar with the matter told Reuters on Wednesday.