Art sales rebound to record $2.7 billion

Art sales rebound to record $2.7 billion
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Updated 04 October 2021

Art sales rebound to record $2.7 billion

Art sales rebound to record $2.7 billion
  • Having seen sales collapse by a third in the previous year because of the initial crisis caused by the pandemic, sales soared between June 2020 and June 2021
  • NFTs, or "non-fungible tokens", allow people to buy the rights to online art, including images, animation or even tweets

Contemporary art auctions rebounded to an all-time high of $2.7 billion over the last year, boosted by online sales and the arrival of digital art in the form of "NFTs", according to the annual report by Artprice released on Monday.


Having seen sales collapse by a third in the previous year because of the initial crisis caused by the pandemic, sales soared between June 2020 and June 2021 as auctioneers quickly adopted a more online approach.


"Photography and prints have been particularly successful in this new online environment and in 2021, we have seen the sensational arrival of completely dematerialised artworks, the famous NFTs," said Artprice CEO Thierry Ehrmann in a foreword to the report.


NFTs, or "non-fungible tokens", allow people to buy the rights to online art, including images, animation or even tweets.


In March, US artist Beeple sold an NFT of his digital artwork "Everydays: The First 5,000 Days" for $69.3 million to an Indian blockchain entrepreneur - the third-highest price ever achieved by a living artist.


Christie's said 22 million people, nearly 60 percent under the age of 40, logged in to the sale, the first public auction of an NFT.


NFTs accounted for a third of online sales, and 2 percent of the overall art market.


Street artist Banksy got in on the game shortly after, selling an NFT of his work "Morons", which featured an auctioneer selling a painting with the inscription: "I can't believe you morons actually buy this shit".


It sold for around $380,000.


But Artprice said another key driver of growth was the emergence of the Asian market, with Hong Kong establishing itself as the contemporary art world's second city after New York.


China actually beat the United States for auction turnover, taking 40 percent of sales to America's 32 percent.


Britain was in third place with 16 percent.


China Evergrande shares hit new low amid debt crisis; Kaisa misses pay date

China Evergrande shares hit new low amid debt crisis; Kaisa misses pay date
Image: Shutterstock
Updated 9 sec ago

China Evergrande shares hit new low amid debt crisis; Kaisa misses pay date

China Evergrande shares hit new low amid debt crisis; Kaisa misses pay date
  • Even in the case of a technical default, Kaisa and offshore bondholders would continue the discussions

China Evergrande Group’s shares hit a record low on Wednesday after a missed debt payment deadline put the developer at risk of becoming the country’s biggest defaulter, even as hopes of a managed debt restructuring calmed fears of a messy collapse.


So far, any Evergrande fallout has been broadly contained, and with policymakers becoming more vocal and markets more familiar with the issue, consequences of its troubles are less likely to be widely felt, market watchers have said.


Failure by Evergrande to make $82.5 million in interest payments due Nov. 6 on some US dollar bonds would trigger cross-default on its roughly $19 billion of international bonds, with possible ramifications on China’s economy and beyond.


While the 30-day grace period is over, Evergrande has not announced if the bonds have formally defaulted.


The developer did not immediately respond to a Reuters request for comment.


“Without the official announcement, the market will want to wait and see and not give up yet; otherwise Evergrande’s share and bond prices should have tumbled a lot more,” said Steven Leung, director of UOB Kay Hian in Hong Kong.


“The market also wants to wait and see what can be done with local government stepping in now,” Leung added, referring to the move by Evergrande’s home province to help contain the risk.


Evergrande was once China’s top property developer, with more than 1,300 real estate projects.

With $300 billion of liabilities, it is now at the heart of a property crisis in China this year that has crushed almost a dozen smaller firms.


Trading in shares of embattled smaller peer Kaisa Group Holdings was suspended on Wednesday, after a source with direct knowledge of the matter said it was unlikely to meet its $400 million offshore debt deadline on Tuesday.


Kaisa, China’s largest holder of offshore debt among developers after Evergrande, had not repaid the 6.5 percent bond by the end of Asia business hours, the person said, which could push the notes into technical default, triggering cross defaults on its offshore bonds totalling nearly $12 billion.


