Brace for the trading week on Tadawul as earnings season comes into play

Brace for the trading week on Tadawul as earnings season comes into play
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Updated 23 January 2022

Brace for the trading week on Tadawul as earnings season comes into play

Brace for the trading week on Tadawul as earnings season comes into play

RIYADH: Last week, Saudi Arabia’s main stock index TASI wrapped up ten straight days of gains amid heightened investor sentiment. Earnings season is starting to get into full swing for the Kingdom’s listed companies.

In the latest session, TASI gained 0.3 percent to reach 12,291 points, while the parallel market Nomu slipped 0.3 percent to close at 26,071 points.

Other GCC members saw fractional declines on Thursday, including main indexes of Qatar, Oman, Bahrain, and Kuwait, all down in the range of 0.1 to 0.8 percent.

Elsewhere in the Middle East, the Egyptian index EGX30 edged up by 0.1 percent.

Dubai’s DFMGI index and Abu Dhabi’s FTSE ADX General index were both up on Friday by 1.3 and 0.3 percent, respectively.

In energy trading, oil prices snapped the seven-year high as higher inventories of US crude and fuel prompted profit-taking.

Brent crude oil reached $87.9 per barrel on Friday, and US benchmark WTI crude oil settled at $85 per barrel.

Stock news

  • Saudi dairy giant Almarai recorded a 21 percent decline in profit in 2021 as pandemic and value-added tax, VAT, weighed on revenues
  • The Saudi Real Estate Co., known as Alakaria, has secured a bridge loan of SR400 million ($107 million) to finance part of the price of the land it’s purchasing in the east of Riyadh
  • East Pipes Integrated Co.’s initial public offering was 71.8 times oversubscribed. The final offer price has been set at SR80 per share
  • Arabian Centres Co. said in a bourse filing that its board of directors accepted the resignation of the CEO Faisal Abdullah Al-Jedaie, effective Jan. 31, 2022
  • Digital security firm Elm Co. set its initial public offering price range between SR113 and SR128 per share. The book-building period will start today Jan. 23 and end on Jan. 28
  • Saudi Basic Industries Corp., also known as SABIC, has begun operations of its petrochemical joint venture with US ExxonMobil on the US Gulf coast
  • Tadawul approved the listing of SR2.83 billion ($755 million) worth of government debt instruments, submitted by the Ministry of Finance
  • Saudia Dairy and Foodstuff Co., or SADAFCO, reported a 28.6 percent decline in profit during the nine months ending Dec. 31, 2021. Profits dropped to SR146 million
  • Saudi food firm Wafrah for Industry and Developments has appointed Khaled Saleh Al Amoudi as CEO on Thursday
  • Dammam-based Gas Arabian Services will start offering 790,000 shares in an IPO on the parallel market Nomu on Sunday, Jan. 23

Calendar

Jan. 23, 2022

  • Start of Elm Co.’s IPO book-building
  • Start of Gas Arabian Services’ initial public offering subscription

Jan. 24, 2022

  • Start of East Pipes Integrated Co.’s initial public offering subscription

Jan. 25, 2022

  • End of East Pipes Integrated Co.’s initial public offering subscription
  • Saudia Dairy and Foodstuff Co., SADAFCO, to pay cash dividends at SR3 per share for the first half of its fiscal year

Jan. 27, 2022

  • End of Gas Arabian Services’ initial public offering subscription
  • End of Scientific and Medical Equipment House’s IPO book-building

Jan. 28, 2022

  • End of Elm Co.’s IPO book-building 

 


Lucid Motors to establish its first overseas factory in Saudi Arabia

Lucid Motors to establish its first overseas factory in Saudi Arabia
Updated 11 min 27 sec ago

Lucid Motors to establish its first overseas factory in Saudi Arabia

Lucid Motors to establish its first overseas factory in Saudi Arabia

JEDDAH: US-based Lucid Motors has signed agreements on Wednesday to build a production factory in Saudi Arabia with an annual capacity of 155,000 zero-emission electric vehicles.

The deals are estimated to provide financing and incentives to Lucid up to $3.4 billion in total over the next 15 years to build and operate the manufacturing facility in the Kingdom.

To be located in King Abdullah Economic City, AMP-2 is the electric vehicle manufacturer’s first production facility outside the US, according to a statement. 

The project is expected to create over 4,500 jobs in KAEC, said Cyril Piaia, CEO of Emaar The Economic City, master developer of KAEC. 

Saudi government and Lucid Motor’s officials at a ceremony to sign agreements for the development of a production facility in the Kingdom. AN photo

“Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way,” Saudi Investment Minister Khalid Al-Falih said. 

“This project demonstrates the confidence investors have in Saudi Arabia’s competitiveness, its ability to create opportunity, and serve global demand for a highly complex product such as electric vehicles,” Al-Falih added. 

The agreements were signed between the Saudi Investment Ministry, the Saudi Industrial Development Fund, Emaar, The Economic City, at King Abdullah Economic City and the Gulf International Bank.


