Tadawul index falls on profit-taking

Tadawul index falls on profit-taking
Updated 09 February 2016

Tadawul index falls on profit-taking

Tadawul index falls on profit-taking

DUBAI: Stock markets in the Middle East fell on Tuesday, erasing the prior session's gains, as risk appetite diminished following a slump in global shares.
Egypt's main index tumbled 2.8 percent to 6,004 points, erasing the prior session's gains as foreign funds redeemed shares, bourse data showed.
Commercial International Bank, a stock favoured by international fund managers, retreated 3.3 percent. Palm Hills Development declined 4.3 percent in heavy trade, after the real estate developer posted strong quarterly earnings early this week.
Egypt's central bank has been striving to maintain stability in the currency over the past several months, but foreign investors are still jittery about the possibility of a devaluation and the negative impact it would have on their investment returns and companies' earnings.
Sources told Reuters on Monday that General Motors had temporarily suspended its operations in Cairo because of the hard currency shortage — a sign of how serious the country's economic slump remains.
The Tadawul All-Share Index fell 0.5 percent to 5,874 points, after briefly trading in positive territory, as local traders cashed out of small and mid-cap stocks, which had helped lift the index 0.2 percent on Monday.
"It's a stock picker's market at this point," said a Jeddah-based stock broker. "Traders are buying speculative stocks to book a quick profit and either cash out or rotate into the blue- chips."
The majority of speculative insurance stocks retreated, with Al-Sagr Cooperative Insurance slumping 4.4 percent after it had jumped 8.1 percent the previous day.
Dubai's index dropped 1.0 percent to 3,065 points, but closed 42 points above its intra-day low. Blue-chip stocks were the main drag on the bourse, with Emirates NBD, the largest lender by assets, tumbling 4.5 percent. But some small and mid-cap stocks favored by local retail investors rose, with DAMAC Properties adding 4.8 percent, after falling by as much as 2.0 percent in early trade. Drake & Scull, a construction firm, added 1.2 percent.
In Abu Dhabi, the benchmark also fell 1.0 percent, weighed down by a sell-off in large-cap banks. Abu Dhabi Commercial Bank fell 3.4 percent and National Bank of Abu Dhabi lost 2.1 percent.
United Arab Emirates stock markets, however, have recovered in recent weeks from multi-year lows hit in mid-January. Abu Dhabi and Dubai, down 5.7 and 2.7 percent respectively in 2016, have outperformed both their regional peers and crude oil prices this year.


Saudi fintech startup secures $1.2m seed funding

Saudi fintech startup secures $1.2m seed funding
Updated 12 min 5 sec ago

Saudi fintech startup secures $1.2m seed funding

Saudi fintech startup secures $1.2m seed funding
  • The Kingdom has proved to be a fruitful market for investment in startups

RIYADH: A Saudi financial technology company has raised $1.2 million in seed funding.

Hakbah’s success comes six months after the Riyadh-based startup received regulatory approval from the Saudi Central Bank (SAMA) to operate in the Kingdom.

The specific investors behind the financing have not been revealed.

Founded in late 2018 by Naif AbuSaida, Hakbah specializes in alternative saving and savings groups.

On its LinkedIn profile, the firm describes its mission “is to digitize financial habits by developing innovative savings products that help increase financial inclusion, support a non-cash society, and bridge the gender gap in savings.”

Hakbah graduated from the DIFC Fintech Accelerator Program 2019 in Dubai.

The Kingdom has proved to be a fruitful market for investment in startups. Saudi Arabia recorded a 35 percent year-on-year increase in the number of investment deals in the technology startup sector last year, according to a new industry report.

A study by data research platform Magnitt found that the Kingdom accounted for 18 percent of the 496 investment deals throughout the Middle East and North Africa (MENA) region last year.

Saudi Arabia, the UAE, and Egypt were the largest markets, accounting for 68 percent of total deals. However, while the Kingdom saw the number of investment deals increase by more than one-third, the UAE and Egypt witnessed volume decreases of 17 percent and 10 percent, respectively.

When it came to the monetary value of the deals, Saudi Arabia recorded a surge of 55 percent year-on-year to $152 million.

Nabeel Koshak, CEO at Saudi Venture Capital Co., said: “Saudi Arabia is witnessing an increase in the quality and quantity in the deal flow of startups. I am thrilled by the distinguished entrepreneurs who are creating fast growth and scalable startups.

“Despite the slowdown of (the coronavirus disease) COVID-19, Saudi Arabia saw a record increase in venture capital funding (55 percent) in 2020 compared with 2019.”

In its predictions for this year, Magnitt forecast that Saudi Arabia would overtake Egypt by total number of investments and capital deployed and become second only to the UAE in the rankings.