Oil edges lower as EU looks less likely to ban Russian oil | Reuters
Oil edged lower on Tuesday after it looked unlikely that European Union nations would agree to join the United States in a Russian oil embargo in retaliation for its invasion of Ukraine.
EU foreign ministers were split on the ban as some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. read more
"It's pretty clear that the German economy will seize up so the EU is backing away from a Russian ban," said John Kilduff, partner at Again LLC in New York.
Brent crude fell 14 cents, or 0.2%, to settle at $115.48 a barrel. U.S. West Texas Intermediate crude ended 36 cents, or 0.3%, lower at $111.76. On Monday, both contracts had settled up more than 7% on the potential EU ban.
Adding to supply shortages, oil exports by Caspian Pipeline Consortium (CPC) may fall by around 1 million barrels per day (bpd) while it repairs two of three mooring points damaged by a storm in Russia's section of the Black Sea, RIA news agency quoted Russia's energy ministry as saying. read more
Tuesday, 22 March 2022
Moscow Stock Market News: Exchange Bans Short Selling in #Russia’s Biggest Firms - Bloomberg
Moscow Stock Market News: Exchange Bans Short Selling in Russia’s Biggest Firms - Bloomberg
The Moscow Exchange banned short selling in some of Russia’s biggest companies, a move that may indicate officials are getting ready for the market to reopen.
Investors won’t be allowed to bet on declines in about 30 Russian companies, including Gazprom PJSC, Lukoil PJSC, Sberbank PJSC, MMC Norilsk Nickel PJSC and Rosneft Oil Co., and some Eurobonds. The decision takes effect on Tuesday, the exchange said in a statement.
The stock market has been closed for more than three weeks, the longest shutdown in the Russia’s modern history, as the economy reels from international sanctions that limit Russia’s ability to access foreign reserves and use the SWIFT bank-messaging system.
It’s yet unclear when stocks will start trading again, but the short-selling announcement suggests exchange is preparing for activity to return, according to Cristian Maggio, head of portfolio strategy at Toronto Dominion Bank in London.
“They may want to remove any residual risk of speculating on a further price fall,” said Maggio.
Other exchanges have used short-selling bans to limit volatility during a crisis. Back in March 2020, at the peak of the Covid pandemic-fueled selloff, Italy, France and Belgium also prohibited shorting.
Some companies seem to have been excluded from the ban. Yandex NV, TCS Group Holding Plc, Ozon Holdings Plc were among stocks not listed in the statement from the exchange.
Still, investors say it’s a near certainty that stocks will tumble when the market reopens. The share prices of Russian companies listed in London have been wiped out and index providers have removed Russia from market benchmarks. On Monday, the nation’s local bonds slumped as trading resumed for the first time in three weeks.
The Moscow Exchange banned short selling in some of Russia’s biggest companies, a move that may indicate officials are getting ready for the market to reopen.
Investors won’t be allowed to bet on declines in about 30 Russian companies, including Gazprom PJSC, Lukoil PJSC, Sberbank PJSC, MMC Norilsk Nickel PJSC and Rosneft Oil Co., and some Eurobonds. The decision takes effect on Tuesday, the exchange said in a statement.
The stock market has been closed for more than three weeks, the longest shutdown in the Russia’s modern history, as the economy reels from international sanctions that limit Russia’s ability to access foreign reserves and use the SWIFT bank-messaging system.
It’s yet unclear when stocks will start trading again, but the short-selling announcement suggests exchange is preparing for activity to return, according to Cristian Maggio, head of portfolio strategy at Toronto Dominion Bank in London.
“They may want to remove any residual risk of speculating on a further price fall,” said Maggio.
Other exchanges have used short-selling bans to limit volatility during a crisis. Back in March 2020, at the peak of the Covid pandemic-fueled selloff, Italy, France and Belgium also prohibited shorting.
Some companies seem to have been excluded from the ban. Yandex NV, TCS Group Holding Plc, Ozon Holdings Plc were among stocks not listed in the statement from the exchange.
Still, investors say it’s a near certainty that stocks will tumble when the market reopens. The share prices of Russian companies listed in London have been wiped out and index providers have removed Russia from market benchmarks. On Monday, the nation’s local bonds slumped as trading resumed for the first time in three weeks.
