NEW YORK: Wall Street was sharply lower at the open on Monday as the spiraling trade dispute between Beijing and Washington weighed on global stocks.
China on Friday vowed to slap tariffs on up to $50 billion in US imports, including crude oil, retaliating like-for-like against US tariffs on Chinese goods announced the same day by President Donald Trump.
Ten minutes into the day’s trading, the benchmark Dow Jones Industrial Average was about a full percentage point down at 24,841.95, putting the index on track for a five-day losing streak.
Meanwhile the broader S&P 500 and tech-heavy Nasdaq had both fallen 0.8 percent to 2,758.57 and 7,681.37 respectively.
Aircraft giant Boeing was down 0.7 percent and heavy equipment manufacturer Caterpillar had slumped 1.7 percent. Both are Dow components seen as exposed to foreign trade.
Patrick O’Hare of Briefing.com said trade worries had in recent days tended to spark lower opens, with stocks recovering somewhat during the day as investors gained their footing, as happened Friday.
However, Friday saw additional buying as many stock options expired that day, providing support that the markets would likely do without on Monday.
Perhaps “today is the market’s true self following a weekend of reflection on some clearly negative trade headlines,” he wrote.
Oil prices were holding steady in New York following China’s tariff decision and ahead of Friday’s meeting of the Organization of the Petroleum Exporting Countries, which is due to address market supply.
US media giant Disney had fallen 1.5 percent after analysts downgraded the company to “sell” on fears that a bidding war it is fighting with Comcast for the assets of 21st Century Fox would leave Disney in a lose-lose situation: pay too much or fail to capture needed new business.
Shares in Chinese e-retailer JD.Com jumped 2.3% following news that Google parent Alphabet had invested $550 million in the company.
Stocks slide as Wall Street fears worsening US-China trade spat
Stocks slide as Wall Street fears worsening US-China trade spat
Closing bell — TASI surges to 2-year high, gaining 294.72 points
RIYADH: Saudi Arabia’s Tadawul All Share Index started the week with the best daily performance in two years, gaining 294.72 points, or 2.55 percent, to close at 11,855.11.
The total trading turnover of the benchmark index also recorded its second-highest trading value with SR53.9 billion ($14.3 billion) as 215 of the listed stocks advanced, while 15 retreated.
On the other hand, the Kingdom’s parallel market Nomu also edged up 87.56 points, or 0.33 percent, to close at 26,317.99. This comes as 26 of the listed stocks advanced, while as many as 32 retreated.
Similarly, the MSCI Tadawul Index also gained 41.45 points, or 2.86 percent, to close at 1,491.91.
The best-performing stock of the day was Miahona Co. whose share price surged 18.21 percent to SR17.66.
Other top performers included Wataniya Insurance Co. and Alkhorayef Water and Power Technologies Co., with their share prices soaring by 9.96 percent and 8.25 percent to reach SR28.70 and SR170.60, respectively.
In addition to this, other top performers included Middle East Healthcare Co. and Bank Aljazira.
The worst performer was Etihad Atheeb Telecommunication Co., whose share price dropped by 9.96 percent to SR95.80.
Thimar Development Holding Co. as well as Dr. Soliman Abdel Kader Fakeeh Hospital Co., also saw their share prices dropping by 9.70 percent and 2.30 percent to stand at SR48.40 and SR59.50, respectively.
Moreover, other worst performers also include MBC Group Co. and Saudi Fisheries Co.
In Nomu, Miral Dental Clinics Co. was the top gainer with its share price rising by 14.75 percent to SR105.00.
Other top performers on Nomu included Naba Alsaha Medical Services Co. and Al-Modawat Specialized Medical Co., with their share prices soaring by 8.91 percent and 7.81 percent to reach SR99 and SR157.40, respectively.
Other top gainers included National Environmental Recycling Co. and Almuneef Co. for Trade, Industry, Agriculture and Contracting.
