Crypto rise falters on fears of Evergrande contagion

Crypto rise falters on fears of Evergrande contagion
Chinese real estate company Evergrande Real Estate Group logo (Shutterstock)
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Updated 21 September 2021

Crypto rise falters on fears of Evergrande contagion

Crypto rise falters on fears of Evergrande contagion

Global investors are turning their eyes to Evergrande Group, China's second-largest property developer by sales, for fear of a possible credit contagion.

Cryptocurrency prices rebounded from a one-and-a-half month low on Tuesday despite heavy selling linked to loan default concerns by property developer China Evergrande.

Global markets started the week with concerns that Evergrande's problems could lead to repercussions on the Chinese and global economies, leading to a sell-off in riskier assets.

On Monday, many people woke up to the news of China's Evergrande Group losing a significant amount of its market capitalization as the company's shares plunged to an 11-year low. The Hang Seng Tech Index also plunged in value on Monday morning as the news roiled markets.

Evergrande's losses could cause a domino effect like the collapse of Lehman Brothers during the 2008 financial crisis.

"We can't take a very positive view just yet until we get through the next few days," said Matthew Dibb, chief operating officer at crypto index fund provider Singapore-based Stack Funds.

"This is purely sentiment-driven right now, and it's actually been off very low liquidity," he said, adding that it would be better to wait on the sidelines as crypto markets will continue to be affected by the contagion.

Bitcoin traded around $43,000, recovering from its low to $4,0192. It hit a four-month high of $52,000 on September 6, while the value of smaller rival Ether rose 1 percent to $3,055 after falling below $3,000 for the first time since early August.


US jobless claims fall; Turkey’s central bank slashes interest rate again: Economic wrap

US jobless claims fall; Turkey’s central bank slashes interest rate again: Economic wrap
Updated 12 sec ago

US jobless claims fall; Turkey’s central bank slashes interest rate again: Economic wrap

US jobless claims fall; Turkey’s central bank slashes interest rate again: Economic wrap

Americans applying for jobless benefits declined to 290,000 in the week ending 16 October, compared to the previous seven day's 296,00 claims, official data showed. 

This is the lowest level since March 2020 as job hirers hold on to their employees as a result of worker shortages.

Turkish interest rate falls once more

The Turkish Central Bank decided to cut its interest rate again from 18 percent to 16 percent, despite rising inflation and a depreciating currency. 

This decision came after the president renewed calls to alleviate borrowing costs to promote economic growth. Economists considered this confirmation of the bank's loss of independence as the president sacked the last three central bank governors.

South Korea's exports

Based on data released by its customs agency, South Korea's exports jumped in the first 20 days of October by 36.1 percent compared to a year earlier, while imports soared by 48 percent, causing a provisional trade deficit of $2.49 billion.

Exports rose the most for petroleum products and vessels as they leapt by 128.7 percent and 93.5 percent respectively.

The data showed that exports to China, the United States and the European Union increased during this period by 30.9, 37.1 and 42.1 percent respectively.

Sub-Saharan Africa’s recovery at risk 

The IMF said that the weak vaccination rollouts in sub-Saharan Africa could setback the region’s economic recovery in the coming period.

While higher commodity prices and favorable harvests were beneficial for some countries, the overall outlook is pessimistic as the region is likely to considerably lag behind developed countries.

The international organization expects sub-Saharan economic growth to be 3.7 percent in 2021 and 3.8 percent in 2022. 

Russia’s producer prices

Russian producer prices went up by a 26.3 percent annual rate in September, official data revealed. This is the lowest level since March and was mainly driven by a 41.4 percent surge in costs of raw materials extraction and a 25.4 percent jump in manufacturing costs.

China’s investments abroad

China's non-financial outbound direct investment (ODI) grew by 2.4 percent in the first nine months of 2021 compared to the same period last year to reach $80.78 billion, the commerce ministry said.

Ukraine’s interest rate 

The Central Bank of Ukraine kept the interest rate on hold at 8.5 percent. However, the bank said there was a possible chance to increase the rate in December if needed to manage rising inflationary pressures.


TASI closes 0.3 percent higher at 11,940 points: Market Wrap

TASI closes 0.3 percent higher at 11,940 points: Market Wrap
Updated 8 min 47 sec ago

TASI closes 0.3 percent higher at 11,940 points: Market Wrap

TASI closes 0.3 percent higher at 11,940 points: Market Wrap

RIYADH: The Tadawul All-Share Index was up 35 points on Thursday, or 0.3 percent, closing at 11,939,58 points.