U.S., Gulf countries to win in energy crisis as Russia, Europe flounder -Mercuria | Reuters
U.S., Gulf countries to win in energy crisis as Russia, Europe flounder -Mercuria | Reuters
Mercuria's chief executive said Russia and Europe will be the biggest losers in the current energy and commodity crisis while the United States and Gulf countries will benefit.
He said about 2-2.5 million bpd of Russian oil was likely to leave the market due to self-sanctioning and that more strategic releases may be in the pipeline.
"I would not be surprised to see a big release from the U.S. and more countries if oil goes to $120 a barrel," Mercuria CEO Marco Dunand told the FT Commodities Global Summit, adding it could take 3-4 months for these barrels to hit the market.
"It's going to take 3-4 months to get the barrels."
Mercuria's chief executive said Russia and Europe will be the biggest losers in the current energy and commodity crisis while the United States and Gulf countries will benefit.
He said about 2-2.5 million bpd of Russian oil was likely to leave the market due to self-sanctioning and that more strategic releases may be in the pipeline.
"I would not be surprised to see a big release from the U.S. and more countries if oil goes to $120 a barrel," Mercuria CEO Marco Dunand told the FT Commodities Global Summit, adding it could take 3-4 months for these barrels to hit the market.
"It's going to take 3-4 months to get the barrels."
Oil mixed as dollar rises, EU looks less likely to ban Russian oil | Reuters
Oil mixed as dollar rises, EU looks less likely to ban Russian oil | Reuters
Oil was trading mixed on Tuesday as the dollar strengthened and it looked unlikely that the European Union would pursue an embargo on Russian oil, a day after prices jumped 7% and also rose earlier in the session.
EU foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. read more
"It's pretty clear that the German economy will seize up so the EU is backing away from a Russian ban," said John Kilduff, partner at Again LLC in New York.
Brent crude rose 86 cents, or 0.6%, to $116.48 a barrel by 1:47 p.m. EST. U.S. West Texas Intermediate crude fell 34 cents, or 0.3%, to $111.78. On Monday, both contracts had settled up more than 7%.
Oil was pressured by a stronger U.S. dollar, which gained a day after comments from U.S. Federal Reserve Chair Jerome Powell flagged a more aggressive tightening of monetary policy.
Oil was trading mixed on Tuesday as the dollar strengthened and it looked unlikely that the European Union would pursue an embargo on Russian oil, a day after prices jumped 7% and also rose earlier in the session.
EU foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. read more
"It's pretty clear that the German economy will seize up so the EU is backing away from a Russian ban," said John Kilduff, partner at Again LLC in New York.
Brent crude rose 86 cents, or 0.6%, to $116.48 a barrel by 1:47 p.m. EST. U.S. West Texas Intermediate crude fell 34 cents, or 0.3%, to $111.78. On Monday, both contracts had settled up more than 7%.
Oil was pressured by a stronger U.S. dollar, which gained a day after comments from U.S. Federal Reserve Chair Jerome Powell flagged a more aggressive tightening of monetary policy.
DP World conditionally agrees to restructure of French ports JV
DP World conditionally agrees to restructure of French ports JV
Dubai-based global port operator DP World Limited has conditionally agreed to restructure its interest in a joint venture (JV) which operates two French ports.
DP World agreed with Terminal Link SA, a joint venture 51 percent owned by CMA CGM and 49 percent owned by China Merchants Port, to restructure Portsynergy SAS, which is a 50:50 joint venture and a holding company for subsidiaries Génénerale de Manutention Portuaire SA (GMP) and Eurofos SARL (Eurofos).
The companies operate container terminals under long-term concession agreements in Le Havre, on the northwestern coast of France, and in Port of Fos, close to Marseille in the south of France, DP World said.
Under the terms of agreement, DP World will consolidate Eurofos, while maintaining 50:50 ownership structure between DP World and Terminal Link.
Terminal Link will acquire a controlling majority in the holding company of Le Havre, while DP World will sell its minority share in Le Havre to funds, with a transaction enterprise of value of €700 million ($770 million) on a 100 percent basis, DP World said in a statement.
Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, said: “The Eurofos terminal is important to DP World’s long-term strategy as a leading Mediterranean port and we are excited to focus on unlocking the substantial growth prospects of Fos, which will add significant value for all our stakeholders.”
