Stocks gain on optimism over recovery

Stocks gain on optimism over recovery
Asian shares rallied on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.58 percent higher, while Japan’s Nikkei rose 0.36 percent. (AFP)
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Updated 27 April 2021

Stocks gain on optimism over recovery

Stocks gain on optimism over recovery
  • That MSCI’s helped gauge of stocks across the globe, which gained 0.39 percent

NEW YORK: Global stock markets made moderate gains on Monday as increasing confidence about the rapid recovery of economies from the COVID-19 pandemic offset concerns about the speed of the market’s rally.

The start to the week was quiet as investors refrained from taking on large positions before a two-day meeting of the Federal Reserve that will begin on Tuesday and the impending release of US quarterly gross domestic product data.

Investors have been ebullient in recent weeks, with Wall Street hitting another intraday record high on Friday and European shares not far off their own record highs.

In morning trading on Wall Street, the Dow Jones Industrial Average rose 64.86 points, or 0.19 percent, to 34,108.35, the S&P 500 gained 12.33 points, or 0.29 percent, to 4,192.5 and the Nasdaq Composite added 51.01 points, or 0.36 percent, to 14,067.81.

The pan-European STOXX 600 index rose 0.32 percent and MSCI’s gauge of stocks across the globe gained 0.39 percent.

Asian shares rallied. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.58 percent higher, while Japan’s Nikkei rose 0.36 percent.

That MSCI’s helped gauge of stocks across the globe, which gained 0.39 percent.

Stocks — as well as most other risk assets — have ridden a massive rally. The MSCI world index has registered only three down months in the past 12 and is up nearly 5 percent this month and 9 percent for the year as investors bet on a rapid post-pandemic economic rebound turbocharged by vast government and central bank stimulus.

Analysts, however, say stocks look a little over-valued and that the rally will run into hurdles after setting such a lightning pace and with so much of the economic recovery and fiscal stimulus splurge already priced in.

“The real crux of the issue, however, is ‘What’s in the price?’ The year-to-date rally has increasingly eliminated upside to our targets,” noted Andrew Sheets, a strategist at Morgan Stanley.

“Across four major global equity markets (the US, Europe, Japan and emerging markets), only Japan is currently below our end-2021 strategy forecast.


Saudia wins World’s Most Improved Airline award for 2021

Saudia wins World’s Most Improved Airline award for 2021
Updated 13 sec ago

Saudia wins World’s Most Improved Airline award for 2021

Saudia wins World’s Most Improved Airline award for 2021

RIYADH: Saudia has won the Skytrax’s award for the World’s Most Improved Airline for 2021, Saudi Press Agency reported. 

This award reflects an airline’s quality improvement in different areas. The Saudi airlines ranked 26 jumping 31 places in one year.

The national carrier earned this title for the second time. It first won the award in 2017. 


EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex
Updated 28 September 2021

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

EV Metals partners with Yanbu Royal commission to build $900m battery chemicals complex

RIYADH: The Royal Commission in Yanbu on Wednesday signed a $900 million investment agreement with EV Metals to establish and operate a factory for the production of electric battery chemicals.

The facility will be spread over 127 hectares and the investment volume is approximately SR3,375 million. The project is expected to create 494 jobs.


OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021
Updated 58 min 38 sec ago

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

OPEC's Barkindo expects oil demand to continue upward pace beyond 2021

RIYADH: The secretary-general of the Organization of the Petroleum Exporting Countries, Mohammed Barkindo, is bullish on oil recovery and sees demand to pick up over the next few years.

“Energy and oil demand have picked up significantly in 2021, after the massive drop in 2020, and continued expansion is forecast for the longer-term,” Barkindo wrote today in the group’s World Oil Outlook.

“Non-OPEC liquids supply is projected to rise from 62.9 mb/d in 2020 to 70.4 mb/d in 2026, the key contributors to growth are the US, Brazil, Russia, Guyana, Canada, Kazakhstan, Norway and Qatar,” OPEC’s chief said in a virtual press conference.

Non-OPEC liquids output is set to decline from a peak of 71 mb/d around 2030 to 65.5 mb/d in 2045.

The WOO report says that more electric vehicles on the road for alternative energy will decline the demand for oil in rich countries.

Internal combustion engine vehicles are set to retain the largest market share at over 76 percent by 2045. Oil demand in the transportation sector is expected to stay around 46 mb/d after 2025.

Indian Minister of Petroleum and Natural Gas Shri Puri said: “OPEC should move toward reliable pricing globally as cost of prices plays a crucial role in global interest.” 

Dr. Ayed Al-Qahtani, director of research at OPEC, said that short-term investment is of paramount importance to prevent a potential hike in prices.

Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.

Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when OPEC meets next week.

Brent dipped 75 cents, or 0.9 percent, to $78.78 a barrel at 12:37 a.m. EDT (1637 GMT), after reaching its highest level since October 2018 at $80.75.

US West Texas Intermediate crude fell 60 cents, or 0.8 percent, to $74.85 a barrel, after hitting a session high of $76.67, highest since July.


Ma'aden adds four new vessels to its fleet to ship ammonia

Ma'aden adds four new vessels to its fleet to ship ammonia
Updated 28 September 2021

Ma'aden adds four new vessels to its fleet to ship ammonia

Ma'aden adds four new vessels to its fleet to ship ammonia

RIYADH: Saudi Arabian Mining Company (Ma’aden), has signed agreements with Thenamaris LNG Inc. and Exmar Marine NV to hire a total of four vessels to transport ammonia produced by the company.


Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects
Updated 28 September 2021

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

Saudi Tourism Development Fund signs financing agreements to develop Jeddah projects

RIYADH: Saudi Arabia's Tourism Development Fund (TDF) signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Saudi Arabia’s Tourism Development Fund signed two financing agreements with Dallah Al-Baraka Group and Dallah Real Estate Company, to develop a tourism project at the Durrat Al-Arous resort in Jeddah, accordign to an emailed statement.

Under the deal, the tourism fund provide funds for the development of “Durrat Lagoon,” which will be operated by Hotel Indigo.

“The financing and support services provided by the Tourism Development Fund contribute significantly to enhancing the experiences of investors and the value of their projects, as well as boosting the Kingdom’s ability to attract tourists from around the world,” Mohiuddin Saleh Kamel, vice chairman of Dallah Al-Baraka Group, said.

The second agreement was signed with 17Sixty to provide a variety of recreational activities enabling visitors of Durrat Al-Arous resort to safely explore the depths of the Red Sea.

“TDF is focused on providing innovative solutions that link investors to the abundant opportunities in the Saudi tourism sector, contributing to achieving the objectives of the National Tourism Strategy and consolidating the Kingdom’s position as a tourist destination that attracts visitors from all over the world,” the fund’s CEO, Qusai Al-Fakhri, said.