Tadawul closes up 0.6 percent; Al Rajhi Bank largest heavyweight on MT30: Market Wrap

Tadawul closes up 0.6 percent; Al Rajhi Bank largest heavyweight on MT30: Market Wrap
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Updated 14 October 2021

Tadawul closes up 0.6 percent; Al Rajhi Bank largest heavyweight on MT30: Market Wrap

Tadawul closes up 0.6 percent; Al Rajhi Bank largest heavyweight on MT30: Market Wrap

RIYADH: The Tadawul share index was up 74 points on Thursday, or 0.6 percent, closing at 11,669 points.

Some 194.6 million of shares changed hands in 336.000 deals, with heavy trading in ACWA Power, SABIC, Kayan.

Yansab shares surged by 7 percent for the fifth consecutive session, while Saudi Aramco shares rose by 0.8 percent and “SABIC" rose by more than 1 percent.

The Saudi Exchange “Tadawul” disclosed the top ten companies on the MSCI Tadawul 30 Index “MT30” by the end of September 2021.

The 10 companies accounted for 74.58 percent of the index weight, compared to 74.47 percent by the end of June 2021.

Al Rajhi Bank topped the list of the largest weighted stocks on the index with 14.51 percent with Saudi National Bank “SNB” on the second place with 14.29 percent. 

Oil giant Saudi Aramco secured fourth place with 8.40 percent, while STC retreated to the fifth rank.

SABIC Agri-Nutrients was ranked sixth with a weight of 3.93 percent. 

The parallel stock market index Nomu closed up 23999.49 points, or 2.45 percent, at points 573.89 with 2812 deals. 

The biggest fallers were, Arab Sea shares by 1.8 percent, Tanmiah food company by 1.3 percent, and Mulkia gulf real estate by 1.2 percent. 

The biggest winners on Thursday were Yansab and Petro Rabigh, which rose by 6 per cent, while National gypsum co. Petrochem, Naseej, and Saudi Advanced Industries increased by more than 4 percent. 


Oil profits at risk as natural gas prices surge

Oil profits at risk as natural gas prices surge
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Updated 21 sec ago

Oil profits at risk as natural gas prices surge

Oil profits at risk as natural gas prices surge
  • The cost of processing more sulfurous crudes has risen by $6

RIYADH: The surging prices of natural gas are threatening to eat up the profit some oil refiners are making on their fuels, forcing them to cut processing rates and even altering normal crude-buying patterns, Bloomberg reported.

Natural gas — specifically methane — is central to making the hydrogen that oil refineries rely on for diesel-producing machines called hydrocrackers and hydrotreaters, which help to eliminate sulfur.

The cost of processing more sulfurous crudes has risen by $6, a ten times increase compared to two years ago, due to surging natural gas prices, according to the International Energy Agency (IEA). 

European refineries make hydrogen by steam reforming of methane, and the price of methane is unbelievable, according to Callum Macpherson, head of commodities at Investec Plc. 

This will make some refinery operations unprofitable, the IEA, an adviser to oil-consuming nations, said. Making hydrogen is a very energy-intensive process.

Knowing exactly how overall margins — or the decisions that refineries take on crude selection — will be affected is not easy, according to IEA. The proportion of refineries that have secured their gas through long-term contracts, avoiding them from being exposed to spot prices, is unknown, IEA explained.

Higher natural gas prices may reduce oil-processing margins by $3 to $5 a barrel, hurting profits just as the market for fuels is showing clear signs of recovery, Bloomberg reported, citing an official at one oil refinery in the Mediterranean.


UAE banks' assets to grow 8% in 2022, says banking official

UAE banks' assets to grow 8% in 2022, says banking official
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Updated 42 min 46 sec ago

UAE banks' assets to grow 8% in 2022, says banking official

UAE banks' assets to grow 8% in 2022, says banking official
  • The UAE economy will reap benefits from the world fair Expo 2020 for about eight years

RIYADH: Emirati banks' assets are expected to grow 8 percent in 2022, the head of the UAE Banks Federation Abdul Aziz Al Ghurair told Al Arabiya on Sunday.

