Tadawul shrugs off early December gains, TASI down 1.1%: Market Wrap

Tadawul shrugs off early December gains, TASI down 1.1%: Market Wrap
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Updated 06 December 2021

Tadawul shrugs off early December gains, TASI down 1.1%: Market Wrap

Tadawul shrugs off early December gains, TASI down 1.1%: Market Wrap

RIYADH: Saudi’s main and parallel indexes, TASI and Nomu, fell at Monday’s closing bell following a three-day hike, down 1.09 percent and 1.65 percent respectively.

TASI jumped almost 140 points in early trading before closing at 11021.07 points.

Monday’s trading session was led by Sadr Logistics and Wafrah for Industry and Development Co., rising by 9.98 percent.

Sadr Logistics is now traded at SR94.8 ($25.27), marking an all-time high for the company.

stc was one of the lowest-performing stocks with a decline of 5.34 percent to SR110. SABIC was down to SR110.4.

Al Rajhi Bank fell approximately one percent to reach SR137.

The bank negotiated three deals worth SR28.5 million today.

Nayifat Finance Co. announced the distribution of cash dividends for the second and third quarters of 2021 at 7.5 percent of the share value.

The Capital Market Authority approved Amana Cooperative Insurance Co.’s request to increase its capital to around SR288 million by issuing 15 million ordinary shares.

The capital raised is earmarked for merging Saudi Enaya Cooperative Insurance Co. into Amana Insurance.

The Company for Cooperative Insurance, or Tawuniya, received a firm order from The Saudi National Bank to provide health insurance services for bank employees and their families.

 

11am Saudi time: TASI rises for a third consecutive day, up 1 percent in early trading, led by SADR: Market Open

RIYADH: Share prices of the major players in the Saudi stock market rose for a third consecutive day as omicron-related imbalances eased.

Sadr Logistics came on top of the biggest gainers, up almost 10 percent to SR94.8 ($25.26), which marks an all-time record for the company.

Biggest moving stocks of the day also include Wafrah for Industry and Development Co., National Industrialization Co., and Al Kathiri Holding Co, up 6.26 percent, 5.02 percent, and 4.14 percent respectively.

Today’s gains were crimped by a 3.97 percent drop in stc’s price.

This came as the Saudi Public Investment Fund and stc’s announced the subscription period for stc’s secondary offering that could raise as much as SR11.6 billion.

 

9:30am Saudi time: Will TASI reignite after its slight fall in November? Here are key takeaways: Premarket

Saudi Arabia’s main benchmark index TASI started the week in the green zone with stocks recouping omicron-related declines, up around 350 points from last week.

Al Rajhi Bank traded at 4.8 percent higher this week with around 4 million traded shares.

Sahara International Petrochemical Company saw a recovery of 7.44 percent.

The Kingdom’s oil giant Aramco saw gains of 0.72 percent.

This came as the group announced its entry into the Kingdom’s domestic lubricants as well as its collaboration agreement with French companies including hydrogen car deals with Gaussin.

The International Company for Water & Power Projects, or ACWA Power, and Natixis CIB signed a memorandum of understanding aiming to collaborate on the development of ACWA power in the GCC region.

Natixis CIB will finance up to almost SR7.5 billion ($2 billion) over two years to finance ACWA Power’s projects.

Sadr Logistics’ shareholders approved the board of directors’ recommendation to raise SR175 million through a rights issue worth SR150 million to expand its logistics services. The rights issue trading and new share subscription period will start today Dec.6.

Apart from its rights issue, Sadr Logistics has been on the rise since last week jumping to an all-time high of SR86.2.

With reference to the Public Investment Fund and stc’s earlier announcement, the subscription period for stc’s secondary offering will start on Dec.7 and end on Dec. 8 for retail tranche whereas, for participating parties, it started yesterday and will end on Dec.9.

Saudi Exchange announced the initial public offering of Saudi Tadawul Group Holding Company to be 442.53 percent oversubscribed.

Subscriptions exceeding individual subscribers will be refunded no later than Dec.8, when the listing and trading of the company’s shares on the main market will begin.

Jahez International Company for Information Systems Technology issued the prospectus for its initial public offering at 13 percent of its capital on Nomu, Tadawul’s parallel market.

The offering period will commence on Dec. 23 and end on Dec. 26.


Iconic London store Fortnum & Mason looking to expand into Qatar in time for World Cup

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
Updated 26 January 2022

Iconic London store Fortnum & Mason looking to expand into Qatar in time for World Cup

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
  • 315-year-old store counts Queen Elizabeth and Prince Charles among its customers

LONDON: One of London’s most popular department stores is in talks to open a branch in Qatar ahead of this winter’s FIFA World Cup, according to a Sky News report.

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, is believed to be discussing a franchise opportunity with partners in the country.

The company’s chief executive, Tom Athron, wants to continue the brand expansion which took place under his predecessor, Ewan Venters, which included a first outlet in the Gulf, in Dubai, which closed in 2017.

The 315-year-old store, which is owned by a branch of the Weston family, already has a store in Hong Kong, and partnerships in Australia and Japan.

“As part of our strategy, we are exploring opportunities to expand both online and internationally, the Gulf being a region we’d like to look at again,” a spokesman for Fortnum & Mason said.

Fortnum’s business was hit badly during the early stages of the COVID-19 pandemic, but has seen strong growth in its online business, and the firm hopes expanding into Qatar ahead of the World Cup in November could raise the brand’s global profile.


