Blog

https://arab.news/mra3g
SINGAPORE/LONDON: US Treasury yields held near multiyear highs on Friday, with markets seeing no end to tightening from the Federal Reserve, causing shares to slip and the dollar to strengthen, particularly on the yen, against which it hit a new 32 year top, according to Reuters.
The benchmark US 10-year yield edged up as high as 4.291 percent, its highest level since June 2008, having risen nearly 10 basis points overnight.
This dragged on shares, with Europe’s STOXX index falling 1.3 percent, US S&P500 futures sliding 0.6 percent and MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.92 percent, languishing near the two-and-a-half year intraday low it touched the day before.
“It’s all so tenuous… The problem is the macro environment still remains difficult,” said Shane Oliver, chief economist at AMP Capital, adding that the market is in a tug of war between investors who see opportunities and those who are focused on the difficult backdrop.
Global markets have been extremely volatile as investors worry that hefty rate hikes will push major economies into recessions before inflation is tamed, while the resulting stronger dollar could wreak havoc in emerging markets.
Philadelphia Federal Reserve President Patrick Harker on Thursday suggested the central bank will “keep raising rates for a while,” while US economic data showed persistent labor market tightness.
Third-quarter corporate earnings have offered little help to equities. On Friday Adidas shares dropped 10 percent as the German sporting goods maker cut its full-year outlook, citing weaker demand.
European retail shares were down 3.8 percent, also hurt by Friday data showing British shoppers reined in their spending more sharply than expected in September.
Chinese blue chips slid 0.3 percent, with China watchers waiting for Sunday when members of the ruling Communist Party’s elite Politburo Standing Committee are set to be unveiled at the conclusion of its twice-a-decade congress. Xi Jinping is set to clinch a third five-year term as China’s leader.
Yen keeps weakening 
Higher US yields were also being felt in currency markets, where the dollar climbed nearly 1 percent to a fresh 32-year peak on the yen of 151.59.
“This rate environment continues to (cast) doubts (on) the sustainability of any rally in equities, and chances that the dollar will receive more safe-haven flows are elevated,” said Francesco Pesole foreign exchange strategist at ING in a note to clients.
The Japanese currency, which was heading for its 13th straight session of declines, is particularly sensitive to moves in US yields as the Bank of Japan has a policy of keeping benchmark Japanese government bond yields near zero.
Fresh threats of intervention to support the yen made by Japanese policymakers have kept investors on alert, although there has been no official announcement of further action since the Ministry of Finance’s dollar-selling, yen-buying intervention last month.
Sterling was also under pressure, down 1 percent against the dollar, as Conservative lawmakers jostled to replace Liz Truss, after initially rising when she announced that she was stepping down as prime minister.
“The field seems to be narrowing to: (Rishi) Sunak, (Penny) Mordaunt, and (Boris) Johnson. Mordaunt and Johnson are the risk-off/cable-off/gilts-off candidates, while Sunak is probably the opposite,” said BMO Capital Markets analysts in a note.
Cable is the sterling/dollar currency pair, gilts are British government bonds.
European bond yields are also rising and Germany’s benchmark bond yield hit a new 11-year high of 2.512 percent.
Brent crude was last up 0.37 percent at $92.69 per barrel, while spot gold was down 0.25 percent and set for its second weekly decline.
 
