Bitcoin rises near 6-month high, as ETF launch date approaches: Market wrap

Bitcoin rises near 6-month high, as ETF launch date approaches: Market wrap
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Updated 18 October 2021

Bitcoin rises near 6-month high, as ETF launch date approaches: Market wrap

Bitcoin rises near 6-month high, as ETF launch date approaches: Market wrap

RIYADH: ProShares is set to launch a Bitcoin futures exchange-traded fund on the New York Stock Exchange on Tuesday, in what would be a first for institutional investors in the US, New York Times reported.

The ETF will provide institutional investors and retail investors exposure to Bitcoin, who cannot legally or do not want direct exposure, through a brokerage account.

“When we have a Bitcoin ETF in the US, billions and billions of dollars will flow into Bitcoin that under no circumstances would have found their way into Bitcoin otherwise,” MicroStrategy CEO Michael Saylor said.

Stablecoins

Asset-backed stablecoins do not pose a systemic risk to the US financial system and should not face a new set of rules, a major cryptocurrency lobby group told US regulators on Monday, as tighter oversight of the fast-growing technology looms.

Stablecoins — digital tokens usually backed by reserves of dollars or assets from gold to other cryptocurrencies — have ballooned during the COVID-19 pandemic.

As a result, the President’s Working Group on Financial Markets — which comprises top US regulators including the Treasury and Federal Reserve — is focusing on them as part of wider efforts to rein in crypto.

The group is widely expected to publish in the coming months a report detailing the risks and opportunities of stablecoins.

Adoption

The Central Bank of Brazil released a report showing that Brazilians have bought more than $4 billion in cryptocurrency imports since the beginning of the year.

The report also shows that Brazilians have consistently earned more than $350 million in cryptocurrencies every month since January.

However, according to some analysts from the central bank, this number is likely to reach twice its value this year.

Brazilians investing in cryptocurrencies abroad are likely to triple the amount invested in American shares, according to Bruno Serra the director of monetary policy of the Central Bank of Brazil.

Crypto regulation

Nasdaq-listed crypto exchange, Coinbase has published its proposal for crypto regulation after more than 75 meetings with stakeholders in government, industry, and academia.

“Today we’re launching our Digital Asset Policy Proposal, which we hope will help chart a course for clear regulation of cryptocurrency and web 3.0 in the US. It’s critical to bring clarity to this space and ensure America remains a financial leader,” Coinbase CEO Brian Armstrong tweeted.

ATMs

Popular BTM Operator, Bitcoin of America, recently announced their newest addition to their Bitcoin ATM machines.

Ethereum is available now for buy and sell at Bitcoin of America ATM locations due to its growing popularity,  it also offers Bitcoin and Litecoin options online and at their BTM locations.

Trading

Bitcoin, the leading cryptocurrency in trading internationally, traded higher on Monday, rising by 1.62 percent to $61,891 at 6 p.m. Riyadh time.

Ether traded at $3,769, down 1.94 percent, according to data from CoinDesk.


Saudi stocks end flat amid earnings season, crude oil rally: Closing bell

Saudi stocks end flat amid earnings season, crude oil rally: Closing bell
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Updated 12 sec ago

Saudi stocks end flat amid earnings season, crude oil rally: Closing bell

Saudi stocks end flat amid earnings season, crude oil rally: Closing bell

RIYADH: Saudi Arabia’s stock market was flat at the closing bell on Thursday, as investors saw a wave of earnings announcements lead to cautious trading, despite a rally in the energy market.

Brent crude oil crossed $90 per barrel, and US benchmark WTI crude oil reached $88.3 per barrel as of 3:48 p.m. Saudi time.

The main TASI index closed at 12,179 points, while the parallel market, Nomu, ended at 25,660 points.

TASI was pushed higher by gains in Saudi Kayan Petrochemical Co. but weighed down by National Petrochemical Co., known as Petrochem, and the Saudi Industrial Investment Group, even as all three firms reported earnings.

Saudi Kayan saw its share price soar over 2 percent, after it turned from losses into profits of SR2.39 billion ($640 million) in 2021.

Shares in Petrochem and the Saudi Industrial Investment Group were down 1.2 and 0.9 percent respectively, despite seeing major profit hikes on an annual basis.

The Kingdom’s largest valued bank, Al Rajhi Bank, and one of its leading petrochemical firms, Sipchem, were down 0.7 and 2.9, respectively.

Saudi Automotive Services Co., known as SASCO, soared nearly 10 percent, topping the gainers for a second consecutive day.

SASCO had earlier acquired 80 percent of gas station operator NAFT Services Limited Co. for SR1.1 billion.

Allied Cooperative Insurance Group led the fallers, with its shares declining almost 4 percent.


Rising costs, pandemic curbs take a bite out of McDonald’s profit

Rising costs, pandemic curbs take a bite out of McDonald’s profit
Image: Shutterstock
Updated 8 min 11 sec ago

Rising costs, pandemic curbs take a bite out of McDonald’s profit

Rising costs, pandemic curbs take a bite out of McDonald’s profit
  • Sales rise in Italy, Germany, France, the US and the UK boosted total revenue by 13 percent to $6.01 billion in the three months ended Dec. 31

McDonald’s Corp. missed revenue and profit expectations on Thursday, as higher costs and dismal sales in its over 4,500 restaurants in Australia and China due to pandemic-led curbs ate into gains from growth in the United States in the fourth quarter.


