Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1
The total trading turnover of the benchmark index was $1.53 billion (Shutterstock)
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Updated 28 March 2023
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Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

Closing bell: Saudi stocks edge up; Tadawul announces indices maintenance for Q1

RIYADH: The Saudi Stock Exchange updated the free-float shares for all listed issuers on the main market TASI and parallel market Nomu, effective April 2. 

The companies that will be included in the Tadawul index are Alinma Hospitality REIT Fund and Thimar Development Holding Co.

The firms that will be included in the Nomu index are Leen Alkhair Trading Co., Nofoth Food Products Co., Alqemam for Computer Systems Co., WAJA Co., Balady Poultry Co., KnowledgeNet Co., Bena Steel Industries Co., and Horizon Food Co. 

The Tadawul All Share Index rose for the fourth day in a row on Tuesday, as it went up 4.47 points or 0.04 percent to 10,468.08.

Parallel market Nomu also went up by 286.61 points or 1.49 percent to close at 19,534.39, while the MSCI Tadawul 30 Index went down by 0.24 percent to 1,416.92.

The total trading turnover of the benchmark index was SR5.73 billion ($1.53 billion).

Takween Advanced Industries Co. was the top performer of the day, as its share prices went up by 9.98 percent to SR9.48. 

Other top performers were National Metal Manufacturing and Casting Co. and Middle East Specialized Cables Co. whose shares went up by 9.98 percent and 9.94 percent respectively. 

Middle East Specialized Cables Co. was the worst performer, as its share prices dropped by 2.95 percent to SR59.30.

On the announcements front, Thimar Development Holding Co., in a bourse statement revealed that it trimmed its net losses in 2022 to SR4.7 million, from SR162.45 million in 2021. As the company successfully trimmed its losses, its share prices went up rose by 2.67 percent to SR44.25. 

Another company which announced its financial results on Tuesday was Electrical Industries Co. The firm reported a net profit of SR94.17 million in 2022, a 93 percent surge from SR48.84 million compared to the year-earlier period. The company’s share prices soared by 3.16 percent to SR34.3. 

Naba Alsaha Medical Services Co.’s net profit surged to SR26.92 million in 2022, up 4.24 percent, from SR25.82 million in 2021. Driven by the rise in profit, the company’s share prices increased by 2.36 percent to SR52.

Meanwhile, Saudi Advanced Industries Co., known as SAIC, also announced its earnings report for 2022. The company’s net profit went up by 9.96 percent to SR100.21 million in 2022, compared to SR91.13 million in 2021. 

As the profit surged, SAIC’s board recommended distributing a cash dividend of 5 percent of capital or SR 0.50 per share for 2022. The share prices of SAIC also went up by 1.32 percent to SR24.50.


Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers
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Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

Oil Updates – crude rises, markets await OPEC+ decision amid mixed demand drivers

SINGAPORE: Oil prices edged up on Friday and were set to end the week modestly higher as markets awaited an OPEC+ decision on supply agreements for the second quarter amid differing demand indicators for key consumers US and China, according to Reuters.

Brent futures for May climbed 31 cents, or 0.38 percent, to $82.22 a barrel by 9:45 a.m. Saudi time, while US West Texas Intermediate for April rose 24 cents, or 0.31 percent, to $78.50.

WTI is on track for at least a 2.5 percent increase this week, while Brent is holding near last week’s settlement price. Brent has hovered comfortably above the $80 mark for three weeks.

“Brent crude prices continued to trade sideways this week ... Brent at $83/bbl has shown recent strength although fundamentals remain tilted to oversupply,” said BMI analysts in a client note.

“Expectations of a continuation of OPEC+ production cuts into Q224 is also weighing on sentiment as soft demand is expected to persist ... However, timespreads for Brent futures contracts have widened. The move to stronger backwardation (market structure) will be supportive of a more bullish stance for prices as markets are pricing in tightening in the months ahead,” the analysts added.

A Reuters survey showed the Organization of the Petroleum Exporting Countries pumped 26.42 million barrels per day this month, up 90,000 bpd from January. Libyan output rose month-on-month by 150,000 bpd.

A decision on extending the cuts is expected in the first week of March, sources have said, with individual countries expected to announce their decisions.

Increasing possibilities of OPEC+ continuing with the supply cuts beyond the first quarter, potentially till the end of 2024, will likely keep oil prices above $80 a barrel, said DBS Bank energy sector team lead Suvro Sarkar.

Strong expectations of Saudi Arabia keeping term prices of crude it sells to Asian customers little changed in April from March levels also underpinned the market.

Supporting prices, the Federal Reserve’s preferred inflation gauge, the US personal consumption expenditures index, showed January inflation in line with economists’ expectations, reinforcing market bets for a June interest rate cut. This in turn could lower consumer costs and spur fuel buying activity.

However, a mixed bag of February purchasing managers’ index data from China, the world’s top oil consumer, capped price gains.

China’s manufacturing activity in February contracted for a fifth straight month, an official factory survey showed on Friday, raising pressure on Beijing policymakers to roll out further stimulus measures as factory owners struggle for orders.

“Demand side we concur that 2Q will have hiccups and we are projecting Brent to average lower in 2Q24 compared to 1Q24, before rebounding in 2H24 on the back of the potential rate cut scenario, which should boost fund flows toward riskier assets,” said DBS Bank’s Sarkar. 


Inter-Arab trade at $700bn: Union of Arab Chambers

Inter-Arab trade at $700bn: Union of Arab Chambers
Updated 29 February 2024
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Inter-Arab trade at $700bn: Union of Arab Chambers

Inter-Arab trade at $700bn: Union of Arab Chambers
  • Secretary-general attends World Trade Organization Ministerial Conference in Abu Dhabi
  • ‘The Arab region’s presence in such events aids in shaping policies for freer global trade’

SAO PAULO: Inter-Arab trade stands at $700 billion, constituting 10-11 percent of global trade, the secretary-general of the Union of Arab Chambers said on Thursday during the 13th World Trade Organization Ministerial Conference in Abu Dhabi.

In an interview with Emirates News Agency on the sidelines of the event, Khaled Hanafy highlighted the potential for increased trade, expanded business opportunities, job creation and economic growth across the Arab world through standardization, improved logistics and private sector engagement.

The UAE’s strategic positioning and robust infrastructure make it a preferred hub for international businesses seeking access to international markets, Hanafy said.

Its hosting of prestigious events such as COP28 and the WTO Ministerial Conference underscores its global leadership, communication prowess and influence in international forums, he added.

“The Arab region’s presence in such events aids in shaping policies for freer global trade,” Hanafy said, adding that the conference strengthens the UAC’s position as a representative of the Arab private sector within the WTO, potentially leading to observer status in key technical committees.

This, he said, would empower the UAC to exert greater influence on decisions shaping international trade flows.

The Arab world’s private sector contributes over 75 percent of the region’s gross domestic product, roughly equivalent to $3 trillion. This sector also plays a vital role in employment generation.

Hanafy emphasized the need for even greater private sector involvement in trade to foster business growth and achieve sustainable development across Arab nations.

He championed the UAC’s role in fostering trade cooperation within the Arab world, encompassing both commercial and investment activities.

Hanafy also advocated for the establishment of the Arab Common Market, outlining essential principles for achieving economic unity across the region.

This was the official debut of the Arab private sector at a WTO Ministerial Conference.

With unprecedented access granted to businesses at the event, representatives from regional chambers of commerce seized the opportunity to voice their concerns and aspirations.

Hanafy emphasized the significance of this inclusion at a roundtable event on the sidelines, saying: “This is the first time the Arab private sector is welcomed. The Arab private sector must be here.

“This is a great opportunity. There’s an objective: We want to see the Arab private sector have a larger role.”

Promoting economic cooperation and integration across the Arab world, the UAC unites chambers of commerce, industry and agriculture from the 22 Arab League member states.

It supports governmental and civil society initiatives to strengthen regional economic ties in commerce, industry, agriculture, finance, investment and services.


Saudi Arabia’s industrial sector focussing on small investors, minister says

Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef. (@BAlkhorayef)
Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef. (@BAlkhorayef)
Updated 29 February 2024
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Saudi Arabia’s industrial sector focussing on small investors, minister says

Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef. (@BAlkhorayef)
  • AlKhorayef said that the ministry has a financing program with simple conditions for small investors and entrepreneurs

RIYADH: Saudi Arabia’s industrial sector has recently focused on small investors, the Kingdom’s Minister of Industry and Mineral Resources Bandar bin Ibrahim AlKhorayef has said.

