Oil rises on tight supplies; trade choppy on demand worries | Reuters
Oil prices rose on Monday in a session of volatile trade as tight global supplies outweighed worries that demand would be pressured by a flare-up in COVID-19 cases in Beijing and more interest rate hikes.
Brent crude rose 26 cents to settle at $122.27 a barrel. U.S. West Texas Intermediate crude rose 26 cents to settle at $120.93 a barrel. Trade was volatile, with prices down about $3 a barrel earlier.
Oil supplies are tight, with OPEC and allies unable to fully deliver on pledged output increases because of a lack of capacity in many producers, sanctions on Russia and unrest in Libya that has slashed output. read more
Oil has surged in 2022 as Russia's February invasion of Ukraine compounded supply concerns and as demand recovered from COVID-19 pandemic-related lockdowns. In March, Brent hit $139, the highest since 2008. Last week, both oil benchmarks rose more than 1%.
Monday, 13 June 2022
Gulf bourses in red on inflation, fuel demand concerns | Reuters
Gulf bourses in red on inflation, fuel demand concerns | Reuters
Stock markets in the Gulf ended lower on Monday, in line with global equities as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.
Dubai's main share index (.DFMGI) retreated 2.7%, its biggest one-day fall in a month, dragged down by a 4.9% drop in blue-chip developer Emaar Properties (EMAR.DU).
The main index could see additional price corrections in the short term as expectations remained bearish, said Wael Makarem, senior market strategist at Exness.
In Abu Dhabi, the index (.FTFADGI) lost 1.8%, with the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) falling 2.5%.
Among other stocks, Dana Gas (DANA.AD) tumbled 2.8% after the energy firm said that it was in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.
The Qatari index (.QSI) closed 1.5% lower with almost all the stocks on the index in the red, including the Gulf's biggest lender, Qatar National Bank (QNBK.QA), losing 2.1%.
According to Makarem, the market could see additional pressures if natural gas prices remain volatile.
"In this regard, the country is working on developing production capacity to benefit from current price levels and higher demand from Europe."
Saudi Arabia's benchmark index (.TASI) fell 2.2%, hit by a 2% decline in Al Rajhi Bank (1120.SE) and a 3.7% retreat in Saudi National Bank (1180.SE).
Oil prices, a key catalyst for the Gulf's financial markets, dropped almost $2 a barrel as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was down 0.8%, with Madinet Nasr For Housing and Development (MNHD.CA) sliding about 7%, to become the top loser on the index.
Stock markets in the Gulf ended lower on Monday, in line with global equities as red-hot U.S. inflation reignited worries about even more aggressive Federal Reserve policy tightening, and a COVID-19 warning from Beijing added to concerns about global growth.
Dubai's main share index (.DFMGI) retreated 2.7%, its biggest one-day fall in a month, dragged down by a 4.9% drop in blue-chip developer Emaar Properties (EMAR.DU).
The main index could see additional price corrections in the short term as expectations remained bearish, said Wael Makarem, senior market strategist at Exness.
In Abu Dhabi, the index (.FTFADGI) lost 1.8%, with the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD) falling 2.5%.
Among other stocks, Dana Gas (DANA.AD) tumbled 2.8% after the energy firm said that it was in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.
The Qatari index (.QSI) closed 1.5% lower with almost all the stocks on the index in the red, including the Gulf's biggest lender, Qatar National Bank (QNBK.QA), losing 2.1%.
According to Makarem, the market could see additional pressures if natural gas prices remain volatile.
"In this regard, the country is working on developing production capacity to benefit from current price levels and higher demand from Europe."
Saudi Arabia's benchmark index (.TASI) fell 2.2%, hit by a 2% decline in Al Rajhi Bank (1120.SE) and a 3.7% retreat in Saudi National Bank (1180.SE).
Oil prices, a key catalyst for the Gulf's financial markets, dropped almost $2 a barrel as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was down 0.8%, with Madinet Nasr For Housing and Development (MNHD.CA) sliding about 7%, to become the top loser on the index.
Oil falls on Beijing's COVID-19 warning, inflation worries | Reuters
Oil falls on Beijing's COVID-19 warning, inflation worries | Reuters
Oil dropped almost $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Beijing's most populous district Chaoyang announced three rounds of mass testing to quell a "ferocious" COVID-19 outbreak that emerged last week. Mass testing would take place until Wednesday. read more
Brent crude was down $1.54, or 1.3%, to $120.47 at 1213 GMT, while U.S. West Texas Intermediate crude fell $1.82, or 1.5%, to $118.85.
"The present price fall is exacerbated by warnings of a 'ferocious' spread of the COVID virus in Beijing by officials, casting doubt on immediate demand recovery," said Tamas Varga of oil broker PVM.
Oil dropped almost $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.
Beijing's most populous district Chaoyang announced three rounds of mass testing to quell a "ferocious" COVID-19 outbreak that emerged last week. Mass testing would take place until Wednesday. read more
Brent crude was down $1.54, or 1.3%, to $120.47 at 1213 GMT, while U.S. West Texas Intermediate crude fell $1.82, or 1.5%, to $118.85.
"The present price fall is exacerbated by warnings of a 'ferocious' spread of the COVID virus in Beijing by officials, casting doubt on immediate demand recovery," said Tamas Varga of oil broker PVM.
DFM expands offering with futures on single DEWA, GFH stocks
DFM expands offering with futures on single DEWA, GFH stocks
The Dubai Financial Market has rolled out more futures contracts to further expand its product offering in a bid to draw more investments.
The latest products are equity futures contracts on single stocks of Dubai Electricity and Water Authority (DEWA) and GFH Financial Group, the local bourse announced on Monday.
Dubai’s power and water company started trading on the DFM last April, following an international public offering (IPO) that raised $6.1 billion.
The new launch brings the number of DFM-listed companies with futures contracts on individual stocks to 12, with tenures of 1, 2 and 3 months.
The DFM introduced its equity futures trading platform in October 2020 to diversify investment options for local and overseas investors.
The Dubai Financial Market has rolled out more futures contracts to further expand its product offering in a bid to draw more investments.
The latest products are equity futures contracts on single stocks of Dubai Electricity and Water Authority (DEWA) and GFH Financial Group, the local bourse announced on Monday.
Dubai’s power and water company started trading on the DFM last April, following an international public offering (IPO) that raised $6.1 billion.
The new launch brings the number of DFM-listed companies with futures contracts on individual stocks to 12, with tenures of 1, 2 and 3 months.
The DFM introduced its equity futures trading platform in October 2020 to diversify investment options for local and overseas investors.
Bahrain Wealth Fund Weighs Alba Listing in #SaudiArabia - Bloomberg
Bahrain Wealth Fund Weighs Alba Listing in Saudi Arabia - Bloomberg
Bahrain’s sovereign wealth fund is considering a listing of Aluminium Bahrain BSC in Saudi Arabia more than a decade after its initial listing in Bahrain, people familiar with the matter said.
Mumtalakat, as the Bahrain fund is known, is working with Moelis & Co. as financial adviser on the potential listing, two of the people said, asking not to be identified because the information is private. Alba, as the Bahraini metal producer is known, has kicked off the process to seek regulatory approvals in Saudi Arabia, the people said.
The listing is expected by the end of the year or in early 2023, and is intended to increase liquidity in the stock, the people said. The plans are preliminary and could change, they added.
Mumtalakat, Alba and Moelis declined to comment.
Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The Saudi exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.
Alba raised $339 million in its 2010 listing. It had studied a potential Saudi listing in 2014 but put the plans on hold to focus on increasing production instead.
Bahrain’s sovereign wealth fund Mumtalakat owns 69% of Alba, which accounts for about 12% of Bahrain’s GDP, according to the company website.
Bahrain’s sovereign wealth fund is considering a listing of Aluminium Bahrain BSC in Saudi Arabia more than a decade after its initial listing in Bahrain, people familiar with the matter said.
Mumtalakat, as the Bahrain fund is known, is working with Moelis & Co. as financial adviser on the potential listing, two of the people said, asking not to be identified because the information is private. Alba, as the Bahraini metal producer is known, has kicked off the process to seek regulatory approvals in Saudi Arabia, the people said.
The listing is expected by the end of the year or in early 2023, and is intended to increase liquidity in the stock, the people said. The plans are preliminary and could change, they added.
Mumtalakat, Alba and Moelis declined to comment.
Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The Saudi exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.
Alba raised $339 million in its 2010 listing. It had studied a potential Saudi listing in 2014 but put the plans on hold to focus on increasing production instead.
Bahrain’s sovereign wealth fund Mumtalakat owns 69% of Alba, which accounts for about 12% of Bahrain’s GDP, according to the company website.
Major Gulf markets fall on inflation, fuel demand concerns | Reuters
Major Gulf markets fall on inflation, fuel demand concerns | Reuters
Major Gulf bourses declined in early trade on Monday, in line with Asian shares and oil prices as an unexpected spike in U.S. inflation renewed fears over policy tightening and economic growth, while fresh COVID-19 restrictions in China caused concerns over fuel demand.
The U.S. consumer price index increased a bigger-than-expected 8.6% last month, the largest year-on-year increase since December 1981, official figures showed, dashing hopes that inflation had peaked. read more
Dubai's main share index (.DFMGI) tumbled 2.7%, weighed down by a steep slump in financial and real estate stocks.
