Oil Giant Aramco Regains Top Spot From Apple as Tech Rally Fades


© Reuters.

(Bloomberg) — Saudi Aramco (SE:) is once again the world’s most valuable company after its market capitalization rose a shade above Apple Inc. amid a slump in U.S. technology shares.

The state oil giant’s stock has gained 1.1% in Riyadh this month, despite dropping 12% to below $40 a barrel as concerns about an acceleration in coronavirus infections mount.

Meanwhile, Apple shares (NASDAQ:) have fallen nearly 17% in September. That’s almost taken the stock into bear-market territory — which is a 20% drop from a recent peak — and the company’s market value has declined to $1.9 trillion from $2.3 trillion.

Apple and Aramco are the only two companies to have achieved valuations of $2 trillion. Aramco, the world’s largest oil producer, peaked at just above that level in mid-December, shortly after its record initial public offering. Apple overtook it in July as technology firms soared amid massive U.S. monetary and fiscal stimulus to counter the fallout from the virus.

Aramco’s share price has been resilient partly because of its pledge to pay a $75 billion dividend this year. That would be more than five times what Apple’s paid out to shareholders in the past four quarters.

©2020 Bloomberg L.P.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Huawei under probe by U.S. prosecutors over new allegations - WSJ

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here