Saudi stocks opened the week in green: Opening bell

Saudi stocks opened the week in green: Opening bell
Saudi stocks are up at the start of the first session of the week as global markets look for a rebound. (Shutterstock)
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Updated 15 May 2022

Saudi stocks opened the week in green: Opening bell

Saudi stocks opened the week in green: Opening bell

RIYADH: Saudi stocks are up at the start of the first session of the week as global markets look for a rebound, although oil prices are still swinging up and down.

Oil prices rose on Friday as US gasoline prices jumped to a record high, with Brent crude rising 3.8 percent to settle at $111.55 a barrel and WTI crude rising 4.1 percent to settle at $110.49.

The Saudi main stock index, TASI, rose 1.65 percent at 13,044, while the parallel market, Nomu, rose 0.78 percent to 22,824, as of 10:07 a.m. Saudi time.

Arabian Pipes Co. climbed 5.22 percent to lead the gainers despite shareholders rejecting the proposal to increase the company's capital by 300 percent

Shares of Saudi oil giant Aramco rose 2.58 percent, after it reported an 82-percent increase in profit to SR148 billion ($40 million) for the first quarter.

Following losses last week, the financial sector rebounded this week with Al Rajhi Bank up 1.60 percent and Alinma Bank up 2.86 percent.

Al-Jouf Agricultural Development Co. climbed 3.81 percent, after posting a 297 percent profit surge to SR15 million in the first quarter of 2022.

Saudi Chemical Co. edged down 0.72 percent after its first-quarter profit fell by 20 percent to SR32.7 million.

Saudi Tadawul Group Holding Co. edged down 1.72 percent, after posting lower profits of SR141 million in the first quarter of 2022.

The Walaa Cooperative Insurance Co. dropped 2.35 percent, after announcing it widened losses by 35 percent to SR32 million during the first quarter.

 


Saudi commercial banks’ June consumer loans rise 13% to $118.9bn

Saudi commercial banks’ June consumer loans rise 13% to $118.9bn
Updated 08 August 2022

Saudi commercial banks’ June consumer loans rise 13% to $118.9bn

Saudi commercial banks’ June consumer loans rise 13% to $118.9bn
  • Share of consumer loans in total bank credit falls to 19.9 percent, data shows

CAIRO: Consumer loans of Saudi commercial banks increased 13 percent to SR445.8 billion ($118.9 billion) on June 30, 2022, compared to SR394.2 billion on the same day last year, the Saudi Central Bank, also known as SAMA, revealed.

This growth, however, pales in comparison to the 17.4 percent growth between June 30, 2021, and June 30, 2020, the data pointed out.

Moreover, the share of consumer loans in total bank credit has fallen to 19.9 percent on June 30, 2022, the lowest share percentage on record, data compiled by Arab News revealed. 

It is worth mentioning that consumer loans do not include real estate financing, finance leasing and margin lending, according to SAMA. 

From June 2017-2022, consumer loans have had a positive trend: The value grew 0.5, 0.6, 5.3, 17.4, and 13.1 percent year on year, respectively. The consumer loans stood at SR315.1 billion on June 30, 2017.

According to SAMA, 90 percent of consumer loans fall under the “other” products category.

The balance of consumer loans to finance “other” products increased 19 percent to SR402.3 billion on June 30 this year from SR338.2 billion the same day last year.

The remaining 10 percent is distributed among renovation and home improvement, vehicles and private transport, furniture and durable goods, education, healthcare, tourism and travel.

FASTFACTS

• Renovation and home improvement, which makes up 3.4 percent of the 10 percent, saw a 31.4 percent decline to SR15.2 billion on June 30, 2022, from SR22.2 billion a year ago.

• Car loans experienced a 20.6 percent year-on-year decrease from SR15.5 billion to SR12.3 billion during the period under study.

Renovation and home improvement, which makes up 3.4 percent of the 10 percent, saw a 31.4 percent decline to SR15.2 billion on June 30, 2022, from SR22.2 billion a year ago.

Moreover, car loans experienced a 20.6 percent year-on-year decrease from SR15.5 billion to SR12.3 billion during the period under study.

Furniture and durable goods underwent a 31.1 percent decrease from SR12.6 billion to SR8.7 billion over the same period. In contrast, education loans grew by 33 percent to SR5.9 billion.  

