PIF-owned ACWA Power leads Saudi stock market with 106% YTD gain

Analysis PIF-owned ACWA Power leads Saudi stock market with 106% YTD gain
Saudi Arabia’s main stock index TASI has gained 9 percent in 2022 to reach 12,310 points as of Aug. 2. (AFP)
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Updated 04 August 2022

PIF-owned ACWA Power leads Saudi stock market with 106% YTD gain

PIF-owned ACWA Power leads Saudi stock market with 106% YTD gain

RIYADH: Saudi Arabia’s main stock index TASI has gained 9 percent in 2022 to reach 12,310 points as of Aug. 2, led by a 106 percent surge in the shares of Public Investment Fund-owned utility provider ACWA Power.

Despite ongoing geopolitical hurdles weighing on markets globally, some stocks on the index have seen double-digit jumps in their share price, according to Argaam data.

Tadawul Group, Dallah Healthcare Co., Alinma Bank, and Ma’aden were among the top five gainers on the index, rising 74, 65, 57, and 53 percent, respectively.

The Kingdom’s banking sector has been witnessing a boom in earnings and share gains, with four banks on the list of TASI’s top ten gainers year-to-date.

In addition to Alinma Bank. Bank Albilad, Saudi Investment Bank, and Arab National Bank have all seen their stock prices soar between 40 and 47 percent.

On the other hand, Saudi insurers United Cooperative Assurance Co. and Arabia Insurance Cooperative Co. weighed most on the index in 2022, losing up to 69 percent.


Ethiopia starts power generation from second turbine at mega-dam

Ethiopia starts power generation from second turbine at mega-dam
Updated 14 sec ago

Ethiopia starts power generation from second turbine at mega-dam

Ethiopia starts power generation from second turbine at mega-dam

RIYADH: Ethiopian Prime Minister Abiy Ahmed kickstarted electricity production from the second turbine at its controversial mega-dam on the Blue Nile on Thursday, despite continuing objections by Egypt and Sudan over the project, according to AFP.

Abiy also confirmed that a third filling of the multi-billion dollar Grand Ethiopian Renaissance Dam was under way, a development that led Egypt last month to protest to the UN Security Council.

Thursday’s move came even though there is still no agreement between Ethiopia and its downstream neighbors Egypt and Sudan about the GERD’s operations.

Abiy insisted that the third filling of the $4.2 billion dam — set to be the largest hydroelectric scheme in Africa — was not causing any water shortages for the two countries.

“We have repeatedly told downstream countries, especially Egypt and Sudan, that by generating power we’re developing our economy, as well as (our desire) to see our citizens who live in the dark see light,” he said.

There was “no aim to sideline and harm” those countries, he added.

Ethiopia first began generating electricity at the dam in February. Currently, the two turbines, out of a total of 13 at the dam, are generating 750 megawatts of electricity.

We are ready to face all scenarios after Ethiopia completes the third filling phase of the Renaissance Dam, and we expect an unprecedented rise in the Nile waters after the gates of the dam are opened, the Sudanese Minister of Irrigation Yasser Abbas told Asharq.  

 


Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2
Updated 13 min 41 sec ago

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

Macro Snapshot — Romania inflation exceeds expectations; Singapore downgrades GDP in Q2

CAIRO: Romania's headline inflation exceeded expectations in July yet smaller rate hikes are still expected, while China’s July vehicle sales surged by 30 percent from a year earlier. Singapore downgraded its gross domestic product in the second quarter of this year as risks grew further, whereas the Federal Reserve officials stated the need for additional rate hikes despite the slowing inflation rates. 

Romania inflation overshoots expectations in July

Romania’s headline inflation rate rose above expectations in July but is showing signs of flattening out and analysts expect the central bank to continue to slow the pace of monetary tightening.

The year-on-year inflation rate in Romania hit 14.96 percent in July, just off a 19-year high and above a forecast of 14.4 percent in a Reuters poll.

It came down from 15.05 percent in June but analysts say there is still a chance it could creep slightly higher in the next two months.

Singapore downgrades gross domestic product in Q2

Singapore’s economy expanded less than initially estimated in the second quarter and the government revised its growth projections for 2022 lower, flagging risks to the global outlook from the Ukraine war and inflation.

