Saudi stock exchange opens short selling to all investors

Saudi stock exchange opens short selling to all investors
An investor monitors Saudi shares. The Kingdom is allowing short selling for all investors. (Reuters)
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Updated 26 March 2021

Saudi stock exchange opens short selling to all investors

Saudi stock exchange opens short selling to all investors
  • Short positions must not exceed 10 percent of the free float
  • Tadawul became first Gulf bourse to allow short selling in 2017

RIYADH: Saudi Arabia’s stock exchange, Tadawul, has widened access to short-selling and stock-lending, while tightening other rules related to the activities.
As of March 25, all eligible investors in the Saudi market are permitted to sell any stock short, Tadawul said in a statement on the bourse website.
However, new rules stipulate that the short ratio to average daily traded volume of any security should not exceed 10 days and total net short positions must not exceed 10 percent of the free float.
Refinements have also been made to collateral rules for those lending and borrowing securities.
The changes were made to develop a regulatory environment consistent with the international best practices and to provide a “motivating and competitive atmosphere with high reliability,” Tadawul said in the statement.
Tadawul became the first Gulf bourse to allow short selling for institutional investors in April 2017 as it introduced a number of changes to court international investors and appeal to index providers such as MSCI Inc. Abu Dhabi and Dubai followed in October and December of that year, respectively.
MSCI upgraded Saudi Arabia from a “standalone market” to an “emerging market” in June 2018 and became a full member of the MSCI Emerging Markets Index in August 2019 with a weighting of 2.8 percent.
Tadawul and the Securities Depository Center, Edaa, launched a consultation on the latest changes in February, 2020.

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Short selling involves borrowing a security to sell on the open market with the aim buying it back later for less money.


Saudi Arabia supports IMF proposal to boost global reserves by $650bn

Saudi Arabia supports IMF proposal to boost global reserves by $650bn
Updated 10 min 43 sec ago

Saudi Arabia supports IMF proposal to boost global reserves by $650bn

Saudi Arabia supports IMF proposal to boost global reserves by $650bn

RIYADH: Saudi Arabia supports the International Monetary Fund (IMF) proposal to allocate new special drawing rights worth $650 billion to increase reserves, said Finance Minister Mohammed Al-Jadaan, during his participation in The Spring Meetings 2021, Al Arabiya reported.
This would support efforts for economic recovery by providing additional liquidity to the global economic system, he said.
Special drawing rights were set up by the IMF in 1969 and are intended to supplement the money reserves of member countries.
The IMF this week raised its forecast for economic growth in the Kingdom to 2.9 percent from 2.6 percent.
The Kingdom will do what it takes to accelerate the recovery and will commit to economic and structural reforms guided by Vision 2030 to achieve sustainable growth, he added.
Al-Jadaan emphasized the economic recovery in the second half of last year, driven by the non-oil sector and a drop in the unemployment rate.
The minister also stressed the importance of focusing efforts and actions on debt risk management to help countries address vulnerabilities, especially in low-income countries.
He urged the IMF to continue its work to mitigate the negative effects of the pandemic around the world.


Saudi Citizen Account pays $507m in April

Saudi Citizen Account pays $507m in April
Updated 12 min 49 sec ago

Saudi Citizen Account pays $507m in April

Saudi Citizen Account pays $507m in April
  • Eligible beneficiaries for the payment reached 10.4 million

RIYADH: Saudi Arabia’s Citizen Account program paid out about SR1.9 billion (about $507 million) in April, Al Arabiya reported.
Eligible beneficiaries for the payment reached 10.4 million, the program said in a statement.
It means that the program has paid out about SR25.1 billion ($1 billion), since its launch by the government at the end of 2017, to support families by mitigating the effects of ongoing economic reforms which has removed some long standing subsidies.
Heads of household reached more than 2 million, constituting 92 percent of total number of beneficiaries, while dependents amounted to more than 8.2 million.
About 85 percent of the beneficiaries received full entitlements, while 15 percent received partial benefits.