The UAE's economy will grow next year by 5 percent and the return of tourism activity will support the growth of assets to this level, he said.

The UAE economy will reap benefits from the world fair Expo 2020 for about eight years, he said. "Expo 2020 restored trust in UAE's economy," he said.

Expo 2020 opened its doors in Dubai this month.

The Central Bank of Emirates's support of 250 billion dirhams ($68 billion) had a significant impact in mitigating the impact of the Corona pandemic on the economic sector and individuals, and overcoming that phase, Al Ghurair said.


He added that the UAE economy and banks are currently reaping the fruits of the support of the UAE Central Bank.

Al Ghurair revealed that 95 percent of the UAE banks have refunded the support amounts and have the ability to support the economy and individuals without the need for support from the Central Bank.

The banking sector dealt with doubtful loans during the past two years and in 2021, noting that the levels of allocations for these loans will return to their normal levels next year, between 1.5 and 2 percent.

The demand for the real estate sector has increased significantly now, after the UAE has proven that it can be relied upon in times of crisis, Al Ghurair said, expecting real estate prices in the country to return to acceptable levels.


Saudi National Bank shares hit highest level since listing

Saudi National Bank shares hit highest level since listing
Updated 24 October 2021

Saudi National Bank shares hit highest level since listing

Saudi National Bank shares hit highest level since listing

Shares of Saudi National Bank (SNB) hit their highest level since listing, at SR 66 today, on Sunday.

The stock rose 1 percent during the day, with nearly 350,000 shares traded so far, Argaam has reported.


EU rubber stamps S&P Global deal to buy IHS Markit

EU rubber stamps S&P Global deal to buy IHS Markit
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Updated 24 October 2021

EU rubber stamps S&P Global deal to buy IHS Markit

EU rubber stamps S&P Global deal to buy IHS Markit
  • The companies said Friday they now expect to close the deal in the first quarter of next year

S&P Global Inc. won European Union approval to buy IHS Markit Ltd. after agreeing to sell off commodity price assessment and financial data businesses, Bloomberg reported.

The divestments removed “problematic overlaps” that could have “limited customers’ access to some competitive and reliable data which is essential to ensure fairness of physical trades and financial markets,” the European Commission said in an emailed press release last Friday.

The deal, initially valued at about $39 billion in stock, marries S&P, one of the most famous names in financial markets, with a research company that supplies forecasts to most of the world’s biggest companies.

“S&P Global and IHS Markit expect the proposed remedies to be sufficient to satisfy global regulators, the companies said.

 The companies said Friday they now expect to close the deal in the first quarter of next year.

The deal has sailed past the UK’s Competition and Markets Authority regulators, who also said they will clear the deal if concerns are addressed.


Saudi central bank mulls blockchain use, says no to phasing out cash

Saudi central bank mulls blockchain use, says no to phasing out cash
Updated 24 October 2021

Saudi central bank mulls blockchain use, says no to phasing out cash

Saudi central bank mulls blockchain use, says no to phasing out cash
  • SAMA is one of the first central banks in the G20 countries to experience distributed ledgers and blockchain technologies through the "Aber" digital currency project.
  • The government wants to boost e-payments to 70 percent of total transactions by 2030, the central bank said, as it has no intention of completely phasing out banknotes. 

CAIRO: The Saudi Central Bank (SAMA) is still examining some emerging technologies, including distributed ledgers and blockchain, before it makes any decision, according to a report from Al Eqtisadiah.

SAMA is one of the first central banks in the G20 countries to experience distributed ledgers and blockchain technologies through the "Aber" digital currency project.

These efforts are part of the central bank’s push to a less cash-dependent society, as outlined under the Kingdom’s Vision 2030.

The government wants to boost e-payments to 70 percent of total transactions by 2030, the central bank said, as it has no intention of completely phasing out banknotes. 

SAMA is optimistic it would achieve this goal five years earlier than the 2030 target.