TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 
The Tadawul All Share Index fell 142 points to close at 10,796, while the parallel market, Nomu, plunged 300 points to finish at 18,866. (Shutterstock)
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Updated 27 November 2022

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

TASI sheds 142 points on dampening business sentiment, closes at 10,796: Closing Bell 

RIYADH: Saudi Arabia’s benchmark index fell on Sunday as investors shied away from the market due to dampening business sentiment and uncertainty in global demand. 

The Tadawul All Share Index fell 142 points to close at 10,796, while the parallel market, Nomu, plunged 300 points to finish at 18,866. 

Of the 219 companies listed on TASI on Sunday, 33 advanced, while 173 declined. The total trading turnover closed at SR2.58 billion ($690 million). It had fallen to SR1.7 billion in the first three hours of trading on Sunday. 

The first important announcement on the bourse came from SNB Capital, the lead manager of Saudi Aramco Base Oil Co., also known as Luberef, intending to proceed with an initial public offering and listing of its ordinary shares on the primary market. 

The statement said the offer is expected to sell existing shares and result in a free float of 29.65 percent of Luberef share capital or 50.05 million ordinary shares. 

The offering price will be determined after the book-building period, the statement added. 

Middle East Paper Co. also announced the approval of its shareholders to its board’s recommendation to increase capital by 33.3 percent by granting one bonus share for every three shares held during an extraordinary general meeting on Nov. 24. 

The company shares, however, fell 2 percent to close at SR28.6 after reaching SR27.70. 

Meanwhile, Yaqeen Capital, the financial adviser and lead manager for the IPO of Molan Steel Co. on the Nomu-Parallel Market, announced that the issue was oversubscribed.  

The steel company offered 532,410 shares, representing 20.02 percent of its capital. The final offer price was set at SR 24 per share, the statement added. 

From an industry standpoint, the Pharma, Biotech & Life Science index fell for the bearish prowl as it fell 44 points to close at 3,015. Interestingly, the Healthcare Equipment & Services index rose 52 points to 8,872.  

Tourism Enterprise Co. has been under the spotlight in the top gainers’ list on TASI for a while now. It increased by 2.9 points to close at SR32.05. The other gainers included Dr. Sulaiman Al Habib Medical Services Group, Arabian Drilling Co and Alhokair Group for Tourism and Development. 

The top fallers were Malath Cooperative Insurance Co., United Wire Factories Co., Al Yamamah Steel Industries Co, Red Sea International Co. and Nama Chemicals Co. 


SAMA annual conference discusses impact of inflation on economies 

SAMA annual conference discusses impact of inflation on economies 
Updated 14 sec ago

SAMA annual conference discusses impact of inflation on economies 

SAMA annual conference discusses impact of inflation on economies 

RIYADH: The impact of soaring inflation on the world’s economies, and the Middle East and North Africa region in particular, was among the most important topics that dominated this year’s annual conference of the Saudi Central Bank. 

This falls in line with the 2023 theme of the conference — Inflation Dynamics During Uncertain Times: The Path Toward Stable and Sustainable Recovery. 

The second annual Central Bank Conference on Development Economics in the Middle East and North Africa was held on Jan. 31 to Feb. 1, in Riyadh. 

During his opening speech, SAMA Deputy Governor for Research and International Affairs Fahad Alshathri encouraged academic research on behalf of the conference to enhance economic growth and stability.   

The governor added that the conference promoted the participation of the region’s economic entities to discuss the main issues facing policymakers.  

Alshathri also drew on the initiatives launched by SAMA to develop economic and financial research to boost the Kingdom’s economy further, which backs the Saudi Vision 2030 goals.   

Held under the patronage of SAMA Governor Fahad Almubarak, the event saw the participation of several central bank officials, senior economic researchers and top international speakers including the vice president of the World Bank Ferid Belhaj. 

The conference aligns with SAMA’s continuous efforts to develop research in different fields, as well as promote collaboration with local and international researchers and economists. 


UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 
Updated 10 min 27 sec ago

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

UAE’s Pure Harvest inks food partnership with Saudi Arabia’s Nadec 

CAIRO: UAE-based agriculture technology startup Pure Harvest has signed a strategic partnership with Saudi Arabia’s National Agricultural Development Co. to deliver a large-scale national food security project. 

Pure Harvest will increase production capacity over the next five years by farming a wide range of crops, while the Saudi company, also known as Nadec, will market these products to its consumer base, hotels, restaurants, and catering partners. 

The partnership will enable the production of locally and sustainably grown fresh produce on more than 27 hectares on Nadec's farms. 

“Nadec is a formidable incumbent food supplier with a sterling reputation and brand, sizeable landholdings and enabling infrastructure, and an experienced leadership team,” Sky Kurtz, Founder and CEO of Pure Harvest Smart Farms, said. 

Nadec is the first listed agricultural company in the Saudi exchange market and produces over 1.5 million liters of dairy and juice per day, serving over 40,000 stories in the region as well as employing over 7,000 people. 

Both Nadec and Pure Harvest completed and commissioned their first-ever project in December 2021, producing over fifteen varieties of high-quality, hydroponically-grown tomatoes in an approximately six-hectare high-tech, climate-controlled growing system in Nadec City, Haradh. 

Pure Harvest raised $64.5 million in funding last October, and has secured over $280 million in total funding since its inception. 


Egypt fintech firm MNT-Halan securing $400m in new finance

Egypt fintech firm MNT-Halan securing $400m in new finance
Updated 01 February 2023

Egypt fintech firm MNT-Halan securing $400m in new finance

Egypt fintech firm MNT-Halan securing $400m in new finance

CAIRO: Egyptian microfinance lending and payments company MNT-Halan is securing $400 million in new equity and finance, bringing its valuation to more than $1 billion, the company said in a statement on Wednesday.

