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


QS Monitor taps 90% of global food trade

QS Monitor taps 90% of global food trade
Updated 12 sec ago

QS Monitor taps 90% of global food trade

QS Monitor taps 90% of global food trade
  • Platform currently operates in 72 countries: Managing director Burak Karapinar

RIYADH: UAE-based global food trade startup QS Monitor has created a platform for food traders to ship their goods risk-free.

Established in 2020, the company mitigates the risk for exporters as they streamline their shipments to avoid food loss by providing traders with the requirements for their goods to pass security measures.

Burak Karapinar, the managing director and founder of QS Monitor, told Arab News that the platform currently operates in 72 countries, which amounts to almost 90 percent of the global food trade industry.

“We are in 72 countries and growing, but this represents almost 90 percent of the global food trade. So, the ones we don’t have on the platform right now are either small countries or ones that are not big in the food trade,” Karapinar said.

Calling it the “Google for food trade,” Karapinar explained that traders input the product along with the destination, and QS Monitor will provide a complete list of requirements.

But that is not at all. Joe Hawayek, the board member of QS Monitor, told Arab News that the platform also links users to testing laboratories in their country.

“We are linking them with a testing laboratory in their country that can conduct these tests, issue them with the relevant certification that says they have passed, and they take it and travel with it for their product from the start,” he added.

By linking these players, Karapinar is trying to mitigate the food loss in the supply chain caused due to contamination. 

FASTFACTS

• As the Ukraine-Russia war affected the global food trade sector, the company plays a huge role in ensuring importers are still connected with exporters.

• Saudi Arabia and the UAE import most of their eggs from Ukraine, and because of the platform, importers could find alternative sources for their products.

“To give you an idea, 72 percent of global food loss happens in the supply chain, not at home or on the consumer’s plate,” he pointed out.

As the Ukraine-Russia war affected the global food trade sector, the company plays a huge role in ensuring importers are still connected with exporters.

“That’s another beauty that we can provide to this platform. The onboarding of a supplier takes months. You need to be able to verify all the information and make sure the supplier meets your criteria and standards.

“Through our platform, you don’t need to do that. You can gather this information. And you can make your decision. So, we also add the trust element between the buyer and the seller,” Karapinar said.

Hawayek also added that Saudi Arabia and the UAE import most of their eggs from Ukraine, and because of the platform, importers could find alternative sources for their products. With a network of over 400 laboratories, the company provides several services through its platform and certification for Halal requirements for certain foods.

“We did more than 10,000 transactions last year; this includes certification testing, inspection, product registration, and supplier audits,” Karapinar added.

With 6,000 traders on the platform, Karapinar stated that the company currently has 1,000 traders on QS Monitor from the Kingdom and is planning to grow that number by a minimum of five times.

In addition, the company is currently in series A funding stage and is on its way to raising $8 million and expanding its staff from 18 to 60 people in the next five months.

QS Monitor also won UAE’s FoodTech Challenge provided by the Ministry of Climate Change and Environment, which features almost 600 companies.


Gazprom ramps up gas flow to Hungary via Turkstream pipeline, official says

Gazprom ramps up gas flow to Hungary via Turkstream pipeline, official says
Updated 9 min 18 sec ago

Gazprom ramps up gas flow to Hungary via Turkstream pipeline, official says

Gazprom ramps up gas flow to Hungary via Turkstream pipeline, official says
  • The agreement with Gazprom is for 15 years, with an option to modify purchased quantities after 10 years

BUDAPEST: Russia’s Gazprom has ramped up flows to Hungary via the Turkstream pipeline that brings gas to Hungary via Serbia, a Hungarian Foreign Ministry official said on Saturday.

EU member Hungary has maintained what it calls pragmatic relations with Moscow since Russia’s invasion of Ukraine, creating tensions with some EU allies keen to take a tougher line.

Hungary, which is about 85 percent dependent on Russian gas, firmly opposes the idea of any EU sanctions on Russian gas imports and Prime Minister Viktor Orban has also lobbied hard to secure an exemption from EU sanctions on Russian crude oil imports.

Foreign Minister Peter Szijjarto met his Russian counterpart Sergei Lavrov in Moscow last month, seeking a further 700 million cubic meters of gas on top of an existing long-term supply deal with Russia.

Under a subsequent agreement, Gazprom started ramping up gas flows to Hungary on Friday, Hungarian Foreign Ministry State Secretary Tamas Menczer said in a statement.

Menczer said Gazprom would add 2.6 million cubic meters of additional gas per day to previously-agreed deliveries via Turkstream through August, with the amount of September deliveries being negotiated.

Hungary’s reserves stored 2.84 billion cubic meters of gas by the middle of July, the lowest level for that period over the past five years based on data by the national energy regulator.

Under a deal signed last year, before the start of the war in neighboring Ukraine, Hungary receives 3.5 billion cubic meters of gas per year via Bulgaria and Serbia under its long-term deal with Russia and a further 1 bcm via a pipeline from Austria.