Dubai-based global port operator DP World Limited has conditionally agreed to restructure its interest in a joint venture (JV) which operates two French ports.
DP World agreed with Terminal Link SA, a joint venture 51 percent owned by CMA CGM and 49 percent owned by China Merchants Port, to restructure Portsynergy SAS, which is a 50:50 joint venture and a holding company for subsidiaries Génénerale de Manutention Portuaire SA (GMP) and Eurofos SARL (Eurofos).
The companies operate container terminals under long-term concession agreements in Le Havre, on the northwestern coast of France, and in Port of Fos, close to Marseille in the south of France, DP World said.
Under the terms of agreement, DP World will consolidate Eurofos, while maintaining 50:50 ownership structure between DP World and Terminal Link.
Terminal Link will acquire a controlling majority in the holding company of Le Havre, while DP World will sell its minority share in Le Havre to funds, with a transaction enterprise of value of €700 million ($770 million) on a 100 percent basis, DP World said in a statement.
Sultan Ahmed bin Sulayem, group chairman and CEO, DP World, said: “The Eurofos terminal is important to DP World’s long-term strategy as a leading Mediterranean port and we are excited to focus on unlocking the substantial growth prospects of Fos, which will add significant value for all our stakeholders.”
Plastics venture Borouge meets potential IPO investors, bankers say | Reuters
Plastics venture Borouge meets potential IPO investors, bankers say | Reuters
Borouge, a plastics joint venture between Abu Dhabi National Oil Co (ADNOC) and Austria's Borealis, held its first meetings with investors to gauge interest in its planned initial public offering (IPO), bankers and buy-side managers told Reuters.
The company, which manufactures plastics used in cars and food packaging among many other products, is considering a public share sale with a listing in Abu Dhabi. read more
Borouge's management met potential investors in a so-called 'early look' roadshow, said the sources, who declined to be named because the matter is not public.
The company did not immediately respond to a request for comment.
Borouge, a plastics joint venture between Abu Dhabi National Oil Co (ADNOC) and Austria's Borealis, held its first meetings with investors to gauge interest in its planned initial public offering (IPO), bankers and buy-side managers told Reuters.
The company, which manufactures plastics used in cars and food packaging among many other products, is considering a public share sale with a listing in Abu Dhabi. read more
Borouge's management met potential investors in a so-called 'early look' roadshow, said the sources, who declined to be named because the matter is not public.
The company did not immediately respond to a request for comment.
Gulf markets edge higher, Egypt blue-chip index rises 1.3% | Reuters
Gulf markets edge higher, Egypt blue-chip index rises 1.3% | Reuters
Major Gulf stock markets closed higher on Tuesday, in tandem with global markets, while Egypt's blue-chip index rose for the sixth straight session.
Egypt's index (.EGX30) jumped 1.3%, after rising more than 4% on Monday, its biggest percentage gain in nearly two years.
"The Egyptian stock market opened on the upside as investors take into account the initiatives launched by the government to alleviate the effects of the war in Ukraine on the Egyptian economy," said Wael Makarem, Senior Market Strategist – MENA at Exness.
Egypt on Tuesday lowered its real gross domestic product growth target for its upcoming financial year, which begins in July, to 5.5%, a day after the central bank raised its key interest rates by 100 basis points in an exceptional monetary policy committee meeting. read more
European stock indexes edged higher as investors adjusted interest rate expectations while oil prices rose, supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities. read more
Saudi Arabia's benchmark index (.TASI) ended up 0.4%.
Saudi Arabia's market leader in retail pharmacies Nahdi Medical Co made a strong market debut. Its shares rose about 21% to 158.4 riyals from its initial public offering price of 131 riyals per share. Its shares closed at 150 riyals. read more
Nahdi had raised $1.36 billion in the country's biggest IPO since Saudi Aramco's (2222.SE) listing in 2019.
Saudi Arabian Mining Company's shares (1211.SE) rose 3.5% after the company said its new ammonia berth exported its first shipment.
Dubai's main share index (.DFMGI) closed down 0.3%, under pressure from Emirates Integrated Telecommunications Company (DU.DU) which shed 2.1%.
Abu Dhabi's index (.FTFADGI) rose 0.7%, after closing lower in the previous two sessions.
