All you need to know ahead of the trading week on Saudi Arabia’s Tadawul

All you need to know ahead of the trading week on Saudi Arabia’s Tadawul
Global markets witnessed a steep decline last week, following a decision by the US Fed to hike interest rates. (Shutterstock)
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Updated 08 May 2022

All you need to know ahead of the trading week on Saudi Arabia’s Tadawul

All you need to know ahead of the trading week on Saudi Arabia’s Tadawul

RIYADH: Saudi Arabia’s main stock market ended the previous month 4.9 percent higher, backed by strong quarterly earnings.

TASI the main index closed at 13,733 points, while the parallel market Nomu reached 23,909 points on Apr. 28 before the market stopped trading for the one-week Eid al-Fitr break.

Meanwhile, global markets witnessed a steep decline last week, following a decision by the US Fed to hike interest rates.

Oil prices posted their second week of gains amid plans by the European Union to ban Russian oil imports.

Brent crude ended the week at $112.39 a barrel, while US benchmark West Texas Intermediate was at $109.77 a barrel.

Stock news

Saudi utility provider ACWA Power Co. has been selected as the preferred bidder to develop two solar projects in Indonesia

The Saudi Ground Services Co. has appointed Khalid Al Buainain as board chairman and Omar Jefri as vice chairman for a three-year term

Alkhaleej Training and Education Co. announced that chairman Abdulaziz Al-Blaihid passed away on April 28, adding that updates about the appointment of a replacement will be disclosed later

Calendar

May 11, 2022

Start of Arabian Food & Dairy Factories Co.’s IPO book-building

May 15, 2022

Saudi Aramco will disclose its financial results for the first quarter of 2022

End of Arabian Food & Dairy Factories Co.’s IPO book-building

May 22, 2022

Start of Amwaj International Co.’s IPO book-building

May 25, 2022

End of Amwaj International Co.’s IPO book-building


Saudi-listed companies start the year on a positive note with 73% rise in profits

Saudi-listed companies start the year on a positive note with 73% rise in profits
Updated 12 sec ago

Saudi-listed companies start the year on a positive note with 73% rise in profits

Saudi-listed companies start the year on a positive note with 73% rise in profits

RIYADH: Companies listed on Saudi Arabia's stock market reported 73 percent growth in their first quarter — the fifth straight quarter of positive results, driven by solid performance across most sectors.

The Tadawul-listed companies profits rose to SR184.71 billion ($49 billion) in the first quarter, from SR106.83 billion in the year-ago period, according to data by argaam.

Oil giant Saudi Aramco led the list of companies that reported a profit, followed by Saudi Basic Industries Corporation, SABIC and Kingdom Holding.

The growth was driven largely by improved performance in the energy, materials, and banks sectors, which increased by 80 percent, 52 percent, and 22 percent, respectively, compared to last year.

The quarter saw 135 companies report profits, of which 13 turned profitable, 70 recorded profit growth, while 52 reported profit declines when compared with the first quarter of last year.

Meanwhile, 50 companies experienced losses in the first quarter, of which 16 incurred losses, 21 deepened losses, and 13 trimmed their losses compared to quarter one of 2021.


Kuwait to start building world’s largest petroleum research center: oil ministry

Kuwait to start building world’s largest petroleum research center: oil ministry
Updated 7 min 34 sec ago

Kuwait to start building world’s largest petroleum research center: oil ministry

Kuwait to start building world’s largest petroleum research center: oil ministry

Kuwait plans to start building the world’s largest petroleum research center by the end of the year, the oil ministry said on Twitter on Wednesday.

The Middle East Economic Digest said the project had stalled because of budget pressure, estimating its cost at $120 million.

The center, to be built in Al-Ahmadi, south of Kuwait City, will have 28 laboratories.

It will seek to develop improved production and refining techniques that can be used by the industry for different applications including the extraction of heavy crude and non-associated gas. 


Crypto Moves — Bitcoin, Ether up; ECB says crypto a risk to financial stability; Central African Republic to launch bitcoin investment hub

Crypto Moves — Bitcoin, Ether up; ECB says crypto a risk to financial stability; Central African Republic to launch bitcoin investment hub
Updated 31 min 49 sec ago

Crypto Moves — Bitcoin, Ether up; ECB says crypto a risk to financial stability; Central African Republic to launch bitcoin investment hub

Crypto Moves — Bitcoin, Ether up; ECB says crypto a risk to financial stability; Central African Republic to launch bitcoin investment hub
  • The ECB in its biannual financial stability review said exposure to crypto by banks and other financial institutions on a wide scale could put capital at risk and damage investor confidence

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Wednesday, down 1.93 percent to $29,891 as of 10:52 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $1,986, up 0.45 percent, according to data from Coindesk.