Kaisa declined to comment.


Bondholders owning over 50 percent of the notes in question sent the company draft terms of forbearance late on Monday, a source previously told Reuters.


Even in the case of a technical default, Kaisa and offshore bondholders would continue the discussions, two sources with knowledge of the matter said.

Evergrande’s shares, which have given up more than 20 percent this month, were down 6 percent in the afternoon at HK$1.72 — lowest since their November 2009 debut. The broader market was steady.


Its notes due last month, one of two tranches with a coupon payment deadline that passed on Monday, traded at 18.613 cents on the dollar, Duration Finance data showed, versus 18.875 from the close of Tuesday Asia hours.


Kaisa’s bond due April 2022 traded at 36.397, little changed from the day earlier but down from 37.89 last week.


The government has repeatedly said Evergrande’s problems can be contained and moves to boost liquidity in the banking sector along with the firm’s plans to forge ahead with a restructuring of its overseas debt have helped reassure global investors.


The provincial government of Guandong, where Evergrande is based, stepped in last week to help manage the fallout, reinforcing the view that its failure would be managed.


COP26 drives record $2bn inflows into UK-based ESG funds in November: Calastone

COP26 drives record $2bn inflows into UK-based ESG funds in November: Calastone
Image: Shutterstock
Updated 5 min 26 sec ago

COP26 drives record $2bn inflows into UK-based ESG funds in November: Calastone

COP26 drives record $2bn inflows into UK-based ESG funds in November: Calastone
  • North American and European-focused equity funds saw record outflows

UK-based environmental, social and governance equity funds saw a record 1.5 billion pounds ($2 billion) in inflows in November as COP26 climate talks spurred investor interest in sustainability, according to funds network Calastone.


The climate summit in Glasgow, Scotland, in the early part of last month led to a deal to phase down the use of coal, the biggest source of global warming.


“ESG continues to capture investor imagination,” said Edward Glyn, head of global markets at Calastone.


“When investors have cash to add, they add it to ESG, and any impulse to sell is felt by other categories.”


North American and European-focused equity funds saw record outflows, in contrast, of 395 million pounds and 534 million pounds respectively, Calastone said.


Calastone says it is the largest global funds network, processing 200 billion pounds of investment value each month.


PIF-backed stc increases second public offering to 120m shares 

PIF-backed stc increases second public offering to 120m shares 
Updated 6 min 23 sec ago

PIF-backed stc increases second public offering to 120m shares 

PIF-backed stc increases second public offering to 120m shares 

JEDDAH: Saudi Arabian telecom firm stc has announced a 20 percent increase in its secondary public offering.

The company, which is backed by the government’s Public Investment Fund, will offer up to 120 million shares representing six percent of stc’s total capital, up 20 percent from 100.2 million shares.

Ten percent of the offer's size will be allocated towards individual subscribers. 

This came in line with a rise in investor demand during the institutional offering period, according to a statement by stc and the PIF.

The individual subscription period ends today, Dec.8, for retail tranche, while the institutional offering will end on Dec.9.

The price range was set between SR100 ($26.7) and SR116 per share and will be finally disclosed on Dec.10, the statement added.

stc’s stock market performance weighed heavily on Tadawul’s main index on Dec.6, declining 5.34 percent in share price.

The stock is currently trading at a one-month low of SR110.6. 

 


Saudi Tadawul Group opens almost 10 percent above listing price

Saudi Tadawul Group opens almost 10 percent above listing price
Image: Shutterstock
Updated 16 min 50 sec ago

Saudi Tadawul Group opens almost 10 percent above listing price

Saudi Tadawul Group opens almost 10 percent above listing price

Shares in Saudi Tadawul Group, the owner and operator of the kingdom’s bourse, opened almost 10 percent above its listing price in its Riyadh market debut on Wednesday.


The bourse’s shares were priced at the top of the range last week, at 105 riyals ($27.99) per share. They opened at 115.4 riyals on Wednesday.


