TASI opens flat as earnings reports guide the market: Opening bell

TASI opens flat as earnings reports guide the market: Opening bell
(Getty)
Short Url
Updated 27 January 2022

TASI opens flat as earnings reports guide the market: Opening bell

TASI opens flat as earnings reports guide the market: Opening bell

RIYADH: Saudi Arabia’s stock indexes opened mixed on Thursday amid a wave of earnings announcements, guiding investors’ decision-making.

The main TASI index was flat at 12,192 points as of 10:22 a.m. Saudi time, while the parallel market Nomu slipped 0.7 percent to 25,512 points.

TASI was pushed higher by gains in Saudi Kayan Petrochemical Co. but weighed down by National Petrochemical Co., known as Petrochem, and the Saudi Industrial Investment Group, even as all three firms reported an earnings beat.

Saudi Kayan saw its share price soar over 2 percent after it turned from losses into profits of SR2.39 billion ($640 million) in 2021.

Shares in Petrochem and the Saudi Industrial Investment Group were down 1 and 1.8 percent, respectively, despite seeing an unprecedented rise in last year’s earnings.

Saudi Automotive Services Co., known as SASCO, soared 4 percent, topping the gainers for a second consecutive day.

SASCO had earlier acquired 80 percent of gas station operator NAFT Services Limited Co. for SR1.1 billion.

Arabian Shield Cooperative Insurance Co. was up 1 percent, after signing a SR215 million contract to provide insurance to employees of the Kingdom’s largest lender Saudi National Bank, known as SNB.

Allied Cooperative Insurance Group led the fallers in early trading, with its shares declining almost 6 percent.

In energy trading, Brent crude oil reached $89.6 per barrel, and US benchmark WTI crude oil neared $87 per barrel as of 10:39 a.m. Saudi time.


MENA’s first animal vaccine facility in Saudi aimed at reducing cattle diseases to start in 2024

MENA’s first animal vaccine facility in Saudi aimed at reducing cattle diseases to start in 2024
Updated 12 sec ago

MENA’s first animal vaccine facility in Saudi aimed at reducing cattle diseases to start in 2024

MENA’s first animal vaccine facility in Saudi aimed at reducing cattle diseases to start in 2024

RIYADH: The Middle East North Africa region’s first animal vaccine facility aimed at reducing foot and mouth diseases, located in Saudi Arabia, is expected to be operational by 2024, according to one of the project’s owners.

The new plant, which is a joint venture between Argentina’s Biogenesis Bago and Saudi partners, is currently under construction in the eastern part of the Kingdom with a cost of $80 million.

The facility is capable of producing 200 million doses of vaccines a year at full capacity, covering the entire regional demand, said Esteban Turic, CEO of Biogenesis Bago in an exclusive interview with Arab News.
 
Biogenesis and its Saudi partner MAS are building the facility in Dammam industrial zone and it will eventually supply roughly three times more than the current demand of doses in Saudi Arabia, and 20 times more than in Jordan and Iraq, he added.

This new facility has a crucial significance, as the region is home to over one billion heads of cattle, goats, sheep and camelids. As foot and mouth diseases are very common in these animals, the new facility will significantly reduce the import of vaccines and crucially have vaccines in close proximity to react quickly if necessary.

Talking about selecting Saudi Arabia as the place for developing this facility, Turic said, “Saudi Arabia has one of the biggest domestic markets which demands the biggest volume of this vaccine. Secondly, because it’s in the middle of the GCC countries, and through the 2030 vision, the country provides a lot of incentives for the private sector.”

The vaccine plant which is expected to begin production by the second half of 2024 will start producing 50 million doses in the first year, and will reach the maximum production capacity within two years, added Turic.

Turic also revealed that the facility will create 300 direct jobs in Saudi Arabia, to include biochemists, biologists, and engineers. The indirect jobs will be in excess of 300, he added. 

He also made it clear that most of these direct and indirect jobs will be among Saudi Arabian nationals.


Egypt In-Focus: Ministry begins implementing digital transformation; EIB eyeing role in seawater desalination plan

Egypt In-Focus: Ministry begins implementing digital transformation; EIB eyeing role in seawater desalination plan
Updated 28 min 28 sec ago

Egypt In-Focus: Ministry begins implementing digital transformation; EIB eyeing role in seawater desalination plan

Egypt In-Focus: Ministry begins implementing digital transformation; EIB eyeing role in seawater desalination plan

RIYADH: Egypt’s Ministry of Public Enterprise Sector has announced that it has completed digital transformation projects in 15 companies. Digital transformation of 56 firms is currently underway, it added. In another development, healthcare startup Doxx has raised a significant amount in a seed funding round. Meanwhile, the European Investment Bank has expressed interest in taking part in the North African county’s seawater desalination plan. 

·      The Ministry of Public Enterprise Sector has announced that it has completed the digital transformation project for a total of 15 companies out of the 71 companies, local newspaper Youm 7 reported. According to sources, the ministry will continue implementation of the digital transformation project, also known as the Enterprise Resource and Planning and Management program, in the remaining firms. 

·      Egypt-based digital platform healthcare startup Doxx has secured $1.5 million in a seed round led by Egyptian healthcare-focused venture capital firm Elevate, local newspaper Daily News Egypt reported. The investment falls in line with Elevate’s goal of facilitating access to quality healthcare in the country.

