Tadawul keeps upward momentum

Updated 03 January 2013
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Tadawul keeps upward momentum

Saudi Arabia's benchmark stock index (Tadawul) continued pacing its way higher throughout the day to close yesterday's trading in the green territory at 6,940.31, achieving 1.17 percent or 80.29 points for the session.
All market cap indices ended the day in the safe area.
Sectoral performance was tremendous, as 13 out of the 15 sectors closed in the upward territory, accumulating 881 points collectively. Only Multi-Investment and Insurance sectors closed a little lower from previous day's level, declining by 0.74 percent and 0.25 percent respectively.
Real Estate Development and Petrochemical Industries were best performing sectors of the day, surging by 2.65 percent and 1.53 percent respectively. Banking sector also added 171 points to close at 14,873.17.
Six out of top ten market cap companies ended the day in green.
Al-Rajhi Bank and market leader SABIC (Saudi Basic Industries Corp.) remained at top among big players, rising by 1.9 percent and 1.4 percent respectively.
There were 93 net advancing issues, a largely strong market breadth.
Ash-Sharqiyah Development Company turned in a splendid performance among all Saudi stocks, soaring up SR 6 or 9.95 percent to close the day at SR 66.25. Alkhaleej Training and Education Company followed it, advancing 6.59 percent for the day.
Amanah Cooperative Insurance, on the contrary, delivered a largely negative performance for the fourth straight day, slipping 8.91 percent further to SR 112.5.
The buying interest started to restore, as more than 198.9 million shares worth SR 5.79 billion exchanged hands on the Saudi Stock Market. This turnover reflects a 38.4 percent increase in terms of volume and 31.3 percent in terms of value as compared to the previous day.


Oil prices fall as OPEC and Russia weigh output boost

Updated 44 min 38 sec ago
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Oil prices fall as OPEC and Russia weigh output boost

  • Russian Energy Minister Alexander Novak has had talks with Saudi Energy Minister Khalid Al-Falih on an easing of the terms of the global oil supply pact that has been in place for 17 months
  • The energy ministers of Saudi Arabia, Russia and the United Arab Emirates are discussing an output increase of about 1 million barrels per day

LONDON: Oil prices fell below $78 a barrel on Friday as OPEC and Russia considered easing supply curbs to offset disruptions in Venezuela and an expected drop in Iranian exports.
Russian Energy Minister Alexander Novak has had talks with Saudi Energy Minister Khalid Al-Falih on an easing of the terms of the global oil supply pact that has been in place for 17 months, Novak said on Friday.
The energy ministers of Saudi Arabia, Russia and the United Arab Emirates are discussing an output increase of about 1 million barrels per day (bpd), sources told Reuters.
Speaking in St. Petersburg, Falih told Reuters that “all options are on the table” when asked about the targets on production cuts.
Brent crude futures were down 80 cents at $77.99 a barrel by 0914 GMT, having hit their highest since late 2014 at $80.50 this month.
US West Texas Intermediate (WTI) crude futures were at $70.18 a barrel, down 53 cents.
“The debate about a possible relaxation of the production restrictions should preclude any renewed price rise,” Commerzbank analysts said.
“The $80 mark is likely to pose an obstacle that is difficult to overcome because it would significantly raise the probability of a production increase.”
The Organization of the Petroleum Exporting Countries (OPEC) as well as a group of non-OPEC producers led by Russia started withholding output in 2017 to tighten the market and prop up prices.
Global crude supplies have tightened sharply over the past year because of the OPEC-led cuts, which were boosted by a dramatic drop in Venezuelan production.
The prospects of renewed sanctions on Iran after US President Donald Trump pulled out of an international nuclear deal with Tehran have also boosted prices in recent weeks.
As a result, compliance with the deal to reduce output by 1.8 million bpd by the end of 2018 has been at 152 percent, sources said.
Amrita Sen, chief oil analyst at consultancy Energy Aspects, said: “Addressing overcompliance was always likely to be on the agenda amid a tight market and low inventories, but the volume to bring back is still up for debate.”

HIGHER PRICES AT A COST
While Russia and OPEC benefit from higher oil prices, up almost 20 percent since the end of last year, their voluntary output cuts have opened the door to other producers to ramp up production and gain market share.
US crude oil production has risen by more than a quarter in the past two years, to 10.73 million bpd. Only Russia produces more, at about 11 million bpd.
Output from the likes of the United States, Canada and Brazil, which are not bound by the OPEC/Russian-led pact, is likely to rise further as crude prices rise.