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

Here’s what you need to know before Tadawul trading on Wednesday
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Updated 29 June 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 regained some momentum on Tuesday, mirroring a rise in oil prices after China eased lockdown restrictions.

TASI surged 2.1 percent to 11,671, buoyed by a 3.3 percent rise in oil giant Aramco and a 3.4 percent leap in the Kingdom’s biggest lender Saudi National Bank.

The parallel market, known as NOMU, also recorded a 0.6 percent gain to end the day at 20,358 points.

With Saudi Arabia leading the gainers in the Gulf, stock exchanges of Abu Dhabi, Dubai, and Qatar added 1.9, 1.1, and 1.1 percent, respectively.

This was followed by marginal gains amounting up to 0.3 percent in the Omani and Kuwaiti indexes, while Bahrain’s BAX bucked the trend to close 0.3 percent lower.

Elsewhere in the Middle East, Egypt’s benchmark index EGX30 extended losses as it slipped 0.8 percent.

In energy trading, Brent crude reached $117.44 a barrel by 9:09 a.m. Saudi time on Wednesday, while US West Texas Intermediate traded at $111.44 a barrel.

Stock news

  • The Saudi Investment Bank, known as SAIB, completed the issuance of SR2 billion ($533 million) worth of Riyal-denominated Sukuk
  • Saudi Telecom Co., better known as stc, received its board’s approval to repurchase up to 15 million shares at SR453 million for an employee incentive plan
  • Derayah REIT fund received the board of directors’ approval to restructure its financing, which stood at SR748 million by 2021 end
  • Ayyan Investment Co. almost completed construction works at Al Salam Hospital and expects to obtain the required licenses to begin trial operations by the third quarter of 2022
  • Hail Cement Co.’s shareholders approved buying back 4.9 million shares and keeping them as treasury shares
  • Saudia Dairy and Foodstuff Co.'s shareholders approved a dividend distribution of SR3 per share for the second half of its financial year ended March 31, 2022
  • Naseej for Communication and Information Technology Co. was awarded a deal valued at SR14.5 million to implement a project in the field of e-education and training
  • Shareholders of the Red Sea International Co. will vote on a capital reduction of 50 percent to SR302 million in the next general assembly meeting
  • Saudi Advanced Industries Co. appointed Youssef Al-Qafari as board chairman instead of Abdullah Al-Juraish, who retains his membership in the board of directors
  • Abdullah Saad Mohammed Abo Moati for Bookstores Co. posted a 183 percent profit surge to SR15.1 million for its fiscal year ending March 31, 2022
  • Dar Al Arkan Real Estate Development Co. named Yousuf Al Shelash chairman of the board and Majed Abdul Rahman Al Qasim vice-chairman
  • Retal Urban Development Co. bought SR339 million worth of residential lands within the Sedra Masterplan Community
  • Shareholders of Saudi Arabia Refineries Co. approved a dividend payout of SR0.5 per share for 2021
  •  SABIC Agri-Nutrients Co. will distribute SR4 per share in dividends for the first half of the current year

Calendar

  • June 30, 2022

End of the Wafrah for Industry and Development Co.’s subscription to new shares

End of Petro Rabigh’s subscription to new shares

  • July 4, 2022

Launch of single-stock futures trading on Tadawul

  • July 7, 2022

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


Oil Updates — Crude down; Petrochina says EV sales to affect gasoline demand; Oil installations under high alert in Norway

Updated 9 sec ago

Oil Updates — Crude down; Petrochina says EV sales to affect gasoline demand; Oil installations under high alert in Norway

Oil Updates — Crude down; Petrochina says EV sales to affect gasoline demand; Oil installations under high alert in Norway

RIYADH: Oil prices fell more than 1 percent on Wednesday, pressured by a strengthening dollar and crude storage builds that offset support from US production cuts caused by Hurricane Ian.

Brent crude futures fell $1.08, or 1.25 percent, to $85.19 per barrel at 08.30 a.m Saudi time, while US West Texas Intermediate crude futures were down $1.03, or 1.31 percent, at $77.47 per barrel.

Robust EV sales in China to affect gasoline demand: PetroChina

China’s gasoline consumption growth will be affected by strong electric vehicle sales in the country, a senior Chinese oil executive said on Wednesday.

