TASI ends in red, Tadawul Group leads the gains on listing day: Closing Bell

TASI ends in red, Tadawul Group leads the gains on listing day: Closing Bell
Tadawul’s main index TASI has ended in green in four out of five sessions. (AFP)
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Updated 09 December 2021

TASI ends in red, Tadawul Group leads the gains on listing day: Closing Bell

TASI ends in red, Tadawul Group leads the gains on listing day: Closing Bell
  • TASI last closed 0.79 percent higher at 11,108.2 points whereas parallel market Nomu rose 1.13 percent to close at 23,450.29 points

16:00 Saudi time: RIYADH: Saudi’s main index TASI saw a fall of almost one percent on Wednesday that was partially offset by a rise in Nomu parallel index.

TASI closed at 10991.8 points while Nomu increased 0.49 percent to close at 23564.11 points.

Tadawul Group Holdings kicked off with a strong debut, bringing the index up through a share price increase of 12.38 percent.

The closing price stood at SR118 ($31.5), up from SR105.

A top six-day performance was shown in Sadr Logistics as its stock price rose from SR65.62 on Nov.30 to SR114.6 at Wednesday’s closing bell, a record high for the company.

Among the top gainers, Baazeem Trading Co. was up 9.87 percent, rising for the sixth day in a row.

Saudi Telecom Co., or stc, gained two percent following the company’s decision to increase its secondary public offering size to 120 million shares representing 6 percent of its capital.

One of Saudi’s biggest players, Al Rajhi Bank declined two percent to close at SR135.8.

Bank Saudi Fransi and CHUBB Arabia Insurance Co. dragged the index down, falling 4.51 percent and 4.13 respectively.Saudi Arabia Refineries Co. lost SR5.8 of its four-day gains, down 3.9 percent.

10:31 Saudi time: TASI, Nomu almost flat in morning trading: Opening bell

RIYADH: Saudi exchange’s main indexes opened slightly higher on Wednesday. TASI and Nomu were up around 0.2 percent.

On its first day trading on the main market, Saudi Tadawul Group’s stock came on top of the index’s gainers, rising 11.43 percent to SR116.8 ($31.14).

Shares of Sadr Logistics jumped ten percent for a fourth consecutive day.

Wafrah for Industry remained resilient in the green zone with its share price climbing 5.31 percent.

Aseer Trading, Tourism and Manufacturing Co. gained four percent, following its decision to sign for SR200 million short-term revolving debt, or Murabaha.

Among the lowest-performing stocks, CHUBB Arabia Insurance Co. and Saudi Advanced Industries Co. saw declines of 2.84 percent and 1.93 percent respectively.

Taiba Investments Co. signed a memorandum of understanding with Shuaa Capital Company to buyout Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah’s parent companies.

Somou Real Estate Co. announced the launch of Al-Danat Resort project in AlKhobar with First Gulf Real Estate Co.

The project will cover an area of more than one million square meters and is expected to boost the company’s profits, according to a bourse filing.

 

09.15 Saudi time: Factors to watch before Wednesday opening bell: Premarket

RIYADH: The outlook for the Saudi stock exchange remains unraveled amid COVID-19 concerns. However, market signals have shown a positive trend with Tadawul’s main index TASI ending in green in four out of five sessions.

TASI last closed 0.79 percent higher at 11,108.2 points whereas parallel market Nomu rose 1.13 percent to close at 23,450.29 points.

Stocks on the uptrend were topped by Sadr Logistics and Wafrah for Industry & Development.

Sadr is now trading at a three-year high of SR104.2 ($27.8). It saw an increase of 54.23 percent in two weeks.

Wafrah for Industry’s share price climbed for the seventh day in a row to close at SR143, up from SR99.5.

In the Saudi insurance sector, Enaya Insurance and Amana Cooperative insurance last closed in the green zone, recuperating Sunday losses.

Shares of the two insurance firms have jumped significantly since Nov. 23, up 26.27 percent and 23.3 percent respectively.

TASI was dragged down by a 7.08 percent decline in Petro Rabigh’s stock value in the prior session, following the company’s capital decrease and rights issue recommendation.

Al Sagr Insurance signed a contract worth SR20.4 million with Maharah Human Resources Co. to grant health insurance services to the company’s employees and their families.

Saudi Real Estate Co. sold SR137.34 million worth of land in Al-Malqa district, Riyadh.

Aseer Trading, Tourism and Manufacturing Co. applied for a SR200 million short-term revolving Murabaha from the Saudi Investment Bank. Murabaha is a mode of debt financing that complies with the sharia concept.

Saudi Telecom Co., stc, increased its secondary public offering size to 120 million shares representing six percent of stc’s capital, up from 100.2 million shares.

stc’s secondary share subscription period will end on Dec. 8 for retail tranche, while for participating parties the subscription deadline is Dec. 9.

The price range was set between SR100 and SR116 per share.

Jahez International Co. received the Capital Market Authority’s approval to increase its initial public offering on Nomu parallel market from 13 percent to 18 percent of its share capital.

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

Shares of Saudi Tadawul Group Holding will start trading on the main market on Dec.8.

Tadawul signed a memorandum of understanding with Muscat Stock Exchange, or MSX, to strengthen their bilateral relations and create a conducive trading environment for investors.

Dec. 9 is the last day to subscribe to Maadaniyah’s new shares.


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.