Here’s what you need to know before Tadawul trading on Wednesday

Here’s what you need to know before Tadawul trading on Wednesday
TASI rebounded from three days of losses to advance 0.5 percent to 12,300, while the parallel market Nomu lost 0.5 percent to 22,251. (Shutterstock)
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Updated 25 May 2022

Here’s what you need to know before Tadawul trading on Wednesday

Here’s what you need to know before Tadawul trading on Wednesday

RIYADH: Saudi stocks closed higher on Tuesday, bucking the downward trend in most Middle Eastern and global markets.

TASI rebounded from three days of losses to advance 0.5 percent to 12,300, while the parallel market Nomu lost 0.5 percent to 22,251.

Stock exchanges of Abu Dhabi, Kuwait, Dubai, and Egypt dropped 2.5, 2.2, 1.5, and 1 percent, respectively.

While those of Qatar, Bahrain, and Oman edged down between 0.2 and 0.4 percent.

In energy trading, oil prices recorded gains on Wednesday as tight supply outweighed concerns over a potential recession and China’s COVID-19 curbs.

Brent crude added 0.6 percent to $114.28 a barrel and US West Texas Intermediate gained nearly 0.7 percent to $110.53 a barrel as of 9:11 a.m. Saudi time.

Stock news

Unitholders of Jadwa REIT Saudi Fund will receive quarterly dividends of SR37 million ($9.9 million) in total 

Saudi Indian Co. for Cooperative Insurance, known as Wafa Insurance, has been delisted from the Saudi stock exchange

Retal Urban Development Co. announced its offering price range between SR112 and SR120 per share as it seeks to join Saudi Arabia’s initial public offering boom this year

Al Sagr Cooperative Insurance Co. has been suspended from trading on the Saudi exchange due to its failure to announce Q1 financial results in the specified time frame

Jabal Omar Development Co. saw its losses narrow by 47 percent to SR182 million in the first quarter, due to improved post-pandemic business operations

Al Jouf Cement Co. recorded a profit decline of 73 percent to SR5.55 million for the first quarter of 2022

Tourism Enterprise Co., known as Shams, made profits of SR87,549 in the first quarter of 2022 after recovering from SR941,441 losses in the same period a year earlier

Amana Cooperative Insurance Co.’s net loss before Zakat has widened by 25 percent to SR29 million in the first quarter

Arabian Pipes Co. swung into losses of SR13.2 million last quarter

East Pipes Integrated Co. for Industry announced the resignation of board chairman Omar Mohammed-Nabil Almidani as well as its vice chairman Balkrishan Gopiram Goenka

Saudi Cable Co.’s losses slightly widened in the first quarter to reach SR37.2 million

Anaam International Holding Group turned in a profit of SR2.8 million in the first quarter due to a rise in revenue

Shareholders of Scientific & Medical Equipment House are set to receive SR1 per share in cash dividends for 2021

Calendar

May 25, 2022

End of Amwaj International Co.’s IPO subscription

Aqaseem Factory for Chemicals and Plastics Co.’s listing on Nomu

Start of Retal Urban Development Co.’s IPO book-building

May 26, 2022

National Environmental Recycling Co. will start trading on the parallel market Nomu

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

May 30, 2022

Close of Anaam International Holding Group’s rights trading

May 31, 2022

End of Retal Urban Development Co.’s IPO book-building

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription


Oil Updates — Brent oil stalls; Dragon Oil extends  $1bn Turkmenistan deal; Ecuador oil output rebounds

Oil Updates — Brent oil stalls; Dragon Oil extends  $1bn Turkmenistan deal; Ecuador oil output rebounds
Updated 19 sec ago

Oil Updates — Brent oil stalls; Dragon Oil extends  $1bn Turkmenistan deal; Ecuador oil output rebounds

Oil Updates — Brent oil stalls; Dragon Oil extends  $1bn Turkmenistan deal; Ecuador oil output rebounds

RIYADH: Brent oil prices were little changed on Tuesday, reversing earlier gains of $1, as investors weighed supply concerns, highlighted by a potential production cut in Norway, and worries about a possible global recession curtailing fuel demand.

Brent crude futures for September settlement edged up 0.2 percent, or 22 cents, to $113.73 a barrel by 0432 GMT.

US West Texas Intermediate crude climbed $1.95, or 1.8 percent, to $110.38 a barrel, from Friday’s close. There was no settlement for WTI on Monday because of the Independence Day public holiday in the US.