Looking at consumer spending during the first half of 2022, the total value of point of sale transactions grew 12.9 percent year on year, reaching SR271.2 billion in June year-to-date compared to SR240.3 billion over the same period in 2021, SAMA data stated.

The most significant change in POS value between the first half of 2021 and 2022 was in “miscellaneous goods and services,” which grew 42.6 percent from SR19.7 billion to SR28.2 billion during this period.

“Others,” which makes up 21.2 percent of the total value of POS transactions in the first half of 2022, the highest share for a category, surged 33.6 percent from SR42.7 billion in the first half of 2021 to SR57.1 billion in the first half of 2022.

Food and beverages, another component that exhibits a prominent share of 14.7 percent in POS sales, showed an increase of 14.8 percent from SR35.8 in June year-to-date last year to SR41.0 billion in June this year.

On the other hand, restaurants and cafes increased 31.4 percent from SR28.3 billion in the first half of 2021 to SR37.2 billion in the first half of 2022.


Dubai real estate market records $435.6m in real estate transactions

Dubai real estate market records $435.6m in real estate transactions
Updated 08 August 2022

Dubai real estate market records $435.6m in real estate transactions

Dubai real estate market records $435.6m in real estate transactions
  • Market saw 376 sales transactions worth 897.38m dirhams

DUBAI: According to data released by Dubai’s Land Department, the Dubai real estate market recorded transactions worth over 1.6 billion dirhams ($435.6 million), Emirates News Agency reported.

The market saw 376 sales transactions worth 897.38 million dirhams, 122 mortgage transactions worth 704.22 million dirhams, and 13 gift deals worth 23.3 million dirhams.

Villas and apartments worth 602.04 million dirhams and 78 land plots worth 295.34 million dirhams were sold.

On the other hand, mortgages were obtained for 92 villas and apartments worth 226.63 million dirhams and 30 land plots worth 477.59 million dirhams.

 


Saudi Arabia launches program to develop cybersecurity sector

Saudi Arabia launches program to develop cybersecurity sector
Updated 08 August 2022

Saudi Arabia launches program to develop cybersecurity sector

Saudi Arabia launches program to develop cybersecurity sector

RIYADH: Saudi Arabia’s National Cybersecurity Authority on Monday launched the “CyberIC” program to develop the Kingdom’s cybersecurity sector, the Saudi Press Agency reported.

The program aims to develop national capabilities in the field of cybersecurity, localize cybersecurity technology through training.

According to the authority, the first phase of the  program includes several initiatives including training of employees of national authorities, accelerating cybersecurity activities to stimulate the sector, and encouraging the development of national cybersecurity products, services and solutions. 

The program will also see the launch of the second version of the cybersecurity challenge and programs for chief information security officers in cooperation with international universities. The courses will include a set of cyber exercises that take place in a virtual environment that simulates real cyberattacks and incidents.

HIGHLIGHTS

The program will also see the launch of the second version of the cybersecurity challenge and programs for chief information security officers in cooperation with international universities.

It will support more than 40 startups through the cybersecurity accelerator and establish more than 20 startups through the cybersecurity challenge.

Around 10,000 Saudis in the cybersecurity sector will receive support through CyberIC.

More than 5,000 Saudis will be trained through advanced cyber exercises.

The initiative is based on six main tracks: Innovation and entrepreneurship, cybersecurity officers, cybersecurity trainers, fresh graduates, cybersecurity specialists, and law enforcement agencies. 

The first phase of CyberIC seeks to raise the number of cybersecurity startups in the sector by assisting more than 60 national companies. The program will support more than 40 startups through the cybersecurity accelerator and establish more than 20 startups through the cybersecurity challenge. 

In addition, around 10,000 Saudis in the cybersecurity sector will receive support through CyberIC, including more than 1,500 beneficiaries in national authorities; 150 cybersecurity officials, who will be offered leadership skills training; and more than 5,000 Saudis will be trained through advanced cyber exercises.


Goldman sees strong case for higher oil prices despite negative shocks

Goldman sees strong case for higher oil prices despite negative shocks
Updated 08 August 2022

Goldman sees strong case for higher oil prices despite negative shocks

Goldman sees strong case for higher oil prices despite negative shocks
  • The investment bank kept its 2023 outlook of $125 unchanged

BENGALURU: Goldman Sachs said the case for higher oil prices was still strong with current supply shortfalls well above its expectations in recent months, despite a recent retreat led by factors including global recession concerns.