RIYADH: Arab National Bank has reported a 33 percent profit increase during the first nine months of 2022.
The bank recorded a net profit of SR2.3 billion ($612 million), compared to SR1.7 billion in the same period a year earlier, according to a bourse filing.
The profit growth is primarily attributable to higher gains from special commissions, financing, and investment activities, along with a rise in net exchange and trading income.
The value of the bank’s assets grew by 13.7 percent on the year to SR207 billion, with deposits rising 14 percent.
Founded in 1979, Riyadh-based Arab National Bank is one of the ten largest in the Middle East, operating 156 branches throughout the Kingdom.
RIYADH: Bank AlJazira’s net profit for the first nine months of 2022 rose 11 percent to SR865 million ($230 million), according to a bourse statement. 
The statement noted that the total operating profit of the bank until the end of September stands at SR2.67 billion compared to SR2.65 billion, during the same period last year. 
The profit hike was driven by lower operating costs, mainly due to a decrease in a net impairment charge for financing and other financial assets, the statement added. 
On Oct. 23, three of the top banks in Saudi Arabia — Saudi National Bank, Al-Rajhi Bank, and Riyad Bank — also reported a rise in net profits during the first nine months of 2022. 
In the first nine months, Saudi National Bank posted a 42 percent surge to SR14 billion, while Al-Rajhi Bank reported a 19 percent rise to SR13 billion. 
Riyad Bank saw its profit soar by 13 percent to SR5 billion in the first nine months of 2022.
RIYADH: Eastern Province Cement Co. has posted a 43 percent profit drop for the first nine months of 2022, dragged down by lower sales.
The Saudi-listed cement producer’s profit went down to SR91 million ($24 million) from SR159 million in the same period a year earlier, a bourse filing revealed.
The profit drop was mainly driven by a fall in cement sales, an increase in selling and other expenses, and a decrease in the share of profit of associates.
Total sales fell by 11 percent on the year to SR531 million, compared to SR598 million in the same period last year.
RIYADH: Financial investment and advisory firm Rothschild & Co. has officially entered Saudi Arabia by making two key appointments, as it aims to tap into the potential of one of the most promising investment banking markets globally. 
The Paris-based financial group named Nasser Al Issa as the firm’s head in Saudi Arabia, while Mark Sedwill has been named the chairman, Bloomberg reported, citing people familiar with the matter.
The people who wished to stay anonymous revealed that Rothschild began applying for a license to set up in the Kingdom earlier this year, and it is planning to add more bankers in Riyadh. 
Representatives of Rothschild, however, were not available to comment on the Bloomberg report. 
According to Al Issa’s LinkedIn profile, he was the chief investment officer at Saudi Agricultural and Livestock Investment Co., before joining Rothschild. 
Al Issa has also worked with domestic banks including Samba Financial Group and National Commercial Bank. 
Sedwill is a former civil servant in Britain, and he is also a member of the House of Lords. He joined Rothschild last year and is currently serving as a member of the firm’s advisory board. 
In line with the goals outlined in the Kingdom’s Vision 2030, Saudi Arabia is steadily diversifying its economy which has been dependent on oil for several decades. 
Riyadh has already opened up its stock market to foreign investors, and the Kingdom’s Public Investment Fund is now one of the most prolific investors globally. 
On Oct. 23, Bloomberg reported that JPMorgan Chase & Co, one of the largest banks in the US, is set to add an additional 20 people to its operations in Saudi Arabia by the end of the year. 
The report noted that the bank is expected to double the size of its Saudi operations by the end of the year, compared to 2016, Bader Al-Amoudi, JPMorgan’s senior country officer said. 
He also noted that the bank will be hiring people across investment banking, local custody, client services and back office. 
RIYADH: Saudi Arabia’s main index finished higher again on the back of stronger earnings results and a spike in oil prices.
The Tadawul All Share Index rose 0.57 percent to end at 12,075, while the parallel market Nomu shed 1.12 percent to finish at 19,780.
Saudi oil giant Aramco ended the session flat, while Rabigh Refining and Petrochemical Co. decreased 2.05 percent.
Saudi National Bank, the Kingdom’s largest lender, ended flat, a day after it announced a 42 percent surge in profit to SR14 billion ($3.8 billion).
The Kingdom’s most valuable bank, Al Rajhi, increased by 0.69 percent, after posting a 19 percent rise in profit to SR13 billion in the first nine months of 2022.
Riyad Bank added 1.84 percent, after its profit soared by 13 percent to SR5 billion in the first nine months of 2022.
Hospital operator Dr. Sulaiman Al Habib Group gained 1.39 percent, after it recorded a 22 percent increase in profit for the first nine months of 2022.
Middle East Paper Co. declined 0.55, after it invited its shareholders to vote on a 33 percent capital raise to SR666 million.
Saudia Dairy and Foodstuff Co. gained 9.95 percent to lead the gainers, after it reported a 55 percent profit increase in the first nine months of 2022 to SR142 million.
Saudi Kayan Petrochemical Co. shed 3.77 percent to lead the fallers, after it turned into losses of SR453 million in the first nine months of 2022.

source