Here’s what you need to know ahead of the trading week on Tadawul

Here’s what you need to know ahead of the trading week on Tadawul
The main index TASI shed 2.24 percent to 12,427 points, while the parallel Nomu market was down 1.4 percent to 22,508 points. (Shutterstock)
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Updated 22 May 2022

Here’s what you need to know ahead of the trading week on Tadawul

Here’s what you need to know ahead of the trading week on Tadawul

RIYADH: Saudi stocks closed lower last week as mixed earnings reports and volatile crude prices weighed on investor sentiment.

The main index TASI shed 2.24 percent to 12,427 points, while the parallel Nomu market was down 1.4 percent to 22,508 points.

While Saudi Arabia led the fall in the Gulf, stock exchanges in the UAE, Qatar, Bahrain, and Kuwait recorded losses in Thursday’s session. The Omani bourse ended almost flat.

Elsewhere in the Middle East, Egypt’s primary index EGX30 gained 0.8 percent.

UAE indexes rebounded on Friday as Abu Dhabi’s ADX edged 0.9 percent higher and Dubai’s DFMGI inched up by 0.1 percent.

Oil prices settled slightly higher. Brent crude rose to $112.55 a barrel and US West Texas Intermediate crude reached $110.28 a barrel.

Stock news

Malath Cooperative Insurance Co. turned into a net loss before Zakat amounting to SR21 million ($5.6 million) in the first quarter of 2022

Lazurde Co. for Jewelry saw its first-quarter profit increase by 34 percent to SR13.7 million

Real estate developer Red Sea International Co. narrowed losses by 42 percent to SR19 million last quarter

Buruj Cooperative Insurance Co.’s net loss before Zakat widened by 444 percent to SR31.8 million last quarter

First-quarter profit of Shariah-compliant real estate lending firm Saudi Home Loans Co. was up 9.8 percent to SR32.4 million

Wataniya Insurance Co. generated proceeds of SR53 million from its rump offering which was almost 400 percent covered

Maharah Human Resources Co.’s first-quarter profit dropped 20.8 percent to SR24.8 million despite a jump in sales

United International Transportation Co., or Budget Saudi, posted a 25 percent profit surge to SR60 million in the first quarter

Gulf Union Al Ahlia Insurance Co.’s rights issue was 27 percent covered, with subscriptions valued at SR62.5 million

The National Agricultural Development Co. reported a 137 percent jump in profit to SR15 million for the first quarter of 2022

The board of Al-Baha Investment and Development Co. proposed a capital reduction of 25 percent to SR223 million

Al-Baha’s board also recommended an initial public offering of its subsidiary Elegant Centers Co. on Saudi Arabia’s parallel market Nomu

The East Gas Co., an affiliate of Saudi Arabian Amiantit, submitted a filing to the Capital Market Authority as it seeks direct listing on the parallel Nomu market

Ladun Investment Co.’s IPO price range was set between SR15 to SR18 per share

Food delivery platform Jahez signed an initial deal as it seeks to acquire The Chefz – one of its rivals in the Kingdom

Calendar

May 22, 2022

Start of Amwaj International Co.’s IPO subscription

Start of Ladun Investment Co.’s IPO book-building

May 23, 2022

Start of Anaam International Holding Group’s subscription to new shares and rights trading

May 25, 2022

End of Amwaj International Co.’s IPO subscription

May 26, 2022

End of Ladun Investment Co.’s IPO book-building

May 30, 2022

Close of Anaam International Holding Group’s rights trading

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription 


Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs
Updated 10 sec ago

Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs

RIYADH: The Madinah municipality has signed an agreement with Al-Sharif Holding Group to establish 12 electric charging stations in different parts of the city, the Saudi Press Agency reported.

It is part of the Kingdom’s efforts to achieve its zero-carbon goals.

The opening of these new electric charging stations is expected to increase the popularity of electric vehicles and will also support environmental sustainability programs. 

The agreement was signed between Fahd bin Muhammad Al-Balishi, mayor of the region and Ahmed Sindi, CEO of Sharif X Company for Electric Vehicle Charging Solutions. 

According to reports, these electric charging stations are expected to provide fast and medium charging devices, both AC and DC through power supply sockets with a power ranging from 22-200 kilowatts.

Recently, Kalyana Sivagnanam, group CEO of Petromin, during an exclusive interview with Arab News said that its electric charging station arm Electromin is planning to open new charging stations, in addition to the existing 100 to end Saudis’ reluctance to EVs. 


Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes
Updated 34 min 57 sec ago

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

RIYADH: Gold prices fell on Friday as a firm dollar and looming rate hikes soured appetite for the non-yielding asset, while India’s import tax hike on bullion also dampened its demand prospects.

Spot gold is currently priced at $1,811.43 per ounce, while US gold futures settled down at $1,801.50. 

Silver, Platinum fall

Spot silver is priced at $19.67 and has dropped about 6.5 percent this week, its biggest weekly fall since January 2022.