Operating costs rose 14 percent to $3.61 billion as supply chain bottlenecks led the world’s largest burger chain to spend more for ingredients such as chicken and beef, as well as packaging material, while it also raised wages in the United States.


Shares fell nearly 3 percent as sales in China contracted after some cities banned dining in restaurants to control fresh outbreaks ahead of the Winter Olympics. In Australia, sales growth remained muted compared to a year earlier.


“COVID-19 continued to result in varying levels of government restrictions on restaurant operating hours, limited dine-in capacity and, in some cases, dining room closures,” McDonald’s said.


Sales rise in Italy, Germany, France, the US and the UK boosted total revenue by 13 percent to $6.01 billion in the three months ended Dec. 31, but still the company missed market expectation of $6.03 billion, according to Refinitiv data.


Meanwhile, expenses for the burger chain that has more than 40,000 restaurants in over 100 countries have been rising. While McDonald’s had raised prices in 2021, higher costs continue to weigh on profit as it was forced to increase wages to retain workers in the United States, its largest market.


On a per share basis, McDonald’s earned $2.23, but missed analysts’ average estimate of $2.34.


Its US same-store sales increased 7.5 percent compared to analysts’ estimate of a 6.8 percent rise, thanks to the launch of special menu items such as McRib, loyalty program-driven growth in digital sales and higher prices.


Global same-store sales jumped 12.3 percent, compared with Wall Street estimates of a 10.73 percent rise. 


UAE’S First Abu Dhabi Bank books profits of $3.4bn

UAE’S First Abu Dhabi Bank books profits of $3.4bn
Image: Shutterstock
Updated 42 min 6 sec ago

UAE’S First Abu Dhabi Bank books profits of $3.4bn

UAE’S First Abu Dhabi Bank books profits of $3.4bn
  • The outstanding performance reflects indicators of economic recovery and positive momentum for the bank's core business

RIYADH: Largest bank in the UAE, First Abu Dhabi Bank announced its financial results of the last fiscal year with profits of 12.5 billion dirhams ($3.4 billion).

This figure compares to 10.6 billion dirhams in 2020, representing a 19 percent increase, according to a statement.

The outstanding performance reflects indicators of economic recovery and positive momentum for the bank's core business, the statement revealed.

Moreover, the group’s revenue saw a 17 percent surge thanks to strong trading performance and growth in fee-generating business. This contributed to alleviating the repercussions of low interest rates, the statement said.

Operational costs rose when compared to the corresponding period in 2020. This comes as a result of the persisting investments in digital and strategic initiatives as well as taking into consideration Egypt’s Bank Audi business.

Asset quality maintained adequate rates thanks to the proper management of risks and stimulus measures. These were within the framework of the comprehensive economic support plan tailored for the country’s central bank.

The group also maintained strong levels of liquidity, financing, and capital altogether.

Founded in 2017, FAB provides financial solutions, products, and services through its corporate and investment banking and personal banking franchises. 


Gold’s Gym Saudi Arabia jumps into the Kingdom’s IPO market  

Gold’s Gym Saudi Arabia jumps into the Kingdom’s IPO market  
Image: Shutterstock
Updated 47 min 43 sec ago

Gold’s Gym Saudi Arabia jumps into the Kingdom’s IPO market  

Gold’s Gym Saudi Arabia jumps into the Kingdom’s IPO market  

RIYADH: A leading fitness player in the Kingdom and globally, Gold’s Gym Saudi Arabia, has appointed a financial advisor amid plans to list on Saudi Exchange’s parallel market, Nomu.

To manage and lead the initial public offering, the fitness club selected BMG Financial Group, according to a statement by BMG.

US-based Gold’s Gym has several branches across Saudi Arabia, which are all owned by Jeddah's Batterjee Holding Co.


Dubai, Monaco sign agreement to attract ultra-wealth individuals

Dubai, Monaco sign agreement to attract ultra-wealth individuals
Updated 53 min 9 sec ago

Dubai, Monaco sign agreement to attract ultra-wealth individuals

Dubai, Monaco sign agreement to attract ultra-wealth individuals

RIYADH: Government-owned Dubai Multi-Commodities Centre, or DMCC, has signed an initial agreement with Monaco Economic Board in a bid to attract ultra-rich individuals. 

Dubai and Monaco are both synonymous with the ultra-wealthy. The agreement focuses on enabling Ultra High Net Worth Individuals and family offices, with DMCC being the primary destination for global business. 

This comes as the two cities seek to further strengthen the economic synergies and expand bilateral trade relations, the Government of Dubai Media Office reported. 

“The agreement will build on our existing strategic bonds and allow us to explore further trade opportunities between our two countries,” CEO and executive chairman of DMCC, Ahmed Bin Sulayem, said. 

“In line with its mandate to attract trade to Dubai, DMCC continues to expand its global network and work closely with its stakeholders to nurture a thriving business ecosystem in Dubai,” he added. 

The deal comes following the recent European roadshow held by DMCC, where it signed agreements with key counterparts and strategic partners to strengthen collaboration and attract foreign direct investment to Dubai.