Crypto markets may pose risks to wider financial stability, ECB warns

Cryptocurrencies will pose a risk to financial stability if the emerging sector maintains its rapid growth seen over the last two years and financial firms deepen their involvement, the European Central Bank said on Tuesday.

The crypto market slumped sharply this month after the downfall of the major “stablecoin” terraUSD.

The crash has led to calls from the world’s top financial leaders for “swift and comprehensive” regulation of the sector.

The ECB in its biannual financial stability review said exposure to crypto by banks and other financial institutions on a wide scale could put capital at risk and damage investor confidence, lending and financial markets.

“Systemic risk increases in line with the level of interconnectedness between crypto-assets and the traditional financial sector,” it said.

Central African Republic to launch Bitcoin investment platform

Central African Republic will launch the continent’s first legal cryptocurrency investment hub, the presidency said, extending the impoverished country’s embrace of digital finance despite words of caution from the International Monetary Fund.

Marred by decades of conflict, the Central African Republic last month became the first country in Africa and only the second in the world to adopt Bitcoin as an official currency.

The government has so far provided little detail on the logistics of its Bitcoin vision.

The soon-to-be-launched “SANGO” crypto initiative has a website on which interested investors can sign up for a waiting list.

“The formal economy is no longer an option,” President Faustin-Archange Touadera said in a statement on Monday.

“An impenetrable bureaucracy is keeping us stuck in systems that do not give a chance to be competitive.”

There was no indication of when the investment hub would be open or how it would operate.

(With input from Reuters) 


India In-Focus — Shares rise as financials gain; Sugar exports restricted & US official heads to India

India In-Focus — Shares rise as financials gain; Sugar exports restricted & US official heads to India
Updated 39 min 34 sec ago

India In-Focus — Shares rise as financials gain; Sugar exports restricted & US official heads to India

India In-Focus — Shares rise as financials gain; Sugar exports restricted & US official heads to India

MUMBAI: Indian shares rose on Wednesday, after declining for two straight sessions, as banking stocks jumped amid strength in broader Asian equities, although the gains were capped by losses in the technology sector.

The NSE Nifty 50 index was up 0.50 percent at 16,205.30 by 0353 GMT, while the S&P BSE Sensex rose 0.36 percent to 54,245.74.

India restricts sugar exports at 10 million tons

India has imposed restrictions on sugar exports for the first time in six years by capping this season’s exports at 10 million tons, a government order said, to prevent a surge in domestic prices after mills sold a record volume on the world market.

The government has also asked exporters to seek its permission for any overseas shipments between June 1 and Oct. 31, the order said.

India is the world’s biggest sugar producer and the second biggest exporter behind Brazil.

Benchmark white sugar prices in London jumped more than 1 percent after India’s decision.

“The government is worried about food inflation, and that’s why it is trying to ensure that enough sugar remains in the country to cater to the festival season,” said a Mumbai-based dealer with a global trading firm.

Exporters also said the decision to allow mills to export 10 million tons would help India sell a reasonably big quantity of sugar on the world market.

US Treasury official heads to India to discuss Russian oil purchases

A Biden administration official headed to India on Tuesday to talk with officials and private industry about US sanctions, the Treasury Department said, as Washington seeks to keep India’s purchases of Russian oil from rising.

Elizabeth Rosenberg, the assistant secretary for Terrorist Financing and Financial Crimes, will visit New Delhi and Mumbai through Thursday, a Treasury spokesperson said.

Another senior US official told Reuters on March 31 that a significant increase in Russian oil imports by India could expose New Delhi to “great risk” as Washington prepares to step up enforcement of sanctions against Moscow after its invasion of Ukraine. 

Rosenberg’s visit is part of a wider Biden administration effort to fan out to partners and allies around the world to talk with officials and industry about the implementation of US sanctions and export controls, the Treasury spokesperson said.

(With input from Reuters) 


Saudi Retal Urban eyes $384m capital through IPO as it opens for institutional investors

Saudi Retal Urban eyes $384m capital through IPO as it opens for institutional investors
Updated 56 min 50 sec ago

Saudi Retal Urban eyes $384m capital through IPO as it opens for institutional investors

Saudi Retal Urban eyes $384m capital through IPO as it opens for institutional investors

RIYADH: Saudi Retal Urban Development Co. has announced its price range as it seeks up to SR1.44 billion ($384 million) from an initial public offering.

The developer set its price range at SR112-SR120 per share, the financial advisor of the offer, SNB Capital said in a bourse disclosure.

Aiming to float 12 million shares, or a 30-percent stake, on the Kingdom’s main stock market, Retal will open for institutional investors starting May 25, until May 31.

The final offer price will be determined upon completion of the book-building period, which will be followed by the individual investors’ subscription process.

“This marks a significant milestone in the growth trajectory of our business and a key step towards further solidifying our leading position in the Saudi real estate sector,” the company’s board chairman, Abdullah Al-Fozan said.