TASI edges down for a second consecutive day amid volatility: Closing bell

TASI edges down for a second consecutive day amid volatility: Closing bell
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Updated 09 December 2021

TASI edges down for a second consecutive day amid volatility: Closing bell

TASI edges down for a second consecutive day amid volatility: Closing bell

15.51 Saudi time: RIYADH: Saudi Arabia’s main benchmark index TASI was down 0.48 percent to 10938.88 points at the closing bell while parallel market Nomu was up slightly by 0.13 percent to close at 23594.98 points.

On the final day of new shares’s subscription, Maadaniyah ended the trading session on top of the green territory, up 10 percent to SR29.15 ($7.77).

Shares of development Work Foods rose 9.97 percent to hit a one-year high of SR251.6.

This followed the company’s recommendation to increase its capital through a rights issue worth SR216 million to diversify and scale up its activities.

Once again, Sadr Logistics outperformed to reach an all-time high share price of SR126.

Up almost seven percent, Naseej International Trading Co. and Saudi Tadawul Holding Group were among the top gainers of the day.

Tadawul Group was the highest traded stock in terms of value, with SR1 billion worth of shares traded in Thursday’s session.

The top fallers included Halwani Bros Co. and Baazem Trading Co, down 3.59 percent and 3 percent respectively.

The decline in Halwani Bros Co.’s stock was driven by reporting a lower profit for the third quarter of 2021.

Saudi Arabia’s Ayyan Investment Co. completed the acquisition of a minority interest in Al Asha Medical Services Co., representing 26.43 percent of total capital.

 

Stocks turn green in morning trading on Saudi Tadawul: Market Open

10.13 Saudi time: RIYADH: With most of the stocks on the index starting the day in the green zone, Tadawul’s TASI rose 0.39 percent in early trading.

Sadr Logistics and Naseej International Trading Co. led the top gainers, with Sadr reaching another record high of SR124 ($33).

Naseej’s gains were attributed to its recent decision to raise SR150 worth of capital to limit the accumulated losses to 19.4 percent of capital.

Wafrah for Industry remained resilient as it surged 2.23 percent in morning trading.

Among the top fallers came Batic Investment and Logistics Co. and the Mediterranean and Gulf Insurance and Reinsurance Co., MEDGULF, down slightly by 2.4 percent and 1.99 percent respectively.

Tadawul’s parallel market Nomu fell 0.26 percent to reach 23502.77 points.

 

09:09 Saudi time: Key market signals ahead of Thursday’s trading session: Premarket

RIYADH: The new coronavirus variant, omicron, has left markets, including the Saudi stock exchange, prone to volatility as investors assess the severity of the strain.

The previous month has been particularly rough, with Saudi’s main benchmark index TASI sliding down by 6.48 percent to hit 10991.8 points. TASI was down almost one percent in the latest trading session.

Meanwhile, the parallel market Nomu fell 5 percent in a month. The index’s last close amounted to 23564.11 points, up 0.49 percent intraday.

Registering the highest volume and value traded, Saudi Tadawul Holding Group came first in the top gainers on its listing day.

The share price of the group last closed at SR118 ($31.5), having traded between an intraday low of SR115.4 and an intraday high of SR127.6 on debut.

Sadr Logistics extended its gains, rising an additional ten percent to close at a record high of SR114.6 as of the previous session.

Bank Saudi Fransi led the lowest-performing stocks, down 4.5 percent.

Companies in the Kingdom’s energy sector weighed the index down with stocks of Petro Rabigh and Saudi Arabia Refineries Co. falling 2.5 percent and 3.92 percent respectively.

Petro Rabigh’s stock price declined for a second consecutive day, after a 7.8 percent fall in the prior session following the company’s capital decrease and rights issue recommendation.

Naseej International Trading Co. announced that it will raise SR150 million worth of capital to limit the accumulated losses to 19.4 percent of capital.

This came as its shares hit a 52-week low in terms of price on Dec.2.

Bank Aljazira issued a SR2 billion tier 2 sukuk with a ten-year duration and a par value of SR1 million, according to a bourse filing.

Saudi Basic Industries Corporation announced its decision to leverage organic and inorganic growth whilst strengthening capital expenditure to align with Vision 2030, according to SABIC chief Youssef Al-Benyan.

Jarir Marketing Co. launched a showroom worth SR28 million in Najran. The company’s stock has remained almost flat for a month, last closing at SR194.

Saudi Real Estate Co., or Al Akaria, sold land plots worth SR127.34 million in Riyadh.

The company expects the investment to boost its profit to SR121.9 million, according to a bourse filing.

Al Moammar Information Systems Co. won a three-year contract worth SR54.89 million to offer computer maintenance solutions for the Royal Commission for Jubail and Yanbu.

The expected date of contract signature is Feb.8, 2022.