Investing in Metaverse is a waste of time: Futurist-in-Chief at Dubai Future Foundation

Investing in Metaverse is a waste of time: Futurist-in-Chief at Dubai Future Foundation
Updated 18 May 2022

Investing in Metaverse is a waste of time: Futurist-in-Chief at Dubai Future Foundation

Investing in Metaverse is a waste of time: Futurist-in-Chief at Dubai Future Foundation

DUBAI: As the business world is increasingly fascinated by the Metaverse, Noah Raford, futurist-in-chief and chief of Global Affairs at Dubai Future Foundation, claimed that investing in this advanced technology is just a waste of time. 

While speaking at the Top CEO Forum, Raford argued that people should invest in video games, as it is the only successful digital economy so far. 

However, Fady Kassatly, partner of Enterprise Solutions and Cloud, KPMG, said the Metaverse is nothing but the next evolution, which will make people live differently. 

He also added the Metaverse is going to evolve quickly in different directions, and this is just the beginning of the journey. 

On his part, Philippe Blanchard, founder of Futurous, stated the Metaverse will change the relationship between humans and nature. 

Predicting an inevitable Metaverse future, Valerie Hawley, Director of Sorbonne Center for Artificial Intelligence, said every business will look at the Metaverse space and consider using it in the coming years. 

She also added the Metaverse is a projection of the world that humans would like to live in. 


Blockchain creating ‘Internet of value’: Crypto Oasis co-founder

Blockchain creating ‘Internet of value’: Crypto Oasis co-founder
Updated 18 May 2022

Blockchain creating ‘Internet of value’: Crypto Oasis co-founder

Blockchain creating ‘Internet of value’: Crypto Oasis co-founder

DUBAI: Blockchain technology is transforming “internet of information into internet of value,” according to Saqr Mashhor Ereiqat, the co-founder of Crypto Oasis. 

While speaking at a session in the Top CEO Forum, Ereiqat also noted that the majority of the people use the Internet, but do not know how it works.

Ereiqat added that he used to advise governments on how they can use blockchain to benefit them. He, however, made it clear that governments like to control the network they offer.  

Ereiqat also noted that blockchain provides a way to trace a value from beginning to end. 

Franck Mandon, chief operating officer of Nujumz, during the session told that blockchain is going to transform the way humans trusted each other. 

However, Paritosh Ghambir, partner audit KPMG, noted that most clients need education about blockchain. 

Gambhir added: “Just because it is a blockchain does not mean it could be fully trusted.” 


China In-Focus: Goldman Sachs revised China’s GDP downwards to 4% amid COVID-19 control 

China In-Focus: Goldman Sachs revised China’s GDP downwards to 4% amid COVID-19 control 
Updated 18 May 2022

China In-Focus: Goldman Sachs revised China’s GDP downwards to 4% amid COVID-19 control 

China In-Focus: Goldman Sachs revised China’s GDP downwards to 4% amid COVID-19 control 

RIYADH: Tight Covid-19 controls are seen exacerbating China’s economic stance. America’s Goldman Sachs revised the Asian country’s gross domestic product downwards to 4 percent. The country’s stocks also fell on Wednesday due to the lockdown consequences. On top of this, several factories and plans are expected to leave the country in light of rising labor costs, worsening trade tensions with the US, and Covid-19 impacts. Meanwhile, some buyers are eyeing liquified natural gas demand rebound as covid-19 is expected to unwind soon.

·      American multinational investment bank and financial services company Goldman Sachs Group Inc. has revised China’s GDP downwards to 4 percent, down from 4.5 percent previously, Bloomberg reported, citing economic data from April. In addition to this, the investment banking company also cut forecasts for the second quarter to 1.5 percent year-on-year, down from 4 percent originally. 

·      China’s stocks dropped on Wednesday amid fears that government stimulus and policies will not be enough to help the economy recover from COVID-19 repercussions. This comes as China’s blue-chip index, also referred to as CSI300, lost 0.4 percent while the Shanghai Composite Index lost 0.3 percent.

·      Several factories and plants might leave China amid rallying labor costs, exacerbated US-China trade tensions, and tight Covid-related controls, CNBC reported, citing multiple firms and analysts. However, the issue that prevails is that supply chain diversification is difficult to implement, CNBC reported, citing Nick Marro, global trade leader at The Economist Intelligence Unit.

·      Some Chinese buyers are contemplating the purchase of LNG cargoes from August onwards on the hopes that virus restrictions will ease thus raising demand for the fuel once again in the process, Bloomberg reported. Nevertheless, spot prices will still have to further drop before any deals are sealed. 

 


MBC-backed Al Arabia more than doubles profit to $17m on strong client base

MBC-backed Al Arabia more than doubles profit to $17m on strong client base
Updated 18 May 2022

MBC-backed Al Arabia more than doubles profit to $17m on strong client base

MBC-backed Al Arabia more than doubles profit to $17m on strong client base

RIYADH: Outdoor advertising provider Arabian Contracting Services Co., known as Al Arabia, has more than doubled its profits during the first quarter.

Profits of the Riyadh-based firm, partly owned by media giant MBC group, soared to SR64.9 million ($17.3 million) in the first quarter from SR29.6 million during the same period last year, a bourse filing revealed.

Economic recovery, along with a continued digitization push in the Kingdom, led to a 93 percent increase in revenues year-on-year to SR287 million.

Al Arabia said that digital transformation led to an expansion in its client base in the current year to include new sectors, which in turn propelled solid first-quarter figures.