Tadawul Shares Rebound on US-Iran Deal Optimism
Saudi equities rebounded on Wednesday as optimism regarding the potential progress of the US-Iran talks pushed the Tadawul All Share Index 0.53% in the green.Iran and the US are holding technical talks in Qatar in hopes of further advancing their agreements on a permanent ceasefire, as well as the Strait of Hormuz's shipping flow, Reuters reported, citing sources."The oil market continues to take an optimistic view on a supply recovery from the Persian Gulf, despite recent flare-ups between the US and Iran. Indirect talks in Doha this week have reportedly been positive," ING said in a note. "In the natural gas market, QatarEnergy reportedly extended force majeure on some LNG shipments to Asia and Europe until August, and in some cases into early September. This suggests that the LNG market could see a more gradual recovery in supplies following the temporary peace deal between the US and Iran."The meeting in Doha saw US envoys Jared Kushner and Steve Witkoff engage with the Qatari and Pakistani mediators for the talks. Meanwhile, an Iranian official said that the discussions will also focus on the release of its frozen assets worth $6 billion.Back at home, data from the Saudi Central Bank showed that the country's May M3 money supply increased 8.9% year over year, following a 10% growth in the prior month. Meanwhile, private bank lending grew 6.6% in the reporting month, compared with the 7.2% rise in April.On the corporate front, Knowledge Tower Trading (SASE:9551) shares ticked down 4.41% as the educational books retailer logged a 75.3% drop in its attributable net profit and a 26.36% decline in its revenue for the 12 months ended March 31.