The agreement with Gazprom is for 15 years, with an option to modify purchased quantities after 10 years.


DCO startup passport cuts the red tape on cross-border trade

DCO startup passport cuts the red tape on cross-border trade
Updated 13 August 2022

DCO startup passport cuts the red tape on cross-border trade

DCO startup passport cuts the red tape on cross-border trade
  • Program helps startups do business across borders more efficiently while maintaining their local footprint

RIYADH: The Digital Cooperation Organization, a global initiative focused on improving the digital economy, is working toward encouraging fledgling companies to tap international markets through its startup program.

Called Startup Passport, the program helps startups do business across borders more efficiently while maintaining their footprint in their country of origin, said Hassan Nasser, vice president of international affairs of DPO.

The program has opened up potentially lucrative markets with a combined population of over half a billion people and a combined gross domestic product of nearly SR7.5 trillion ($2 trillion), reported the Saudi Press Agency.

Hassan Nasser

“By creating a new market expansion in DCO countries and beyond, you will positively impact these other markets,” said Naseer.

He said that the expansion of startups would create new economic entities, improve employment within DCO member states and nurture innovative solutions.

By creating a new market expansion in DCO countries and beyond, you will positively impact these other markets.

Hassan Nasser

According to Nasser, these innovative solutions could find wider acceptance with most startups focusing on sustainability and conservation.

In fact, the DCO Global Roundtable Series at the World Telecommunication Development Conference in June was meant to bring together global leaders to advance digital prosperity.

Naseer explained that the roundtable provides a platform for leaders worldwide to exchange perspectives on improving cooperation in the digital space and delivering an inclusive, sustainable digital economy.

The first roundtable had around 35 participants from 20 different countries.

FASTFACT

$2tr

The program has opened up potentially lucrative markets with a combined population of over half-a-billion people and a combined gross domestic product of nearly SR7.5 trillion ($2 trillion).

In Nasser’s view, cross-border cooperation is one of the critical reasons for the existence of DCO. “That’s one of the reasons DCO exists, to help on that and drive this cross-border cooperation,” he said.

Developing an efficient model requires cooperation, reducing costs and increasing return on investment by defining the best solution.

“There are a lot of challenges when it comes to digital investment, digital skills, digital empowerment, where we need more cooperation,” Nasser said.

As Nasser explained, DCO does not compete with anything but addresses a gap and complements a need.

The DCO will deliver its future roundtables in Latin America, Europe, Asia, and the United Nations General Assembly in New York.

Commenting on the UN General Assembly, he said it “will be a place where we get a global audience for this important session.”

He added: “A vital component of the organization’s mission is launching initiatives that will benefit all member states.”

With 11 member nations, DCO aspires to bring inclusive growth in the digital economy across its member nations, such as Bahrain, Djibouti, Jordan, Kuwait, Morocco, Nigeria, Oman, Pakistan, Rwanda, Saudi Arabia, and Cyprus.

The organization was launched in early 2022 at LEAP, a global event for future technologies held in Riyadh.


Acciona rejects carbon-intensive projects to meet environmental commitments

Acciona rejects carbon-intensive projects to meet environmental commitments
Updated 13 August 2022

Acciona rejects carbon-intensive projects to meet environmental commitments

Acciona rejects carbon-intensive projects to meet environmental commitments
  • The company is bidding for NEOM in the heavy civil area with hopes of contributing to the Kingdom’s projects

DUBAI: Spain's Acciona, a leader in sustainable solutions for infrastructure and renewable energy, has been rejecting projects that are not carbon neutral as part of its commitment to environmental protection.

According to a top executive, the company has been turning down projects directly involved in oil and gas extraction or production since they will add to the carbon dioxide emissions on its balance sheet.

Founded in 1931, the company has been carbon neutral since 2016, said Acciona's Middle East Director-General Jesus Sancho while speaking to Arab News.

Jesus Sancho

"That's something easy to say, but it is very difficult to achieve for a company which is present across 60 countries in the world," he said.

That’s something easy to say, but it is very difficult to achieve for a company which is present across 60 countries in the world.

Jesus Sancho

Sancho explained that one part of the company invests solely in renewable energy to achieve carbon neutrality. Acciona owns and operates its assets, including more than 12 gigawatts of renewable energy, contributing to negative carbon emissions.

As for renewable energies, the company has solar thermal, photovoltaic, concentrating solar-thermal power and wind farms, all of which are carbon-negative and offset the carbon dioxide generated by the other areas of the company, he added.

The challenge for Acciona, which has invested approximately SR1.8 billion ($500 million) in projects, is minimizing each project's carbon footprint to achieve carbon neutrality.

FASTFACT

$500m

The challenge for Acciona, which has invested approximately SR1.8 billion ($500 million) in projects, is minimizing each project’s carbon footprint to achieve carbon neutrality.

