Tadawul likely to keep upward trend



JEDDAH: KHALIL HANWARE ARAB NEWS STAFF

Published — Saturday 12 January 2013

Last update 12 January 2013 12:32 am

| نسخة PDF Print News | A A

The Saudi stock market is likely to open higher when it resumes trading today after weekend holidays, encouraged by yesterday’s gains in global markets, analysts said.
An improving economic outlook held world stock prices near a 20-month high yesterday.
A massive stimulus plan in Japan also boosted optimism about future business activity, but worries persisted about global demand and a possible drag from the debt ceiling fight in Washington, spurring selling in oil and basic metals.
The Tadawul All-Share Index broke the psychological barrier of 7,000 points mark last week, up 186.4 points and closed at 7,126.71 points. It posted weekly gain of 2.69 percent.
“With the Saudi market enjoying a rally of consecutive positive trading sessions since the start of the year, local fundamentals would push for this trend to continue,” commented Basil Al-Ghalayini, CEO OF BMG Financial Group.
“From a global perspective, this trend might witness a negative impact as the oil tumbling toward $110 a barrel on growing concern that oil demand may be weakening in the short term as global economic activity remains subdued,” said Al-Ghalayini.
Dealers earlier said oil prices spiked to three-month peaks last week as traders took their cue from the China data and reports of a cut in Saudi Arabian crude production.
Jarmo T Kotilaine, a regional analyst, commented: “The Kingdom continues to play a unique role in stabilizing the oil market at a time when concerns about demand erosion persist and non-OPEC production looks likely to accelerate somewhat from last year’s modest pace.”
Kotilaine added: “However, the pattern in this area is likely to remain one of continued volatility as periods of optimism are interspersed with bouts of increased risk aversion. Overall, global oil demand is continuing to go up, although more slowly than previously projected.”
Brent February crude was down $1.95 at $109.94 a barrel, after dropping to $109.60 and having reached $111.95.
US February crude was down 90 cents at $92.92 a barrel, after dropping to $92.65 and having reached $94.13.
Total market capitalization of Saudi stock exchange increased over 2.7 percent to SR1.46 trillion last week as compared to previous week's SR 1.42 trillion.
“Tadawul will probably take its cue from the record highs for global equities last week given the strong correlation, yet my concern in the next few weeks will be centered on another showdown pertaining to the US debt ceiling, with the US Treasury exhausting its extraordinary measures to borrow,” Tamer El Zayat, senior economist at the National Commercial Bank (NCB), said.
He added: “The political polarization in the US will surely impact oil demand prospects negatively in the first quarter and might offset another positive earnings' season for corporate Saudi via the downward pressure on crude prices.”
The MSCI index of world shares was little changed at 349.33 points after rising earlier to 350.15, the highest level since May 2011, Reuters said.
On Wall Street, the three major stock indexes opened lower despite record earnings from Wells Fargo, the No. 4 US bank. The Standard & Poor's 500 index dialed back from its five-year closing high on Thursday.
The Dow Jones Industrial Average was down 24.03 points, or 0.18 percent, at 13,447.19. The S&P 500 was down 3.86 points, or 0.26 percent, at 1,468.26. The Nasdaq Composite Index was down 5.54 points, or 0.18 percent, at 3,116.22.
Europe's FTSEurofirst 300 index of top companies across the region also neared levels last seen in March 2011 shortly after the ECB decision and was consolidating those gains yesterday to be little changed at 1,163.62 points.
In the currency market, according to Reuters, the euro extended Thursday's rally against the dollar, rising 0.45 percent to $1.3327 after touching $1.3365 earlier, its highest since April.
The greenback however strengthened against the yen, rising 0.61 percent to 89.28 yen, a 2-1/2 year high, after the Japanese government agreed a $117 billion spending boost for the economy.

What's happening around Saudi Arabia

RIYADH: The $22-billion Riyadh Metro project is going on according to the plan despite the fact that many global projects are faltering.“There are many stalled projects all over the world and not in the Kingdom alone, but the metro project in the Sau...
JEDDAH: Four members of the Commission for the Promotion of Virtue and the Prevention of Vice (Haia) were stabbed by a youth who was allegedly trying to blackmail a girl in Jeddah. The incident happened on Tuesday night and the four officers, who sus...
RIYADH: A recent report released by the Ministry of Labor revealed that the number of violations registered on the ministry’s electronic program “Together for Monitoring” in the months of December 2015 and January 2016 amounted to 484, of which 157 w...
RIYADH: Health Minister Khalid Al-Falih visited the medical complex in Thuwal, near Jeddah, on Tuesday. The facility was set up by Saudi Aramco, whose chairman is the health minister himself.According to the minister, the complex provides primary hea...
JEDDAH: A number of Shoura Council members have voiced objections to some imams who express their personal opinions during Friday sermons.The members asked the Ministry of Islamic Affairs to supervise the sermons to make sure they were written by spe...
MADINAH: Street vendors near the Prophet’s Mosque pose a risk to the country’s reputation and economy besides blocking the way of service cars, Red Crescent and Civil Defense vehicles, an expert has said.Ninety-eight percent of these street merchants...
RIYADH: Appropriate action has been taken against the Haia members who were involved in beating up a girl opposite the Nakheel shopping mall here recently, but the girl was also at fault, a Haia official has clarified.“A probe has revealed that the g...
I am from the east of France but moved to Saudi Arabia from Paris in 1990. I worked for a princess as a French language tutor. I was young and single. I thought it was very exotic and mysterious. I lived in a palace. I left Saudi Arabia in 1992 and c...
JEDDAH: The Pakistan Repatriation Council (PRC) held a symposium on Kashmir and the obligation of Muslim world toward Kashmiris.It was presided by Ali Al-Ghamdi, a former Saudi diplomat. Other guests and speakers at the event were Shahid Nayeem, pres...
DAMMAM: A total of 627 kidney transplant surgeries were performed in the Kingdom last year, bringing the number of kidney transplants, performed since the beginning of the organ donation program, to 9,000 surgeries, said Dr. Faisal Shaheen, director...
ABHA: Saudi women spend more on cosmetics compared to women in the West, the Arab world and even in the Gulf, economic studies show.Recent statistics issued by the Saudi Customs suggest the amount of imported cosmetics in the past year exceeded SR2.3...
RIYADH: A study is under way to provide health insurance to Umrah pilgrims and domestic workers and certain articles of the health regulations needs to be amended, an official has said.According to local media, the statement was made by Mohammed bin...
JEDDAH: The government last year helped over 2,000 children overcome circumstances that forced them to beg or work illegally. The number of children who got help to overcome was 2,039 last year, of which the proportion of the Saudi children was 16 pe...
RIYADH: The number of visitors to the United Kingdom from Saudi Arabia has been steadily increasing from 89,000 in 2009 to 144,000 in 2014.This was revealed at a presentation made to mark the launch of “Visit Britain” program in Riyadh on Wednesday....
NAJRAN: Three members of the Saudi National Guard died in Rabuah, Najran, on Wednesday.National Guard spokesman Maj. Mohammed Omari identified them as Lt. Faisal bin Abdullah Al-Shehri, Lt. Faisal bin Talal Al-Toub and Lt. Saud bin Khaled Al-Rukhayye...

Stay Connected

Facebook