Crypto Moves — Bitcoin, Ether plummets; TerraUSD announces recovery plan; Brazilian bank allows virtual currency transactions

Crypto Moves — Bitcoin, Ether plummets; TerraUSD announces recovery plan; Brazilian bank allows virtual currency transactions
Bitcoin, the leading cryptocurrency internationally, traded lower on Thursday, down 11.60 percent. (Shutterstock)
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Updated 12 May 2022

Crypto Moves — Bitcoin, Ether plummets; TerraUSD announces recovery plan; Brazilian bank allows virtual currency transactions

Crypto Moves — Bitcoin, Ether plummets; TerraUSD announces recovery plan; Brazilian bank allows virtual currency transactions

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Thursday, down 11.60 percent to $27,194 as of 08:10 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $1,853, down 21.11 percent, according to data from Coindesk.

Tether reassures markets after largest stablecoin slips 

The largest stablecoin Tether took to Twitter to reassure crypto markets after the token briefly plunged to its lowest level since December 2020, Bloomberg reported. 

Investors can continue to redeem the tokens at a one-to-one value to the dollar, Paolo Ardoino, Tether’s chief technology officer said in a tweet. 

Tether recovered to from an intraday low of 94.55 cents to trade just below 99 cents at 9:13 a.m in London, according to Bloomberg data. 

Ardoino added that Tether has redeemed more than $300 million in tokens in the past 24 hours without a sweat drop.  

“There may be some stablecoin contagion following UST, however Tether continues to honor 1:1 redeemable ratio on their platform,” Fadi Aboualfa, head of research at crypto custodian Copper said. 

Aboualfa added: “Anyone who was around 2017-2019 and saw massive drops in Tether, and it was really an opportunity to buy at a discount.”

Crypto billionaires' colossal fortunes destroyed in weeks

Brian Armstrong, founder of Coinbase, the largest US crypto exchange., had a personal fortune of $13.7 billion as recently as November and nearly $8 billion at the end of March, according to Bloomberg. 

That’s now just $2.2 billion, according to the Bloomberg Billionaires Index, after a selloff in digital currencies from Bitcoin to Ether triggered a precipitous decline in the market value of Coinbase. 

Collapsed stablecoin TerraUSD announces recovery plan

TerraUSD, the so-called stablecoin which plunged in price this week, will be backed by reserves in the future, its co-founder said in a tweet on Wednesday, in an attempt to steady the cryptocurrency by adjusting its complex pegging mechanism.

Stablecoins are digital tokens pegged to the value of traditional assets, such as the US dollar. They are popular in times of turmoil in crypto markets and are a common medium of exchange, often used by traders to move funds around and speculate on other cryptocurrencies.

TerraUSD, also known as ‘UST’, slipped below its 1:1 peg to the dollar this week, roiling cryptocurrency markets already under pressure alongside tumbling stock markets. It dropped further to as low as 30 cents on Wednesday, before recovering to around 60 cents, according to the price website Coingecko.

Prior to Monday, TerraUSD had a market cap of more than $18.5 billion and was the tenth-largest cryptocurrency. It has since lost more than half of that value and is now the twelfth-largest cryptocurrency with a market cap hovering around $8.6 billion.

Nubank to allow cryptocurrency transactions for clients

Fintech Nubank will allow Brazilian customers to make cryptocurrency transactions on its banking app starting in May and said the company bought bitcoin of about 1 percent of its cash holding.

The new bank service will allow bitcoin and ether transactions starting at 1 real ($0.1950), the company said on Wednesday.

The feature will begin rolling out in May and will be available to all of the digital bank’s 50 million customers by June. Nubank said it has plans to add other cryptocurrencies in the long term.

Nubank did not disclose the exact amount of bitcoin it bought. According to the company’s latest earnings report, its cash and equivalents position at the end of December was $2.7 billion.

