National banks deliver to boost Saudi stocks

Saudi Arabia’s index gained 1.2 percent. (Reuters)
Updated 07 February 2019

National banks deliver to boost Saudi stocks

  • National Commercial Bank added 3.9 percent, while Al Rajhi Bank was up 1.4 percent after the Capital Market Authority approved an increase in capital
  • Saudi Arabia’s impending entry into emerging market indexes should mean a $15 billion inflow of passive benchmark-linked funds

DUBAI: Saudi Arabia’s index gained 1.2 percent with National Commercial Bank adding 3.9 percent. Ratings agency Moody’s said the bank’s brand and diversified assets make it resilient to slower economic growth in Saudi Arabia.
Al Rajhi Bank was up 1.4 percent after the Capital Market Authority approved an increase in capital. The bank, which is currently capitalized at SR16.25 billion ($4.3 billion), proposed increasing its capital to up to SR25 billion.
Saudi Arabia’s impending entry into emerging market indexes should mean a $15 billion inflow of “passive” benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Saudi’s Almarai climbed 1.7 percent after the firm said it would acquire Premier Foods for an enterprise value of SR108 million.
In Dubai, the index added 0.5 percent with Emirates NBD, its largest bank, gaining 2.1 percent. The company called a shareholders’ meeting on Feb. 20 to discuss the issue of non-convertible securities.
Commercial Bank of Dubai rose 0.8 percent after its board proposed a full-year cash dividend of 20.7 percent of its share capital. The Abu Dhabi index rose 0.2 percent, with Emirates Telecommunications gaining 0.6 percent. Abu Dhabi Islamic Bank increased 1.6 percent to its highest since April 2016, its third straight session of gains. The lender has gained since reporting a 23 percent increase in its fourth-quarter net profit.
Qatar’s index edged down 0.1 percent, with Commercial Bank declining 0.8 percent despite reporting a higher full-year net profit and proposing a cash dividend of 1.5 riyal per share for the same period.
Egypt’s blue-chip share index rose sharply on Tuesday boosted by major lender Commercial International Bank after its strong fourth-quarter earnings, while banks also lifted Saudi Arabia’s stock market.
Egypt’s index gained for a ninth straight session, climbing 2.6 percent with 27 of its 30 stocks rising.
The country’s biggest lender Commercial International Bank jumped 3.9 percent after it reported fourth-quarter net profit after interest of 2.56 billion Egyptian pounds ($146 million) compared to 1.87 billion pounds a year ago. Global Telecom Holding climbed 3.3 percent to its highest since July after major shareholder Veon said that it offered to buy out the firm.


Saudi companies display latest technologies at Dubai Airshow

Updated 17 November 2019

Saudi companies display latest technologies at Dubai Airshow

DUBAI: Over 25 Saudi companies and government institutions are taking part in the Dubai Airshow hoping to snag deals for their latest defense and aviation technologies being showcased at the biennial event.

The Middle East’s biggest aviation gathering opened on Sunday sans major announcements for big-ticket aircraft purchases from Gulf flagship carriers, maybe also due to dozens of deals already been previously signed and the planes just waiting to be delivered.

Among the major Saudi companies in the event include the Saudi Arabian Military Industries (SAMI), fully owned by the Public Investment Fund, which has operations from aeronautics, land systems, naval systems, weapons and missiles and defense electronics.

SAMI aims to become among the top 25 companies globally by 2030 and to localize military spending, in line with the Kingdom’s vision.

Among other notable Saudi companies and institutions with a presence at the airshow are Saudi Airlines, flynas, The General Authority of Civil Aviation and the King Abdulaziz City for Science and Technology.

Meanwhile, Saudi INTRA Defense Technologies signed a Memorandum of Agreement with multinational defense company Hensoldt for the co-development and co-production of advanced electro-optic systems, as well as a joint venture agreement with EM&E for the transfer of technology and localization of the precision mechanical industries in the Kingdom.

ESEN Saudi, a hi-tech defense and aerospace engineering and production company, was also launched at the Dubai Airshow’s opening day.

Middle East Propulsion Company, which specializes in maintenance, repair and operations (MRO) for the Middle East, was also one of the Saudi companies on site. The company, which boasts of a workforce comprised of Saudi nationals of about 80 percent, aims to expand their services across the GCC and wider Middle East region.

Al-Salam Aerospace Industries meanwhile has on display latest advancements in the manufacture of key components for the F-15 fighter jet.