KSA’s Sidra fund exceeds annual target net returns

KSA’s Sidra fund exceeds annual target net returns
Short Url
Updated 07 December 2021

KSA’s Sidra fund exceeds annual target net returns

KSA’s Sidra fund exceeds annual target net returns

RIYADH: Saudi Arabia’s Sidra Income Fund, a US dollar-denominated investment fund, exceeded its annual target net return of 7.75 percent, delivering, 8.01 percent and 8.39 percent respectively in the last 24 months, said a statement.

The fund, focussed on financing supply chains, is managed by Sidra Capital, which is a Shariah-compliant investment fund regulated by Saudi Arabia’s Capital Market Authority.

Launched in September 2019, the $50-million Shariah-compliant fund, aims to capitalize on the infrastructure boom in Indonesia, while aiming to intervene in energy and infrastructure supply chains achieving stable, unlevered high yield return uncorrelated to the stock market and global commodity prices.

“The economy of Indonesia is the largest in Southeast Asia, and is one of the leading emerging market economies of the world,” explained Hani Baothman, chairman of Sidra Capital. 

“Following 2020’s pandemic-induced recession, rising infrastructure spending and unleashed pent-up demand amid supportive fiscal and monetary policies should sustain investment for the foreseeable future.”


Hyundai Motor expects vehicle production to rebound in H1 as chip supply improves

Hyundai Motor expects vehicle production to rebound in H1 as chip supply improves
Hyundai Motor Company Dealership
Updated 5 sec ago

Hyundai Motor expects vehicle production to rebound in H1 as chip supply improves

Hyundai Motor expects vehicle production to rebound in H1 as chip supply improves
  • Major automakers and dealers, such as Tesla Inc. and Honda Motor Company, have already raised car prices over the past year

South Korea’s Hyundai Motor Co. forecast on Tuesday its vehicle production would rebound in the first half of this year as a global chip shortage is expected to ease gradually from the second quarter.


“The normalization of auto chip supply and demand is expected in the third quarter, when the capacity of semiconductor companies is expected to rise,” Executive Vice President Seo Gang Hyun said on Hyundai’s conference call.


The shortage will continue in the first quarter due to the spread of the omicron variant, Seo said, adding it was the prolonged COVID-19 pandemic in Southeast Asia and resulting chip sourcing troubles that pushed Hyundai’s sales to less than the targeted 4 million vehicles in 2021.


Southeast Asia is central to the supply of basic chips that drive the world’s cars, smartphones and home devices, with Malaysia’s chip assembly industry accounting for more than a tenth of a global trade worth over $200 billion. COVID-related lockdowns in the region have disrupted several industries since last year.


Hyundai said it expects a 20 percent sales jump in its biggest market, North America, in 2022.


Hyundai and its affiliate Kia Corp, together among the world’s top 10 automakers by sales, have forecast a 12.1 percent jump in their combined global sales for 2022, after their sales fell almost 4 percent short of a target of 6.92 million vehicles last year due to the chip shortages.


Hyundai posted a nearly 50 percent drop in its profit for the quarter ended December, significantly short of analysts’ estimate, mainly due to the payment of corporate taxes.


It reported a net profit of 547 billion won ($456 million), versus 1.1 trillion won a year earlier. That compared with an average analyst forecast of 1.5 trillion won compiled by Refinitiv SmartEstimate.

HIGHER PRICES, OMICRON


Analysts warn that soaring raw material prices, component shortages and logistical bottlenecks caused by the pandemic are likely to further drive up costs in the current quarter.


“It is still difficult to forecast how the chip shortage will pan out ... also there will be other uncertainties involving the spread of the omicron variant and potential issues related to Ukraine tensions,” said Lee Jae-il, an analyst at Eugene Investment & Securities.


Japanese automakers Toyota Motor Corp. and Honda Motor Co. Ltd. have said they plan to curb their production this month due to rising COVID cases and part supply issues.


As supply chain and distribution disruptions continue, delaying deliveries and production, analysts expect Hyundai to raise vehicle prices to mitigate the impact.


Major automakers and dealers, such as Tesla Inc. and Honda Motor Company, have already raised car prices over the past year.


UK manufacturers plan biggest price rises since 1977: CBI

UK manufacturers plan biggest price rises since 1977: CBI
Image: Shutterstock
Updated 16 min 18 sec ago

UK manufacturers plan biggest price rises since 1977: CBI

UK manufacturers plan biggest price rises since 1977: CBI

British manufacturers expect to raise prices by the most since 1977 over the next three months, after facing the biggest increase in costs since 1980 and intense labor shortages, a quarterly survey showed on Tuesday.


The Confederation of British Industry survey showed a rise in orders and the strongest export demand growth since July 2018, but overall optimism fell as businesses battled intense inflationary pressures.


“Global supply chain challenges are continuing to impact UK firms, with our survey showing intense and escalating cost and price pressures,” CBI chief economist Rain Newton Smith said.


British consumer price inflation is rising sharply and hit its highest in almost 30 years in December at 5.4 percent, though there had been some signs in other surveys that the pace of cost growth for businesses was beginning to slow.


Tuesday’s data from the CBI is likely to reinforce the Bank of England’s concern that high inflation is getting baked into businesses’ pricing plans.


The survey showed that the balance of manufacturers expecting domestic prices to rise over the next three months was its highest since April 1977.

The export prices expectations balance was the highest since January 1980.


Average unit costs for manufacturers in the three months to January rose by the most since April 1980, and the percentage of firms reporting difficulties from a lack of skilled workers was the highest since October 1973.


