Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 
TASI’s total trading turnover of the benchmark index was $2.02 billion (Shutterstock)
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Updated 20 March 2023

Closing bell: TASI rises 60 points 

Closing bell: TASI rises 60 points 

RIYADH: Saudi Arabia’s Tadawul All Share Index increased 60.39 points on Monday – or 0.59 percent – to close at 10,218.12.

MSCI Tadawul 30 Index inched up 0.69 percent to 1,386.65, and the parallel market, Nomu, slightly edged down by 0.05 percent closing at 18,968.30.   

TASI’s total trading turnover of the benchmark index was SR4.56 billion ($1.21 billion) as 111 stocks of the listed 224 advanced and 95 receded.    

Themar Development Holding Co. was the top gainer of the day, closing the trading session up 9.91 percent at SR44.35 

The second-best performer was Alima Tokio Marine Co., increasing 9.70 percent to SR14.48.   

Elm was the third-best performer, rising 7.67 percent - or 31 points – to SR435, compared to its opening at SR404. 

Other top performers of the day were Dar Alarkan Real Estate Development Co., and Makkah Construction and Development Co. 

The biggest faller of the day was BinDawood Holding Co., which slipped by 2.96 percent to SR52.5.  

Nahdi Medical Co. is the next worst performer of the day, decreasing by 2.48 percent to SR181. 

The other poor performers were Gulf Insurance Group, Alinma Hospitality REIT Fund, and Jabal Omar Development Co. 

Non-institutional foreign investors, excluding Saudi Aramco, reduced their stake in Tadawul-listed stocks to 10.45 percent, or SR281.79 billion, which is represented by swap holders, residents, and qualified foreign investors. 

On an announcement front, Saudi National Bank's share price increased by 3.86 percent, closing at SR44.4. The bank also said in a statement that the changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans. 

Rawasi Albina Investment Co. announced its annual financial results for 2022, reporting a 19.54 percent increase in its net profit to SR20.8 million. Moreover, Rawasi’s share price climbed 11.98 percent, closing at SR80. 

Perfect Presentation for Commercial Services Co. also announced a tremendous increase in net profit by 63.06 percent to SR131.4 million. The company’s shares closed 3.55 up at SR175. 

CHUBB Arabia Cooperative Insurance Co. reported a 12.54 percent decrease in net profit to almost SR13.4 million compared to SR15.3 million in 2021. CHUBB’s share price decreased 0.24 percent to close at SR16.48. 

The company correlated the decline to an increase in General and Administrative Expenses an increase in Policy Acquisition Costs in higher drilling utilization and an increase in daily rate, notably in the offshore segment   

Dallah Healthcare Co. reported a net profit of SR274 billion, up 6.13 percent compared to 2021. Dallah attributed the increase to a revenue increase of 18.18 percent in 2022 to SR2.4 billion. The healthcare company’s share price slightly decreased by 0.56 percent, closing at SR141.6. 

Saudi Reinsurance Co. also announced its financial results for 2022 and reported a net loss of SR1.6 million, down 58.1 percent compared to almost SR4 million in 2021. However, its share price increased by 1.66 percent to SR14.7 per share. 

Oil Updates – crude rises for second day on improving signs of US refinery demand

Oil Updates – crude rises for second day on improving signs of US refinery demand
Updated 22 February 2024

Oil Updates – crude rises for second day on improving signs of US refinery demand

Oil Updates – crude rises for second day on improving signs of US refinery demand

SINGAPORE: Oil prices rose for a second day on Thursday on expectations that demand in the US, the world’s biggest oil consumer, will improve as refineries try to return to service after outages and as the dollar weakened, according to Reuters.

Brent crude futures rose 17 cents, or 0.2 percent, to $83.20 a barrel at 8:10 a.m. Saudi time. US West Texas Intermediate crude futures for April climbed 19 cents, or 0.2 percent, to $78.10 a barrel. Oil prices rose 1 percent on Wednesday.