EV sales hit 6 million units in the first eight months this year, Wu Qiunan, chief economist at PetroChina International, told a forum at the 38th Asia Pacific Petroleum Conference.

“That’s a big replacement of gasoline consumption,” he said, adding this may lower gasoline demand growth even as consumption is expected to recover when China eases COVID-19 restrictions.

Norway to strengthen security at oil, gas installations

Norway will strengthen security at its oil and gas installations following gas leaks in the Baltic Sea and reports of drone activities in the North Sea, the Nordic country’s energy minister said on Tuesday.

Europe was investigating major leaks in two Russian pipelines that spewed gas into the Baltic Sea on Tuesday as Sweden launched a preliminary probe into possible sabotage to infrastructure at the center of an energy standoff.

“Based on the information we have seen so far, much indicates acts of sabotage,” Norwegian Oil and Energy Minister Terje Aasland said in a statement.

The government had consulted with the armed forces and operators of oil and gas installations, both on land and offshore, it said.

On Monday, Norway’s Petroleum Safety Authority had urged greater vigilance over unidentified drones seen flying near Norwegian offshore oil and gas platforms, warning they could pose a risk of accidents or deliberate attacks.

(With input from Reuters) 

 


Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu
Updated 32 min 54 sec ago

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

RIYADH: Knowledge Tower Trading Co. will conduct an initial public offering of its 350,000 ordinary shares on the Nomu-Parallel Market according to the company’s plans, revealed by its financial advisor Watheeq Capital.

This represents around 20 percent of Knowledge Tower’s SR18 million ($5 million) share capital, which is divided into 1.75 million shares, as it was stated in a filing with the Stock Exchange.

The end price of the offering is expected to be determined once the book-building process for the offering has been completed.

The offering period will run from Oct. 30 through Nov. 3 for qualified investors, according to the statement.

As of Sept. 12, the Capital Market Authority has approved the company’s application to list on the parallel market Nomu.

This came after it secured the approval of the listing by the Saudi Exchange on July 24.

Watheeq Capital has been appointed as Knowledge Tower’s Financial Advisor, while Derayah Financial has been appointed as Knowledge Tower’s Lead Manager for the IPO.

In its latest earnings report, Knowledge Tower posted SR3.6 million in profits during its financial year ending in March, with its revenue exceeding SR20 million during the same period.

The company expected that its shares would start trading on the parallel market once all its letters were completed.

The Dammam-based company is currently engaged in the wholesale distribution of stationery and office supplies, as well as the retail sale of stationery, newspapers, and magazines as part of its business activities.

The company also publishes printed books, dictionaries, atlases, and maps in addition to importing and producing written, drawn, and illustrated intellectual products.

It is the sole agent for American books published by National Geographic for American schools in Saudi Arabia.

The Saudi stock exchange Tadawul Group announced in March that it had received more than 70 listing applications for both the main index TASI, as well as the parallel index Nomu.

The Saudi Stock Exchange recorded 17 initial share sales in the first half of the year, generating proceeds amounting to $5.07 billion.

The parallel Nomu market accounted for nine listings worth $649 million.

This number is up from 15 offerings during the whole of 2021, which raised almost $5 billion.

As of Tuesday, Sept. 27, TASI, the main market, has listed 10 IPOs, while Nomu, the parallel market, has listed 11 IPOs.


Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook
Updated 28 September 2022

Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook

RIYADH: Goldman Sachs on Tuesday cut its 2023 oil price forecast due to expectations of weaker demand and a stronger US dollar, but said the ongoing global supply disappointments only reinforced its long-term bullish outlook.

Goldman’s commodities research division lowered the forecast for next year by $17.5 per barrel on average, even as it saw a seasonally adjusted global oil market deficit in the fourth quarter of 2022 and in 2023.

It revised its oil price forecast lower by $19 per barrel on average for the period stretching from the fourth quarter of 2022 to the fourth quarter of 2023 and sees global oil demand growing in 2023 by 2.0 million barrels per day at current prices, versus a previous forecast of 2.5 million bpd, according to a research note issued by the investment bank.