Lana Medical Co. experienced a significant drop in its share price on Nomu, with the company’s shares falling by 11.68 percent to SR32.50.
The share prices of Mayar Holding Co. as well as Edarat Communication and Information Technology Co. also fell by 9.74 percent and 7.78 percent to stand at SR3.43 and SR306.00, respectively.
Other major losers included Saudi Parts Center Co. and Clean Life Co.
Saudi Arabia’s entertainment scene set to make a splash with aquaparks
RIYADH: Saudi Arabia is gearing up to introduce a host of new entertainment and aquatic parks as the Ministry of Investment partners with Nowaar Entertainment, with the first park slated to open its doors in Riyadh in 2025.
In collaboration with the General Entertainment Authority, MISA signed an agreement on Sunday with Nawaar Entertainment to develop entertainment and splash parks across the country, with Riyadh being the inaugural location set to launch in 2025.
Saudi Arabia’s entertainment sector has seen exponential growth, with the number of companies skyrocketing to 4,000 from fewer than 10 since the inception of Vision 2030, according to a senior official.
Speaking at the Saudi Media Forum in Riyadh on Feb. 21, GEA CEO Faisal Bafarat revealed that the industry has already generated over 150,000 local jobs since the Kingdom embarked on its economic diversification initiative in 2016.
Bafarat emphasized the significance of fostering high competitiveness among various business sectors to introduce innovative forms of entertainment, which are now attracting increased investment in the Kingdom, as reported by the Saudi Press Agency.
Reports also indicated the organization’s efforts toward developing entertainment options tailored to the diverse needs of people from all walks of life in the Kingdom.
Meanwhile, MISA inked several agreements with Japan during the Seventh Ministerial Meeting of the Saudi-Japan Vision 2030, held in Riyadh in December 2023.
Chaired by Saudi Minister of Investment Khalid Al-Falih alongside the Japanese Minister of Economy, Trade and Industry, Ken Saito, and the Japanese Vice-Minister for Foreign Affairs, Fukazawa Yoichi, the event witnessed the signing of 13 agreements and memorandums of understanding with Japanese entities and companies.
Among the highlights were three significant projects in construction technology, tourism, and entertainment.
Through dialogue sessions, the meeting also shed light on promising partnership opportunities in implementing mega projects in the Kingdom, including NEOM, the Red Sea, and Qiddiya.
Saudi Arabia’s Vision 2030 is spearheading targeted support measures for the entertainment sector, aiming to contribute over $23 billion, equivalent to 3 percent of GDP, and create more than 100,000 jobs by 2030. Additionally, a $64 billion investment plan is in place to further bolster the sector’s growth.
Qatar Central Bank’s foreign reserves surge by 3.96% in May
RIYADH: The foreign currency reserves and liquidity of the Qatar Central Bank soared by 3.96 percent year-on-year, reaching 249.165 billion riyals ($68.4 billion) in May 2024, compared to 239.664 billion riyals in the same period last year.
Data released by QCB on Monday showcased a significant uptick in its official reserves by roughly 8.833 billion riyals to reach 190.206 billion riyals by the end of May 2024, compared to the same month in 2023. This increase was attributed to a decrease in balances with foreign banks by about 2.816 billion riyals, amounting to 138.984 billion riyals in May 2024.
The reserves comprise various key categories including bonds and foreign treasury bills, balances with foreign banks, gold, Special Drawing Rights, and Qatar’s share at the International Monetary Fund.
Aside from the official reserves, there are other liquid assets such as foreign currency deposits, which collectively form what is known as the total foreign reserves.
Gold reserves notably surged by about 7.276 billion riyals as of the end of May 2024 compared to May 2023, reaching 28.327 billion riyals.
However, balances with foreign banks saw a decline of nearly 1.192 billion riyals, reaching 17.744 billion riyals by the end of May 2024 compared to May 2023. Additionally, the balance of Special Drawing Rights deposits from Qatar’s share with the IMF decreased by 66 million riyals by the end of May 2024, totaling 5.186 billion riyals compared to May 2023.