Optimism about the current business situation and prospects for the year ahead both fell to their lowest since January 2021, when the economy was still in lockdown.


However, new orders picked up over the past three months and January’s monthly gauge of new orders held unchanged at +24, just below November’s record reading of +26.

Economists polled by Reuters had forecast a drop to +22. 


China’s car maker Geely in solar factory push

China’s car maker Geely in solar factory push
Updated 27 min 34 sec ago

China’s car maker Geely in solar factory push

China’s car maker Geely in solar factory push

RIYADH: Chinese automotive firm, Zhejiang Geely Holding Group Co. will install solar photovoltaic cells on the roofs of all its plants in the upcoming two years amid green push.

The firm, which is the largest carmaker in the country, wishes to cut carbon emissions by 25 percent by 2025, Bloomberg reported, citing Gong Jin, CEO of Geely JoiNet Energy Co. — the division accountable for transforming the carmaker's production hubs into more sustainable ones.

The division is also planning for the commencement of carbon trading within a year, with an estimated revenue from that move of around 10 million yuan ($1.6 million) annually in three years time.

The solar panel installations in two specific plants located in Xi’an and Ningbo cities respectively will aid the firm in cutting a total of 60,000 tons on a yearly basis.

This falls in line with China’s 2060 carbon neutrality goals which has encouraged businesses from various industries to search for green power generation sources.

Carmakers have allocated billions of dollars in technology to help lessen manufacturing emissions which represent from 75 to 85 percent of total emissions.

China saw a record number of rooftop solar panels installed in 2021, adding 29 gigawatts to the country’s energy capacity.


Russia plans to allow crypto mining, gold-backed stablecoins: Crypto Moves

Russia plans to allow crypto mining, gold-backed stablecoins: Crypto Moves
Updated 39 min 8 sec ago

Russia plans to allow crypto mining, gold-backed stablecoins: Crypto Moves

Russia plans to allow crypto mining, gold-backed stablecoins: Crypto Moves

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Tuesday, rising 5.14 percent to $36,374 at 12:53 p.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $2,417, up 3.47 percent, according to data from Coindesk.

Other News:

The free circulation of cryptocurrencies must not be allowed as they carry risks for unqualified investors, but Russia may permit the use of gold-backed stablecoins and the mining of cryptocurrencies under government control, according to the chairman of the State Duma Committee on Industry and Trade, Vladimir Gutenev.

Gold-backed stablecoin can also be used for saving, Gutenev told the RIA Novosti news agency.

Such a financial product would be an interesting proposition for both private investors and companies.

The gold-backed stablecoin could be similar to a golden ruble, the parliamentarian elaborated, claiming Russia can employ it to circumvent sanctions and the policy of containment applied against the country.

The coin can also be used to facilitate regular and transparent economic relations with other countries, according to Bitcoin.com.

Commenting on Bank of Russia’s call for a ban on crypto mining, Gutenev said he thinks that cryptocurrency farms can be allowed to operate legally if their activities are under strict control of the state.

Miners can take advantage of the abundant energy resources and favorable climate conditions in some Russian regions, provided their facilities are powered transparently and they pay all due taxes.

Amid expanding US sanctions, Moscow is putting an emphasis on de-dollarization, Deputy Foreign Minister Alexander Pankin said.

Adoption

Unionbank of the Philippines plans to offer cryptocurrency trading and custodial services, Bloomberg reported.

Unionbank is one of the largest universal banks in the Philippines with over $15 billion in assets under management.

The bank is also one of the first financial institutions in the Philippines to adopt cryptocurrency.

The average Filipino investor currently holds about 1 percent to 2 percent of their personal assets in cryptocurrency, such as bitcoin, Cathy Casas, head of the bank’s blockchain and application programming interface group said.

She added that if the markets were stable, investors would own between 3 percent and 5 percent in five years.

The Unionbank executive estimates that about 5 percent of the local population has dabbled in cryptocurrency. She added that many crypto investors are young people, some of whom earn tokens from play-to-earn virtual games.


Indonesia to develop $4bn polysilicon industry to boost solar panel production

Indonesia to develop $4bn polysilicon industry to boost solar panel production
Image: Shutterstock
Updated 47 min 47 sec ago

Indonesia to develop $4bn polysilicon industry to boost solar panel production

Indonesia to develop $4bn polysilicon industry to boost solar panel production
  • The Asian country also has a wish to generate 5.3 gigawatts by 2030

RIYADH: Indonesia will establish a $4 billion polysilicon industry amid efforts to boost solar panel production.

Polysilicon is a vital material for solar panels,  and prices soared to a 10-year high in 2021, driving local solar firms to boost production of the material. 

Indonesia is seeking to boost industry production in the country at lower levels than prevailing market prices as it seeks a move away from fossil fuels towards green energy instead, Bloomberg reported.

The Asian country also has a wish to generate 5.3 gigawatts by 2030 through vast solar panel installations.

Two plants are already in progress as a result of a collaboration between potential investors and domestic firms, Bloomberg reported, citing Septian Hario Seto, a deputy for mining and investment at the Coordinating Ministry for Maritime Affairs and Investment.

The first plant, worth $800 million, will be located in Batang, Central Java. It is set to open in the third quarter of 2022 and has an estimated production of 40,000 tons of polysilicon in its preliminary phase.

The second plant has an accumulated worth of $3.2 billion and is set to open in North Kalimantan with an estimated production of 160,000 tons of polysilicon.

This is expected to bring about a phase of excess supply in the country soon.