Saudi Aramco IPO Faces Low Interest from Investors | DZHI - DZH International 
logo

Saudi Aramco IPO Faces Low Interest from Investors

  • DAR Wong
  • 25 November 2019

CURRENCY MARKET OBSERVATIONS – 25 November 2019

 

Saudi Aramco IPO Faces Low Interest from Investors

Fundamental Outlook   The U.S. Congress passes a bill to support the protestors in HK. Despite the disagreement by Chinese government, Beijing leaders have invited US trade representatives to China for a face to face talk on negotiating the trade deal.

Trade deal negotiation remains uncertain between the world’s two largest economies. On Friday, President Trump commented the trade deal is very near to closing with China and can be completed before year-end. Dow benchmark rose but fizzled off 28,000 major level.

Last week, WTI Crude oil broke two months high and settled above $58/barrel after OPEC and Russia confirmed they will continue cut production in 2020. Market threaded in narrow range but failed to settle higher for weekend’s closing.

Saudi Aramco cancels foreign road shows due to lack of interest from offshore institutional investors. Till date, Russia Lukoil and Malaysia Petronas have confirmed their bypass on this investment. Other state investments are holding neutral view and yet to decide on advancing into the subscription for this new IPO.

During the G20 meeting held in Japan, Chinese State Councillor Wang Yi openly criticized U.S. as the biggest destabilizing factor in the world. Beijing Government expresses strong resistance to the interference of U.S. Government for supporting Hong Kong protest.

 

Technical Forecast   USD/JPY traded flat around 108.50 for whole week despite Dollar Index grew stronger. This week, we reckon the trend will be initially contained from 108.00 – 109.00 range until it breaks out in either direction. In our opinion, going beyond the aforementioned range will extend another 100 pips in market.

 

EUR/USD fell little on Friday before market closed. This week, we foresee the market will be ambushed with buying interest at 1.0950 – 1.1000 in case of drawdown. Topside resistance remains at 1.1100 level that will compress the range from 1.0950 – 1.1100 region. Technically, the direction of Dollar Index will be main influence on Euro trend this week.

 

GBP/USD tried but failed to reach 1.3000 level last week. Moving forward, the trend will be initially contained from 1.2700 - 1.2900 region until it comes out of it. In next few weeks, we project sideways trading activity in market until the General Election is over and emerges a clearer directional trend.

 

Gold prices topped off USD1480 /oz last week as Dollar grew stronger. This week, we forecast the trend will be prone to bearish direction but limited to USD1440 /oz bottom. Overall range is expected from USD1440 – USD1480 /oz while waiting for Dollar Index to reveal a clearer direction. Beware of the rising Crude prices that might push the gold metal lower.

                           

WTI Crude prices eked out USD58 /barrel last week but settled slightly below this level on Friday.  Market is strongly support at USD56 /barrel and we aim to see the bulls pick up this week. Topside range may target at USD62 /barrel once it pierces above USD58 /barrel. However, beware of unexpected falling beneath USD56 /barrel that will nullify all bullish projection.

 

Silver prices closed below USD17.00 /oz for weekend while resistance has emerged at USD17.30 /oz level. This week, we foresee the trend will turn bearish just like yellow metal. Initial support is seen at USD16.50 /oz and likely to trade in mixed activity amid narrow range. Proper risk control is recommended in case the trend falls beyond the USD16.50 /oz support.

 

Crude Palm Oil (FCPO) Futures on Bursa Derivatives climbed higher due to weaker Ringgit and lower production. Analysts comment the production will fall in coming years due to weather changes. February20 Futures contract closed at RM2743 /MT on Friday. This week, we have identified strong support at RM2650 /MT in case of drawdown. There is a potential on going higher to RM2850 /MT as the raging bulls squeeze out sellers.

 

 

DAR Wong has 30 years of trading and hedging experiences in global financial markets. The opinion is solely at his own.  He can be reached at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.