Kuwait receives ‘A+’ rating, despite oil dependency: S&P report
RIYADH: A strong stock of government financial assets has cemented Kuwait’s standing as it secures an ‘A+’ rating from Standard & Poor.
In its latest report, the global rating agency affirmed Kuwait’s sovereign rating with a stable outlook, primarily attributing it to government financial assets supporting around 418 percent of the nation’s gross domestic product in 2024.
S&P pointed out that Kuwait’s structural and financial reforms are still lagging behind its peers, and its economy remains highly dependent on the oil sector, making it vulnerable to fluctuations in the oil market.
Despite these challenges, the rating agency anticipates the real GDP to grow by an average of 2.4 percent during the years 2025-2027, compared to a contraction of 2.3 percent in 2024. This forecast assumes a slight easing in the restrictions of the Organization of the Petroleum Exporting Countries agreement on oil production.
The report also highlighted the expected acceleration of large government investment projects, with a focus on public-private partnerships and high-impact projects driven by the New Kuwait 2035 vision.
The national strategy aims to transform Kuwait into a financial and trade hub regionally and internationally, making it more attractive to investors.
The stable future outlook reflects the assumption that Kuwait’s substantial financial and external balances will remain robust during the forecast period, supported by a significant stock of government financial assets projected to reach 447 percent of the GDP between 2024 and 2027.
“We could raise the ratings if the government successfully implemented a comprehensive structural reform package, such as diversifying the economy away from the hydrocarbon sector and increasing its productive capacity, leading to stronger real GDP growth prospects,” the report indicated.
These substantial assets are anticipated to mitigate the economic risks associated with the country’s heavy reliance on the oil sector and potential fluctuations in oil prices.
“Kuwait, largely via KIA (Kuwait Investment Authority) funds but also due to very low levels of government debt, remains in a very large general government net asset position,” the report said.
S&P also emphasized that a downgrade in Kuwait’s sovereign credit rating could be triggered by several reasons.
“We could lower our ratings on Kuwait if fiscal imbalances rise significantly, for instance due to weaker oil prices or the absence of fiscal reforms, and the government were to remain without comprehensive fiscal financing arrangements,” the report said.
ITFC channels $3.8bn into member countries’ energy sectors in 2023
RIYADH: The International Islamic Trade Finance Corp., an autonomous entity within the Islamic Development Bank Group, dedicated $3.8 billion in 2023 to bolster member countries’ energy sectors.
In its 2023 annual report, the ITFC disclosed that 55 percent of the allocated amount went to the power sector, constituting a significant portion of the total funding approved for various projects throughout the year.
Since 2008, the corporation has greenlit $49 billion for the energy sector, aiming to elevate the living standards of member states' populations by ensuring reliable access to power resources.
This substantial financial commitment underscores ITFC's strategic focus on the energy sector as a pivotal driver of development.
In a social media post, the organization reiterated its mission to advance trade and improve livelihoods, with a special emphasis on aiding member countries, particularly those in the least developed category.
In March, ITFC unveiled plans to inject $1.4 billion into Bangladesh's energy infrastructure to bolster the country's energy resilience, as reported by the Saudi Press Agency.
This financial initiative marked a significant milestone in the enduring partnership between ITFC and the Bangladesh Petroleum Corp.
Just weeks later, the corporation sealed a series of agreements with various member countries and strategic partners during the 49th Annual Meeting of the IsDB in Riyadh.
The meeting witnessed a notable surge in collaboration between ITFC and member countries, aimed at fortifying economic growth and development, according to SPA.
These agreements underscored ITFC's dedication to fostering economic cooperation and devising trade solutions within member states, thereby contributing to their comprehensive social and economic advancement.
SPA highlighted that the activities during the IsDB meeting laid the groundwork for the launch of additional initiatives, aiming to further bolster economic cooperation and maximize development impact for member states.
