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

Here’s what you need to know before Tadawul trading on Wednesday
The main index, TASI, ended the session flat at 12,545, while the parallel market Nomu edged 0.34 percent lower to finish at 22,034. (Shutterstock)
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Updated 17 August 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 settled flat on Tuesday, as news over potential global inflation spurred investor worries, while the market continued to see positive earnings reports.

The main index, TASI, ended the session flat at 12,545, while the parallel market Nomu edged 0.34 percent lower to finish at 22,034.

Stock market gains across the whole region were subdued, amid volatile oil trading due to recession concerns.

Abu Dhabi and Bahrain lost 0.2 percent, while Dubai, Oman, Qatar, and Kuwait advanced between 0.2 and 0.5 percent.

Outside the Gulf, the Egyptian index EGX30 closed 0.7 percent lower.

Brent crude reached $93.31 a barrel by 9:16 a.m. Saudi time on Wednesday, while US West Texas Intermediate traded at $87.56 a barrel.

Stock news

ACWA Power Co. said it will sign today a $2.4 billion deal with Uzbekistan’s Ministry of Investment & Foreign Trade for a 1,500-megawatt wind project

Amana Cooperative Insurance Co.’s net losses narrowed by 50 percent to SR31 million in the first half of 2022

Wataniya Insurance Co. was awarded an SR54 million insurance contract with Samsung C&T Corp. for the NEOM spine water infrastructure

Wataniya Insurance saw its losses widen by 44 percent to SR37 million in the first half of 2022

Anaam International Holding Group Co.’s board approved liquidating two fully owned subsidiaries

Alinma Tokio Marine Co. turned into a profit of SR2.4 million in the first half of 2022

Saudi Enaya Cooperative Insurance Co.’s loss before zakat narrowed by 53 percent to SR14 million

Arabian Centres Co., known as Almrakez, reported a higher profit of SR128 million for the second quarter of 2022

Salama Cooperative Insurance Co. received shareholders’ approval to reduce its capital by 60 percent to SR100 million

Al Jouf Cement Co. appointed Abdul Karim Al-Nuhair as CEO following Jamal Al Amer's resignation

Naseej for Technology Co. reported SR7.7 million in profits for the first half, down 22 percent from the previous year

Al Moammar Information Systems Co. signed an SR39 million contract with the Saudi Ministry of Environment, Water, and Agriculture 

Alamar Foods Co. reported an SR66 million net profit in the first half of 2022, a 10 percent increase from the first half of last year

Saudi Tadawul Group Holding Co. entered a non-binding deal to acquire a 51 percent stake in financial technology provider Direct Financial Network Co.

National Co. for Learning and Education Co. announced the opening of the Trbyh Namouthajiya International Schools campus in Dhahran

Banan Real Estate Co. saw its first-half profit grow 16 percent to SR15 million

Leading franchise retailer Fawaz Abdulaziz Alhokair Co. reported a 26 percent profit surge to SR58 million for the second quarter of 2022

Alhokair said that its accumulated losses have been cut to zero, following a 45.3 percent capital reduction

Al Yamamah Steel Industries Co.’s profits were down 58 percent to SR70 million during the nine months ending June 30

Saudi Research and Media Group posted a 24 percent rise in half-year profit to SR281 million

Calendar

August 17, 2022

Saudi Networkers Services Co. will start trading its shares on Nomu

August 18, 2022

Rawasi Albina Investment Co. will start trading its shares on Nomu


China launches $28bn loan facility to support manufacturers

China launches $28bn loan facility to support manufacturers
Updated 28 September 2022

China launches $28bn loan facility to support manufacturers

China launches $28bn loan facility to support manufacturers
  • Yuan ends at weakest since global financial crisis, hits record low

BEIJING, SHANGHAI: China’s central bank said on Wednesday it has set up a relending facility worth more than 200 billion yuan ($27.59 billion) to help manufacturers and other companies upgrade their equipment, as part of a push to revive flagging demand.

The People’s Bank of China said in a statement that it will provide low-cost funds to financial institutions and guide them to lend to firms to support such upgrades. The loans will be issued on a monthly basis, and the interest rate for qualified firms will be no higher than 3.2 percent from Sept. 1, 2022 to Dec. 31, 2022, the central bank added. China’s one-year loan prime rate is currently 3.65 percent.

The lending facility will support sectors including education, health, culture, tourism and sports, electric vehicle chargers, urban underground facilities, new infrastructure and industrial digital transformation, the central bank said.

The PBoC has increasingly relied on structural, or targeted policy tools, including low-cost loans, to support the slowing economy, as it faces limited room to cut interest rates for fear of fueling capital flight and inflation.

The PBoC has rolled out relending facilities to support the transport, logistics and storage sectors that have been hit hard by COVID-19, as well as carbon emission reduction, tech innovation and elderly care.

On Sept. 14, China’s Cabinet announced steps to support equipment upgrades by companies, extending a raft of measures to bolster the COVID-ravaged economy.

Onshore yuan

China’s onshore yuan extended losses on Wednesday to end the domestic session at its lowest level against the dollar since the global financial crisis of 2008, while the offshore yuan hit a record low, pressured by expectations of more US rate hikes.

Currency traders said the yuan was reacting to broad greenback strength in global markets as the dollar hit a fresh two-decade peak against a basket of currencies, buoyed by safe-haven demand and a hawkish Federal Reserve.

