Saudi equity market cap falls to SR1.50 trillion in first half

Updated 05 July 2016
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Saudi equity market cap falls to SR1.50 trillion in first half

JEDDAH: The Saudi stock market fell in the first half of this year.

According to Tadawul Statistical Report, at the end of the first half of 2016, the Tadawul All-Share Index (TASI) closed at 6,499.88 points, down 2,587.01 points or 28.47 percent over the close of the same period of the previous year.
On an YTD basis TASI registered a negative decrease of 5.96 percent (411.88 points).
The report said highest close level for the index during the period was 6,952.22 point as on Jan. 3, 2016.
Total equity market capitalization at the end of the first half 2016 reached SR1.50 trillion ($401.16 billion), declined by 25.29 percent over the end of the 1st half of the previous year.
The total value of shares traded for the 1st half 2016 reached SR688.19 billion ($183.52 billion), dropped by 34.07 percent over the same period of the previous year.
The total number of traded shares reached 38.74 billion during the 1st half compared to 39.03 billion shares traded during the 1st half of the previous year, decreased by 0.74 percent.
The Tadawul report said total number of transactions executed during the 1st half 2016 reached 16.04 million compared to 17.85 million trades during the 1st half of the previous year, decreased by (10.14 percent.
Meanwhile, the total value of shares traded for the week ending June 30, 2016 amounted to SR21.71 billion, increasing by 40.60 percent over the previous week; while total stock market capitalization reached SR1.504 trillion at the end of this period, decreasing by 0.59 percent over the previous week.
The total value of shares purchased by Saudi investors during this period amounted to SR20.74 billion representing 95.52 percent of total buying activity, and sales of SR20.86 billion representing 96.08 percent of total selling activity. Total ownership of Saudi investors” stood at 93.24 percent of total market capitalization as of June 30, 2016, representing an increase of 0.01 percent from the previous week.
The total value of shares purchased by GCC investors during this period amounted to SR0.306 billion, representing 1.41 percent of total buying activity, and sales of SR0.260 billion, representing 1.20 percent of total selling activity. Total ownership of GCC investors stood at 2.56 percent of total market capitalization as of June 30, 2016, representing an increase of 0.0003 percent from the previous week.
The total value of shares purchased by foreign investors during this period amounted to SR0.666 billion representing 3.07 percent of total buying activity, and sales of SR0.592 billion representing 2.73 percent of total selling activity. Total ownership of foreign investors stood at 4.21 percent of total market capitalization as of June 30, 2016, representing a decrease of 0.01 percent from the previous week.


Eni issues fraud complaint over suspect Iraqi shipment

Updated 18 July 2019
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Eni issues fraud complaint over suspect Iraqi shipment

  • Italian oil multinational asks if rejected tanker cargo contained Iranian crude targeted by US sanctions

LONDON: Eni has filed a fraud complaint against its former head of oil trading over a suspect Iraqi crude oil shipment, amid concerns inside the Italian oil major that the failed delivery may have included Iranian crude targeted by US sanctions.

In the filing to the Milan prosecutor’s office, Eni accused its former head of trading and operations, Alessandro Des Dorides, of misleading all parties to the deal and hiding the role of a small Italian oil trading firm, Napag.

Two other senior employees were either demoted or suspended as a result of the failed shipment, sources said.

Eni said it had suspended dealings with Napag in February over a separate investigation by Milan prosecutors into suspected obstruction of justice by members of Eni’s former legal team.

Eni said that it fired Des Dorides at the end of May, after he had been in his job about six months, for what it said was an unrelated petrochemical deal with Napag in 2018.

Napag did not respond to an emailed request for comment or answer phone calls.

Des Dorides did not respond to several requests for comment from Reuters via email or LinkedIn. Reuters could not locate legal representation for him.

Eni also declined to comment. Eni said it “does not comment on ongoing investigations and internal due processes.”

The crude arrived aboard the White Moon tanker at the end of May for offloading at the Milazzo refinery in Sicily, which is part-owned by Eni. The Italian oil major, which produces oil in Iraq and is a regular buyer of Iraqi crude, was solely responsible for the cargo.

However, Eni said it rejected the delivery because it did not match the Iraqi Basra Light crude it expected from its counterparty, the Dubai-based trading arm of Nigerian firm Oando.

After sitting offshore for three weeks, the White Moon sailed back to the Gulf. The tanker manager did not respond to a request for comment.

Two sources at Eni said the White Moon’s 1 million barrel cargo created panic within the company over fears the crude could be, at least partially, Iranian.

Handling Iranian oil would have breached sanctions the US reimposed or extended last year after quitting a nuclear deal between Iran and world powers.

Washington aims to reduce Iran’s exports to zero and force the Islamic Republic to renegotiate that nuclear deal, curb its missile program and modify its behavior in the Middle East.

Iran has called on other parties to the accord to shield it from the effects of US sanctions and has sought to circumvent US restrictions by selling more of its oil undercover.

Following the rejection of the White Moon shipment in June, the head of the Italian Senate Industry Committee wrote to Eni Chief Executive Claudio Descalzi to clarify the origin of an oil cargo labelled as coming from Iraq, the head of the committee said.

The head of the committee declined to comment to Reuters on the oil’s possible origins.

Eni said it bought the crude from Nigerian firm Oando, who in turn bought the oil from the London branch of Italy’s Napag.

Oando said it took back the cargo from Eni, but declined to comment further on the origins of the cargo as it was “in the middle of a resolution” over the rejected oil. Oando said the terms of the deal were “normal for the trading industry.”

Italian prosecutors cannot legally comment on any investigation unless there is an exceptional circumstance.

Trading sources familiar with the deal said the offer terms for the crude should have raised alarms internally even before its arrival off Sicily. The offer was at a significant discount to typical Iraqi trades, was paid for in euros and was from a firm that is new to the region, they said. Physical oil is commonly traded in dollars.

Eni said that the mismatch in the crude’s chemical composition “coupled with other red flags led to the decision to terminate the transaction.”

The oil loaded onto the White Moon came via two ship-to-ship transfers that makes the origin harder to track, sources said.

The crude bought from Oando was loaded onto the White Moon from another vessel, the New Prosperity, but that vessel itself had been loaded with oil from a third tanker, the Abyss.

The Abyss makes regular voyages through the Mideast Gulf with its transponder switched off for days at a time, according to Refinitiv Eikon ship tracking. The transponder was switched off between April 24 and May 3 when it transferred oil to the New Prosperity.