Banking, petrochemical shares boost Tadawul

The Tadawul All Share Index rose 0.5 percent on Sunday. (Reuters)
Updated 16 July 2019

Banking, petrochemical shares boost Tadawul

  • In Saudi Arabia, the Tadawul main index rose 0.5 percent, with banks and petrochemical companies leading the gains

DUBAI: Major Gulf stock markets closed higher on Sunday, mirroring gains late last week in global markets, and supported by some companies’ positive second-quarter results.In Saudi Arabia, the Tadawul main index rose 0.5 percent, with banks and petrochemical companies leading the gains.Dubai’s Arqaam Capital said in a research note last week it expected Saudi Arabia to deliver the strongest second-quarter earnings performance in the Gulf.

“We, however, expect growth to peter out as (the) rate cut cycle kicks in, given the significant positive ALM (asset liability management) position of KSA (Saudi) banks,” it said.
Alinma Bank rose 1.2 percent, while Al-Rajhi Banking and Investment Corp gained 1 percent.  
Mobile Telecommunications Company Saudi Arabia (Zain Saudi) gained 3.2 percent after reporting an 11 percent increase in second-quarter revenues to SR2.06 billion ($549.26 million).
Petchem firms Saudi Kayan Petrochemical Co. and Saudi Basic Industries Corp. (SABIC) rose 1.2 percent and 0.5 percent, respectively.
The Dubai index rose 0.7 percent, lifted by property developers Union Properties, up 3.6 percent, and heavyweight Emaar Properties, up 1 percent.
In Abu Dhabi, where the index was up 0.1 percent, blue chip Aldar Properties gained 3.9 percent.  
The company said last week it had partnered with the Abu Dhabi government to deliver projects worth AED5 billion ($1.36 billion).
Abu Dhabi-based Waha Capital was among the top performers, up 5.3 percent.   
Waha, which has seen its stocks tumble around 50 percent since the beginning of the year, has been in talks with another investment firm, Gulf Capital, regarding a merger, sources told Reuters earlier this year.
Recent changes at management level might suggest the company is charting a new growth strategy.
In Egypt, the index shed 1 percent, as Orascom Investment Holding dropped 3.9 percent. Orascom’s stocks last week soared after the firm’s board withdrew an offer to acquire Nile Sugar.


Oil recoups losses as OPEC, US Fed see robust economy

Updated 14 November 2019

Oil recoups losses as OPEC, US Fed see robust economy

  • US-China trade deal will help remove ‘dark cloud’ over oil, says Barkindo

LONDON: Oil prices reversed early losses on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it saw no signs of global recession and rival US shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by US Federal Reserve Chair Jerome Powell, who said the US economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1 percent earlier in the day. US West Texas Intermediate crude was at $56 per barrel, up 20 cents or 0.4 percent.

“The baseline outlook remains favorable,” Powell said.

OPEC Secretary-General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident that the US and China would reach a trade deal.

“It will almost remove that dark cloud that had engulfed the global economy,” Barkindo said, adding it was too early to discuss the output policy of OPEC’s December meeting.

HIGHLIGHT

  • US oil production likely to grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations.
  • The prospects for ‘US crude exports had turned bleak after shipping rates jumped last month.’

He also said some US companies were now saying US oil production would grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations — reducing the risk of an oil glut next year.

US President Donald Trump said on Tuesday Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.

“The expectations of an inventory build in the US and uncertainty over the OPEC+ strategy on output cuts and US/China trade deal are weighing on oil prices,” said analysts at ING, including the head of commodity strategy Warren Patterson.

In the US, crude oil inventories were forecast to have risen for a third straight week last week, while refined products inventories likely declined, a preliminary Reuters poll showed on Tuesday.

ANZ analysts said the prospects for US crude exports had turned bleak after shipping rates jumped last month.