In onshore markets, the yuan finished the domestic trading session at 7.2458 per dollar, its weakest such close since January 2008 and down 658 pips or 0.91 percent from previous late night close of 7.18.

The offshore yuan followed suit and weakened 1.15 percent on the day to trade at 7.2635 around 0830 GMT.

Fuel export

China may tweak a proposed sharp increase in refined fuel export quotas for this year by extending the plan into next year, as it weighs the benefits to the economy of higher exports against low domestic stocks and operational challenges, four sources told Reuters.

However, the four sources with direct knowledge of the matter — and three others — said the government was still reviewing the matter.

The market has been widely expecting China to release a fifth batch of fuel export quota of up to 15 million tons for the rest of the year, which would be its largest so far in 2022 and lift China’s sagging exports.

The proposal from refiners’ planning departments, following a government call to boost trade, has led some refiners to ready an increase in output to take advantage of the quota.


Consultancy agreement signed to launch Jordanian-Iraqi economic city

Consultancy agreement signed to launch Jordanian-Iraqi economic city
Updated 28 September 2022

Consultancy agreement signed to launch Jordanian-Iraqi economic city

Consultancy agreement signed to launch Jordanian-Iraqi economic city
  • Industries on the site will benefit from free trade agreements and have access to over 1bn consumers without customs restrictions

AMMAN: The Jordanian-Iraqi Industry Company and the Coalition for Engineering Consultancy have signed a contract for the provision of services for a Jordanian-Iraqi border economic city project, Jordan News Agency reported.

The engineering consultancy firm will be involved in all stages of finding a developer to carry out the project, including the creation of tender documents, according to the agreement. 

Following the signing ceremony, the company, which is owned by Jordan and Iraq, announced the start of administrative and procedural steps for the project. 

The economic city will strengthen Jordanian-Iraqi business cooperation, and spur development in western Iraq and eastern Jordan. 

The company said in a statement that industries operating in the economic city will benefit from free trade agreements signed by Jordan with many countries, and have access to more than 1 billion consumers without technical or customs restrictions.

It added that the project “constitutes an opportunity to build Jordanian-Iraqi economic integration in many fields, especially industrial ones.”

The joint economic city will be built on the Jordan-Iraq border, with both countries making land available for construction.

 


Bahrain-based Eat App raises $11m in a series B funding

Bahrain-based Eat App raises $11m in a series B funding
Updated 28 September 2022

Bahrain-based Eat App raises $11m in a series B funding

Bahrain-based Eat App raises $11m in a series B funding

RIYADH: Bahrain-based restaurant reservation platform, Eat App, raised $11 million in a series B funding round.

The funding round included venture capital firms MEVP, 500 Startups, Derayah VC, Dalah Albaraka, Ali Zaid Al-Quraishi and Brothers, and Rasameel Investment Company.

The firm seeks expand globally and invest in product development to support restaurants and guest experience.

“Looking back, the pandemic impacted Eat App greatly. While it caused a drop in revenue, it was also one of the largest accelerators of the business, as restaurants were forced to implement digital tools,” Nezar Kadhem, co-founder and CEO of Eat App, said in a statement.

Founded in 2015, Eat App currently operates in Bahrain, Dubai, Abu Dhabi, and Doha, with more than 800 restaurants on its platform.


Aramco’s Wa’ed Ventures leads French AI firm Alteia’s funding round

Aramco’s Wa’ed Ventures leads French AI firm Alteia’s funding round
Updated 28 September 2022

Aramco’s Wa’ed Ventures leads French AI firm Alteia’s funding round

Aramco’s Wa’ed Ventures leads French AI firm Alteia’s funding round

RIYADH: Alteia, a European artificial intelligence and industrial software company, announced that it closed its latest funding round led by Wa’ed Ventures, Saudi Aramco’s venture capital arm.

Alteia will utilize its funding to increase its presence in the Kingdom by opening an office in Dhahran to support companies in the region as well as invest in research and development.

“To have the world’s leading energy company invest in Alteia through its investment arm is a strong show of faith in our trajectory, and weighs in the value of contextualized, actionable visual data as the foundation to shape a more efficient, more sustainable industrial future,” Benjamin Benharrosh, co-founder of Alteia, said in a statement.


Egypt B2B marketplace Mazaya raises $5m in pre-seed round

Egypt B2B marketplace Mazaya raises $5m in pre-seed round
Updated 28 September 2022

Egypt B2B marketplace Mazaya raises $5m in pre-seed round

Egypt B2B marketplace Mazaya raises $5m in pre-seed round

RIYADH: Mazaya, an Egypt-based B2B e-commerce marketplace, raised $5 million in a pre-seed round, said a statement issued on Tuesday.

The funding round was led by financial investment firm Raya Trade and Distribution, it added.

The company will use the funds to boost its operation in Egypt as well as expand into new markets and other verticals.

“The funds raised will allow us to quickly scale our operations and expand to other markets beyond Egypt, we have plans to launch our services in Nigeria before this year-end,” Amir Aboul Fotouh, Mazaya co-founder, said.

The Mazaya app provides retailers and merchants of electronic goods and home appliances the ability to procure inventory for their stores from all major brands.

“The platform conveniently supports merchants, particularly small merchants who do not receive adequate services, with the ability to scale their business through a superior level of service and a wide range of electronic devices from all international and local brands at the click of a button,” Bassem Megahed, CEO of Raya Trade and Distribution, said in a statement.

The company also plans to offer financial services and support to their retailers by offering credit facilities and flexible payment options.