Riyadh: November data showed a rebound in consumer spending compared to the previous month. PMI index slowed for the second consecutive month, according to Jadwa Investment’s Research report titled “Saudi Chartbook – January 2015.”
New data released by CDSI showed a change in the base year (from 1999 to 2010) used for calculating real growth, as well as a revision to sectoral shares of real GDP. Real GDP growth improved in 2014 as oil sector growth was higher than expected, while the nonoil sector continued its healthy expansion.
Month-on-month bank lending to private sector declined for the first time since December 2011. Inflation further cooled off during November as both the food and housing components slowed.
The current account surplus fell in the third quarter owing to a record high deficit in the services account.
Brent crude oil fell to a five and half year low below $57 per barrel in December as ample global supply outweighed lost production from Libya. WTI came under pressure as both U.S crude and gasoline stocks surged, month-on-month.
Saudi crude production declined slightly, month-on-month, in November. Libyan production declined once more as internal conflict in the country resurfaced.
Diverging expectations about monetary policies in the U.S on one side and the Euro zone and Japan on the other side saw the dollar continuing to strengthen in December.
Investor sentiment continues to be negatively affected by lower oil prices but seasonal factors, such as the holiday period in most parts of the world, also dampened investor appetite during December.
Average daily turnover jumped by 19.8 percent in December, month-on-month, reversing the negative trend of the three previous months.
The decline in the TASI during December saw valuations recover, month-on-month, although price to earnings (P/E) still remain below the two year average.
The drop in TASI during December meant that only three sectors saw positive performance during the month.