"We are focusing on projects aligned with our philosophy," he said, adding that his company's sustainability master plans were well aligned with Saudi Arabia's Vision 2030's goals.

The company's sustainability commitment has already invited the attention of the futuristic smart city, NEOM.

Acciona, according to Sancho, is bidding for NEOM in the heavy civil area with hopes of contributing to the Kingdom's projects.

The company is currently working on water treatment plant projects in the Kingdom. It has also set up desalination plants in Alkhobar 1, Alkhobar 2 and Shuqaiq 4.

Acciona also built the Shuqaiq 3 desalination plant to full capacity, producing 450 million liters of potable water daily. In addition, the plant is equipped with energy-efficient seawater reverse osmosis technology.

 


Five Chinese state-owned companies to delist from NYSE amid US tensions

Five Chinese state-owned companies to delist from NYSE amid US tensions
Updated 12 August 2022

Five Chinese state-owned companies to delist from NYSE amid US tensions

Five Chinese state-owned companies to delist from NYSE amid US tensions

SHANGHAI: Five Chinese state-owned companies, including oil giant Sinopec and China Life Insurance, said on Friday they would delist from the New York Stock Exchange, amid economic and diplomatic tensions with the US, according to Reuters.

The companies, which also include Aluminium Corporation of China, PetroChina and Sinopec Shanghai Petrochemical Co, each said that they would apply to delist their American Depository Shares this month.

The five, which in May were flagged by the US securities regulator as failing to meet its auditing standards, will keep their listings in Hong Kong and mainland Chinese markets.

Beijing and Washington are in talks to resolve a long-running audit dispute that could see Chinese companies banned from US exchanges if they do not comply with US rules.

Washington has long demanded complete access to the books of US-listed Chinese companies, but Beijing bars foreign inspection of audit documents from local accounting firms, citing national security concerns.

There was no mention of the auditing dispute in separate statements by the Chinese companies outlining their moves, which come amid heightened tensions after last week’s visit to Taiwan by US House of Representatives Speaker Nancy Pelosi.

“These companies have strictly complied with the rules and regulatory requirements of the US capital market since their listing in the US and made the delisting choice for their own business considerations,” the China Securities Regulatory Commission said in a statement.

The agency added that it would keep “communication open with relevant overseas regulatory agencies.”

The oversight row, which has been simmering for more than a decade, came to a head in December when the Securities and Exchange Commission finalized rules to potentially prohibit trading in Chinese companies under the Holding Foreign Companies Accountable Act. It said 273 companies were at risk.

Some of China’s largest companies including Alibaba Group Holdings, J.D Com Inc. and Baidu Inc. are among them. Alibaba said last week it would convert its Hong Kong secondary listing into a dual primary listing which analysts said could ease the way for the Chinese ecommerce giant to switch primary listing venues in the future.

In premarket trading Friday, US-listed shares of China Life Insurance and oil giant Sinopec fell 5.7 percent about 4.3 percent respectively. Aluminium Corporation of China dropped 1.7 percent, while PetroChina shed 4.3 percent. Sinopec Shanghai Petrochemical Co. shed 4.1 percent.

A spokesperson for NYSE declined to comment. A spokesperson for the Public Company Accounting Oversight Board, the audit watchdog overseen by the SEC, did not immediately provide comment.

Losing Patience? 

Market-watchers were split over what the delistings might mean for the audit deal, with some saying it was a bad sign.

“China is sending a message that its patience is wearing thin in the audit talks,” said Kai Zhan, senior counsel at Chinese law firm Yuanda, who specializes in US capital markets.

The companies said their US traded share volume was small compared with those on their other major listing venues.

PetroChina said it had never raised follow-on capital from its USlisting and its Hong Kong and Shanghai bases “can satisfy the company’s fundraising requirements” as well as providing “better protection of the interests of the investors.”

Global fund managers holding US-listed Chinese stocks are steadily shifting toward their Hong Kong-traded peers, even as they remain hopeful the audit dispute will eventually be resolved, Reuters reported this week.

“These companies are very thinly traded with very small US market cap so it is not a loss for US capital markets,” Brendan Ahern, CIO of Krane Funds Advisers, which has a New York-listed fund focused on Chinese tech plays, wrote in an email.

He and analysts said the delistings could pave the way for China to comply with the US requirements, since the five companies concerned likely have sensitive information China would not want exposed in an audit review.

“We see this as a positive sign. This is consistent with our view China will decide what companies would be allowed to be US-listed and thus subject to SEC’s audit investigations,” Jefferies analysts wrote in a note.

China Life and Chalco said they would file for delisting on Aug. 22, with it taking effect 10 days later. Sinopec, whose full name is China Petroleum & Chemical Corporation, and PetroChina said their applications would be made on Aug. 29.

China Telecom, China Mobile and China Unicom were delisted from the US in 2021 after a Trump-era decision to restrict investment in Chinese technology firms.

That ruling has been left unchanged by the Biden administration amid continuing tensions.