Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling. Shutterstock. 
Short Url
Updated 13 November 2024
Follow

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
  • MSCI Tadawul 30 Index declined 15.60 points to close at 1,500.54 points
  • Parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points

RIYADH: The Tadawul All Share Index in Saudi Arabia concluded Wednesday’s trading session at 11,930.45 points, marking a decrease of 117.22 points or 0.97 percent. 

MSCI Tadawul 30 Index also declined 15.60 points to close at 1,500.54 points, a 1.03 percent decrease. 

The parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points, or 0.33 percent.

TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling.

The best-performing stock was Shatirah House Restaurant Co., whose share price surged 10 percent to SR20.24.  

Other top performers include Saudi Cable Co. and Alkhaleej Training and Education Co., whose share prices soared by 5 percent and 4.08 percent to SR88.20 and SR30.60, respectively.

Other top performers include Bawan Co. and Middle East Specialized Cables Co.

The worst performer was Ash-Sharqiyah Development Co., whose share price dropped by 5.18 percent to SR19.40.

Other worst performers were United International Transportation Co. and National Medical Care Co., whose share prices dropped by 3.87 percent and 3.33 percent, respectively, to stand at SR79.50 and SR168.60.

Saudi Tadawul Group Holding Co. was another worst performer, whose share price dropped by 3.08 percent to SR232.60.   

On the parallel market Nomu, Leaf Global Environmental Services Co. was the top gainer, with its share price surging by 8.68 percent to SR98.90.

Other top gainers on the parallel market were Fad International Co. and Al Mohafaza Co. for Education, with their share prices surging by 7.24 percent and 6.04 percent to reach SR81.50 and SR28.10, respectively.

Rawasi Albina Investment Co. and Amwaj International Co. were the other top gainers on Nomu.

Al-Razi Medical Co. was the major loser on this market, as the company’s share price slipped by 7.98 percent to SR47.85.  

First Avenue for Real Estate Development Co. and Obeikan Glass Co. were other major losers on Nomu, with share prices dropping by 6.18 percent and 6.01 percent, reaching SR8.35 and SR49.25, respectively.


Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 
Updated 12 sec ago
Follow

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

Saudi consumer spending surges 35% to $4.6bn ahead of Ramadan 

RIYADH: Consumer spending in Saudi Arabia jumped 34.7 percent to SR17.5 billion ($4.6 billion) in the week leading up to Ramadan, driven by increased food purchases and retail activity, official data showed. 

The latest point-of-sale transaction data from the Saudi Central Bank, also known as SAMA, revealed a sharp increase in spending across most of the economy from Feb. 23 to March 1, with 231.3 million transactions. 

The food and beverage sector led the surge, with spending soaring 74.9 percent week on week to SR3.3 billion, reflecting a seasonal spike in demand as Saudis prepare for Ramadan, a month characterized by large daily Iftar and Suhoor meals. 

Spending on public utilities followed closely, with a 55.9 percent rise, amounting to SR81.5 million. Expenditure on furniture also recorded a notable surge at 46 percent to SR524.5 million. 

According to the latest POS transactions bulletin, the education sector was one of the two areas that registered negative change during this period. Spending on education dipped by 33.6 percent to settle at SR82 million, while spending in hotels fell by 0.5 percent to SR365 million. 

Spending on clothing and footwear saw a 43.9 percent increase in transaction value to SR1.2 billion, with the number of deals growing by 30.8 percent to 8.5 million. 

Expenditure on telecommunication also saw increases, surging 42.9 percent to SR146.9 million, while recreation and culture recorded a 25.4 percent uptick to SR338.1 million. 

Similarly, spending on jewelry recorded an increase of 27.2 percent to SR334.2 million. 

Expenditure in restaurants and cafes followed, recording a 10.5 percent increase to SR2.1 billion. 

Miscellaneous goods and services accounted for the second-biggest POS share with a 36.9 percent upstick, reaching SR2.1 billion. 

Spending in the leading three categories accounted for approximately 42.9 percent or SR7.5 billion of the week’s total value. 