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SASCO opens 8 new fuel stations

SASCO opens 8 new fuel stations
Updated 12 April 2021

SASCO opens 8 new fuel stations

SASCO opens 8 new fuel stations
  • The new stations include convenience stores, restaurants, and coffee shops

DUBAI: The Saudi Automotive Services Co (SASCO) has opened eight new fuel stations across the Kingdom, the company said in a Tadawul filing.

The new stations include convenience stores, restaurants, and coffee shops, the company said.

Regional gas stations operators have been investing heavily in their retail segments in order to boost profit margins beyond the sale of gasoline.

Four of the new stations – three in Madinah and one in the Kingdom’s southern area – had a total investment of SR20.9 million ($5.6 million).

The other four stations were renovations, spread across the Kingdom’s southern, central, and western provinces.

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Oil prices climb on favorable outlook for US fuel demand

Oil prices climb on favorable outlook for US fuel demand
Updated 12 April 2021

Oil prices climb on favorable outlook for US fuel demand

Oil prices climb on favorable outlook for US fuel demand

TOKYO: Oil rose on Monday amid hopes that fuel demand is picking up in the United States as the summer driving season approaches and the rollout of COVID-19 vaccinations there accelerates, though increasing case numbers in other countries are set to cap gains.
Brent was up 25 cents, or 0.4 percent, at $63.20 a barrel by 0155 GMT. US crude gained 17 cents, or 0.3 percent, to $59.49 a barrel.
Prices have changed little since a period of volatile trading ended with the close of trading last Monday.
“An unsettling calm has enveloped oil markets recently as Brent remains anchored around $63 and traders adopt a wait=and-see range-trade mentality,” said Stephen Innes, chief market strategist at Axi.
While the United States has fully vaccinated more than 70 million people, and in Europe new infection numbers are falling as lockdowns take effect, India is reporting record new cases and other parts of Asia are seeing caseloads rise.
That is likely to continue to “sully the global travel outlook” and keep prices rangebound as the summer approaches, Innes said.
The US economy is at an “inflection point” amid expectations that growth and hiring will accelerate in the months ahead, but faces the risk of reopening too quickly and sparking a resurgence in coronavirus cases, Federal Reserve Chair Jerome Powell said in an interview broadcast on Sunday.
“There really are risks out there. And the principal one just is that we will reopen too quickly, people will too quickly return to their old practices, and we’ll see another spike in cases,” Powell said in a CBS interview, recorded on Wednesday.


Rolls-Royce to supply engines for Saudi supercomputer facility

Rolls-Royce to supply engines for Saudi supercomputer facility
Updated 12 April 2021

Rolls-Royce to supply engines for Saudi supercomputer facility

Rolls-Royce to supply engines for Saudi supercomputer facility
  • The systems are designed for humid ambient conditions and temperatures of up to 50 degrees Celsius

RIYADH: Rolls-Royce has signed an agreement with King Abdullah University for Science and Technology (KAUST) to supply engine parts for its supercomputing facility.

A press statement said the order was valued in the “double-digit millions” and would see the British firm supply KAUST with 12 mtu Kinetic PowerPacks this summer.

The systems, equipped with dynamically rotating kinetic energy accumulators, will be used to provide KAUST’s supercomputing facility and data center with clean and conditioned power supplies.

The systems are designed for humid ambient conditions and temperatures of up to 50 degrees Celsius. The scope of supply also includes medium-voltage switchgear and transformers as well as two control stations.

Andreas Schell, CEO of Rolls-Royce Power Systems, said the company was “delighted” that KAUST had chosen it as a partner. 

“The choice underlines our recently expanded expertise in the field of dynamic uninterruptible power supplies and is a major success,” he added.

Bernard Hanssens, managing director of the Dubai subsidiary, said the two parties had been involved in discussions since 2016. “We were able to fulfil all of the customer’s wishes and requirements and thus put together a complete solution, that includes substantial local content,” he said.

The engines for the supercomputer facility will be produced in Belgium, fitted into custom-made enclosures in the UAE, and installed on site at the end of the year. 

Hanssens said that Rolls-Royce had already supplied several similar systems in Jeddah, Riyadh and Jubail, as well as in the UAE, Oman and Qatar.

In January, Saudi Aramco and STC announced the launch of Dammam 7, a new supercomputer ranking among the top 10 most powerful in the world.