Tadawul shows balmy gains

Updated 03 February 2013
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Tadawul shows balmy gains

The Saudi stock market sustained its upward march, closing the third consecutive day with balmy gains.
The Tadawul All-Share Index (TASI) ended higher at 7,057.59 points.
It added further 14.04 points or 0.20 percent and spiked above the previous closing at 7,043.55 levels.
Its trading range expanded to 37.1 points as compared to previous day’s 24.5 points.
The market cap indices all finished to the upside, with micro cap advancing 0.6 percent yesterday.
Sector indices performed in a mixed fashion, with eight sectors reflecting an accumulation of 319 points and six sectors shedding 121 points collectively.
However, the energy sector ended without any change yesterday.
Insurance showed the best performance among sectoral indices, rising 2.37 percent for the day. Hotel and tourism sector continued its upward march, marking another gain of 125.8 points or 1.44 percent.
It also reflected a year-to-date change (+22.2 percent) which is highest amongst all Saudi sectors.
Industrial Investment sector, on the other hand, posted the largest losses, falling more than one percent to 6,468.01.
Riyad Bank and Samba Financial Group came out as key gainers among heavyweight equities, moving up slightly 0.65 percent and 0.44 percent respectively.
Market breadth with advance-decline ratio of 2.2:1 remained strong.
Share price of Saudi United Cooperative Insurance rallied to a maximum growth of 10 percent, clinching the spot as top gainer amongst Saudi stocks. Saudi Integrated Telecom (Almutakamela) — the most active stock — followed it, jumping 9.66 percent to SR 26.10.


OPEC oil ministers gather to discuss production increase

Updated 19 June 2018
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OPEC oil ministers gather to discuss production increase

  • Analysts expect the group to discuss an increase in production of about 1 million barrels a day
  • The officials were arriving in Vienna ahead of the official meeting Friday

VIENNA: The oil ministers of the OPEC cartel were gathering Tuesday to discuss this week whether to increase production of crude and help limit a rise in global energy prices.
The officials were arriving in Vienna ahead of the official meeting Friday, when they will also confer with Russia, a non-OPEC country that since late 2016 has cooperated with the cartel to limit production.
Analysts expect the group to discuss an increase in production of about 1 million barrels a day, ending the output cut agreed on in 2016.
The cut has since then pushed up the price of crude oil by about 50 percent. The US benchmark in May hit its highest level in three and half years, at $72.35 a barrel.
Upon arriving, the energy minister of the United Arab Emirates, Suhail Al Mazrouei, said: “It’s going to be hopefully a good meeting. We look forward to having this gathering with OPEC and non-OPEC.”
The 14 countries in the Organization of the Petroleum Exporting Countries make more money with higher prices, but are mindful of the fact that more expensive crude can encourage a shift to renewable resources and hurt demand.
“Consumers as well as businesses will be hoping that this week’s OPEC meeting succeeds in keeping a lid on prices, and in so doing calling a halt to a period which has seen a steady rise in fuel costs,” said Michael Hewson, chief market analyst at CMC Markets UK
The rise in the cost of oil has been a key factor in driving up consumer price inflation in major economies like the US and Europe in recent months.
Already US President Donald Trump has called on OPEC to cut production, tweeting in April and again this month that “OPEC is at it again” by allowing oil prices to rise.
Within OPEC, an increase in output will not affect all countries equally. While Saudi Arabia, the cartel’s biggest producer, is seen to be open to a rise in production, other countries cannot afford to do so. Those include Iran and Venezuela, whose industries are stymied either by international sanctions or domestic turmoil. Iran is a fierce regional rival to Saudi Arabia, meaning the OPEC deal could also influence the geopolitics in the Middle East.