At 9.4 percent, the smallest increase occurred in spending in gas stations, leading total payments to reach SR1 billion. 

Expenditures on construction and building materials surged by 22.5 percent to SR441.1 million, and spending on electronics recorded a 31.7 percent increase to SR224.8 million. 

Geographically, Riyadh dominated POS transactions, representing around 33 percent of the total, with expenses in the capital reaching SR5.8 billion — a 27.1 percent increase from the previous week. 

Jeddah followed with a 29.5 percent surge to SR2.4 billion, and Dammam came in third at SR847.6 million, up 31.2 percent. 

Hail experienced the most significant increase in spending, surging by 49.5 percent to SR294.4 million. Tabuk followed with a 46 percent surge to SR334.9 million. 

Makkah and Madinah saw the largest increases in terms of the number of transactions, surging 16.5 percent and 14 percent, respectively, to 9.8 million and 9.6 million transactions.


Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season
Updated 36 min 9 sec ago
Follow

Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

Revenue of PIF-owned Newcastle jumps 28% as losses drop sharply for 2023-24 season

LONDON: English soccer side Newcastle United reported revenue of £320 million ($406.88 million) for the financial year ending June 2024, a 28 percent increase from 250 million in 2023, driven by higher income following their return to the Champions League.

Newcastle, acquired by the Kingdom’s Public Investment Fund in 2021, had commercial income rise 90 percent from £43.9 million to £83.6 million in 2024, driven by new deals with Saudi companies Sela and Noon, as well as Adidas and UK-based Fenwick.

Champions League distributions amounted to nearly £30 million, though Newcastle were eliminated in the group stage.

“Returning to the Champions League for the first time in more than 20 years was hugely memorable for everyone connected with the club, and it has clear upside financially as we continue to grow,” Newcastle United CEO Darren Eales said in a statement.

“We are committed to sustainable success and we have started 2025 in a strong position.”

The Amazon Prime documentary “We Are Newcastle United” and changes to the club’s retail and catering operations also boosted revenue.

The club also significantly reduced its after-tax losses from £71.8 in 2023 to £11.1 million in 2024, an 84 percent drop, driven by controlled spending to comply with Premier League sustainability rules after their hefty 2023 outlay.

The club are in a tight battle for a top-four finish this season, which would mean a return to the lucrative Champions League, with Nottingham Forest and Bournemouth also in the mix. Newcastle sit sixth, three points behind fourth-placed Manchester City and 23 adrift of leaders Liverpool.

Newcastle are set to face League Cup holders Liverpool in the final on March 16. They were dumped out of the FA Cup after a dramatic quarter-final 2-1 loss to Brighton & Hove Albion on Sunday.


UAE’s non-oil sector maintains growth momentum: S&P Global 

UAE’s non-oil sector maintains growth momentum: S&P Global 
Updated 05 March 2025
Follow

UAE’s non-oil sector maintains growth momentum: S&P Global 

UAE’s non-oil sector maintains growth momentum: S&P Global 

RIYADH: The UAE’s non-oil private sector continued its steady growth in February, driven by improved business conditions and a rise in new orders, according to S&P Global. 

In its latest report, the financial services company revealed that the Emirates’ purchasing managers’ index stood at 55 in the second month of the year, unchanged from January and marginally down from December’s nine-month high of 55.4. 

S&P Global highlighted that any PMI reading above 50 signifies the expansion of the private business conditions, while below 50 indicates contraction.

The strong growth of non-oil business activities in the UAE aligns with the broader trend in the Middle East region, where countries are steadily pursuing their economic diversification efforts. 

Saudi Arabia recorded a PMI of 58.4 in February, with Kuwait at 51.6 and Egypt at 50.1.

David Owen, senior economist at S&P Global Market Intelligence, said the UAE report showed “another solid month” for non-oil businesses in the country, adding: “A PMI reading of 55.0 suggests that growth has remained relatively steady since its recent high at the end of last year.” 

According to the analysis, business activity growth gained momentum in February and was stronger than its long-run average of 54.4. 

Companies that took part in the PMI survey revealed that output had ramped up in response to rising levels of new business. 

The study added that improving market conditions, advertising efforts, and restrained output price pressures boosted demand levels among non-oil private firms last month.

A note of caution was sounded by various non-oil private companies, according to the report, with these firms warning that competition from domestic and foreign sources dampened growth in February. 

“The sector is not without its challenges, as highlighted by a limited level of confidence in the year ahead outlook. Firms continue to feel the pressure of intense competition, which has capped price increases,” said Owen. 

He added: “Growing cost pressures resulted in a slight acceleration in selling price inflation in February. Additionally, businesses are eager to secure new work, which contributed to a rapid accumulation of backlogged orders.”

The report further said that employment creation in the UAE’s non-oil sector remained limited in February. While some firms hired additional workers to increase their capacity, most companies kept employment unchanged.

“While robust growth in business activity indicates that the pipeline of orders should eventually be addressed, other factors such as weak job creation and administrative delays pose risks to this outlook,” said Owen. 

He added that non-oil firms in the UAE continued to report difficulties securing client payments and highlighted the necessity to implement effective policy action to address this issue. 

In the same report, S&P Global revealed that Dubai’s PMI marginally declined to a three-month low of 54.3 in February, down from 55.3 in January, indicating a slower improvement in the health of the Emirate’s non-oil sector. 

Despite this drop, the overall improvement in Dubai’s non-energy sector remained solid, driven by robust expansions in new orders and output. 

The analysis added that activity levels at non-oil companies in Dubai reportedly increased in February due to stronger demand and softer price pressures. 

The rate of increase in input prices was the softest recorded in four months, resulting in only a fractional uplift in average prices charged.

In February, non-oil firms in Dubai saw business expectations recovering to a three-month high but remained relatively subdued. 

Most of the non-energy private companies in Dubai kept their staffing levels unchanged from January, although inventory growth was supported by rising input purchasing.


Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs
Updated 05 March 2025
Follow

Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

Oil Updates — crude falls as market eyes OPEC+ output increase, US tariffs

SINGAPORE: Oil prices fell for a third session on Wednesday as plans by major producers to raise output in April combined with concerns that US tariffs on Canada, Mexico and China will slow economic growth and hit fuel demand.

Brent futures fell 24 cents, or 0.3 percent, to $70.80 a barrel at 8:00 a.m. Saudi time. US West Texas Intermediate crude slipped 58 cents, or 0.9 percent, to $67.68 a barrel.

In the previous session, the contracts settled at close to multi-month lows.

“Unfavorable supply-demand dynamics have created a double whammy, with tariff uncertainties posing downside risks to global growth, and in turn, oil demand,” said Yeap Jun Rong, market strategist at IG.

“OPEC+ remains on track to increase production in April, while optimism over a potential resolution to the Ukraine-Russia conflict raises the prospects of Russian supplies returning to the market,” Yeap added.

The Organization of the Petroleum Exporting Countries and its allies including Russia, a group known as OPEC+, decided on Monday to increase output for the first time since 2022.

The group will make a small increase of 138,000 barrels per day from April, the first step in planned monthly increases to unwind its nearly 6 million bpd of cuts, equal to nearly 6 percent of global demand.

A 25 percent tariff on all imports from Mexico, a 10 percent tariff on Canadian energy and a doubling of duties on Chinese goods to 20 percent came into effect on Tuesday. The Trump administration also imposed 25 percent tariffs on all other Canadian imports.

US President Donald Trump’s self-declared trade war is seen by economists as a recipe for fewer jobs, slower growth, and higher prices, which could kill demand. The lower economic growth will likely impact fuel consumption in the world’s biggest oil consumer.

The Trump administration also said on Tuesday it was ending a license that the US has granted to US oil producer Chevron since 2022 to operate in Venezuela and export its oil.

The move puts 200,000 barrels per day of supply at risk, said ING commodities strategists in a note on Wednesday.

“This will leave US refiners looking for alternative heavy grades of crude oil just as other suppliers — Canada and Mexico — face tariffs,” they added.

Meanwhile, US crude stocks fell by 1.46 million barrels in the week ended February 28, market sources said, citing American Petroleum Institute figures on Tuesday. Investors now await government data on US stockpiles, due on Wednesday. 


Aoun’s visit to Saudi Arabia revives hope for Lebanon’s economic recovery

Aoun’s visit to Saudi Arabia revives hope for Lebanon’s economic recovery
Updated 04 March 2025
Follow

Aoun’s visit to Saudi Arabia revives hope for Lebanon’s economic recovery

Aoun’s visit to Saudi Arabia revives hope for Lebanon’s economic recovery
  • Beirut seeks to further strengthen ties with a key regional ally

RIYADH: Lebanese President Joseph Aoun’s visit to Saudi Arabia has revived hopes for Lebanon’s economic recovery and political stability amid the ongoing financial crisis and governance challenges.

The trip, his first official visit abroad since taking office in January, signals a fresh attempt to strengthen ties with a key regional ally and unlock much-needed investment and diplomatic support. 

With both nations reaffirming their commitment to cooperation and reform, many see this meeting as a crucial step toward Lebanon’s long-overdue recovery. 

The Lebanese Executives Council, a private sector body promoting cross-border professional relations, hailed the visit as a pivotal step in restoring ties between the two countries. 

“This visit stands out as exceptional. Lebanon has a remarkable opportunity to reshape its relations with Arab nations, with Saudi Arabia as the essential gateway,” Rabih El-Amine, chairman of the council, told Arab News.  

“Given Saudi Arabia’s crucial influence both regionally and globally, along with its vibrant economic changes under Vision 2030, this moment marks a pivotal turning point for Lebanon,” he added. 

Economic agreements and Saudi investments 

Aoun’s visit included discussions on 22 agreements spanning trade, agriculture, transport, finance, education, and cultural exchange.

“These agreements include cooperation in exhibitions, intellectual property, consumer protection, the grain sector, civil aviation, banking, defense, and combating terrorism,” El-Amine said. 

Saudi banks and financial institutions could play a role in stabilizing Lebanon’s financial system, but El-Amine emphasized that this would depend on Lebanon’s implementation of key reforms. 

“Saudi support might take the form of financial assistance, investment, and regional coordination. However, Lebanon’s capability to execute credible economic reforms remains a crucial factor,” he added. 

Long-term goals vs. immediate impact 

While the visit has been hailed as a positive step, El-Amine cautioned that immediate economic relief is unlikely. “This visit will likely be a strategic step toward rebuilding Saudi-Lebanese ties rather than yielding immediate economic relief. Lebanon’s economic recovery depends on reforms, International Monetary Fund negotiations, and restoring investor confidence — factors that require long-term engagement rather than quick diplomatic wins,” he said. 

Discussions also emphasized the necessity of Lebanon regaining control over its political and security landscape. A joint statement highlighted the importance of confining arms to the Lebanese state and reaffirming the Lebanese army’s role as a stabilizing force. 

The way forward 

Despite optimism surrounding the visit, El-Amine warned that internal Lebanese challenges could hinder progress. “The primary concern is whether Lebanon’s political and economic system can genuinely carry out the reforms and commitments necessary to convert diplomatic goodwill into tangible progress,” he said. 

Key obstacles include political gridlock, sectarian divisions, lack of institutional reform, and financial instability. 

“The visit could reopen diplomatic channels and create opportunities for future cooperation, but unless Lebanon’s leadership takes bold steps to reform governance, stabilize the economy, and restore confidence, any potential Saudi support may remain conditional or limited,” El-Amine added. 

Aoun’s visit reaffirmed longstanding ties between Beirut and Riyadh, with both sides expressing their commitment to regional stability and cooperation. 

Following his visit to Saudi Arabia, Aoun and his delegation traveled to Cairo to attend the extraordinary Arab summit. His presidency, which began in January after a prolonged political deadlock, carries significant expectations as Lebanon struggles with an economic crisis and the devastation left by the Hezbollah-Israel war, which left most parts of the country in ruins.