US car makers and medical suppliers warn chip shortage will last for more than six months

US car makers and medical suppliers warn chip shortage will last for more than six months
Updated 26 January 2022

US car makers and medical suppliers warn chip shortage will last for more than six months

US car makers and medical suppliers warn chip shortage will last for more than six months

RIYADH: US businesses are worried that the global semiconductor supply shortage is set to last for at least six more months, according to report put together by the country's Department of Commerce.

The White House was urged to push ahead with a $52 billion plan previously submitted to Congress to stimulate semiconductor makers and encourage them to build factories in the US, Bloomberg reported.

The report, released on Tuesday, was based on information taken from more than 150 companies in the semiconductors supply chain, and stated that the global shortage of chips will persist until the second half of 2022 as: “there is a significant, persistent mismatch in supply and demand for chips.”

The most affected industries by the shortage include automakers, consumer electronic, medical devices, broadband, and auto industries.

Even though the government does not have many alternatives in hand to solve the current issue, US officials will focus on resolving bottlenecks in those supply chains, and investigate claims of chips price gouging for some types of semiconductors, the report said.

Average inventory level fell from 40 days to fewer than 5 days, resulting in no room for error, Commerce Secretary Gina Raimondo said in a briefing with reporters discussing the findings of the report. The median demand for chips was 17 percent higher in 2021 than in 2019, coupled with disproportionate increases in supply.

Disruption in the supply of semiconductors, which plays a key factor in determining the country’s inflation level, could threaten to help swing Congress to Republican control in November’s midterm elections.

Many firms have been recently expanding their operations in the US, with Intel Corp. announcing it is building the world’s biggest silicon-manufacturing site in Columbus, Ohio, worth $20 billion, and expected to become operational in 2025.


Saudi, Iraq electrical connection to generate 1GW of power

Saudi, Iraq electrical connection to generate 1GW of power
Updated 26 January 2022

Saudi, Iraq electrical connection to generate 1GW of power

Saudi, Iraq electrical connection to generate 1GW of power

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman announced that the electrical connection between Saudi Arabia and Iraq will generate one gigawatt of power initially, according to the Iraqi News Agency.

This comes after Iraq has signed a memorandum of understanding regarding the matter with the Saudi side.

Nevertheless, “the Iraqi-Saudi cooperation is not limited to the electrical connection only, but rather it is the beginning of a joint collective action,” Iraqi News Agency reported, citing the Prince.

Bilateral models need to be further developed and strengthened on a regional and Arab scale, he added.


Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on
Updated 26 January 2022

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Plagued by constant power shortages, Lebanon’s new agreement with Jordan and Syria could be seen as a turning point for the energy-poor nation.

Yet the deal — which will see electricity flow from Syria — will not provide an immediate solution to the country’s energy problems, according to Lebanese oil and gas expert Laury Hatayan.

Speaking to Arab News, Hatayan says there are still plenty of hurdles to jump before the agreement — brokered by the US and expected to be partially financed by the World Bank — begins to help the country with its power outages.

“The deal doesn’t mean Lebanon will be provided with electricity tomorrow, as we are hearing that the World Bank has conditioned finalizing the arrangement on reforms to the electricity sector,” Hatayan said.   

The deal would supply Lebanon with 700 Megawatts of electricity in total: 250MW from Jordan and 450MW from Egypt.

With the Iraqi fuel supplies that have already kicked in and future supply by Egypt, Lebanon will be able to get a total of 10 hours of electricity per day.

This much-needed boost does not come without strings attached, according to Marc Ayoub, energy researcher and program coordinator at the American University of Beirut’s Issam Fares Institute.

“The World Bank is asking for a comprehensive reform plan of the electricity sector including loss reductions, improving bill collection and increasing electricity tariffs,” he said.

The World Bank’s regional director, Saroj Kumar Jha, has said that the exact amount of financing has not yet been determined, but the government’s initial request was $250 million, he told L’Orient Today.

Lebanon will also have to conduct repairs to the Lebanese side of a pipeline needed to import gas from Egypt, at a cost of $1million.

Additionally, Jordanian electricity to Lebanon will come at a cost of $200 million a year. 

Other hurdles are political in nature, such as US sanctions on Syria. Washington has so far ensured regional players that the deal does not fall under the Caesar Act sanctions or other US sanctions on Syria because the Syrian government will not receive any financial compensation but will be paid in kind.   

“The Egyptians are keen on getting guarantees against the Cesar Act. The Jordanians are not as wary given their strategic relations with the US,” adds Hatayan.

The deal and any electricity reforms must be approved by Parliament, which is known for its inefficiency and dissensions. 

The announcement by former PM Saad Hariri of his plan to retire from political life has cast doubt as to the fate of his current political bloc. Hariri heads the Future movement, the biggest Sunni bloc in parliament.

“For now, no reforms mean no money and deals can remain just deals (without being implemented),” highlights Hatayan.

If financing is finally secured Ayoub believes that Jordanian electricity is expected to flow to Lebanon by April or May.


Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom
Updated 26 January 2022

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

RIYADH: Saudi-listed National Petrochemical Co., better known as Petrochem, saw its profits surge almost fivefold in 2021.

As the Kingdom’s chemical sector grew, profits of the homegrown firm hit SR1.4 billion ($370 million), compared to SR230 million a year earlier.

The company attributed the hike in profits to higher product prices and drops in Zakat expenses, according to a bourse filing.

On a wider scale, data by Gastat earlier showed that outgoing chemical shipments picked up pace significantly, prompting Saudi non-oil exports growth to hit an annual rate of 26.1 percent in November.

Established in 2008, Petrochem operates in the Kingdom’s petrochemical sector. It owns 65 percent of Saudi Polymer Co., located in Jubail Industrial City.