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

Here’s what you need to know before Tadawul trading on Thursday
The main index TASI advanced 0.5 percent to reach 11,727, while the parallel market, Nomu, added 1.8 percent to 20,728. (AFP)
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Updated 30 June 2022

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

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

RIYADH: Saudi Arabian stocks gained on Wednesday, supported by a rise in oil prices despite ongoing concerns over a potential global recession.

The main index TASI advanced 0.5 percent to reach 11,727, while the parallel market, Nomu, added 1.8 percent to 20,728.

TASI was lifted by a 0.9 percent rise in oil giant Aramco and a 2.9 percent surge in the Kingdom’s biggest lender Saudi National Bank.

Elsewhere in the Gulf, Dubai, Abu Dhabi, and Qatar lost 0.2, 0.4 and 0.5 percent, respectively.

Outside the Gulf, the Egyptian blue-chip index EGX30 slightly rebounded by adding 0.5 percent.

Brent crude traded at $115.9 a barrel as of 9:30 a.m. Saudi time on Thursday, and US benchmark West Texas Intermediate reached $109.74 a barrel.

Stock news

Mouwasat Medical Services Co. acquired 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal

Shareholders of Scientific & Medical Equipment House Co. approved the board's recommendation to distribute cash dividends of SR1 per share for 2021

Banque Saudi Fransi will distribute dividends of SR0.75 per share for the first half of 2022

The Saudi Ground Services Co. closed a SR100 million medical insurance deal with Bupa Arabia

Fawaz Abdulaziz Alhokair Co. received shareholders’ approval to reduce its capital from SR2.1 billion to SR1.15 billion

Saudi Fisheries Co. appointed Awwad Aldasouqi as acting CEO following the resignation of Walid Al-Bathi due to “special circumstances”

Al Rajhi Bank announced the resignation of Stefano Paolo Bertamini from his position as board member

Saudi Kayan Petrochemical Co. made an early repayment of SR1.68 billion to settle part of the company’s outstanding loans

Arabian International Healthcare Holding Co.’s shareholders approved the distribution of SR3 per share in dividends for 2021 as well as a buyback of up to 210,000 shares for an employee incentive plan

State-owned Saudi Electricity Co. transferred its entire stake in the Saudi Power Procurement Co. to the government

Riyadh Development Co. appointed Faisal bin Ayyaf as board chairman and Majid Al-Subaie as vice-chairman

Sipchem’s board approved the distribution of SR1.75 per share in dividends for the first half of 2022

Saudi Advanced Industries Co.’s board approved buying back 2.5 million shares to keep them as treasury shares

Tanmiah Food Co.’s unit secured a short-term financing facility worth SR150 million with the Agricultural Development Fund

Arabian Centres Co.'s net profit declined by 11 percent to SR433.8 million in its fiscal year ending March 31, 2022

Nomu-listed Riyadh Cement Co. got its board’s approval to transfer to the main market TASI

Saudi Research and Media Group signed a deal worth SR200 million annually to provide services for visual platforms

Abdulaziz & Mansour Ibrahim Albabtin Co. and Arabian Plastic Industrial Co. got the Capital Market Authority’s approval to list on Saudi Arabia's parallel stock market

Schlumberger-backed Arabian Drilling Co. received CMA’s approval to float 30 percent of its capital in an initial public offering

Batic Investments and Logistics Co.’s real estate arm signed an agreement to develop a land with an area of 229,000 square meters in Madinah

Tawuniya was awarded a SR55 million contract from Elm Co. for health insurance services

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


Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump
Updated 17 sec ago

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

Saudi-listed East Pipes seeks capital hike as it posts 190% profit jump

RIYADH: Saudi-listed East Pipes Integrated Co. for Industry’s board has proposed a capital raise of 50 percent, after reporting a higher second-quarter profit.

The pipe manufacturer is looking to increase its current capital of SR210 million ($56 million) to SR315 million through granting bonus shares, according to a bourse filing.

Shareholders will receive 0.5 shares for every one share held through the capitalization of SR105 million from retained earnings.

“The objective of the proposed bonus shares is to provide sustainable returns to shareholders, whilst supporting the company’s strategic investment plans,” the filing stated.

East Pipes had earlier reported a 190 percent year-on-year surge in profits to SR6.2 million for the second quarter of 2022, buoyed by a higher sales volume.


NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts
Updated 8 min 25 sec ago

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

NRG Matters — Egypt eyes $10bn renewables plan; ADNOC Drilling awarded offshore rigs contracts

RIYADH: Egypt is eying $10 billion of renewables to replace inefficient thermal fossil fuel power plants. 

In an effort to drive the country’s carbon emissions reduction goal, the precuts are expected to be delivered by the private sector, according to MEED.

US motors

A group representing General Motors, Toyota Motor, Volkswagen and other major automakers said a $430 billion bill approved by the US Senate will put achieving electric-vehicle adoption targets for 2030 in jeopardy.

