Saudi stocks higher on positive earnings: Opening bell

Saudi stocks higher on positive earnings: Opening bell
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Updated 22 May 2022

Saudi stocks higher on positive earnings: Opening bell

Saudi stocks higher on positive earnings: Opening bell

RIYADH: Saudi stocks opened higher in the first trading session of the week following positive earnings reports.

The main index, TASI, added 0.70 percent to reach 12,515, while the parallel market, Nomu, rose 0.76 percent at 22,678, as of 10:09 a.m. Saudi time.

Saudi Industrial Export Co. gained 4.83 percent to lead the gainers, while Malath Cooperative Insurance Co. fell 4.17 percent to lead the underperformers.

Lazurde Co. for Jewelry came in second in the gainer list, up 4.32 percent, after seeing its first quarter profit rise by 34 percent.

Saudi Home Loans Co. advanced 0.50 percent, following an increase in the company's first-quarter profit of 9.8 percent.

The National Agricultural Development Co., known as NADEC, gained 1.34 percent after reporting a 137 percent increase in profit for the first quarter.

Al-Baha Investment and Development Co. raised 0.60 percent after proposing a 25 percent capital reduction.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi edged up 0.11 percent, while Alinma Bank fell 0.28 percent.

In the pharma sector, both companies advanced. Aldawaa Medical Services Co. gained 0.26 percent, and Nahdi Medical Co. rose 0.13 percent.

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


Standard Chartered launches API platform in Saudi Arabia

Standard Chartered launches API platform in Saudi Arabia
Updated 11 sec ago

Standard Chartered launches API platform in Saudi Arabia

Standard Chartered launches API platform in Saudi Arabia

RIYADH: Standard Chartered Bank Saudi Arabia has launched an application programming interface to ensure data security in real time.

Through this new interface, clients and partners will be able to share and integrate data securely, said a statement issued on Tuesday. 

In line with Saudi Vision 2030 and the country’s aim to become a regional digital hub, businesses across any industry in the Kingdom will now be able to connect to a host of new capabilities. 

This includes digitizing treasury, integration of banking capabilities into ERP operations, implementing digital business models, process automation, automated reconciliation and enabling point-to-point integration.  

“The launch of our application programming interface/ API accelerates a new era of financial innovation and plays a pivotal role in the increasing development of the Kingdom’s financial sector,” Boutros Klink, CEO of Bahrain and the Middle East at the bank, said. 


NRG Matters: G7 forms climate club; Saudi SARCO, UK firm to develop $300m renewable energy projects

NRG Matters: G7 forms climate club; Saudi SARCO, UK firm to develop $300m renewable energy projects
Updated 13 min 8 sec ago

NRG Matters: G7 forms climate club; Saudi SARCO, UK firm to develop $300m renewable energy projects

NRG Matters: G7 forms climate club; Saudi SARCO, UK firm to develop $300m renewable energy projects

RIYADH: On a macro level, the Group of Seven nations has reached a deal to launch a “Climate Club” where they agree on joint rules and standards to fight global warming. 

Zooming in, the Saudi Arabian Refineries Co. has signed an initial agreement with UK-based Christof Global Impact to develop $300 million renewable energy projects. 

Looking at the bigger picture:

• The UK is working on a plan to limit the influence of rising gas prices on consumers’ electricity bills, as it faces rising inflation due to its reliance on costly fossil fuels, Bloomberg reported.

• The Group of Seven nations has reached a deal to launch a “Climate Club” where they agree on joint rules and standards to fight global warming, Bloomberg reported. 

The move comes with the hope of avoiding conflicts over green tariffs as well. 

Through a micro lens:

• The Saudi Arabian Refineries Co. has signed an initial agreement with UK-based Christof Global Impact to develop renewable energy projects, Trade Arabia reported. 

The first project, with an initial investment of SR1 billion ($266 million), will study an investment  partnership to build a refinery producing the “biodiesel” biofuel carbon.

The second project, at an estimated total cost of SR130 million for the first phase, aims to study investment in the technology of slop oil to convert waste oil wells, oil from shipping ships, waste of fuel tanks and petroleum materials into low carbon raw materials to reduce carbon emissions. 

• SSE plc and Equinor have partnered to purchase £341 million ($419 million) three UK electricity plants from Triton Power Co. as they plan to develop low carbon projects, Bloomberg reported. 

The partnership reflects European energy companies’ interest in cleaning up their operations as they move towards green power. 


Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May
Updated 28 June 2022

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

Growth in Saudi Arabia’s liquidity slows to 7.8% year-on-year in May

RIYADH: Saudi Arabia’s M3 monetary aggregate, known as “broad money,” grew in May by SR171.6 billion ($45.7 billion) from the same month a year ago to SR2.38 trillion.

M3 money supply, a benchmark indicator for liquidity in Saudi Arabia’s monetary system, increased by 7.8 percent from SR2.21 trillion in May last year, according to data published on Saudi Central Bank website on Tuesday.

The annual growth rate in May was the slowest since December 2021. It slowed down from 8.7 percent in April. 

Looking at the year-on-year changes in components of the M3 aggregate, time and saving deposits grew by SR78.3 billion to SR517.4 billion. Other quasi-money deposits and demand deposits increased by SR60 billion and SR38.8 billion to SR297.8 billion and SR1.36 trillion, respectively. Currency outside banks decreased by SR5.6 billion to SR206.6 billion over the same period.

The M3 money supply slipped 0.5 percent from its level in April. 


SAMA’s net foreign assets remain virtually unchanged at $435.5bn

SAMA’s net foreign assets remain virtually unchanged at $435.5bn
Updated 28 June 2022

SAMA’s net foreign assets remain virtually unchanged at $435.5bn

SAMA’s net foreign assets remain virtually unchanged at $435.5bn

Net foreign assets of Saudi Arabia's central bank remained virtually unchanged at the end of May, standing at SR1.63 trillion ($435.5 billion), according to a monthly statistical bulletin from the Kingdom's regulator.

The figure represents an increase of just SR289 million from April for the bank, also known as SAMA.

The institution’s total assets grew in May by SR19.2 billion to reach SR1.86 trillion. 

In April, those assets grew by 1 percent, according to data published on the bank’s website on June 28.

SAMA's deposits with banks abroad and miscellaneous assets increased by SR17.4 billion and SR12.5 billion, respectively, while the central bank's investment in foreign securities fell by SR13.4 billion to SR1.101 trillion over the same period.


Saudi Arabia fuels 34% of OPEC exports increase in 2021

Saudi Arabia fuels 34% of OPEC exports increase in 2021
Updated 28 June 2022

Saudi Arabia fuels 34% of OPEC exports increase in 2021

Saudi Arabia fuels 34% of OPEC exports increase in 2021

CAIRO: Saudi Arabia was responsible for a third of the 77 percent increase in exports from the Organization of the Petroleum Exporting Countries in 2021, according to the latest figures. 

OPEC’s annual statistical bulletin showed the Kingdom contributed to 34 percent of the total rise in petroleum exports, followed by Iraq, Kuwait and the UAE — with 15, 9 and 10 percent of the total share respectively in 2021.

Production

While the overall 2021 world crude oil production rose by 0.52 million barrels per day, OPEC countries alone produced 0.7 million more barrels per day compared to the previous year.

That is a 0.8 percent rise in total world production of crude oil and a 2.7 percent rise in OPEC production, meaning non-OPEC countries saw a fall in crude oil by 0.4 percent.

Demand

World demand for oil saw an upward turn,  growing by 6.3 percent, with the primary contributors being the Americas, Europe and China.

Of that world demand, distillates and gasoline accounted for around 55.2 percent whereas Residual fuel oil requirements totaled around 6.6 percent in 2021.

OPEC and its allies struggled to meet the level of demand therefore driving oil prices higher. 

Exports

The aggregate level of crude oil exported by OPEC countries saw a decline of 0.54 bpd.

Some 9 out of the 13 OPEC members saw a drop in the level of crude oil exports in 2021. 

Of the remaining four  — Algeria, Iran, Iraq, and Libya — the latter saw the largest spike in crude oil exports compared to 2020.

Rigs and Wells

The oil exporting members saw a decline in the number of completed wells by 280, the lowest recorded number since 2017.

While OPEC countries produce around 40 percent of the world’s crude oil, the 47 active rigs added in 2021 only amount to 10 percent of the total increase in rigs compared to 2020.

The US alone built 239 of the 460 new active rigs manufactured in 2021.

World proven oil reserves reported 1.55 billion barrels indicating almost no change over the 2020-21 time period.

As for gas reserves, total world gas fell by 0.5 billion cubic meters of natural gas whereas OPEC members recorded an increase of 0.8 bcm compared to last year.