The gross domestic product grew 4.4 percent year-on-year in the second quarter, the Ministry of Trade and Industry said, slower than the 4.8 percent growth seen in the government’s advance estimate.

“Downside risks in the global economy remain significant...further escalations in the Russia-Ukraine conflict could worsen global supply disruptions and exacerbate inflationary pressures through higher food and energy prices,” said Gabriel Lim, permanent secretary of MTI at a media briefing.

Fed officials say more rate hikes needed, despite slowing inflation

Slowing US inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken.

A US Labor Department report Wednesday showing consumer prices didn’t rise at all in July compared with June was just one step in what policymakers said would be a long process, with a red-hot job market and suddenly buoyant equity prices suggesting the economy needs more of the cooling that would come from higher borrowing costs.

The Fed is “far, far away from declaring victory” on inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said at the Aspen Ideas Conference, despite the “welcome” news in the CPI report.


NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech
Updated 15 min 47 sec ago

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

NRG Matters — ACWA Power mulls Kazakhstan wind farm; Germany’s RWE to spend over $5.2bn on green tech

RIYADH: Saudi Arabia’s ACWA Power is planning to build a wind farm in Kazakhstan, according to the firm’s chief investment officer.

Clive Turton highlighted the country’s vast green power opportunities, during the meeting with the Kazakh Invest top management, Astana Times reported.

Renewables 

Indian power producer JSW will buy Mytrah Energy’s renewable portfolio in a 105.3 billion rupees ($1.3 billion) deal, according to Bloomberg. 

The Mumbai-based firm will acquire around 1.8 gigawatts of renewable power assets, including 1.3 gigawatts of wind and 422 megawatts of solar. 

Also, Germany’s power producer RWE plans to spend over €5 billion ($5.2 billion) on green technologies including wind, solar and batteries this fiscal year, 30 percent more than it originally planned, as well as ramping up hydrogen.

This comes in an effort to make Europe more energy independent as a worsening crisis threatens the bloc’s economy, Bloomberg reported. 

Vehicles 

Ford Motor Co. said every vehicle it manufactures in Michigan would be assembled using solar and other renewable energy sources by 2025, as the automaker aims to lower its emissions, Reuters reported.


Saudi-listed IT provider Arab Sea back to losses 

Saudi-listed IT provider Arab Sea back to losses 
Updated 37 min 13 sec ago

Saudi-listed IT provider Arab Sea back to losses 

Saudi-listed IT provider Arab Sea back to losses 

RIYADH: Saudi-listed Arab Sea Information Systems Co. has turned in losses of SR5.5 million ($1.33 million) in the first half of 2022.

The company erased SR4.4 million in profit from the same period last year, dragged down by higher costs, according to a bourse filing.

The Riyadh-based firm attributed the results to a year-on-year revenue drop of 22 percent to SR17 million.

It added that a rise in selling and administrative expenses by almost 50 percent due to establishing its unit, Arab Sea Financial Co., also weighed on its performance.


Saudi Cement, Tabuk report lower H1 profits, extending downward trend

Saudi Cement, Tabuk report lower H1 profits, extending downward trend
Updated 48 min 8 sec ago

Saudi Cement, Tabuk report lower H1 profits, extending downward trend

Saudi Cement, Tabuk report lower H1 profits, extending downward trend

RIYADH: Tabuk Cement Co. and Saudi Cement Co. experienced weak profitability in the first half of 2022, in line with declining profits in the Kingdom’s cement sector.

Tabuk Cement revealed that it turned in losses of SR4.43 million ($1.2 million) during the first half of 2022 as a result of an increase in sales costs, according to a bourse filing.

Despite lower profit, the cement producer Tabuk’s first-half revenues increased by 8 percent to SR136 million.

Meanwhile, profits of Saudi Cement Co. were down 20 percent to SR164 million during the first half of 2022, coupled with a 14.6 percent decline in sales and revenues for the six-month period.

The rise in general and administrative expenses as well as an increase in financial charges contributed to Saudi Cement’s profit, it said.