The Alliance for Automotive Innovation had warned that most EV models would be ineligible for a $7,500 tax credit for US buyers under the bill, Reuters reported. 

Offshore rigs

ADNOC Drilling has been awarded two contracts totaling over 12.6 billion dirhams ($3.4 billion) to hire eight jack-up offshore rigs, Trade Arabia reported. 

Awarded by ADNOC Offshore, the contracts will support the expansion of the firm’s crude oil production capacity to 5 million barrels per day by 2030 and enable gas self-sufficiency for the UAE.


TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell
Updated 9 min 24 sec ago

TASI ends higher on strong earnings reports: Closing bell

TASI ends higher on strong earnings reports: Closing bell

RIYADH: Saudi Arabia’s benchmark index ended Monday higher after a wave of earnings reports boosted investor sentiment.

The Tadawul All Share Index added 0.66 percent reaching 12,297, while the parallel market, Nomu, climbed 1.36 percent at 22,072.

The Saudi British Bank climbed 1.44 percent, while the Kingdom’s oil giant Saudi Aramco added 0.13 percent.

The Saudi National Bank, the Kingdom’s biggest lender, ended the day 1.82 percent higher, while Alinma Bank rose 1.07 percent.

The Middle East Paper Co. gained 2.83 percent, following a 216 percent increase in first half profits.

The Wafrah for Industry and Development Co. rose 2.79 percent, following the signing of a $4 million contract with German GEA Food for meat production.

Bank Albilad rose 2.62 percent, following the announcement of the establishment of Enjaz Payment Services Co., a closed joint-stock company located in Riyadh.

Almarai Co. increased 0.56 percent, following the announcement of the re-appointment of Prince Naif bin Sultan bin Mohammed bin Saud Alkabeer as chairman and Suliman Al-Muhaideb as vice chairman.


EU plan to cut gas use by 15% comes into effect

EU plan to cut gas use by 15% comes into effect
Updated 22 min 53 sec ago

EU plan to cut gas use by 15% comes into effect

EU plan to cut gas use by 15% comes into effect

BRUSSELS: An EU plan to cut gas consumption across the bloc by 15 percent to cope with an energy price crisis spurred by Russia’s war in Ukraine comes into effect on Tuesday.

The EU regulation enshrining the plan agreed two weeks ago by the 27-nation bloc was published Monday in the EU’s official administrative gazette, with the stipulation it would take force from Tuesday.

“Considering the imminent danger to the security of gas supply brought about by the Russian military aggression against Ukraine, this regulation should enter into force as a matter of urgency,” it said.

The aim is for the EU to be able to bolster its reserves of gas in time for what is likely to be a very tough winter. European households and businesses are being squeezed by skyrocketing energy prices and reduced Russian gas that several member states are dependent on.

The regulation said that EU countries “shall use their best efforts” to cut gas consumption by “at least 15 percent” between August this year and March next year, based on how much they used on average over the previous five years.

Some EU countries, though, had carve-outs from strictly following the rule, which was in any case termed a “voluntary demand reduction.”

These were countries not fully connected to the European electricity grid or with gas pipelines to other parts of the EU or unable to free up enough pipeline gas to help other member states.

Hungary, which relies on gas piped in directly from Russia, had demanded the exception.

Germany, the EU’s economic powerhouse, took a major share of the 40 percent of EU gas imports that came from Russia last year.

Should the European Commission see a “severe gas supply shortage” or exceptionally high gas demand emerging, it can ask EU countries to declare an alert for the bloc. That would make gas cuts binding and limit exceptions.


DIFC launches first global family business and private wealth center

DIFC launches first global family business and private wealth center
Updated 35 min 7 sec ago

DIFC launches first global family business and private wealth center

DIFC launches first global family business and private wealth center

DUBAI: The Dubai International Financial Center has announced the launch of the first global family business and private wealth center.

The center will create a hub for bringing together global family-owned businesses, ultra-high-net-worth individuals and private wealth, according to a press release.

To be working on an independent basis, the center will provide advisory and concierge services, education and training, outreach and high-end networking, besides undertaking research and issuing publications, along with giving dispute resolution assistance.

The center will also grant accreditation to businesses and advisers in alignment with DIFC’s standards, the press release added.

“The UAE has a vast number of family businesses, owned by citizens and residents who contribute to the country’s economy,” said Essa Kazim, governor of DIFC.

In the next decade, he added, those families and others in the Middle East are expected to transfer 3.67 trillion dirhams ($1 trillion) to the next generation, which illustrates the urgent need to provide them with specialist, consolidated support to help them grow. 

Tarek Hajjiri, appointed CEO for the Global Family Business and Private Wealth Center said: “The new center will play a unique role in guiding family businesses in relation to governance, succession, ownership, wealth, family dynamics and strategy. Our role is crucial to ensure the long-term growth of family businesses.”

The Global Family Business and Private Wealth Center has been approved by the DIFC Authority Board of Directors and is expected to be launched on Sept. 1, 2022.