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

The subscription period to Saudi Economic and Development Securities Co.’s capital REIT fund will start on Dec.12 and end on Dec.16.

Batic Investment and Logistics Co.’s SR300 million rights issue trading will start on Dec.13 and end on Dec.23.

The tradable rights have been deposited into the Securities Depository Center as of Dec.9, the center announced in a bourse filing.


French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
Updated 27 January 2022

French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
  • Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman

RIYADH: A French construction and design firm opened its regional headquarters in Riyadh on Tuesday, in a 50-50 partnership deal with Saudi holding company, Zuhair Al-Habib Group.

Known internationally for their eco-friendly partitions, Clestra Hauserman’s decision to open a regional office in the capital city comes one year after Crown Prince Mohammed bin Salman announced the Riyadh Strategy 2030 plan. 

“Saudi Arabia is our biggest market and as of this year I can say that 80 percent of our business comes from here,” said Farid Habbas, Middle East Director of Clestra Hauserman.

“It was a natural move for the firm that we were happy and ready for. Our firm will now have direct access to the local economy, which will help us gain financial and geographic opportunities,” he told Arab News.

Clestra Hauserman, which had been based in Dubai, joins more than 40 multinational companies that are moving to Riyadh.

The plan includes a policy stating that government and state-backed institutions will no longer sign any contracts with foreign entities from 2024 unless their regional headquarters are based in the Kingdom.

The policy, which paved way for a regional headquarters attraction program, aims to help make “Riyadh one of the ten largest city economies” in the world.

Founded in 1913, the French firm has had a regional presence for more than 40 years, specializing in the manufacture and installation of prefabricated demountable partitions. Its first project in Saudi Arabia was with Aramco in the 1970s and the firm extended its regional presence via the undertaking of airport projects and numerous educational buildings and corporate offices all over the Gulf area.

Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman.

“At Clestra, we develop and design our products from scratch, then completely fit out empty buildings from zero to completion,” Habbas told Arab News. “Our work extends to maintenance and after-sales services for all our clients, where we can be on-site for any adjustments needed within 24 hours.”

Habbas said what makes their products special is their move-and-removability, and likened it to the moveable block system made by Lego — the size of partitions can easily be adjusted by adding or removing panels.

“We’re not just selling a product, we’re selling a solution. We believe that Saudi Arabia is in need of the type of flexibility we can bring with our products and expertise, and not to mention the sustainable aspect of reusing our partitions again and again.”

One of their notable projects is at King Saud University, which has more than 200 kilometers of partitions made by the French firm that have been in use for more than 40 years — which speaks to the durability of the product, the secret of which lies in steel and aluminum.

Habbas added that the firm has plans to open a small factory in the first stage, followed a by a larger one in the second, in addition to carrying out workshops that aims to provide knowledge, expertise and training to employees, a move that should provide many jobs.

Fahad Al-Rasheed, CEO of the Royal Commission for Riyadh City said that by 2030 the regional headquarters program will contribute $18 billion to the local economy and create around 30,000 new jobs.

Since the announcement of the Saudi Vision 2030, as well as plans such as the Riyadh Strategy 2030 and the National Investment Strategy, the metropolis has flourished into a regional hub for businesses, trade and plentiful investment opportunities.


Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
Updated 13 sec ago

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
  • Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis

RIYADH: The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in net profit by 1,134.8 percent due to a surge in the prices of the project's products.

Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis, according to a stock exchange filing.

Established in 1996, the Riyadh-based firm is one of the first privately owned petrochemical companies in Saudi Arabia.

Its primary aim is to invest in the petrochemical industry for its shareholders.


All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27
Updated 31 min 19 sec ago

All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27

RIYADH: The Saudi stock exchange extended gains on Wednesday as investors reacted to a strong rebound in the energy market, where Brent crude oil crossed $89 per barrel.

TASI, the main index, registered gains standing at 0.6 percent, reaching 12,183 points, and the parallel market Nomu inched up by 0.5 percent to close at 25,688 points.

Elsewhere in the Middle East, bourses of Dubai, Abu Dhabi, and Bahrain edged up in line with Saudi, up 0.5, 0.1, and 0.4 percent, respectively.

The Qatari index QSI, Oman’s MSX30, Kuwait’s BKP, and the Egyptian EGX30 index all fell between 0.2 and 0.5 percent.

In early trading, Brent crude oil reached $89.6 per barrel, and US benchmark WTI crude oil rose to $86.7 per barrel as of 9:07 a.m. Saudi time.

