Gulf stocks dragged down by rout across global markets

The Saudi stock index fell by 1.6 percent with declining stocks outnumbering gainers by 169 to 13. (Reuters)
Updated 07 February 2018

Gulf stocks dragged down by rout across global markets

DUBAI: Middle Eastern stock markets fell on Tuesday because of the global downturn in equities.
But the region outperformed emerging markets in Asia, where MSCI’s broadest index of Asia-Pacific shares excluding Japan plunged 3.6 percent.
Because of low oil prices and poor liquidity, the Gulf greatly underperformed the uptrend in global emerging markets last year, so fund managers said it may be less prone to profit-taking and have less distance to fall on the way down.
The Saudi stock index fell 1.6 percent with declining stocks outnumbering gainers by 169 to 13. Cement shares continued to pull back after big gains last week, with Jouf Cement down 3.3 percent.
Mediterranean & Gulf Cooperative Insurance and Reinsurance fell a further 5 percent, having lost almost 10 percent on each of the previous two days. The Capital Market Authority has said it might suspend or cancel trade in the stock following the central bank’s decision to prohibit the firm from issuing or renewing policies pending a capital increase.
But the biggest bank, National Commercial Bank, rose 0.7 percent. It reported a fourth-quarter net profit of SR2.56 billion ($683 million), up from SR2.29 billion a year ago. SICO Bahrain had forecast SR2.16 billion.
PetroRabigh added a further 3.1 percent after soaring 9.9 percent on Monday, when it reported a leap in fourth-quarter net profit.
Dubai’s index fell 1.5 percent as losing stocks outnumbered gainers by 32 to three. Abu Dhabi’s index sagged 0.9 percent.
In Qatar, the index lost 2.1 percent. Salam International Investment, the most heavily traded stock, closed 3.2 percent lower, far off its intra-day low. It had plunged by its 10 percent daily limit on Monday, when it posted an annual net loss of 89.9 million riyals ($24.7 million) versus a year-earlier profit of 119.7 million riyals.
Egypt’s index lost 1.6 percent but exchange data showed foreign investors were net buyers of strocks, by a modest margin.


Libya’s NOC says production to rise as it seeks to revive oil industry

Updated 22 September 2020

Libya’s NOC says production to rise as it seeks to revive oil industry

  • Libya produced around 1.2 million bpd – over 1 percent of global production – before the blockade
  • Libya’s return to the oil market is sustainable

LONDON: Libya’s National Oil Company said it expected oil production to rise to 260,000 barrels per day (bpd) next week, as the OPEC member looks to revive its oil industry, crippled by a blockade since January.
Oil prices fell around 5 percent on Monday, partly due to the potential return of Libyan barrels to a market that’s already grappling with the prospect of collapsing demand from rising coronavirus cases.
Libya produced around 1.2 million bpd — over 1 percent of global production — before the blockade, which slashed the OPEC member’s output to around 100,000 bpd.
NOC, in a statement late on Monday, said it is preparing to resume exports from “secure ports” with oil tankers expected to begin arriving from Wednesday to load crude in storage over the next 72 hours.
As an initial step, exports are set to resume from the Marsa El Hariga and Brega oil terminals, it said.
The Marlin Shikoku tanker is making its way to Hariga where it is expected to load a cargo for trader Unipec, according to shipping data and traders.
Eastern Libyan commander Khalifa Haftar said last week his forces would lift their eight-month blockade of oil exports.
NOC insists it will only resume oil operations at facilities devoid of military presence.
Nearly a decade after rebel fighters backed by NATO air strikes overthrew dictator Muammar Qaddafi, Libya remains in chaos, with no central government.
The unrest has battered its oil industry, slashing production capacity down from 1.6 million bpd.
Goldman Sachs said Libya’s return should not derail the oil market’s recovery, with an upside risk to production likely to be offset by higher compliance with production cuts from other OPEC members.
“We see both logistical and political risks to a fast and sustainable increase in production,” the bank said. It expects a 400,000 bpd increase in Libyan production by December.
The Organization of the Petroleum Exporting Countries and allies led by Russia, are closely watching the Libya situation, waiting to see if this time Libya’s return to the oil market is sustainable, sources told Reuters.