(With inputs from Reuters) 


Commodities Update — Gold gains; Palladium up; Grains rise on rain forecast 

Commodities Update — Gold gains; Palladium up; Grains rise on rain forecast 
Updated 10 sec ago

Commodities Update — Gold gains; Palladium up; Grains rise on rain forecast 

Commodities Update — Gold gains; Palladium up; Grains rise on rain forecast 

RIYADH: Gold prices edged up on Friday, propped up by a pullback in the dollar and US Treasury yields, while fears of aggressive policy tightening by the Federal Reserve subsided.

Spot gold gained 0.17 percent to $1,853.72 per ounce. 

US gold futures settled up 0.18 percent at $1,857.30. 

Platinum up

Silver gained 0.60 percent to $22.10 per ounce.

Platinum moved up 0.60 percent to $958.13, while palladium edged up 2.55 percent to $2,067.44.

Grains climb

Chicago Board of Trade corn and soybean futures rose on Friday, supported by forecasts for rain that could slow the tail end of planting in the US Midwest.

Soybean futures hit their highest since Feb. 24. Corn futures received additional support from bargain buying after sinking to their lowest since April 8 on Wednesday.

CBOT July corn futures CN2 settled up 12-1/4 cents at $7.77-1/4 a bushel.

CBOT July soybeans SN2 were 5-3/4 cents higher at $17.32-1/4 a bushel.

CBOT July soft red winter wheat WN2 was up 14-1/4 cents at $11.57-1/2 a bushel, rebounding from three straight days of declines.

G7 working to resume grain exports from Ukraine

British Prime Minister Boris Johnson told Ukrainian President Volodymyr Zelensky on Saturday that international partners were working intensively to find ways to resume the export of grain from Ukraine to avert a global food crisis.

Johnson, who has spoken regularly to Zelensky since the beginning of the invasion, said the two leaders also discussed the importance of the international community remaining united over the war.

“He said that the UK would work with G7 partners to push for urgent progress,” a British readout of the call said, on the export of grain. 

“The leaders agreed to next steps and the imperative for Russia to relax its blockade and allow safe shipping lanes.”

(With input from Reuters) 

 


TASI starts the week in green: Opening bell

TASI starts the week in green: Opening bell
Updated 16 min 55 sec ago

TASI starts the week in green: Opening bell

TASI starts the week in green: Opening bell

RIYADH: The Saudi main index opened the week on a positive note despite a global risk-off sentiment amid recession fears.

The main index, TASI, gained 0.92 percent to reach 12,645, while the parallel market, Nomu, started almost unchanged at 22,266, as of 10:06 a.m. Saudi time.

National Agricultural Development Co., or Nadc, gained 6.80 percent, leading the market gainers; East Pipes Integrated Co. for Industry. fell 8.71 percent, leading the underperformers.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi rose 1.38 percent, Alinma Bank climbed 1.05 percent, and Bank Albilad added 2.18 percent

Telecom giants stc and Zain KSA were both up by 0.77 percent and 1.84 percent respectively.

In the pharma sector, Aldawaa Medical Services Co. gained 0.64 percent, while Nahdi Medical Co. climbed 0.76 percent.

Saudi Aramco, the largest player on the Saudi oil market, opened today’s trading up 1.47 percent.

Oil prices rose on Friday, with Brent crude exiting the week at $119.43 and US West Texas Intermediate settling at $115.07.


Saudi trades in US equities dip to $11bn in Q1; first annual decline in 2 years

Saudi trades in US equities dip to $11bn in Q1; first annual decline in 2 years
Updated 47 min 8 sec ago

Saudi trades in US equities dip to $11bn in Q1; first annual decline in 2 years

Saudi trades in US equities dip to $11bn in Q1; first annual decline in 2 years

RIYADH: Saudi trades in US markets took a dip by 48 percent during the first quarter of 2022, recording the first annual drop in two years.

Saudi investors’ purchase and sale of US stocks fell to SR40 billion ($11 billion) in the first quarter, from SR77 billion in the same period a year ago, the Saudi market regulator reported.

Compared with the fourth quarter of 2021, Saudi Arabia’s trade in US stocks decreased by SR6 billion in the first quarter from SR46 billion.


Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license
Updated 29 May 2022

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

Oil Updates — Crude up; Sri Lanka to pay $72.6m to buy Russian oil; US renews Chevron’s Venezuela license

RIYADH: Oil prices rose on Friday, closing out the week with gains ahead of the US Memorial Day holiday weekend, the start of peak US demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil.

Brent crude rose $2.03, or 1.7 percent, to settle at $119.43. US West Texas Intermediate crude rose 98 cents, or 0.9 percent, to settle at $115.07 a barrel. 

For the week, Brent rose 6 percent while US WTI gained 1.5 percent.

Sri Lanka to pay $72.6 million for 90,000 tons of Russian oil

Sri Lanka will pay $72.6 million to buy a 90,000-ton shipment of Russian oil docked at Colombo’s port for weeks, its energy minister said on Saturday, as the island nation works to restart its only refinery and address a crippling energy crisis.

“I have reached out to multiple countries, including Russia, for support to import crude and other petroleum products,” Power and Energy Minister Kanchana Wijesekera told reporters.

The 90,000-ton consignment was ordered through Dubai-based Coral Energy, Wijesekera said, adding that the payment would facilitate restarting the country’s sole refinery, which has been closed since March 25.

“The next shipment will also be ordered from the same company. Another consignment will be needed within the next two weeks to keep the refinery running continuously,” Wijesekera said.

Sri Lanka has struggled to pay for fuel, food and medicine imports due to a severe shortage of foreign currency. An unprecedented financial crisis has also forced the country to default on some external debt.

Like the rest of Asia, Sri Lanka wants to shift to long-term crude tenders to hedge against high crude spot prices, but dwindling foreign exchange reserves have hampered its ambitions, the power minister said on Saturday.

US renews Chevron’s Venezuela license under existing terms

The US Treasury Department on Friday renewed a license to oil producer Chevron Corp. for operating in US-sanctioned Venezuela through November under the same terms that authorizations granted to the company since 2020.

The license also authorizes oilfield service companies Halliburton, Schlumberger, Baker Hughes and Weatherford International to maintain assets in Venezuela.

(With input from Reuters) 


Here’s what you need to know ahead of the trading day on Tadawul

Here’s what you need to know ahead of the trading day on Tadawul
Updated 29 May 2022

Here’s what you need to know ahead of the trading day on Tadawul

Here’s what you need to know ahead of the trading day on Tadawul

RIYADH: Saudi Arabia’s main index partially reversed gains to close lower in the previous trading session as concerns over an economic slowdown rattled investors.

At Thursday’s closing bell, TASI fell 0.5 percent to 12,530, while the parallel market Nomu added 1.14 percent to 22,272.

Stock exchanges of Qatar, Egypt, and Oman edged lower, while those of Bahrain and Kuwait gained 0.3 and 0.5 percent, respectively.

Dubai’s DFMGI was flat on Friday, after adding 1.2 percent in the prior session, whereas the Abu Dhabi index rebounded with a gain of 1.5 percent.

Oil prices rose on Friday, with Brent crude exiting the week at $119.43 and US West Texas Intermediate settling at $115.07.

Stock News

Zain KSA received approval from the Communications and Information Technology Commission’s board for Zain Business Ltd to acquire 8,069 of its telecom tower sites

Al Moammar Information Systems Co. signed a contract valued at nearly SR80 million ($21.3 million) for the maintenance of medical devices and equipment at a hospital in Makkah

Middle East Healthcare Co., also known as Saudi German Health, will invest SR70 million in Jeddah’s Sobhi Abdel Jalil Batterjee Medical Hospital

Saudi Automotive Services Co. sealed a deal to sell and leaseback ten owned sites valued at SR400 million to Al-Jazira Capital

East Pipes Integrated Co. for Industry swung into losses of SR3.25 million last year, from SR148 million in profit a year earlier

Calendar

May 30, 2022

Close of Anaam International Holding Group’s rights trading

May 31, 2022

End of Retal Urban Development Co.’s IPO book-building

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription