Saudi Arabia stocks keep upward motion despite oil price fall

08 September 2015 JEDDAH -- Saudi Arabia stocks ended higher on Monday at close of trade  as gains in the Insurance, Agriculture & Food and Media & Publishing sectors led shares higher.The stock benchmark Tadawul All Share Index gained 0.74% at 7,483.5 points.The best performers of the session on the Tadawul All Share were SABB Takaful, which rose 9.85% or 3.90 points to trade at 43.50 at the clos

  
08 September 2015
JEDDAH -- Saudi Arabia stocks ended higher on Monday at close of trade  as gains in the Insurance, Agriculture & Food and Media & Publishing sectors led shares higher.

The stock benchmark Tadawul All Share Index gained 0.74% at 7,483.5 points.

The best performers of the session on the Tadawul All Share were SABB Takaful, which rose 9.85% or 3.90 points to trade at 43.50 at the close. Meanwhile, Saudi United Cooperative Insurance added 9.83% or 1.15 points to end at 12.85 and Saudi Indian Company Insurance was up 6.10% or 0.88 points to 15.30 in late trade.

The worst performers of the session were Knowledge Economic City, which fell 5.24% or 0.84 points to trade at 15.20 at the close. Yanbu National Petrochemical Co declined 2.89% or 1.28 points to end at 43.00 and Saudi Company for Hardware was down 2.45% or 2.26 points to 90.00.

Rising stocks outnumbered declining ones on the Saudi Arabia Stock Exchange by 126 to 40. Shares in Saudi Company for Hardware fell to all time lows; losing 2.45% or 2.26 to 90.00.

Ma'aden in talks for $3b loan

Saudi Arabian Mining Co (Ma'aden) is talking to banks to raise a loan worth up to $3 billion, three banking sources aware of the matter said on Monday, to refinance debt taken on to construct a phosphate complex for a joint venture.

The Gulf's largest miner operates Maaden Phosphate Company (MPC), which produces ammonia and the fertiliser diammonium phosphate (DAP), in a 70/30 ownership split with petrochemicals giant Saudi Basic Industries Corp (SABIC).

Ma'aden declined to comment.

Meanwhile, European stocks rose on Monday, lifted by mining and commodities giant Glencore after it pledged to slash its debt by a third, and countering a fall in Asian markets led by weakness in China following a four-day break there.

Trading is lighter than usual with US markets closed for Labor Day, while investors across all asset classes continued to digest the implications of last week's US jobs data for the timing of the first US interest rate hike since 2006.

At midday the FTSEuroFirst index of leading 300 shares was up 0.4 percent at 1,398 points and Britain's mining-heavy FTSE 100 index was up 0.4 percent at 6,063 points.

Both indexes had been up well over 1 percent in earlier trading. Glencore shares rose as much as 12 percent after it said it will suspend dividends, sell assets and raise $2.5 billion in a new share issue as it aims to cut its debt to $20 billion by the end of next year.

The rally in Europe was broad-based, marking a rebound from Friday's steep losses of close to 3 percent after investors marginally upped their bets that the Federal Reserve could raise US interest rates later this month.

Germany's DAX was up 0.5 percent at 10,094 points and France's CAC 40 was up 0.4 percent at 4,542 points, both halving their opening gains.

But in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 percent, driven by stocks in China where markets reopened after closing over Thursday and Friday as Beijing marked 70 years since the end of World War Two.

Shanghai shares initially rose as much as 1.8 percent after weekend remarks by regulators aimed at calming the market, but reversed course to close down 2.5 percent.

China's policymakers and regulators promised deeper financial market reforms. They emphasized signs that the economy was stabilizing, but trimmed 2014 growth figures on Monday, and said foreign exchange reserves fell in August by $93.9 billion - the largest monthly fall on record - to $3.55 trillion.

© The Saudi Gazette 2015