“Even with a cautious growth outlook ... the oil market remains critically tight, with still near-record low inventories and OPEC spare capacity and with supply soon set to turn supportive once again between the end of the US Strategic Petroleum Reserve sale and the expected decline in Russian production later this year,” the note said.

The short-term path for oil prices is likely to remain volatile, Goldman said, adding that a sharply appreciating dollar and lower demand expectations will continue to put downward pressure on oil for the rest of this year. 

“While it may be surprising that oil is pricing such low growth expectations, this reflects the outsized exodus of investors, forced away by the extreme price volatility this spring,” it said.

It would take an economic hard landing and a contraction in global gross domestic product growth to justify sustained lower prices, the note said.

Oil prices, which touched a nine-month low on Monday, were up more than 2 percent on the back of supply curbs in the US Gulf of Mexico due to Hurricane Ian and a slightly weaker dollar.

Goldman does not expect the Organization of the Petroleum Exporting Countries to increase its production quotas this year and sees the oil exporting group stabilizing output near current levels through 2023.


Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
Updated 28 September 2022

Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
  • Jordanian minister said value of trade between his country and Gulf Cooperation Council member states reached $6.6 billion in 2021

AMMAN: The third session of the Jordan-Gulf Cooperation Council Economic Forum began in Amman on Tuesday. It brings together officials and business representatives from Jordan and GCC member states to discuss opportunities for the expansion and development of economic relations, the Jordan News Agency reported.

The forum, which is taking place under the title New Horizons for Economic and Investment Cooperation, aims to advance the strategic objectives and interests of all participating nations, according to the Jordanian Ministry of Industry, Trade and Supply.

The delegates at the two-day event include businessmen, investors, the heads of trade federations and chambers of commerce, and representatives of Gulf and Jordanian government stakeholders, according to the ministry.

In his opening remarks, Youssef Shamali, the Jordanian minister of industry, trade and supply, said that the value of trade between his country and GCC member nations reached $6.6 billion in 2021. Jordanian exports to the GCC were worth $1.7 billion of that total, while Jordan’s imports accounted for $4.9 billion.

The minister added that Gulf nations are responsible for the most significant foreign investments in Jordan, and capital from the region has benefited the nation’s economy and created jobs for the Jordanian people.

He added that if Arab nations were to unite to form a powerful economic bloc, it would allow them to boost exports, increase production, create new job opportunities for young people, and achieve greater integration into the global economy.
 


Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low
Updated 27 September 2022

Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low

NEW YORK: Oil rose by $2 a barrel on Tuesday from a nine-month low a day earlier, supported by supply curbs in the US Gulf of Mexico ahead of Hurricane Ian and a slight softening in the US dollar.
Prices also drew support from analyst expectations of possible supply cuts from the Organization of the Petroleum Exporting Countries and allies, which meets to set policy on Oct. 5.
Brent crude was up $2.35, or 2.8 percent, to $86.41 a barrel at 10:52 a.m. EDT (1452 GMT). On Monday it fell as low as $83.65, the lowest since January. US West Texas Intermediate  crude was up $2.04, or 2.7 percent, at $78.74.
Crude soared after Russia invaded Ukraine in February, with Brent coming close to its all-time high of $147 in March. Recently, worries about recession, high interest rates and dollar strength have weighed.
“Oil is currently under the influence of financial forces,” said Tamas Varga of oil broker PVM. “In the meantime, relief rallies, like the one this morning caused by Hurricane Ian in the US Gulf, are viewed as temporary phenomena.”
The dollar edged back from a 20-year high, which also supported oil. A strong dollar makes crude more expensive for buyers using other currencies.
Supply cuts also lent support. BP and Chevron said on Monday they had shut production at offshore platforms in the Gulf of Mexico as Hurricane Ian approached.
The outages may only provide a momentary reprieve for oil prices, Jim Ritterbusch, of Ritterbusch and Associates, said in a note.
“Outages are apt to prove brief,” Ritterbusch said, adding that the Gulf of Mexico represents “only about 15 percent of total US production amid this shale age” so the effect “is apt to be minimal.”
The oil price drop has raised speculation that OPEC+ could intervene. Iraq’s oil minister on Monday said the group was monitoring prices and did not want a sharp increase or a collapse.