The Qatari index (.QSI) edged up 0.1%, with gains in materials companies offset by losses in the energy sector.
Commercial Bank (COMB.QA) fell 2.6%.
Major Gulf stock markets closed higher on Tuesday, in tandem with global markets, while Egypt's blue-chip index rose for the sixth straight session.
Egypt's index (.EGX30) jumped 1.3%, after rising more than 4% on Monday, its biggest percentage gain in nearly two years.
"The Egyptian stock market opened on the upside as investors take into account the initiatives launched by the government to alleviate the effects of the war in Ukraine on the Egyptian economy," said Wael Makarem, Senior Market Strategist – MENA at Exness.
Egypt on Tuesday lowered its real gross domestic product growth target for its upcoming financial year, which begins in July, to 5.5%, a day after the central bank raised its key interest rates by 100 basis points in an exceptional monetary policy committee meeting. read more
European stock indexes edged higher as investors adjusted interest rate expectations while oil prices rose, supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities. read more
Saudi Arabia's benchmark index (.TASI) ended up 0.4%.
Saudi Arabia's market leader in retail pharmacies Nahdi Medical Co made a strong market debut. Its shares rose about 21% to 158.4 riyals from its initial public offering price of 131 riyals per share. Its shares closed at 150 riyals. read more
Nahdi had raised $1.36 billion in the country's biggest IPO since Saudi Aramco's (2222.SE) listing in 2019.
Saudi Arabian Mining Company's shares (1211.SE) rose 3.5% after the company said its new ammonia berth exported its first shipment.
Dubai's main share index (.DFMGI) closed down 0.3%, under pressure from Emirates Integrated Telecommunications Company (DU.DU) which shed 2.1%.
Abu Dhabi's index (.FTFADGI) rose 0.7%, after closing lower in the previous two sessions.
The Qatari index (.QSI) edged up 0.1%, with gains in materials companies offset by losses in the energy sector.
Commercial Bank (COMB.QA) fell 2.6%.
Oil rises towards $116 as EU weighs Russian ban | Reuters
Oil rises towards $116 as EU weighs Russian ban | Reuters
Oil rose towards $116 a barrel on Tuesday, adding to a 7% surge the previous day, supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities.
European Union foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. read more
"It is still not clear whether this will really happen," wrote Carsten Fritsch of Commerzbank in a report, adding: "a decision of this kind requires unanimity."
Brent crude rose 13 cents, or 0.1%, to $115.75 a barrel by 1326 GMT. U.S. West Texas Intermediate crude added 11 cents, or 0.1%, to $112.23. Both contracts had settled up more than 7% on Monday.
Oil was pressured by a stronger U.S. dollar, which gained after comments from U.S. Federal Reserve Chair Jerome Powell on Monday that flagged a more aggressive tightening of monetary policy than previously anticipated.
Oil rose towards $116 a barrel on Tuesday, adding to a 7% surge the previous day, supported by supply risks from a potential European Union oil embargo on Russia and concern about attacks on Saudi oil facilities.
European Union foreign ministers are split on whether to join the United States in banning Russian oil. Some countries, including Germany, say the bloc is too dependent on Russia's fossil fuels to withstand such a step. read more
"It is still not clear whether this will really happen," wrote Carsten Fritsch of Commerzbank in a report, adding: "a decision of this kind requires unanimity."
Brent crude rose 13 cents, or 0.1%, to $115.75 a barrel by 1326 GMT. U.S. West Texas Intermediate crude added 11 cents, or 0.1%, to $112.23. Both contracts had settled up more than 7% on Monday.
Oil was pressured by a stronger U.S. dollar, which gained after comments from U.S. Federal Reserve Chair Jerome Powell on Monday that flagged a more aggressive tightening of monetary policy than previously anticipated.
P&O’s scant regard for employee protections | Financial Times #Dubai #UAE
P&O’s scant regard for employee protections | Financial Times
In an era when many companies trumpet their commitment to treating all stakeholders fairly, some are all too ready to do the wrong thing. Everything about P&O Ferries’ sacking of 800 crew last week — the brief video statement, the coach loads of waiting replacement agency workers, the security contractors standing by — suggests it was meticulously orchestrated. Only the seafarers themselves had no prior warning. The UK government has asked the Insolvency Service to investigate whether P&O breached employment law. Whatever the precise legalities, P&O and its owner, Dubai’s DP World, appear to have made a cynical calculation to rapidly shrink the ferry operator’s cost base by ignoring contemporary British standards on how to treat employees — and their implicit contract with broader society.
