Latest news with #SuleimanAl-HumaidAl-Khalidi
Asharq Al-Awsat
14-03-2025
- Business
- Asharq Al-Awsat
Positive Outlook for Saudi Stock Market Next Week
Saudi Arabia's Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points. In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day. This accounted for roughly 60% of the total market value of the Saudi stock market. Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024. The primary factors contributing to the market's decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained. These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role. This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say. Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030. Additionally, the country's GDP has reached approximately $1.1 trillion. Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points. These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy. Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week's closing levels. He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.
Asharq Al-Awsat
25-02-2025
- Business
- Asharq Al-Awsat
Saudi SABIC Expected to Achieve $1.2 Billion in Profits in 2024
Economic analysts expect Saudi Basic Industries Corporation (SABIC) to achieve a net profit of approximately $258 million in the fourth quarter of 2024, bringing its total annual earnings to around $1.2 billion. However, the petrochemical sector continues to face challenges, including declining global demand, rising operational costs, and shrinking profit margins. SABIC, one of the world's largest petrochemical companies, returned to profitability in the third quarter of 2024, reporting $266 million in profits compared to a $765 million loss in the same period of 2023. The company is set to announce its financial results for the fourth quarter and full year 2024 in a press conference on Wednesday. According to Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, SABIC's expected fourth-quarter profit of $258 million (SAR969 million) marks a significant recovery from its $500 million (SAR1.7 billion) loss in the same quarter of 2023. He noted that the company performed better in 2024, recording a nine-month profit of $915 million (SAR3.43 billion) compared to a $373 million (SAR1.40 billion) loss in the same period of 2023. Despite its stock price declining from a high of SAR139 in 2022 to SAR65 on Monday, SABIC has continued to distribute dividends. This resilience is attributed to increased operational income, reduced losses from discontinued operations, and lower zakat expenses. Al-Khalidi highlighted key factors influencing SABIC's financial performance, including fluctuations in petrochemical prices, global market volatility, and rising raw material and operational costs, all of which impact profit margins. He stressed the importance of expanding into emerging markets, increasing global market share, investing in green technologies, diversifying its product portfolio, and forming strategic partnerships to enhance competitiveness. Mohammed Hamdi Omar, CEO of G-World Research, emphasized that commodity price fluctuations and varying demand for petrochemical products will affect SABIC's fourth-quarter results. He noted that market conditions, particularly oil prices and supply chain dynamics, will play a crucial role in shaping the company's financial performance. Despite rising operational costs, SABIC is expected to maintain or improve profit margins, with its core business units—basic chemicals, intermediates, and polymers—playing a key role. SABIC's third-quarter 2024 profit of $267 million (SAR 1 billion) was driven by higher gross profit margins, despite increased operational costs. Gains from selling its functional forms business, foreign exchange differences, and reduced losses from discontinued operations, particularly the revaluation of Saudi Iron and Steel Company (Hadeed), also contributed. However, finance income declined due to the revaluation of equity derivatives. Despite market challenges, analysts believe SABIC's focus on efficiency, cost management, and strategic expansion will help it navigate the volatile petrochemical sector in 2024.