Saudi Tadawul Group raised 3.78 billion riyals ($1.01 billion) via an initial public offering (IPO) that was 121 times oversubscribed.


TASI, Nomu almost flat in morning trading: Opening bell

TASI, Nomu almost flat in morning trading: Opening bell
Updated 4 min 57 sec ago

TASI, Nomu almost flat in morning trading: Opening bell

TASI, Nomu almost flat in morning trading: Opening bell
  • TASI last closed 0.79 percent higher at 11,108.2 points whereas parallel market Nomu rose 1.13 percent to close at 23,450.29 points

10:31 Saudi time: RIYADH: Saudi exchange’s main indexes opened slightly higher on Wednesday. TASI and Nomu were up around 0.2 percent.

On its first day trading on the main market, Saudi Tadawul Group’s stock came on top of the index’s gainers, rising 11.43 percent to SR116.8 ($31.14).

Shares of Sadr Logistics jumped ten percent for a fourth consecutive day.

Wafrah for Industry remained resilient in the green zone with its share price climbing 5.31 percent.

Aseer Trading, Tourism and Manufacturing Co. gained four percent, following its decision to sign for SR200 million short-term revolving debt, or Murabaha.

Among the lowest-performing stocks, CHUBB Arabia Insurance Co. and Saudi Advanced Industries Co. saw declines of 2.84 percent and 1.93 percent respectively.

Taiba Investments Co. signed a memorandum of understanding with Shuaa Capital Company to buyout Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah’s parent companies.

Somou Real Estate Co. announced the launch of Al-Danat Resort project in AlKhobar with First Gulf Real Estate Co.

The project will cover an area of more than one million square meters and is expected to boost the company’s profits, according to a bourse filing.

 

09.15 Saudi time: Factors to watch before Wednesday opening bell: Premarket

RIYADH: The outlook for the Saudi stock exchange remains unraveled amid COVID-19 concerns. However, market signals have shown a positive trend with Tadawul’s main index TASI ending in green in four out of five sessions.

TASI last closed 0.79 percent higher at 11,108.2 points whereas parallel market Nomu rose 1.13 percent to close at 23,450.29 points.

Stocks on the uptrend were topped by Sadr Logistics and Wafrah for Industry & Development.

Sadr is now trading at a three-year high of SR104.2 ($27.8). It saw an increase of 54.23 percent in two weeks.

Wafrah for Industry’s share price climbed for the seventh day in a row to close at SR143, up from SR99.5.

In the Saudi insurance sector, Enaya Insurance and Amana Cooperative insurance last closed in the green zone, recuperating Sunday losses.

Shares of the two insurance firms have jumped significantly since Nov. 23, up 26.27 percent and 23.3 percent respectively.

TASI was dragged down by a 7.08 percent decline in Petro Rabigh’s stock value in the prior session, following the company’s capital decrease and rights issue recommendation.

Al Sagr Insurance signed a contract worth SR20.4 million with Maharah Human Resources Co. to grant health insurance services to the company’s employees and their families.

Saudi Real Estate Co. sold SR137.34 million worth of land in Al-Malqa district, Riyadh.

Aseer Trading, Tourism and Manufacturing Co. applied for a SR200 million short-term revolving Murabaha from the Saudi Investment Bank. Murabaha is a mode of debt financing that complies with the sharia concept.

Saudi Telecom Co., stc, increased its secondary public offering size to 120 million shares representing six percent of stc’s capital, up from 100.2 million shares.

stc’s secondary share subscription period will end on Dec. 8 for retail tranche, while for participating parties the subscription deadline is Dec. 9.

The price range was set between SR100 and SR116 per share.

Jahez International Co. received the Capital Market Authority’s approval to increase its initial public offering on Nomu parallel market from 13 percent to 18 percent of its share capital.

The offering period will commence on Dec.23 and end on Dec.26.

Shares of Saudi Tadawul Group Holding will start trading on the main market on Dec.8.

Tadawul signed a memorandum of understanding with Muscat Stock Exchange, or MSX, to strengthen their bilateral relations and create a conducive trading environment for investors.

Dec. 9 is the last day to subscribe to Maadaniyah’s new shares.