LONDON: Sterling inched down against a broadly stronger dollar on Monday, holding close to the $1.30 level that has proved an anchor for the past month despite a series of negative headlines from the first weeks of Brexit negotiations.
Banks are divided on the outlook for the pound for the rest of this year, with some forecasting more losses as the economy slows while others argue the worst of the market reaction to Britain’s decision to leave the EU is over.
It dipped 0.15 percent to $1.2991 in early trade in London while holding roughly steady at 90.81 pence per euro.
Signs Britain’s pro-European Finance Minister Philip Hammond was suspending hostilities with “hard” Brexiteers in the Cabinet who want a cleaner break from the EU did little to shift prices.
“At this stage, the market does not expect the news flow around Brexit negotiations to sound very positive,” said Sam Lynton-Brown, a strategist at BNP Paribas in London.
“But the longer it takes for the market to be able to price in a transitional deal, the more investors will have to prepare for a cliff-edge scenario (in 2019).”
Hammond and ardent Brexiteer Trade Minister Liam Fox set out a joint position in the Sunday Telegraph that a transition period was needed when Britain leaves the EU, but that single market membership would still end and the interim period would not be used to stop Brexit.
The pound reached as high as $1.3267 per dollar on Aug. 3 on a brief surge in expectations that the Bank of England (BoE) could raise interest rates over the next year.
But the BoE’s latest meeting and minutes quashed much of that talk in the market and a retreat in pricing on rates has weakened the pound since. Inflation data on Tuesday and wage numbers a day later should be the centerpiece of this week. If inflation as expected inches up to 2.7 percent it will underline the pain being felt by households whose income is not rising as fast.
A survey released on Sunday showed British employers expect to raise pay only minimally over the next 12 months despite hiring more staff, suggesting wage growth will remain a problem for consumer spending.
“Our economists see only modest changes in average earnings,” said RBC strategist Elsa Lignos. “The puzzle of impressive employment growth without upward pressure on wages will persist.”
Sterling little changed in face of Brexit noise
Sterling little changed in face of Brexit noise
Closing Bell: Saudi main index extends gains as market opens wider to foreign investment
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Monday, gaining 153.61 points, or 1.38 percent, to close at 11,321.09.
The total trading turnover of the benchmark index was SR5.85 billion ($1.56 billion), as 207 of the listed stocks advanced, while 55 retreated.
The MSCI Tadawul Index increased, up 21.20 points or 1.41 percent, to close at 1,524.18.
The Kingdom’s parallel market Nomu gained 278.13 points, or 1.17 percent, to close at 24,013.03. This comes as 43 of the listed stocks advanced, while 29 retreated.
The best-performing stock was Saudi Pharmaceutical Industries and Medical Appliances Corp., with its share price surging by 7.26 percent to SR28.94.
Other top performers included Rasan Information Technology Co., which saw its share price rise by 6.51 percent to SR144, and Knowledge Economic City, which saw a 6.25 percent increase to SR13.09.
On the downside, the worst performer of the day was Najran Cement Co., whose share price fell by 2.11 percent to SR6.49.
Almasane Alkobra Mining Co. and Saudi Cable Co. also saw declines, with their shares dropping by 2 percent and 1.88 percent to SR103.10 and SR166.80, respectively.
On the announcement front, Riyad Bank has announced its annual financial results for 2025, with the total income from special commission of financing reaching SR24.1 billion, while net income from special commission of financing amounted to SR12 billion.
In a statement on Tadawul, the bank said: “Net income increased by 11.7 percent mainly due to an increase in total operating income and a decrease in total operating expenses.”
The bank further noted that the rise in total operating income was primarily driven by increased revenue from fees and commissions, trading activities, special commissions, gains on non-trading investments, and other operating sources. This growth was partially tempered by declines in exchange and dividend income.
“Net provision of expected credit losses and other losses decreased by 15.8 percent due to a decrease in impairment charge of credit losses and impairment charge for other financial assets, partially offset by an increase in impairment charge for investments,” it added.
RIBL’s share price closed at SR18.18 on the main market, marking a 1.43 percent increase.