Some 202.4 million of shares changed hands in 305,000 deals.

Al Rajhi Bank, SABIC and Saudi Aramco rose by 1 percent.

Baazeem was the top gainer, rising 5.6 percent, to SR124.80, with about 2.2 million shares traded.

Sulaiman Al Habib jumped 5.2 percent, to SR178.20.

Alinma Bank, Arab Sea, Sipchem and Saudi National Bank recorded their highest closings since the listing.

The parallel market index “Nomu” decreased by 719.49 points, or 2.94 percent, and closed at 23730.47 points. The liquidity amounted to about SR15.6 million.

Makkah Construction declined 1.9 percent to SR77.10. In Q3 2021, the company recorded a net profit of SR12 million.

NADEC and National Gypsum closed at SR34.95 and SR46.80, respectively.


Cryptocurrencies benefit from Bitcoin's gains: Crypto wrap

Cryptocurrencies benefit from Bitcoin's gains: Crypto wrap
Updated 15 min 1 sec ago

Cryptocurrencies benefit from Bitcoin's gains: Crypto wrap

Cryptocurrencies benefit from Bitcoin's gains: Crypto wrap

RIYADH: Leading cryptocurrencies have mirrored Bitcoin’s gains with strong performances in the past 24 hours.

Ethereum and Solana are up more than 10 percent, after Bitcoin surged above $66,000 on Wednesday.

Edan Yago, the lead contributor to the Bitcoin DeFi protocol Sovryn, said: “As big as Bitcoin is now, it’s a mere fraction of what it will be.

“An entire borderless economy will be powered by sound money. An economy far larger than our current global economy. Why? Bitcoin finally brings property rights and economic access to billions of people.”

 Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper predicted that Bitcoin’s value will continue to grow.

“As expected, Bitcoin reached its all time high. It’s expected that the long volatile route to the top starts now, where I expect Bitcoin’s peak around Christmas. We often see that when Bitcoin makes a move, the altcoins follow in the two weeks after, which could explain the latest surge in Ethereum and Solana,” he said.

Trading
 

Bitcoin, the leading cryptocurrency in trading internationally, traded lower on Thursday, falling by 0.55 percent to $65,286 at 4:49 pm Riyadh time.

Ether, the second most traded cryptocurrency, traded at $4,251 up 6.74 percent, according to data from Coindesk.


'stc' profits hit $2.3 billion in 9 months, an increase of 3.5%

'stc' profits hit $2.3 billion in 9 months, an increase of 3.5%
Updated 12 min 16 sec ago

'stc' profits hit $2.3 billion in 9 months, an increase of 3.5%

'stc' profits hit $2.3 billion in 9 months, an increase of 3.5%
  • stc attributed the increase during the third quarter of 2021 to the rise in revenues by and a decrease in operating expenses. 

Saudi telecom giant 'stc’ reported a 3.5-percent increase in its net profit for the first 9 months of 2021, compared to the same period last year, reaching SR8.7 billion ($2.32 billion). 

The company’s net profit in the third quarter alone of 2021 increased by 5.71 percent, reaching SR2.9 billion. 

stc attributed the increase during the third quarter of 2021 to the rise in revenues by and a decrease in operating expenses. 


India's Reliance gets shareholders' nod to add Aramco chairman as director

India's Reliance gets shareholders' nod to add Aramco chairman as director
Updated 25 min 8 sec ago

India's Reliance gets shareholders' nod to add Aramco chairman as director

India's Reliance gets shareholders' nod to add Aramco chairman as director

BENGALURU: India's Reliance Industries Ltd said on Thursday that a required majority of its shareholders have passed a resolution to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to the conglomerate's board.
A little over 98% of the total votes polled on the resolution were in favour of Al-Rumayyan's addition, Reliance said in a statement https://bit.ly/3B233xd.
Last month, Reliance said Al-Rumayyan met all regulatory criteria for his appointment as an independent director, pending the shareholder vote on the decision.
That announcement came after media reports of shareholder California State Teachers' Retirement Fund saying it would vote against the move, based on U.S. proxy advisory research firm Glass Lewis' recommendation.
Al-Rumayyan's inclusion was earlier widely seen as part of a process to formalise Reliance's agreement to sell a 20% stake in its oil-to-chemical business to Aramco for $15 billion. The Indian conglomerate, however, said last month that his appointment has no connection to the deal.
Al-Rumayyan has been the governor of the Public Investment Fund of Saudi Arabia since 2015.