Stock news

  • Saudi stock market regulator, the Capital Market Authority, has approved the listing of IT firm Saudi AZM for Communication and Information Technology on the parallel market Nomu
  • The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in its 2021 net profit, up by 1,134.8 percent
  • Saudi Kayan Petrochemical Co. turned from losses into profits of SR2.39 billion ($640 million) in 2021, buoyed by an increase in selling prices and a drop in costs
  • Telecommunication firm Etihad Atheeb has reduced its accumulated losses to 12 percent of capital
  • The Saudi National Bank, known as SNB, has awarded a SR215 million insurance contract to Arabian Shield Cooperative Insurance Co.
  • Saudi insurer Wataniya Insurance Co. got its S&P rating revised from BBB, altering the positive outlook to stable
  • National Petrochemical Co., better known as Petrochem, saw its profits surge almost fivefold in 2021, hitting SR1.4 billion
  • Saudi Arabia Refineries Co. announced the retirement of its board member Ali bin Saleh Khabti effective Jan. 26, 2022
  • Baazeem Trading Co. has appointed Salem Baazeem as board chairman and Fawzia Baazeem as vice chairman of the board of directors

Calendar

Jan. 27, 2022

End of Gas Arabian Services’ IPO book-building

End of Scientific and Medical Equipment House’s IPO book-building

Jan. 28, 2022

End of Elm Co.’s IPO book-building

 


Oil falls as US Fed’s pending interest rate hike spooks investors

Oil falls as US Fed’s pending interest rate hike spooks investors
Updated 43 min 42 sec ago

Oil falls as US Fed’s pending interest rate hike spooks investors

Oil falls as US Fed’s pending interest rate hike spooks investors
  • Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers

BEIJING: Oil prices fell on Thursday as the US dollar strengthened following signs that the US Federal Reserve will tighten monetary policy in the world’s biggest oil user.
Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers. Dollar-denominated oil becomes more expensive for buyers using other currencies when the greenback gains.
Brent crude futures were down 57 cents, or 0.9 percent, to $89.18 a barrel at 0440 GMT, after earlier falling by as much as 1.1 percent to $89. Brent climbed 2 percent on Wednesday.
US West Texas Intermediate (WTI) crude futures were down 83 cents, or 0.9 percent, to $86.52 a barrel, after falling by as much as 1.2 percent to $86.34. WTI gained 2 percent in the previous session.
“It could be a strong US dollar at play after the Federal Open Markets Committee signalled rates will rise,” said Commonwealth Bank analyst Vivek Dhar.
The dollar rose on higher US Treasury yields, lifting the US dollar index, which measures the greenback against major peers, to 96.604, near five-week highs.
Crude prices surged on Wednesday, with Brent climbing to $90 a barrel for the first time in seven years, amid the tensions between Ukraine and Russia, the world’s second-largest oil producer, that has fanned fears of energy supply disruptions to Europe.
Commonwealth Bank’s Dhar echoed those concerns, listing that along with the omicron coronavirus variant not impacting oil demand as badly as initially feared and efforts by OPEC and its allies, known as OPEC+, to boost supply not materialising as supportive for oil prices.
OPEC missed its planned supply increase target in December, highlighting capacity constraints that are limiting supply as global demand recovers from the COVID-19 pandemic.
OPEC+ is gradually relaxing 2020’s output cuts as demand recovers from the demand collapse that year. But many smaller producers can’t raise supply and others have been wary of pumping too much in case of renewed COVID-19 setbacks.
“Continued supply challenges and mounting Russia-Ukraine tensions continue to support crude oil prices. It is down slightly today but I think it is nothing more than a technical move,” said Howie Lee, economist at OCBC in Singapore.
An increase in crude oil and gasoline inventories in the United States alleviated some of the concerns about supply.
Crude inventories rose by 2.4 million barrels in the week to Jan. 21 to 416.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 728,000-barrel drop, the Energy Information Administration (EIA) said on Wednesday.
Gasoline stockpiles rose by 1.3 million barrels last week to 247.9 million barrels, the EIA said, the most since February 2021.


Saudi Kayan turns into profits of $640m in 2021 as petrochemical sector blossoms

Saudi Kayan turns into profits of $640m in 2021 as petrochemical sector blossoms
Updated 51 min 5 sec ago

Saudi Kayan turns into profits of $640m in 2021 as petrochemical sector blossoms

Saudi Kayan turns into profits of $640m in 2021 as petrochemical sector blossoms

RIYADH: Saudi Kayan Petrochemical Co. has seen its 2021 earnings turn into profits of SR2.39 billion ($640 million), buoyed by higher selling prices and sector-wide growth.

As the economic situation improved globally, the homegrown firm managed to erase losses of SR785 million from a year earlier, according to a bourse filing.

Revenues soared over 58 percent in 2021, and earnings per share amounted to SR1.6, against a loss per share of SR0.52 a year ago.

The improved performance was driven by higher selling prices and a drop in financing costs, despite an increase in feedstock costs, Saudi Kayan said in a bourse statement.

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

Headquartered in Jubail Industrial City, Saudi Kayan is a leading chemical maker operating in the Kingdom’s petrochemical sector since 2007.