The market will remain in unsustainable deficits at current prices and balancing it will still require “demand destruction on top of the ongoing economic slowdown,” the investment bank said in a note dated Aug. 7.

Oil prices hovered near multi-month lows on Monday, pressured by lingering worries about an economic slowdown.

Goldman said a divergence between benchmark Brent prices, which averaged $110 a barrel in June and July, and the corresponding Brent-equivalent global retail fuel price of $160 per barrel was not enough to trigger enough demand destruction to end the supply deficit.

“The unprecedented discount of Brent prices, even wider than we expected, can be explained by the worsening Russian energy crisis, as it boosts the costs of transforming crude out of the ground (Brent) into retail pump prices around the world through surging EU gas prices, freight rates, USD and global refining utilization,” it said.

Goldman trimmed its Brent price forecasts for the third and fourth quarters to $110 and $125 a barrel, respectively, versus previous forecasts of $140 and $130. It kept its 2023 outlook of $125 unchanged.

The investment bank forecast US retail gasoline and diesel prices to rebound to $4.35 and $5.50 per gallon, respectively, by the fourth quarter and average $4.40 and $5.25 in 2023.

“We forecast that US retail fuel prices will rally into year-end then decline from 2Q23 onward as refining and marketing margins start to normalize,” Goldman said.

The US average retail gasoline price hit a peak of $5.02 a gallon in mid-June, data from the American Automobile Association motorist advocacy group showed. 


Flush with cash, Pfizer buys Global Blood Therapeutics in $5.4bn deal

Flush with cash, Pfizer buys Global Blood Therapeutics in $5.4bn deal
Updated 22 min 9 sec ago

Flush with cash, Pfizer buys Global Blood Therapeutics in $5.4bn deal

Flush with cash, Pfizer buys Global Blood Therapeutics in $5.4bn deal
  • Pfizer’s 2021 revenue of $81.3 billion was nearly double the mark from the previous year, due to COVID-19 vaccine sales.

LONDON: Pfizer Inc. on Monday agreed to pay $5.4 billion in cash for sickle cell disease drugmaker Global Blood Therapeutics, as it looks to capitalize on a surge in revenue from its COVID-19 vaccine and treatment.
Pfizer will pay $68.50 per GBT share, which represents a 7.3 percent premium to its Friday closing price. The deal is at a more than 40 percent premium where GBT was trading before the Wall Street Journal reported that Pfizer was in advanced talks to buy it on Thursday.
Pfizer’s 2021 revenue of $81.3 billion was nearly double the mark from the previous year, due to COVID-19 vaccine sales. With the addition of its COVID-19 antiviral pill Paxlovid, Pfizer is expected to generate around $100 billion in revenue this year, but sales from both products are expected to decline going forward.
Pfizer has been on the lookout for acquisitions that could bring in billions in annual sales by the end of the decade.
“We have very deliberately taken a strategy of diversification in our M&A deals,” Aamir Malik, Pfizer’s top dealmaker, said in an interview. He said the company was focused on improving growth for the second half of the decade, rather than large deals that generate value through cost cuts.
“We think that there are opportunities across all therapeutic areas that we’re active in,” Malik said, noting that the company was also agnostic about size for future deals.
In May, Pfizer struck an $11.6 billion deal for migraine drug maker Biohaven Pharmaceutical Holding and recently also completed a $6.7 billion deal to buy Arena Pharmaceuticals.
With the acquisition of Global Blood Therapeutics, Pfizer adds sickle cell disease treatment Oxbryta, which was approved in 2019 and is expected to top $260 million in sales this year. It will also pick up two pipeline assets — GBT601 and inclacumab — targeting the same disease.
Pfizer said if they are all approved, it believes GBT’s drugs could generate more than $3 billion in sales annually at their peak.
Sickle cell disease is an inherited blood disorder that affects an estimated 70,000 to 100,000 people in the United States.
GBT Chief Executive Officer Ted Love said that Pfizer’s resources and multinational infrastructure will allow the company to launch Oxbryta in additional markets and boost its uptake.
“We really have no infrastructure outside of that (US and western Europe) and it takes time and money to build out those infrastructures and Pfizer already has all of it,” Love said.
Shares of Global Blood rose 4.5 percent following the deal announcement.