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 market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