·      The private sector is a key driver of economic relations between the US and Egypt, local newspaper Youm 7 quoted the head of the Egyptian-American Business Council, Omar Muhanna, as saying. Moreover, the partnership between both countries will result in the creation of various direct as well as indirect job opportunities in Egypt, Muhanna said.

·      The European Investment Bank is contemplating contributing to Egypt’s scheme to desalinate seawater in terms of financing, local newspaper Egypt Today reported, citing water expert at EIB Walid Salem. 

·      Egyptian banks’ net foreign assets are anticipated to recover post devaluation of the Egyptian pound, credit rating agency Fitch Ratings reported. This is mainly attributed to the increase in foreign investors’ confidence amid a more lenient exchange rate system as well as a new IMF program. 

 


Saudi ministry launches e-service to obtain license for petroleum trading

Saudi ministry launches e-service to obtain license for petroleum trading
Updated 33 min 56 sec ago

Saudi ministry launches e-service to obtain license for petroleum trading

Saudi ministry launches e-service to obtain license for petroleum trading

RIYADH: Saudi Arabia’s Ministry of Energy has launched an electronic service that enables license issuance for import and export activities of petroleum products, it said in a statement. 

The ministry explained that obtaining licenses and permits is a prerequisite for practicing petroleum trading activities. 

The new decree adds that the ministry shall set the necessary procedures to regulate all aspects of commercial activity related to trade in petroleum products.


ADNOC announces three new oil discoveries

ADNOC announces three new oil discoveries
Updated 56 min 21 sec ago

ADNOC announces three new oil discoveries

ADNOC announces three new oil discoveries
  • In the third discovery, around 50 million barrels of light and sweet Murban-quality crude were found in the Al Dhafra Petroleum Concession

May 19 (Reuters) - Abu Dhabi National Oil Company on Thursday announced three oil discoveries including one at Bu Hasa, Abu Dhabi’s biggest onshore field, with a crude oil production capacity of 650,000 barrels per day, the company said on Thursday.

The discovery in Bu Hasa includes 500 million barrels of oil from an exploration well in the field, the company said in a statement, adding that the discovery offers "substantial additional premium-grade Murban oil resources".

ADNOC said the second oil find was in Abu Dhabi’s Onshore Block 3, operated by Occidental (OXY.N), and around 100 million barrels of oil in place were discovered.

In the third discovery, around 50 million barrels of light and sweet Murban-quality crude were found in the Al Dhafra Petroleum Concession, ADNOC said.


Commodities Update — Gold edges up; Wheat falls, soybean firm; UK to impose duties of up to 29% on Chinese aluminum extrusions

Commodities Update — Gold edges up; Wheat falls, soybean firm; UK to impose duties of up to 29% on Chinese aluminum extrusions
Updated 22 May 2022

Commodities Update — Gold edges up; Wheat falls, soybean firm; UK to impose duties of up to 29% on Chinese aluminum extrusions

Commodities Update — Gold edges up; Wheat falls, soybean firm; UK to impose duties of up to 29% on Chinese aluminum extrusions

RIYADH: Gold edged up on Friday, heading for its first week of gains in five on persistent worries over economic growth and a weekly decline in the dollar.

A slide in US Treasury yields supported the safe-haven metal on the day, sending spot gold up 0.1 percent to $1,843.29 per ounce. Prices hit a one-week high earlier in the session.

US gold futures settled up 0.1 percent at $1,842.10.

Platinum falls

Silver fell 0.1 percent to $21.69 per ounce, but was up about 2.9 percent for the week.

Platinum fell 1.4 percent to $948.77, while palladium eased 2.4 percent to $1,958.81. 

Wheat, corn ease 

Chicago wheat fell for a third straight session on Friday, retreating further from a two-month high it hit earlier this week as technical selling pressured the market, traders said.

Corn also eased, as accelerated US planting and news that Argentina may expand an export volume cap weighed. 

Soybeans gained on strong export demand, amid tight supplies.

The most-active wheat contract on the Chicago Board of Trade lost 31-3/4 cents at $11.68-3/4 a bushel, a 0.7 percent weekly decline.

CBOT corn ended 4-1/2 cents lower at $7.78-3/4 a bushel, ending lower for a third consecutive week.

Soybeans firmed 14-3/4 cents to $17.05-1/4 a bushel, logging a weekly gain of 58-3/4 cents, a 3.6 percent increase.

UK to impose duties on Chinese aluminum extrusions

Britain may impose anti-dumping duties of up to 29 percent on aluminum extrusions from China to protect domestic producers, a trade agency said on Friday.

Aluminium extrusions — widely used in the transport, construction and electronics industries — are being dumped in Britain at lower prices than they are sold in China, the Trade Remedies Authority said in an interim report.

“The TRA determined that there is already damage to the UK industry, having found clear evidence of price undercutting, indicating that UK businesses are struggling to compete with the dumped imports,” a statement said.

Provisional measures will be imposed as the TRA completes its investigation, requiring Chinese companies exporting to Britain to provide a bank guarantee beginning on May 28, it added.

Duties ranging from 7.3 percent to 29.1 percent were recommended, depending on the company and the level of dumping margin, the interim report said.

(With input from Reuters)