“Oil prices have been resilient thus far, with market participants seemingly eyeing a retest of its year-to-date high following its rally in February,” said Yeap Jun Rong, market strategist at IG, adding that geopolitical tensions provided support.

“That said, gains could be somewhat contained for now, given the higher-than-expected inventories build in US crude stocks from the API (American Petroleum Institute) figure overnight drove some wait-and-see for the EIA (Energy Information Administration) numbers to be released ahead,” Yeap added.

Crude stocks rose 7.17 million barrels in the week ended Feb. 16, market sources citing API figures said on Wednesday. Gasoline stockpiles also rose while distillate fuel inventories declined.

US crude inventories have climbed amid outages at large refineries that have left utilization rates at the lowest level in two years, though the plants are resuming output.

BP’s 435,000 barrel-per-day refinery in Indiana, the largest in the US Midwest, will return to full production in March, according to people familiar with plant operations, after a power outage from Feb. 1.

TotalEnergies’ 238,000-bpd refinery in Port Arthur, Texas, is also working to complete a restart, though it is still operating minimally following a weather-related power outage.

Analysts expect US refinery run rates to have risen to 81.5 percent last week from 80.6 percent of total capacity in the previous week, according to a Reuters poll.

Investors will keep an eye on the official inventory data from the US EIA that is due at 7:00 p.m. Saudi time on Thursday, delayed one day by a US holiday.

Crude was also supported by a weaker US dollar, which makes oil less expensive for traders holding other currencies.

The dollar index, which measures the greenback against six major peers, fell to 103.905 at 8:10 a.m. Saudi time. 

“The retreat in the US dollar for the fourth straight session may also boost the short-term appeal for oil,” said Yeap. 

NEOM to launch new guest retreat Elanan

NEOM to launch new guest retreat Elanan
Updated 21 February 2024

NEOM to launch new guest retreat Elanan

NEOM to launch new guest retreat Elanan

RIYADH: Saudi Arabia’s Gulf of Aqaba coastline is poised for enhancement with the introduction of a new guest retreat, Elanan. 

The latest addition to NEOM features 80 bespoke rooms and suites and is designed with a well-being theme, offering a nature resort.

Elanan adopts a contemporary approach to wellness, incorporating new technologies that promote relaxation.

Moreover, Elanan’s innovative architecture seamlessly integrates with the surrounding environment. By incorporating these unique design methods, Elanan also showcases detailed sculptures that merge with the outdoor areas. 

Although the overall design is modern, the development is committed to preserving the natural landscape.

Elanan follows the recent announcements of Leyja, Epicon, Siranna, and Utamo, all of which are sustainable tourism destinations in the Gulf of Aqaba.

On Feb. 18, the Kingdom’s $500 billion giga-project introduced a luxury resort in Trojena. It is set to unveil a 105-key hotel with Raffles Hotels and Resorts in northwestern Saudi Arabia.

Scheduled to open in 2027, Raffles Trojena aims to provide guests with opportunities to engage with the region’s natural beauty through its ring-shaped architecture.

Omer Acar, CEO of Raffles Hotels & Resorts, said: “We are thrilled to collaborate with NEOM on the creation of Raffles Trojena, an architecturally significant resort that will showcase the very best in modern luxury hospitality and underscores Raffles’ commitment to growing in the Kingdom of Saudi Arabia.” 

He added: “Trojena is set to be a destination unlike any other, and this mountainside retreat continues the Raffles legacy of growing in the world’s most compelling locales, providing our guests with an opportunity to ignite their passions through highly personalized service and experiences.”  

The company said the property will embody the brand’s distinctive characteristics, encompassing its renowned butler service, diverse dining experiences, and a dedicated focus on local arts and culture.

It joins as the latest hospitality collaborator within NEOM’s Hotel Division, located in the Discover cluster — a segment of Trojena dedicated to natural exploration.

Saudi Arabia ranks 3rd in Global Retail Development Index: Kearney 

Saudi Arabia ranks 3rd in Global Retail Development Index: Kearney 
Updated 21 February 2024

Saudi Arabia ranks 3rd in Global Retail Development Index: Kearney 

Saudi Arabia ranks 3rd in Global Retail Development Index: Kearney 

RIYADH: An increase in non-cash transactions has helped Saudi Arabia rise nine places to third in the Global Retail Development Index.  