Dragon Oil extends Turkmenistan partnership in $1 billion deal

Dubai-based Dragon Oil signed a $1 billion deal to renew its production partnership in Turkmenistan with state-owned Turkmen Oil for 10 years after the current contract expires in May 2025, state news agency WAM said on Monday.

Of the total value, $500 million will be paid in cash while the remaining $500 million will be paid over 13 years.

Ecuador oil output recovers by about 90 percent 

Ecuador’s oil output has recovered by about 90 percent since a deal between the government and demonstrators ended nationwide protests late last week, the ministry of mines and energy said on Monday.

Protests erupted in Ecuador in June to demand lower fuel prices and limits on the expansion of the mining and oil industries. The demonstrations led to at least eight deaths and devastated the country’s oil production.

Last Thursday, the government of President Guillermo Lasso and indigenous leaders signed a pact to end the crisis. At the time, oil output was around 262,000 barrels per day. It has since rebounded to 461,637 bpd, the ministry of mines and energy said in a statement.

“Some 952 oil wells have been reactivated, which means that about 10 percent of the suspended wells still need to be recovered,” Ecuador’s Energy Minister Xavier Vera said in the statement.

State-run oil company Petroecuador on Monday also reported a 90 percent recovery in production.

While the company on Friday estimated it would take a week to recover 90 percent of its output, production had risen to 361,535 bpd as of Sunday, it said.

“Thanks to these efforts, just 82 wells remain closed, of the almost 1,000 that were affected by acts of vandalism,” Petroecuador’s manager Italo Cedeno said in a statement.

The company was forced to issue a wide force majeure declaration across the oil industry on June 18 amid the protests.

The notice, enforced at the end of June, is expected to be lifted on July 7, once the company can assure customers that supply contracts will be fulfilled.

Norwegian oil and gas workers start strike, cutting output

Norwegian offshore workers on Tuesday began a strike that will reduce oil and gas output, the union leading the industrial action told Reuters.

The strike, in which workers are demanding wage hikes to compensate for rising inflation, comes amid high oil and gas prices, with supplies of natural gas to Europe especially tight after Russian export cutbacks.

“The strike has begun,” Audun Ingvartsen, the leader of the Lederne trade union said in an interview.

The Norwegian government has said it was following the conflict “closely.” It can intervene to stop a strike if there are exceptional circumstances.

On Tuesday, oil and gas output will be reduced by 89,000 barrels of oil equivalent per day, of which gas output makes up 27,500 boepd, Equinor has said.

On Wednesday, the strike will deepen the cut to the country’s gas output to a total of 292,000 barrels of oil equivalent per day, or 13 percent of output, NOG said on Sunday. 

From Wednesday oil output will be cut by 130,000 barrels per day, the lobby had said, corresponding to around 6.5 percent of Norway’s production, according to a Reuters calculation.

(With inputs from Reuters) 

 


TASI trades higher, while investors fret about inflation: Opening bell

TASI trades higher, while investors fret about inflation: Opening bell
Updated 49 min 41 sec ago

TASI trades higher, while investors fret about inflation: Opening bell

TASI trades higher, while investors fret about inflation: Opening bell

RIYADH: Saudi stocks opened higher on Tuesday’s opening bell, but investors were still worried about the impact inflation will have on the economy.

The main index, TASI, gained 0.18 percent to reach 11,378, while the parallel market, Nomu, started flat at 20,684, as of 10:09 a.m. Saudi time.

This was led by a 1.29 percent rise in Saudi chemicals maker Petro Rabigh and 0.26 percent gain in Saudi Aramco, the largest player on the Saudi oil market.

In the banking sector, Al Rajhi, the Kingdom’s largest valued bank, rose 0.75 percent, and Saudi National Bank climbed 0.30 percent.

Saudi British Bank lost 1.10 percent of its share price in early trading.

Saudi Research and Media Group and Saudi Fisheries Co. led gainers with 2.25 percent and 3.31 percent gains, respectively.

Ataa Educational Co. topped the decliners in the early morning session, shedding 2.68 percent.

In the energy sector, West Texas Intermediate crude was trading at $110.01 per barrel and Brent crude was trading at $113.36 per barrel as of 10:03 a.m. Saudi time.


Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday
Updated 05 July 2022

Here’s what you need to know before Tadawul trading on Tuesday

Here’s what you need to know before Tadawul trading on Tuesday

RIYADH: Saudi Arabia’s stock market extended losses on Monday as recession and inflation risks continue to bother investors.