Spot platinum is priced at $892.73 per ounce, on course for its fourth consecutive weekly fall, while palladium is at $1,959.58, gaining about 4.5 percent this week.

Indonesia looks to raise palm oil export quota

Indonesia proposed raising palm oil export quotas on Friday and is considering increasing mandatory levels of biodiesel in fuel mixes to prop up prices for farmers when domestic palm oil inventories are high, a senior minister said on Saturday.

Palm oil inventories ballooned, and mills limited purchases of fresh fruit bunches from farmers after Jakarta stopped exports of crude palm oil and some other derivatives for three weeks to May 23 in a bid to contain soaring domestic cooking oil prices.

Indonesia replaced the ban with a domestic market obligation, requiring companies to supply a portion of their products to the domestic market through the government’s bulk cooking oil program and linked DMO volumes to companies’ export permits and quotas. 

DMO volumes as of the end of June were around 270,000 tons, the government said.

The government will now allow palm oil companies to export seven times the amount of their sales from currently five times, senior minister Luhut Pandjaitan said.

“I asked the Trade Ministry to increase the export multiplication factor to seven times starting July 1, with the main objective to increase farmer’s FFB prices significantly,” Luhut said in a statement.

Russia reduces grain export taxes to support exports

Sanctions-hit Russia has sharply reduced its grain export taxes after changing the formula it uses for calculating them to support shipments in the July-June marketing season, the agriculture ministry said on Friday.

Russian farmers are expected to harvest a massive wheat crop this summer, bringing a record exportable surplus in the 2022-2023 season. 

However, shipments are complicated by high export tax, a strong rouble and sanctions-inflated costs for freight and insurance.

The ministry said that the new base price for calculating the wheat export tax is set at 15,000 roubles ($283.68) per ton.

It was previously in US dollars at $200 a ton. The agriculture ministry used the base price and price indicators reported by traders to determine the level of tax weekly.

The wheat export tax is set at 4,600 roubles ($85.8) per ton from July 6-12 against $146.1 per ton from June 29 to July 5, the ministry said in a separate note.

President Vladimir Putin said this week that Russia is the world’s largest wheat exporter and aims to remain so. Despite disrupting the Black Sea supply chains, it continues to supply its traditional markets in the Middle East and Africa.

(With inputs from Reuters)


Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii
Updated 03 July 2022

Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii

RIYADH: Careem, the ride-hailing and e-commerce platform, has acquired Denarii, a Dubai-based money transfer platform, in its second acquisition this month.

While the company has not disclosed the value of the deal, this acquisition will allow Careem to integrate Denarii’s technologies and assets into its platform.

Some key members of the Denarii team will also join Careem as part of the acquisition, MAGNiTT reported. 

Careem will use Denarii’s technology for its Careem Pay feature, to connect customers and Captains with remittance services provided by licensed providers. 

“Denarii’s innovative API will accelerate our journey to offering simple and affordable international remittance services, adding to the wide variety of services already available through Careem Pay,” Mudassir Sheikha, CEO and co-founder of Careem said. 


JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts
Updated 03 July 2022

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

RIYADH: Amid ongoing geopolitical tensions and skyrocketing energy rates, global oil prices may hit $380 a barrel if the US and European curbs compel Russia to inflict retaliatory crude output cuts, Bloomberg reported citing analysts at JPMorgan Chase & Co.

It was after Russia’s invasion of Ukraine that the Western allies led by the US imposed several sanctions, and worked out a complicated mechanism to cap the price fetched by Russian oil.

According to JPMorgan analysts including Natasha Kaneva, currently Russia enjoys a strong financial position and it can afford to slash daily crude production by 5 million barrels.

The analysts noted that Russia’s crude production cuts could be disastrous for the world, as a cut of 3 million barrels will elevate London crude prices to $190. In the worst-case scenario, if the output is cut by 5 million barrels, the price could reach as high as $380 a barrel.

“The most obvious and likely risk with a price cap is that Russia might choose retaliate by reducing exports as a way to inflict pain on the West,” wrote the analysts.


SABB appoints new CEO to lead corporate and institutional banking

SABB appoints new CEO to lead corporate and institutional banking
Updated 03 July 2022

SABB appoints new CEO to lead corporate and institutional banking

SABB appoints new CEO to lead corporate and institutional banking

RIYADH: The Saudi British Bank has appointed Yasser Ali Al-Barrak as its new CEO for corporate and institutional banking from this month.

The appointment of Al-Barrak will take effect on July 1, the bank said in a press statement.

Al-Barrak joined SABB in 2012 and has held many leadership positions, most recently being the general manager of global corporate and institutional banking, the statement said.

“The appointment of Yasser is a testament to the success of career growth plans at SABB, which is a major player in managing our most valuable assets, our people,” said SABB Managing Director & CEO Tony Cripps.

Established in 1978, SABB is an associate of the HSBC Group and a Saudi joint-stock company. It was named Saudi’s best bank for 2022, the statement added.

The bank provides retail, corporate, investment, private, and treasury services and has a paid-up capital of SR20.5 billion ($5.46 billion).