The GRDI leverages a comprehensive set of criteria, including economic health, consumer wealth, and regulatory framework, to gauge the retail potential of 35 to 40 emerging economies, according to a statement. 

The 2023 edition of the bi-yearly survey findings, launched by the US consulting firm, mirrors the upward trajectory of global retail development in the Middle East and North Africa region.

They also cement the country’s strategic pivot away from oil dependency, which currently accounts for approximately 40 percent of its gross domestic product, and the establishment of a favorable business climate.

“The MENA region, and notably the Kingdom of Saudi Arabia, are at the forefront of retail’s next wave of growth,” said Debashish Mukherjee, partner at Kearney Middle East and Africa and Consumer and Retail Practice Lead.

“The 2023 GRDI illustrates how these markets are redefining the retail ecosystem with strategic digital adoption and consumer-centric approaches,” Mukherjee added. 

Mukherjee also stressed that the rise in this year’s GRDI is a clear indicator of its dynamic retail environment as well as its strategic initiatives to foster a competitive and diverse economic landscape. 

Moreover, the report attributed the Kingdom’s climb in the index to non-cash retail transactions surging from 16 percent in 2016 to 62 percent in 2022, aiming for 70 percent by 2030.

An additional reason for the jump was the country’s growth in the employment of Saudi nationals in high-skilled jobs and doubling female workforce participation, exceeding Vision 2030 targets.

On top of that, the growing popularity and adoption of buy now pay later services and the significant increases in investment deals and licenses in 2022 aided the Kingdom’s jump in the index. 

Other reasons entailed digital and artificial intelligence integration within the Saudi consumer market, the entry of international brands, and the expansion of entertainment and lifestyle sectors. 

The GRDI acts as a guide for retailers looking to navigate the complexities and capitalize on the prospects within these emerging markets.

Closing Bell: TASI closes in green with trading volume at $2.2bn

Closing Bell: TASI closes in green with trading volume at $2.2bn
Updated 21 February 2024

Closing Bell: TASI closes in green with trading volume at $2.2bn

Closing Bell: TASI closes in green with trading volume at $2.2bn

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Wednesday’s trading session at 12,634.33, marking an increase of 27.83 points or 0.22 percent. 

MSCI Tadawul 30 Index also increased slightly by 1.84 to close at 1,628.17 points. On the other hand, the parallel market, Nomu, closed the day at 25,507.66 points, reflecting a decrease of 80.45 or 0.31 percent.

TASI reported a trading volume of SR8.60 billion ($2.294 billion), with 90 stocks gaining and 130 losing steam. 

The best-performing stock was Saudi Arabian Amiantit Co., whose share price surged 9.83 percent to SR26.6.  

Today’s second top performer was Al-Baha Investment and Development Co., whose share price soared 7.14 percent to SR0.15.   

Other gainers included Salama Cooperative Insurance Co. and Etihad Atheeb Telecommunication Co., as their share prices increased by 4.89 and 4.41 percent to SR26.80 and SR101.8.

The worst performer was Al Gassim Investment Holding Co., whose share price dropped by 3.96 percent to SR19.40. It was followed by Maharah Human Resources Co., whose share price decreased by 3.26 percent to reach SR6.83.

On the parallel market, Nomu, WSM for Information Technology Co., emerged as the top gainer, with its initial share price surging by 26.53 percent to SR62, as it was the company’s first day of listing and commencement of trading.

International Human Resources Co. was the major loser on Nomu, as its share price slipped by 3.76 percent to SR4.10.  

On the announcement front, the Saudi National Bank announced the completion of its US dollar-denominated sukuk offer under its international sukuk program.

The bank raised $850 million from the sale of five-year dollar bonds. 

The financial institution received applications amounting to $3.6 billion, bringing the issuance coverage to more than four times or 4,250 total bonds.

