Saudi market reverses some losses after last week’s plunge

An investor walks past a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia June 29, 2016. (Reuters)
Updated 09 September 2018
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Saudi market reverses some losses after last week’s plunge

  • The Saudi index in particular ended up gaining 0.6 percent
  • The country’s main stock index fell below major technical support for the first time this year last week

DUBAI: Gulf stock markets closed on a positive note on Sunday, reversing some of their losses earlier in the day.
The Saudi index in particular ended up gaining 0.6 percent, after having plunged last week on foreign investors’ concerns over emerging markets volatility.
The country’s main stock index fell below major technical support for the first time this year last week.
Sunday’s pick up was mostly due to local institutions, rather than local retail investors or foreign buyers, said Talal Samhouri, head of asset management at investment company Amwal.
“Local institutions are trying to shore up prices given last week’s decline,” he said.
Gains were across the board, with Dar Al Arkan Real Estate Development Co. registering the highest trading volume and gaining 0.3 percent, followed by Alina Bank, up 0.6 percent.
Blue-chip Saudi Basic Industries Corporation (SABIC) climbed 1.7 percent, following a steadying in oil prices at the end of last week, when Brent crude futures settled up 33 cents at $76.83 a barrel.
Shares in Saudi Arabia’s Nada Chemicals dropped 0.5 percent after the company said it would halt production at some of its units for periods of about seven or 15 days for scheduled maintenance.
Most other markets closed in positive territory.
The Dubai index gained 0.6 percent, with Islamic Arab Insurance Co. among the best performing stocks, up 4.4 percent.
The company surged 10 percent last week after direct deals or block trades were executed on the stock on 370.7 million worth of shares at 0.42 dirhams.
In Abu Dhabi, the recent announcement of a potential three-way merger between Abu Dhabi Commercial Bank, Union National Bank and the unlisted Al Hilal Bank continued to act as a catalyst for investors.
The exchange, which closed flat on Sunday, saw Abu Dhabi National Energy Co. (TAQA) jump 6.2 percent, followed by another blue-chip, Aldar Properties, which gained 2.6 percent.

SAUDI ARABIA
* The index closed up 0.5 percent to 7,729 points.

DUBAI
* The index rose 0.6 percent to 2,843 points.

ABU DHABI
* The index was flat at 4,918 points.

QATAR
* The index shed 0.6 percent to 9,770 points.

KUWAIT
* The index gained 0.4 percent to 5,325 points.

BAHRAIN
* The index climbed 0.3 percent to 1,344 points.

OMAN
* The index increased 0.5 percent to 4,454 points.

EGYPT
* The index shed 0.4 percent to 15,750 points.


Porsche first German carmaker to abandon diesel engines

Updated 14 min 11 sec ago
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Porsche first German carmaker to abandon diesel engines

  • The company would concentrate on its core strength, ‘powerful petrol, hybrid and, from 2019, purely electric vehicles’
  • But Porsche promised it would keep servicing diesel models on the road now

BERLIN: Sports car maker Porsche said Sunday it would become the first German auto giant to abandon the diesel engine, reacting to parent company Volkswagen’s emissions cheating scandal and resulting urban driving bans.
“There won’t be any Porsche diesels in the future,” CEO Oliver Blume told the newspaper Bild am Sonntag.
Instead, the company would concentrate on what he called its core strength, “powerful petrol, hybrid and, from 2019, purely electric vehicles.”
The Porsche chief conceded the step was a result of the three-year-old “dieselgate” scandal at auto giant Volkswagen, the group to which the luxury sports car brand belongs.
VW in 2015 admitted to US regulators to having installed so-called “defeat devices” in 11 million cars worldwide to dupe emissions tests.
It has so far paid out more than €27 billion in fines, vehicle buybacks, recalls and legal costs and remains mired in legal woes at home and abroad.
Diesel car sales have dropped sharply as several German cities have banned them to bring down air pollution — a trend that Chancellor Angela Merkel was due to discuss with car company chiefs in Berlin later Sunday.
Stuttgart-based Porsche in February stopped taking orders for diesel models, which it had sold for nearly a decade.
Blume said Porsche had “never developed and produced diesel engines,” having used Audi motors, yet the image of the brand had suffered.
“The diesel crisis has caused us a lot of trouble,” he said, months after Germany’s Federal Transport Authority ordered the recall of nearly 60,000 Porsche SUVs in Europe.
Blume promised that the company would keep servicing diesel models on the road now.
According to the paper, Porsche also faces claims of having manipulated engines to produce a more powerful sound with a technique that was deactivated during testing.
Blume acknowledged that German regulators had found irregularities in the 8-cylinder Cayenne EU5, affecting some 13,500 units.
Merkel, Transport Minister Andreas Scheuer and heads of German auto companies were due to meet in Berlin later Sunday to discuss steps to avoid more city driving bans.
The German government hopes to see one million fully electric and hybrid vehicles on the road by 2022, up from fewer than 100,000 at the start of this year.