The investments include an equity stake of at least 20 percent of MNT-Halan worth more than $200 million taken by private equity firm Chimera Abu Dhabi. Another $60 million in primary capital is being secured from international investors, the statement said.

These investors include the International Finance Corporation, according to data on the IFC's website.

MNT-Halan obtained $140 million in financing by securitizing part of its loan book, the statement said.

MNT-Halan provides small- and micro-business lending, payments, consumer finance and e-commerce, the company said. It has more than 5 million customers in Egypt, of which 3.5 million are financial clients and 2 million are borrowers. About 1.3 million of the customers are active monthly.

New legislation and regulatory changes in Egypt, the Arab world's most populous country, have been helping attract a surge in new fintech investments and change the way the country's largely unbanked citizens do business.

"Following the completion of these investments, MNT-Halan’s valuation will exceed $1 billion," the statement added.

Previous investors in MNT-Halan include Cairo-based Lorax Capital Partners, and Middle Eastern venture capitalists Algebra Ventures, DisrupTech, Endeavor Catalyst, Egypt Ventures, MEVP and Wamda.


UAE's DFM net profit up 41.7% to $40m in 2022 

UAE's DFM net profit up 41.7% to $40m in 2022 
Updated 01 February 2023

UAE's DFM net profit up 41.7% to $40m in 2022 

UAE's DFM net profit up 41.7% to $40m in 2022 

RIYADH: Dubai Financial Market Co. reported an increase of 41.7 percent in net profit to 147.1 million dirhams ($40 million) for the fiscal year ending on Dec. 31, 2022, compared to 103.8 million dirhams in 2021. 

The company recorded a total revenue of 351.2 million dirhams, up 19 percent compared to the previous year’s 294.6 million dirhams. 

In the fourth quarter of 2022, DFM posted a net profit of 58.1 million dirhams compared to 65.7 million dirhams in the corresponding period of 2021, according to a press release. 

Its total revenue for the period reached 113.4 million dirhams, compared to 111.5 million dirhams in the fourth quarter of 2021.  

Helal Al Marri, chairman of DFM said: “Our relentless focus on our capital markets development strategy has borne fruit, making DFM one of the most active markets globally for new IPOs and listings with the successful listing of 5 IPOs for leading government-related and private companies.” 

The company’s board of directors also recommended the distribution of a cash dividend of 134.7 million dirhams, equivalent to 1.68 percent of the capital and 100 percent of the total retained earnings available for distribution, it added.  

Moreover, the board also resolved to submit a recommendation to the annual general meeting to adopt a new fixed dividend policy, stipulating that the company annually distributes a minimum of 50 percent of its net profit as opposed to the current practice of cash dividend every two years. 

DFM ended the year on a strong note with trading value increased by 24.5 percent to 90 billion dirhams compared to 2021, and the market capitalization of listed securities increased by 41.4 percent to 582 billion dirhams.  

Over the past year, DFM has attracted 167,332 new investors, registering 23 times jump compared to 2021.  


Saudi National Bank 2022 net profit surges 47% to $4.96bn 

Saudi National Bank 2022 net profit surges 47% to $4.96bn 
Updated 01 February 2023

Saudi National Bank 2022 net profit surges 47% to $4.96bn 

Saudi National Bank 2022 net profit surges 47% to $4.96bn 

RIYADH: Saudi National Bank reported a 46.7 percent increase in net profit in 2022 to SR18.6 billion ($4.96 billion) from SR12.7 billion in 2021, spurred by higher operating income and a decline in provisions for expected credit losses. 

The Kingdom’s biggest bank, which last year acquired a 9.88 percent stake in the troubled Swiss investment institution Credit Suisse, also booked a 61 percent surge in net profit in the fourth quarter of 2022 to SR4.8 billion from SR2.96 billion during the same period in 2021. 

The results beat the average analyst estimate of SR18.2 billion, according to Refinitiv data. 

The bank said in a statement to the Saudi Stock Exchange that total operating income grew 16.9 percent to SR33 billion in 2022 from SR28.23 billion in 2021.  

Its net special commission income jumped 18.4 percent to SR26.29 billion between January and December 2022 from SR22.21 billion in 2021. 

“Total operating income increased mainly due to higher net special commission income by 18.4 percent, fee income from banking services by 21.1 percent, and lower other operating expenses by 12.4 percent,” the bank said in a statement to Tadawul. 

Moreover, total operating expenses, including impairments, were lower by 15.2 percent, mainly due to a 13.5 percent decline in other general and administrative expenses and a 57.4 percent fall in a net impairment charge for expected credit losses. 

Earnings per share clocked an impressive 46.7 percent increase to SR4.15 in 2022 from SR2.83 in 2021. 

SNB’s total assets also increased 3.43 percent to SR945.46 billion in 2022 from SR914.15 billion in 2021, even as loans and advances gained 9.6 percent to SR543.31 billion to SR497.57 billion during the period under review. 

Customer deposits, however, dropped 3.45 percent to SR568 billion in 2022 compared to SR588.57 in 2021. 

Last month, SNB announced its intention to raise its paid-up capital by SR15.22 billion to boost its financial position. Its board recommended that shareholders approve the increase in capital by about 34 percent, from SR44.78 billion to SR60 billion riyals, through the issuance of bonus shares. 

“The recommendation is aimed to strengthen the bank’s financial position, which contributes to achieving its strategic objectives,” the bank said in a statement to Tadawul. 

The bank will issue about one bonus share for every three owned by shareholders, it said. 

“The eligibility of the bonus shares shall be for shareholders owning shares by the end of the trading day of the bank’s extraordinary general assembly meeting, which will be announced at a later date,” the bank said.