The main benchmark index TASI lost 0.9 percent to close at 11,358, hit by a 1.3-percent fall in oil giant Aramco, while the parallel market Nomu dropped 1.9 percent to 20,672.

Likewise, the stock exchanges of Abu Dhabi, Dubai, Qatar, and Kuwait all shed between 0.2 and 1.4 percent.

Bahrain and Oman bucked the downward trend to close 0.5 and 0.2 percent higher, respectively.

Apart from the Gulf, Egypt’s blue-chip index EGX30 continued its losing streak as it slipped 3.6 percent.

Oil prices were slightly changed on Tuesday due to lingering supply concerns and worries over a potential global recession.

Brent crude futures edged down to $113.28 a barrel and US West Texas Intermediate rose almost 1.5 percent to $110.02 a barrel by 9:16 a.m. Saudi time.

Stock news

Petro Rabigh’s rump offering generated a total of SR390 million ($104 million) in proceeds after selling over 23 million shares

Middle East Specialized Cables Co. appointed Yahiya Al-Qunaibit as board chairman and Saad Al-Shammari as vice-chairman

Two substantial shareholders in Wataniya Insurance Co. have executed an off-market deal where SNIC Insurance Co. sold a 2.5 percent stake to E.A. Juffali and Brothers for SR16.5 million

Jadwa Investment Co. sold a property located in Riyadh, namely Raud Al Jenan School, for SR27 million

National Industrialization Co. elected Mubarak Al-Khafrah as its chairman and Talal Al-Maiman as its vice-chairman

Gulf General Cooperative Insurance Co. has signed a one-year deal with Al-Rashid Trading and Contracting Co. to provide medical insurance services

Calendar

July 7, 2022

Saudi Exchange will close for the Eid Al Adha holidays and resume trading on July 13


Aramco sets for $44bn profit amid mixed Q2 earnings of Saudi firms: Al-Rajhi Capital 

Aramco sets for $44bn profit amid mixed Q2 earnings of Saudi firms: Al-Rajhi Capital 
Updated 05 July 2022

Aramco sets for $44bn profit amid mixed Q2 earnings of Saudi firms: Al-Rajhi Capital 

Aramco sets for $44bn profit amid mixed Q2 earnings of Saudi firms: Al-Rajhi Capital 

RIYADH: Saudi-listed companies are expected to see mixed earnings in the second quarter of 2022, amid rising oil prices, looming economic slowdown risks, and interest rate hikes, according to Al-Rajhi Capital.

The Riyadh-based financial service firm which has analyzed the performance of all industrial sectors expects the Kingdom’s oil giant Aramco to post SR164.8 billion ($44 billion) in profits in the second quarter of 2022, up 81 percent from a year earlier. It estimates the chemical giant Saudi Basic Industries Corp.’s profit to slightly slip by 1 percent to SR7.6 billion.

Apart from SABIC, petrochemical companies will see pressure on earnings, weighed down by higher feedstock costs amid stable polymer prices, the report added.

In the healthcare sector, Al Rajhi Capital forecasts leaps in performance for two major players on improved capacity utilization, as Dallah Health and Sulaiman Al Habib are expected to see a profit surge of 50 percent and 10 percent respectively.

For the cement sector, however, the outlook is negative. All companies including, but not limited to, Saudi Cement, Southern Cement, and Yamama Cement are expected to see a drop in profit due to lower cement volumes.

The investment bank’s forecast for Saudi Telecom Co., known as stc, revealed an 8-percent increase in net profit, reaching SR3.07 billion.


Saudi non-oil sector sees robust improvement in business conditions in June: S&P Global 

Saudi non-oil sector sees robust improvement in business conditions in June: S&P Global 
Updated 34 min 31 sec ago

Saudi non-oil sector sees robust improvement in business conditions in June: S&P Global 

Saudi non-oil sector sees robust improvement in business conditions in June: S&P Global 

RIYADH: Saudi Arabia has seen a robust improvement in business conditions across the non-oil sector in June, as the Kingdom steadily advances in its path of economic transition, according to the latest PMI data from S&P Global.

It said new business rose at the sharpest rate for eight months, despite evidence that intensifying cost pressures had led companies to mark up their prices. 

David Owen, Economist at S&P Global Market Intelligence, said: "Saudi Arabia's non-oil economy continued to go from strength to strength in June, with the PMI picking up to an eight-month high of 57.0 and posting well above the 50.0 no-change mark. 

He said the upturn was underlined by a robust increase in new business levels, which encouraged firms to expand their output sharply and make greater input purchases.