more oil gains ‘needed to boost tadawul index’
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

More oil gains ‘needed to boost Tadawul index’

Arab Today, arab today

Arab Today, arab today More oil gains ‘needed to boost Tadawul index’

The largest petrochemical producer, Saudi Basic Industries Corp., gained 3.5 percent
Jeddah - Arab Today

Saudi Arabia’s stock market rebounded on Thursday on the back of petrochemical shares, which rallied in response to OPEC’s deal to restrain oil output, but the bourse posted a big weekly loss.
The largest petrochemical producer, Saudi Basic Industries Corp., gained 3.5 percent.
This encouraged buying back of a range of stocks and the insurance sub-index, which had seen many of its constituents drop their 10 percent daily limits in recent days, rebounded 2.4 percent. 
BUPA Arabia, the largest medical insurance provider, jumped 4.1 percent.
John Sfakianakis, director of economics research at the Gulf Research Center, commented: “The local market received the news positively but for it to recover, oil prices have to rise further or at least not decline again.”
He told Arab News: “While Wednesday’s agreement imposed an overall production cap on the group of 14 oil producers, it didn’t assign individual limits — that was left to a committee that will report back at the Organization of Petroleum Exporting Countries’ next meeting in November. The devil is in the details of the quota agreement. Agreeing and monitoring those targets will be very important to realize a supply reduction.” 
Commenting on the deal, James Reeve, deputy chief economist and assistant general manager, Samba Financial Group, told Arab News: “The agreement signals a shift in Saudi strategy from market share to price protection. Implementation will be key, but it is positive because excess OPEC production has been the main reason why crude stocks are still so high.”
Petrochemical firms, their profit margins closely tied to oil prices, recovered after Brent oil surged above $48 a barrel Wednesday on the OPEC deal in Algeria. 
The overall Tadawul All-Share Index closed 1.6 percent higher but it was down 5.5 percent for the week.
“The stock market was dragged down by a wave of heavy selling, taking many shares to multi-year lows, so technically it was oversold,” Mohammad Al-Shammasi, chief investment officer of Riyadh-based Derayah Financial, told Reuters.
A monthly Reuters poll, published on Thursday, found Middle East fund managers had become negative on balance toward Saudi equities for the next three months because of the austerity policies.
There appeared to be little impact on the market from news that the US Congress overwhelmingly rejected President Barack Obama’s veto of legislation allowing relatives of victims of the Sept. 11 attacks to sue Saudi Arabia. Any lawsuits could take years to wind their way through US courts, with uncertain prospects for success.
“Investor sentiment is likely to be impacted as this opens the door to uncertainties in US-Saudi relations that cannot be resolved at the executive arm of the government,” Raza Agha, chief Middle East economist at VTB Capital, told Reuters.
“Previous issues always had the potential to be resolved through diplomacy — this now means there are potential legal challenges ahead for Saudi Arabia, which the White House and Riyadh cannot address via talks.”
According to Reuters, ther Gulf markets followed global shares higher in the wake of the OPEC deal. Dubai’s stock index closed 0.6 percent higher with DXB Entertainments, formerly known as Dubai Parks and Resorts, adding 0.6 percent and Emaar Properties gaining 1.4 percent.
The two largest listed shares in Abu Dhabi helped carry the index up 0.6 percent; First Gulf Bank rose 0.9 percent and Etisalat added 0.8 percent.
In Qatar, the main index ended 0.3 percent lower as Qatar National Bank, which had led advances in the first hour of trade, slipped 0.1 percent. But the index rose 0.6 percent over the week.
Egypt’s main index fell 0.3 percent as a little over half of traded shares declined. Private equity firm Qalaa Holding dropped 4.6 percent and the largest listed bank, Commercial International Bank. lost 1.7 percent.
But Orascom Construction climbed 1.1 percent to 71.05 Egyptian pounds after the company set the price for its buy-back of 1 million Cairo-listed shares at 74.05 pounds.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

more oil gains ‘needed to boost tadawul index’ more oil gains ‘needed to boost tadawul index’

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

more oil gains ‘needed to boost tadawul index’ more oil gains ‘needed to boost tadawul index’

 



GMT 09:16 2017 Wednesday ,13 December

Cape wearing tips

GMT 20:49 2017 Monday ,21 August

South Asia floods claim more than 750 lives

GMT 19:06 2016 Saturday ,10 December

IOF Close Al-Nabi Saleh Village's Entrance

GMT 18:01 2017 Wednesday ,22 February

Abu Sayyaf ‘likely’ behind Vietnam freighter attack

GMT 06:41 2017 Sunday ,03 December

Hamas threatens 'intifada' over US moves on Jerusalem

GMT 16:17 2017 Saturday ,21 January

BMW 7 series crosses 5,000 unit mark in 2016

GMT 12:17 2016 Wednesday ,24 February

United Technologies nixes Honeywell merger

GMT 23:37 2017 Monday ,31 July

Saudi Arabia sanctions Hezbollah member

GMT 05:45 2018 Saturday ,29 September

Abdullah bin Zayed hosts official reception in New York

GMT 04:12 2018 Friday ,12 January

Saudi-led coalition says Yemen rebels threat

GMT 11:18 2014 Monday ,22 December

Richard Ward adds to The Chelsea Collection
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday