Saudi main index sees growth rate of 17%: official data 

Saudi main index sees growth rate of 17%: official data 
The total volume of shares traded reached 24.12 billion during the first quarter of this year, compared to 22.74 billion shares traded in the same period of 2023. File 
Short Url
Updated 09 April 2024
Follow

Saudi main index sees growth rate of 17%: official data 

Saudi main index sees growth rate of 17%: official data 

RIYADH: Saudi Arabia’s Tadawul All Share Index posted an annual gain of 1,811.46 points, or 17.11 percent, to reach 12,401.56 at the end of the first quarter of 2024, official data showed. 

According to the report released by Saudi Exchange, the highest close level of the main index in the first quarter was on March 21 when it peaked at 12,835.65.

Moreover, the total equity market capitalization of the main market by the end of the first quarter reached SR10.93 trillion ($2.91 trillion), representing a rise of 9.56 percent compared to the same period of the previous year. 

Similarly, the total value of shares traded during the first three months of 2024 soared by 113.52 percent year on year to reach SR575.89 billion. 

The total volume of shares traded reached 24.12 billion during the first quarter of this year, compared to 22.74 billion shares traded in the same period of 2023. 

Additionally, the number of transactions executed in the three months to the end of March reached 35.02 million compared to 20.12 million in the year-ago period. 

Major developments during the first quarter

Saudi Arabia’s main index witnessed three new listings in the first quarter of this year. 

Shares in Saudi Arabia’s media giant MBC Group Co. began trading on the main market on Jan. 8, followed by Middle East Pharmaceutical Industries Co. and Modern Mills for Food Products Co. on Feb. 27 and March 27, respectively.  

On Jan. 7, Saudi Exchange announced the launch of the TASI50 Index, which tracks the top 50 companies ranked by total market capitalization.

“Constituents in the index cover 90 percent of the free float market cap with a minimum annual traded value ratio of 5 percent, ensuring that the index is a comprehensive representation of the largest companies in the market,” said the exchange in the report. 

Moreover, the index can be used as a benchmark for exchange-traded funds, Futures, Options, and other financial products. 

As of March 27, the exchange has 216 securities listed on the Tadawul All Share Index, while the parallel market Nomu has 83. 

On the Saudi exchange, there are 71 sukuk and bonds, followed by 19 real estate investment trusts, 9 exchange-traded funds, and 2 closed-end funds. 

On March 31, Saudi Exchange announced that it welcomed its 400th listing across all securities, a development described by the company’s Chief of Listing Nasser Al-Ajaji as marking “a significant milestone” and “a clear testament to the Kingdom’s dynamic capital market and its growing appeal to investors globally.” 

He added: “These achievements are more than just a number; they are symbolic of the economic diversity and growth spurred by Saudi Arabia’s Vision 2030, the Financial Sector Development Program, and the support of the CMA to accelerate the IPO (initial public offering) pipeline. All of this reflects the potential we are poised to realize.” 

Remarkable growth of the parallel market 

Saudi Arabia’s parallel market Nomu also witnessed significant growth during the first quarter of this year. 

According to the report, it closed at 26,030.03 at the end of March, representing a rise of 30.86 percent compared to the same period of the previous year.  

On Mar. 21, Nomu reached 27,362.29, the highest closing level in the first three months of 2024. 

The total equity market capitalization of the parallel market also surged by 31.24 percent year on year in the first quarter to reach SR50.83 billion. 

Similarly, the total value of shares traded during the first quarter reached SR3.33 billion, a rise of 86.10 percent compared to the same period in 2023.

Additionally, the total number of volumes traded in the parallel market increased by 18.80 percent year on year to 185.92 million shares during the first quarter, the report added. 

Six IPOs on Nomu to kick off 2024

The parallel market witnessed six IPOs in the first quarter of the year.

Pan Gulf Marketing Co. was listed in Nomu on Feb. 18, followed by the listings of WSM for Information Technology Co. and Al-Modawat Specialized Medical Co. on Feb. 21 and Feb. 25, respectively. 

On March 3, Quara Finance Co. started trading on the parallel market, while Al Mohafaza Co. for Education was listed on March 26, followed by the listing of Taqat Mineral Trading Co. on March 28. 

Moreover, in the derivatives market, Saudi Exchange announced the launch of single stock options in the Saudi National Bank and Alinma Bank during the first quarter, which will be cleared by securities clearing center company Muqassa. 

Saudi main index to maintain growth momentum: Al Rajhi Capital

Another report released by financial services firm Al Rajhi Capital said that the Kingdom’s main market will continue its growth in the second quarter of this year. 

“Our new target for TASI by the end of June 2024 is 12,712 points. As of April 2, TASI is up about 4.2 percent year to date and has come off from its highs of 12,835 points hit on March 21. The key reason for the decline has been the sharp correction noticed in the small and mid-cap space,” said the report. 

According to Al Rajhi Capital’s fund managers survey, participants expect TASI to consolidate between 12,500-13,000, and are optimistic on Saudi Arabia’s medium-term prospects.

“Going forward, we believe first quarter earnings from the banks (will be relatively better) and no major negative surprise from the Fed should support the index. Further, some recovery in the small and mid-cap space on bottom fishing should also help the index,” said Al Rajhi Capital. 

According to the report, oil prices will continue to average above $80 per barrel over the coming years owing to the anticipated improvement in the oil market balance.

“Furthermore, the current refinery spreads shall aid in improving the demand outlook as the spreads are hovering above pre-Covid levels,” Al Rajhi Capital concluded. 


Chief economists expect global economic conditions to weaken in 2025

Chief economists expect global economic conditions to weaken in 2025
Updated 16 January 2025
Follow

Chief economists expect global economic conditions to weaken in 2025

Chief economists expect global economic conditions to weaken in 2025

DUBAI: More than half of chief economists expect economic conditions to weaken in 2025, according to a World Economic Forum report released on Thursday.

“The growth outlook is at its weakest in decades and political developments both domestically and internationally highlight how contested economic policy has become,” said Aengus Collins, head of Economic Growth and Transformation at the WEF.

The outlook is more positive in the US, with 44 percent of chief economists predicting strong growth in 2025, up from 15 percent last year. However, 97 of respondents in the “Chief Economists Outlook” report said they expected public debt levels to rise, while 94 percent forecast higher inflation.

Europe, on the other hand, remains the weakest region for the third consecutive year, with 74 percent of economists expecting weak or very weak growth.

In the Middle East and North Africa region, 64 percent expect moderate growth while a quarter expect weak growth.

Collins said the global economy was under “considerable strain,” worsened by increasing pressure on integration between economies.

A total of 94 percent of economists predict further fragmentation of goods trade over the next three years, while 59 percent expect the same for services trade. More than 75 percent foresee higher barriers to labor mobility and almost two-thirds expect rising constraints on technology and data transfers.

The report suggests that political developments, supply chain challenges and security concerns are critical factors that will likely drive up costs for both businesses and consumers over the next three years.

Businesses are expected to respond by restructuring supply chains (91 percent), regionalizing operations (90 percent), focusing on core markets (79 percent) or exiting high-risk markets (76 percent).

When the economists were asked about the factors contributing to current levels of fragmentation, more than 90 percent pointed to geopolitical rivalries.

This is largely due to the “strategic rivalry” between the US and China, according to the report, along with other geopolitical disturbances, particularly in Ukraine and the Middle East.

Global fragmentation is likely to result in a more strained global landscape with chief economists expecting an increase in the risk of conflict (88 percent), a more bipolar system (79 percent) and a widening divide between the Global North and South (64 percent).

“In this environment, fostering a spirit of collaboration will require more commitment and creativity than ever,” Collins said.


Australian-Saudi Business Council hosts joint forum to help boost trade

Australian-Saudi Business Council hosts joint forum to help boost trade
Updated 16 January 2025
Follow

Australian-Saudi Business Council hosts joint forum to help boost trade

Australian-Saudi Business Council hosts joint forum to help boost trade
  • Event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment

RIYADH: The Australian-Saudi Business Council hosted a joint forum on Thursday to discuss the enhancement of collaboration and trade between the two countries.

Led by Daniel Jamsheedi, the council’s country director, the event brought together more than 35 participants from both nations to discuss key opportunities for trade and investment.

The event, a collaboration with the Federation of Saudi Chambers, aimed to build on the success of the first Australian Pavilion at the Future Minerals Forum in Riyadh this week, and further strengthen the economic partnership between the two countries, organizers said.

Sam Jamsheedi, the president of the council, thanked the federation for the vital role it played in the success of the forum.

“The Federation of Saudi Chambers is one of our key stakeholders and our partner within the Kingdom,” he said.

“As a business council, we appreciate the efforts put in to enable this joint business forum to succeed.”


Closing Bell: Saudi main index rises to close at 12,256 

Closing Bell: Saudi main index rises to close at 12,256 
Updated 16 January 2025
Follow

Closing Bell: Saudi main index rises to close at 12,256 

Closing Bell: Saudi main index rises to close at 12,256 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 43.82 points, or 0.36 percent, to close at 12,256.06. 

The total trading turnover of the benchmark index was SR6.14 billion ($1.63 billion), with 104 stocks advancing and 129 retreating. 

Similarly, the Kingdom’s parallel market Nomu gained 198.90 points, or 0.64 percent, to close at 31,498.71, as 51 of the listed stocks advanced and 37 retreated. 

The MSCI Tadawul Index also rose, gaining 9.13 points, or 0.60 percent, to close at 1,535.78.

The best-performing stock of the day was Shatirah House Restaurant Co., which debuted on the main market. Its share price surged 5.31 percent to SR22.62. 

Other top performers included Fourth Milling Co., with its share price rising 4.49 percent to SR4.19, and Saudi Paper Manufacturing Co., whose share price surged 3.36 percent to SR67.70. 

Riyadh Cables Group Co. recorded the biggest drop, falling 2.88 percent to SR141.80. 

National Co. for Learning and Education also saw its stock price fall 2.73 percent to SR185.40. 

Buruj Cooperative Insurance Co. also saw a drop in its stock price, falling 2.63 percent to SR22.22. 

On the announcements front, the Arab National Bank has launched the offer of its SR-denominated additional tier 1 capital sukuk under its sukuk program.  

According to a Tadawul statement, the amount, terms, and return on the sukuk will be determined later based on market conditions. The minimum subscription and par value are set at SR1 million. 

The targeted investors are institutional and qualified clients in line with the Capital Market Authority’s regulations. HSBC Saudi Arabia and ANB Capital Co. are joint lead managers for the sukuk issuance. 

Arab National Bank ended the session at SR21.10, with no change in price. 

Tam Development Co. received a purchase order for a project worth SR29.45 million as part of a framework agreement with a government agency announced in March, with a total value of SR200 million. 

Tam Development Co. ended the session at SR200, up 3.45 percent. 

Saudi Real Estate Co. secured Shariah-compliant banking facilities from Bank Al-Jazira worth SR700 million. The facilities will finance ongoing and new projects, as well as expansion investments. 

Part of the financing, up to SR100 million, will support working capital requirements. The loans have a one-year short-term tenure and a maximum of ten years for long-term loans, with promissory notes and real estate mortgages as guarantees. 

Saudi Real Estate Co. ended the session at SR27.30, down 2.01 percent. 


Saudi Ma’aden awards $921m contracts for its 3rd phosphate fertilizer plant

Saudi Ma’aden awards $921m contracts for its 3rd phosphate fertilizer plant
Updated 16 January 2025
Follow

Saudi Ma’aden awards $921m contracts for its 3rd phosphate fertilizer plant

Saudi Ma’aden awards $921m contracts for its 3rd phosphate fertilizer plant
  • Project designed to add 3 million metric tonnes annually to Kingdom’s phosphate production capacity
  • Contracts align with Saudi Arabia’s broader strategy to diversify its economy and expand its industrial base

JEDDAH: Saudi Arabian Mining Co. has awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, reinforcing the Kingdom’s position in the global market.

In a filing with the Tadawul stock exchange, the national mining firm, also known as Ma’aden, named the contractors as China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co.

First announced in 2016, the project is designed to add 3 million metric tonnes annually to Saudi Arabia’s phosphate production capacity. Estimated to cost SR24 billion, the facility is being developed in phases and was initially projected to reach full capacity by 2024, the company said at that time.

The contracts align with Saudi Arabia’s broader strategy to diversify its economy and expand its industrial base. As part of Vision 2030, the Kingdom is capitalizing on its vast reserves of phosphate, gold, copper, and bauxite to reduce its reliance on oil.

Valued at approximately $2.5 trillion, the Saudi mining sector is regarded as the fastest-growing globally and is positioned as the third pillar of its industrial economy.

The three contracts awarded include an SR1.22 billion agreement for general construction at Ras Al-Khair with China National Chemical Engineering. A second contract, worth SR1.36 billion, was awarded to Sinopec’s subsidiary for construction at Wa’ad Al-Shamal. Tekfen Construction secured the third contract at SR877 million, with work at Wa’ad Al-Shamal included.

The development aligns with Ma’aden’s 2016 announcement of a feasibility study for a world-class phosphate fertilizer production complex in Wa’ad Al-Shamal Minerals Industrial City, situated in Saudi Arabia’s Northern Province.

Ma’aden announced significant discoveries of gold and copper in the Arabian Shield region during the Future Minerals Forum 2025 in Riyadh, further advancing its mining ambitions.

The discoveries include extensive gold deposits at Wadi Al-Jaww and copper reserves at Jabal Shayban. Mineralization at these sites extends from shallow depths of 20 meters to depths of up to 200 meters, highlighting their potential for large-scale extraction, the company added.

Ma’aden also unveiled promising developments at its Mansourah-Massarah gold mine, where drilling has revealed high-grade gold mineralization beyond the current pit design. 

The financial impact of these discoveries is yet to be determined, Ma’aden said in a statement to the stock exchange.


MENA economic growth to accelerate to 2.9% in 2025, says Moody’s

MENA economic growth to accelerate to 2.9% in 2025, says Moody’s
Updated 16 January 2025
Follow

MENA economic growth to accelerate to 2.9% in 2025, says Moody’s

MENA economic growth to accelerate to 2.9% in 2025, says Moody’s

RIYADH: Oil production and large investment projects will accelerate annual economic growth across the Middle East and North Africa by 0.8 percentage points in 2025, according to Moody’s.

The global credit rating agency forecasts growth of 2.9 percent this year, up from 2.1 percent in 2024, and also  maintained a stable outlook for the credit fundamentals of sovereigns in the region over the next 12 months.

The agency emphasized that the impact of large investments will be most evident in Saudi Arabia, driven by high government and sovereign wealth fund spending linked to the Vision 2030 diversification program.

The projections align with those of global consultancy Oxford Economics, which expects regional gross domestic product to grow by 3.6 percent in 2025, outpacing the firm’s global forecast of 2.8 percent. 

Moody’s added that the pickup in the MENA economy will be driven primarily by “stronger growth in the region’s hydrocarbon exporters because of a partial unwinding of strategic oil production cuts under the OPEC+ agreement.”

Alexander Perjessy, vice president and senior credit officer at Moody’s, said: “Large-scale investment projects, many of them part of longer-term government development and diversification agendas, will support non-hydrocarbon economic activity across the region.”

According to the credit rating agency, real gross domestic product growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in the previous year, as Saudi Arabia, the UAE, Iraq, Kuwait, and Oman ease the oil production cuts implemented in 2023.

In Qatar, growth in the small, gas-rich nation will be bolstered by the development of the petrochemical industry and construction activities related to the expansion of liquefied natural gas production capacity, set to come online between 2026 and 2030.

In Kuwait, non-hydrocarbon growth will be mainly driven by major projects, including the construction of a new port and a new airport terminal.

Meanwhile, Iraq’s non-hydrocarbon growth is expected to remain above pre-COVID levels, provided that improved domestic security conditions are sustained, driven by the gradual implementation of several transport and energy projects.

In the UAE, non-hydrocarbon growth will moderate slightly due to the completion of some infrastructure projects; however, it will remain robust, at around 5 percent in 2025.