In an era when many companies trumpet their commitment to treating all stakeholders fairly, some are all too ready to do the wrong thing. Everything about P&O Ferries’ sacking of 800 crew last week — the brief video statement, the coach loads of waiting replacement agency workers, the security contractors standing by — suggests it was meticulously orchestrated. Only the seafarers themselves had no prior warning. The UK government has asked the Insolvency Service to investigate whether P&O breached employment law. Whatever the precise legalities, P&O and its owner, Dubai’s DP World, appear to have made a cynical calculation to rapidly shrink the ferry operator’s cost base by ignoring contemporary British standards on how to treat employees — and their implicit contract with broader society.
In laying off 800 UK-based seafarers with immediate effect and no consultation, P&O showed contempt, too, for British taxpayers, who provided it with £10mn in furlough support in 2020; the company also received £4.4mn through a government contingency plan to keep cargo flowing. DP World paid £270mn in dividends to shareholders that year. P&O’s actions also demonstrated scant regard for safety — with agency workers suddenly expected to take on skilled work on some of the world’s busiest shipping lanes — or for the resulting supply chain disruptions.
A company as large as P&O, responsible for about a third of the cross-channel ferry market with France, will no doubt have taken legal advice before its announcement. UK law stipulates a minimum 45-day consultation period when a company makes more than 100 employees redundant. This is aside from the collective bargaining arrangement P&O had with Nautilus International, the seafarers’ union, which has announced a formal dispute. According to unions and an internal P&O letter, the 800 sacked crew were on Jersey-based contracts. But Nautilus has claimed their jobs still fell under UK law and protections since this was the jurisdiction specified in their contracts. Some employment lawyers also argue UK statutory protections should apply if Britain was the place of employment.
For employees, however, a UK employment tribunal would probably take a year to be heard, and they would initially bear the costs. P&O seems likely to have reckoned that, in a looming cost of living crisis, most employees would accept a package similar to what they might achieve at a tribunal, if successful, and move on. A company losing £100mn a year, hit first by the pandemic and now by inflation and soaring fuel prices, needs to restructure. But this is no way to go about it.
Sheikh Mohammed bin Rashid al-Maktoum, billionaire ruler of Dubai, the state that ultimately owns P&O, could easily afford the £554mn a London court ordered him to pay his ex-wife in a high-profile divorce case last year — although the negative publicity the case generated was less easy to write off. DP World now faces its own reputational reckoning, with multiple legal challenges set to come P&O’s way.
This case should be especially sensitive for a Conservative government that has insisted that UK pay in many sectors would increase, post-Brexit, as businesses would no longer be able to rely on “cheap foreign labour”. It highlights the need to ensure that statutory protections for UK-based workers are strong enough and properly enforced. If P&O is found to have broken UK employment law, it should bear the legal consequences. The government should also reconsider whether its parent DP World’s Gateway and Southampton ports should still benefit from its freeport scheme.
Watch Nahdi Medical Is Biggest #Saudi IPO Since Aramco - Bloomberg video
Watch Nahdi Medical Is Biggest Saudi IPO Since Aramco - Bloomberg
Saudi Arabia's largest pharmacy chain Nahdi Medical debuts on the Tadawul today. Yasser Joharji, CEO of Nahdi Medical Company discusses the IPO plans amid market volatility and deals in the pipeline. Nahdi Medical is seeking to raise as much as $1.36 billion in the listing. Saudi companies raised almost $9.3 billion from share offerings last year, making it the most active IPO market in the Middle East and Africa behind Israel, according to data compiled by Bloomberg. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ukraine War, Russia Oil Loss Forces Biden to Move U.S. Back to #SaudiArabia, MBS - Bloomberg video
Ukraine War, Russia Oil Loss Forces Biden to Move U.S. Back to Saudi Arabia, MBS - Bloomberg
President Joe Biden has been reluctantly drawn into closer ties with Saudi Arabia’s king-in-waiting, forced by Russia’s invasion of Ukraine to rethink a standoffish approach as the U.S. struggles to curb soaring oil prices.
The problem is Crown Prince Mohammed bin Salman isn’t ready to play along.
The softening U.S. attitude, described by a dozen people familiar with the debate, follows months of efforts by some senior administration officials to convince a wary president that ignoring the de facto Saudi leader was hampering U.S. foreign policy goals. The need to isolate Moscow gave new impetus to that push. One official described Russia’s aggression as a paradigm-shifting event that changes the way the U.S. looked at Saudi Arabia.
Saudi Arabia is the Middle East’s economic powerhouse and for years has been a political heavyweight in the region’s affairs and a dominant force in OPEC+ -- a powerful alliance between the oil-exporters’ cartel and Russia. It’s also one of the biggest buyers of American weapons.
The problem is Crown Prince Mohammed bin Salman isn’t ready to play along.
The softening U.S. attitude, described by a dozen people familiar with the debate, follows months of efforts by some senior administration officials to convince a wary president that ignoring the de facto Saudi leader was hampering U.S. foreign policy goals. The need to isolate Moscow gave new impetus to that push. One official described Russia’s aggression as a paradigm-shifting event that changes the way the U.S. looked at Saudi Arabia.
Saudi Arabia is the Middle East’s economic powerhouse and for years has been a political heavyweight in the region’s affairs and a dominant force in OPEC+ -- a powerful alliance between the oil-exporters’ cartel and Russia. It’s also one of the biggest buyers of American weapons.
Gulf shares little changed, Nahdi Medical surges on debut | Reuters
Gulf shares little changed, Nahdi Medical surges on debut | Reuters
Equities in the Middle East paused on Tuesday after a recent rally, with shares of Nahdi Medical jumping about 20% in their market debut, while oil prices rose amid talks of an oil embargo on Russia by the European Union.
The bloc's foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries, including Germany, arguing that the group is too dependent on Russia's fossil fuels. read more
Crude prices climbed, with Brent futures up 2.75% to $118.80 a barrel on the Intercontinental Exchange at 0440 GMT, while Asian equities also rose as investors weighed aggressive U.S. rate hikes and the war disrupting oil supplies.
Saudi Arabia's benchmark index (.TASI) inched up 0.2%.
Retail pharmacy leader Nahdi Medical Co jumped as much as 158.4 riyals from its initial public offering price of 131 riyals per share on Tuesday. read more
Nahdi had raised $1.36 billion in the country's biggest IPO since Saudi Aramco's (2222.SE) listing in 2019.
Dubai's main share index (.DFMGI) and Abu Dhabi's index (.FTFADGI) swung between gains and losses.
Dubai was last up 0.06%, with gains in financials offset by losses in communication services stocks.
Abu Dhabi's index was last up 0.07%.
The Qatari index (.QSI) fell 0.5%, weighed by financials.
Commercial Bank (COMB.QA) was the top drag with its 2.7% fall.
Equities in the Middle East paused on Tuesday after a recent rally, with shares of Nahdi Medical jumping about 20% in their market debut, while oil prices rose amid talks of an oil embargo on Russia by the European Union.
The bloc's foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries, including Germany, arguing that the group is too dependent on Russia's fossil fuels. read more
Crude prices climbed, with Brent futures up 2.75% to $118.80 a barrel on the Intercontinental Exchange at 0440 GMT, while Asian equities also rose as investors weighed aggressive U.S. rate hikes and the war disrupting oil supplies.
Saudi Arabia's benchmark index (.TASI) inched up 0.2%.
Retail pharmacy leader Nahdi Medical Co jumped as much as 158.4 riyals from its initial public offering price of 131 riyals per share on Tuesday. read more
Nahdi had raised $1.36 billion in the country's biggest IPO since Saudi Aramco's (2222.SE) listing in 2019.
Dubai's main share index (.DFMGI) and Abu Dhabi's index (.FTFADGI) swung between gains and losses.
Dubai was last up 0.06%, with gains in financials offset by losses in communication services stocks.
Abu Dhabi's index was last up 0.07%.
The Qatari index (.QSI) fell 0.5%, weighed by financials.
Commercial Bank (COMB.QA) was the top drag with its 2.7% fall.