Speaking to Al-Ekhbariya TV, the minister said that the ministry has a financing program with simple conditions for small investors and entrepreneurs.

The minister indicated that the business model of industrial cities, like the MODON oasis in Al-Ahsa, created a new opportunity for a certain type of investor and industry.

He added that most of the spaces in the industrial cities will be made up of ready-built factories, as this will largely reduce the financial burden on the investor, shorten the construction period, and facilitate obtaining the necessary licenses.


Ministry of Economy and Planning signs MoU with Saudi National Institute of Health

Representatives of Saudi Arabia’s Ministry of Economy and Planning and the Saudi National Institute of Health sign a MoU.
Representatives of Saudi Arabia’s Ministry of Economy and Planning and the Saudi National Institute of Health sign a MoU.
Updated 29 February 2024
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Ministry of Economy and Planning signs MoU with Saudi National Institute of Health

Representatives of Saudi Arabia’s Ministry of Economy and Planning and the Saudi National Institute of Health sign a MoU.
  • MoU aims to develop and align the strategic direction of national development priorities and economic policies in line with the objectives of Saudi Vision 2030

RIYADH: Saudi Arabia’s Ministry of Economy and Planning signed a Memorandum of Understanding with the Saudi National Institute of Health, the ministry announced on Thursday.

The MoU aims to develop and align the strategic direction of national development priorities and economic policies in line with the objectives of Saudi Vision 2030.

It also aims to enable the decision-making process through the preparation of methodologies and studies, the ministry said.

As part of the MoU, scientific and hands-on experiences will be exchanged and both parties will prepare studies and research related to their work in order to improve quality.

They will also organize joint workshops and training courses to enhance capabilities and skills, and benefit from the infrastructure and public facilities of both parties.


Diriyah Co. CEO lauds Saudi efforts to empower youth

Diriyah Co. CEO lauds Saudi efforts to empower youth
Updated 29 February 2024
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Diriyah Co. CEO lauds Saudi efforts to empower youth

Diriyah Co. CEO lauds Saudi efforts to empower youth

RIYADH: Leadership and empowerment insights took center stage during a workshop at the Human Capability Initiative, with industry leaders delving into the future of Saudi Arabia’s workforce. 

In a “What If?” talk at the Riyadh event, Jerry Inzerillo, group CEO of Diriyah Co., addressed young Saudis, urging them to dream big and sharing insights from his own journey. 

He said: “Please dream big. There was nothing in between you and your dreams that you cannot accomplish.”  

Inzerillo emphasized the importance of self-esteem and dignity in leadership, signaling a departure from traditional hierarchical models toward more inclusive and empowering approaches. 

Praising the visionary leadership of Crown Prince Mohammed bin Salman, Inzerillo expressed gratitude for the unprecedented support provided to initiatives like the Human Capability Initiative.  

Inzerillo commended the substantial investment in training and development facilitated by the crown prince, highlighting its significance in equipping the next generation with the skills necessary to navigate the challenges of an ever-evolving technological landscape.  

“In a 50-year career, I’ve never had the training and development budget that the crown prince has given us,” he remarked. 

“We are marching forward to 2030; we are marching positively. We believe in ourselves and those who will help us on our mission.”  

Inzerillo said that as of yesterday, they had 2,419 employees, with 85 percent of the staff being Saudi. 

“Now, 39 percent of our Saudi staff are women superstars. And those 39 percent of my Saudi women superstars boss me around on a daily basis more than the 61 percent of the boys.”  

The CEO shared his impressions of the young Saudi talent present at the event and said: “In New York, we have a saying, when you’re very excited, you have goosebumps. That’s the way I feel right now. Because just being backstage for a moment, and seeing all of the young talented Saudis, to me it’s like a thunderbolt of energy.” 

Inzerillo concluded with a resounding call to action, reminding every individual of their potential to contribute to the realization of Vision 2030. “Every single individual is capable of contributing to Vision 2030 and should.”