According to a statement on Tadawul, these bonds’ final yield came in at 5.129 percent per annum with five years of maturity.

“The sukuk may be redeemed prior to the scheduled maturity date in certain cases and the sukuk will be listed on the London Stock Exchange’s International Securities Market,” the bank stated.

Saudi retail sector expected to have experienced robust net profit growth: Al Rajhi Capital

Saudi retail sector expected to have experienced robust net profit growth: Al Rajhi Capital
Updated 21 February 2024

Saudi retail sector expected to have experienced robust net profit growth: Al Rajhi Capital

Saudi retail sector expected to have experienced robust net profit growth: Al Rajhi Capital

RIYADH: The retail sector in Saudi Arabia is projected to have experienced robust net profit growth in the fourth quarter of 2023, driven by strong sales, according to Al Rajhi Capital.  

In its latest report covering earnings previews for leading firms in Saudi Arabia, the Riyadh-based investment advisory service provider anticipates there was a 44.3 percent year-on-year increase in the fourth-quarter net profit of supermarket chain BinDawood Holding, reaching SR85 million ($22.66 million). 

The financial services firm added that this substantial increase in the net profit of BinDawood Holding is attributed to a surge in sales from its Harmain stores. 

It forecasts that Leejam Sports Co., another key player in the Kingdom’s retail sector, is expected to have achieved a net profit of SR124 million in the last three months of 2023, indicating a 15.3 percent increase compared to the preceding year. 

The report projects that the net profit of Abdullah Al-Othaim Markets, another prominent entity in the Kingdom’s retail sector, is expected to have experienced a marginal 0.8 percent year-on-year decline in the fourth quarter, reaching SR170 million. 

The investment advisory firm also noted that the revenue of energy firms in the Kingdom was likely to have fallen in the last quarter of 2023, with Saudi Aramco expected to report a net profit of SR113 billion in the period, reflecting a 9.8 percent year-on-year drop. 

The projection attributes the decline to the crude production cuts implemented by Saudi Arabia, in alignment with the decision of the Organization of the Petroleum Production Countries and its allies, known as OPEC+.  

In an effort to maintain market stability, Saudi Arabia reduced oil output by 500,000 barrels per day from April 2023, a measure that has been extended until the end of December 2024. 

The Kingdom also committed to an additional oil output cut of 1 million bpd in July, which continued until the end of December 2023.  

On the other hand, ADES Holding, which went public in 2023, is expected to report a net profit of SR1.29 billion in the fourth quarter, compared to the same period of the previous year. 

However, Al Rajhi Capital pointed out that the net profit of Saudi Basic Industries Corp. is anticipated to have declined by 24.6 percent year-on-year over the final three months of 2023, reaching SR704 million.  

On a positive note, the projections suggest that SABIC’s net profit will have experienced a 31.3 percent increase in the fourth quarter compared to the previous three months. 

Saudi International Petrochemical Co., also known as Sipchem, is expected to register a significant decrease in net profit, with a decline of 52.1 percent to SR229 million in the fourth quarter of 2023 compared to the same period in the previous year.  

Additionally, several prominent names in the Saudi cement sector are anticipated to have seen a decline in net profit during the same period. 

Al Rajhi Capital predicts there was a significant drop in the net profit of Arabian Cement Co. by 49.9 percent to SR18 million. Similarly, Yamama Cement Co.’s net profit is expected to have declined by 40.4 percent to SR80 million by end of 2023. 

In the fourth quarter of 2023, Saudi Telecom Co.’s net profit is anticipated to have stood at SR2.69 billion, reflecting a 2.4 percent decrease compared to the same period in 2022 and a 36.9 percent decline from the previous quarter. 

Meanwhile, Mobily’s net profit report is expected to show an increase of 0.4 percent to SR608 million during the last three months of 2023 compared to the same period in 2022. 

In the food and agriculture sector, National Agricultural Development Co.’s net profit is projected to have risen by 201.8 percent year-on-year to SR76 million, and Savola Group’s net profit is anticipated to have surged 88.2 percent, reaching SR88.2 million.