Nahdi Medical IPO Surges on Trading Debut in Biggest #Saudi Listing Since Aramco - Bloomberg
Nahdi Medical IPO Surges on Trading Debut in Biggest Saudi Listing Since Aramco - Bloomberg
Saudi Arabia’s largest pharmacy retail chain soared on its trading debut after raising $1.36 billion in the kingdom’s biggest share sale since Aramco.
Nahdi Medical Co. rose as much as 21% to 158 riyals ($42.12) at 10:05 a.m. in Riyadh. The company had sold shares at 131 riyals, the top end of its planned price range.
While Russia’s invasion of Ukraine has roiled equity markets around the world, the main bourses in the energy-rich Persian Gulf have proved resilient -- in large part because of the jump in oil prices to more than $100 a barrel.
Tuesday’s surge underscores how investors continue to clamor for IPOs in Saudi Arabia. Nahdi, one of many family-owned businesses listing on the kingdom’s exchange, had demand for all shares on offer hours after books opened, Bloomberg reported earlier this month.
Nahdi’s IPO is the largest listing in the kingdom since Saudi Aramco raised almost $30 billion in 2019. ACWA Power International raised $1.2 billion last year in what was then the kingdom’s biggest deal since Aramco.
This is already the busiest first quarter on record for Saudi Arabian listings and more share sales are likely to follow. The kingdom’s Tadawul All Share Index is up 14% this year in dollar terms, making it the seventh best performing gauge in the world.
Saudi Arabia’s largest pharmacy retail chain soared on its trading debut after raising $1.36 billion in the kingdom’s biggest share sale since Aramco.
Nahdi Medical Co. rose as much as 21% to 158 riyals ($42.12) at 10:05 a.m. in Riyadh. The company had sold shares at 131 riyals, the top end of its planned price range.
While Russia’s invasion of Ukraine has roiled equity markets around the world, the main bourses in the energy-rich Persian Gulf have proved resilient -- in large part because of the jump in oil prices to more than $100 a barrel.
Tuesday’s surge underscores how investors continue to clamor for IPOs in Saudi Arabia. Nahdi, one of many family-owned businesses listing on the kingdom’s exchange, had demand for all shares on offer hours after books opened, Bloomberg reported earlier this month.
Nahdi’s IPO is the largest listing in the kingdom since Saudi Aramco raised almost $30 billion in 2019. ACWA Power International raised $1.2 billion last year in what was then the kingdom’s biggest deal since Aramco.
This is already the busiest first quarter on record for Saudi Arabian listings and more share sales are likely to follow. The kingdom’s Tadawul All Share Index is up 14% this year in dollar terms, making it the seventh best performing gauge in the world.
Oil extends rally as EU members weigh Russian ban, Houthis target Saudi | Reuters
Oil extends rally as EU members weigh Russian ban, Houthis target Saudi | Reuters
Oil prices extended gains on Tuesday as some European Union members discussed a potential oil embargo on Russia and attacks by Yemen's Iran-aligned Houthi group on Saudi energy and water desalination facilities sent jitters through the market.
Front-month West Texas Intermediate futures rose $2.28, or 2.03%, to $114.4 a barrel on NYMEX and Brent futures gained $2.89, or 2.5%, to $118.51 a barrel on the Intercontinental Exchange at 0713 GMT.
Both contracts had settled up more than 7% on Monday as the potential for more supply disruptions weighed on the market. read more
European Union foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries including Germany arguing that the bloc is too dependent on Russia's fossil fuels. read more
"It seems energy traders are growing more confident that supply shortages are just around the corner," Edward Moya, analyst at OANDA, said in a note.
Oil prices extended gains on Tuesday as some European Union members discussed a potential oil embargo on Russia and attacks by Yemen's Iran-aligned Houthi group on Saudi energy and water desalination facilities sent jitters through the market.
Front-month West Texas Intermediate futures rose $2.28, or 2.03%, to $114.4 a barrel on NYMEX and Brent futures gained $2.89, or 2.5%, to $118.51 a barrel on the Intercontinental Exchange at 0713 GMT.
Both contracts had settled up more than 7% on Monday as the potential for more supply disruptions weighed on the market. read more
European Union foreign ministers are split on whether to join the United States in sanctioning Russian oil, with some countries including Germany arguing that the bloc is too dependent on Russia's fossil fuels. read more
"It seems energy traders are growing more confident that supply shortages are just around the corner," Edward Moya, analyst at OANDA, said in a note.
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