The emirate's blue-chip developer Emaar Properties (EMAR.DU) and Sharia-compliant lender Dubai Islamic Bank (DISB.DU) dropped 4.2% and 2.6%, respectively
In Abu Dhabi, equities (.FTFADGI) declined 1.2%, set to extend losses to a straight ninth session, as the emirate's largest lender First Abu Dhabi Bank (FAB.AD) fell 1.2% and conglomerate International Holding Company (IHC.AD) dropped 0.4%.
Among other stocks, Dana Gas (DANA.AD) slipped 2.8% after the firm said that it is in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.
Saudi Arabia's benchmark index (.TASI) fell 0.4% as Riyad Bank (1010.SE) decreased 1.5% and oil behemoth Saudi Aramco (2222.SE) eased 0.6%.
The energy index (.TENI) in Saudi Arabia dropped 0.7%.
However, Bupa Arabia (8210.SE) jumped 3.9% after the company's board proposed a capital increase by 300 million riyals ($79.97 million) with the issue of 1 bonus share for 4 shares owned.
The Qatari index (.QSI) eased 0.8%, with the Gulf's largest lender Qatar National Bank (QNBK.QA) losing 1.2%.
Separately, QatarEnergy signed a partnership deal with TotalEnergies (TTEF.PA) for first and largest phase of a nearly $30 billion expansion of the North Field project. read more
Major Gulf bourses declined in early trade on Monday, in line with Asian shares and oil prices as an unexpected spike in U.S. inflation renewed fears over policy tightening and economic growth, while fresh COVID-19 restrictions in China caused concerns over fuel demand.
The U.S. consumer price index increased a bigger-than-expected 8.6% last month, the largest year-on-year increase since December 1981, official figures showed, dashing hopes that inflation had peaked. read more
Dubai's main share index (.DFMGI) tumbled 2.7%, weighed down by a steep slump in financial and real estate stocks.
The emirate's blue-chip developer Emaar Properties (EMAR.DU) and Sharia-compliant lender Dubai Islamic Bank (DISB.DU) dropped 4.2% and 2.6%, respectively
In Abu Dhabi, equities (.FTFADGI) declined 1.2%, set to extend losses to a straight ninth session, as the emirate's largest lender First Abu Dhabi Bank (FAB.AD) fell 1.2% and conglomerate International Holding Company (IHC.AD) dropped 0.4%.
Among other stocks, Dana Gas (DANA.AD) slipped 2.8% after the firm said that it is in active discussion with the Egyptian government to reach a deal on Block 6 North El Arish Concession.
Saudi Arabia's benchmark index (.TASI) fell 0.4% as Riyad Bank (1010.SE) decreased 1.5% and oil behemoth Saudi Aramco (2222.SE) eased 0.6%.
The energy index (.TENI) in Saudi Arabia dropped 0.7%.
However, Bupa Arabia (8210.SE) jumped 3.9% after the company's board proposed a capital increase by 300 million riyals ($79.97 million) with the issue of 1 bonus share for 4 shares owned.
The Qatari index (.QSI) eased 0.8%, with the Gulf's largest lender Qatar National Bank (QNBK.QA) losing 1.2%.
Separately, QatarEnergy signed a partnership deal with TotalEnergies (TTEF.PA) for first and largest phase of a nearly $30 billion expansion of the North Field project. read more
Oil falls on Beijing's COVID-19 warning and inflation concerns | Reuters
Oil falls on Beijing's COVID-19 warning and inflation concerns | Reuters
Oil prices dropped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market.
Brent crude futures fell $2.3, or 1.89%, to $119.71 a barrel by 0647 GMT, while U.S. West Texas Intermediate crude was at $118.4 a barrel, down $2.27, or 1.88%.
Prices fell after Chinese officials warned on the weekend of a "ferocious" spread of COVID-19 in the capital, where mass testing is planned until Wednesday. read more
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"China remains the significant near-term downside risk, but most view the gradual normalisation of Chinese demand as a powerful positive for oil," Stephen Innes of SPI Asset Management said in a note.
Oil prices dropped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market.
Brent crude futures fell $2.3, or 1.89%, to $119.71 a barrel by 0647 GMT, while U.S. West Texas Intermediate crude was at $118.4 a barrel, down $2.27, or 1.88%.
Prices fell after Chinese officials warned on the weekend of a "ferocious" spread of COVID-19 in the capital, where mass testing is planned until Wednesday. read more
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"China remains the significant near-term downside risk, but most view the gradual normalisation of Chinese demand as a powerful positive for oil," Stephen Innes of SPI Asset Management said in a note.
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