Latest news with #TadawulAllShareIndex
Yahoo
6 days ago
- Business
- Yahoo
Saudi Stocks Set to Be World's Worst in May After Oil-Price Drop
(Bloomberg) -- Saudi Arabia's sliding stocks are on course to be the worst performers globally this month as falling oil prices prompt concerns of slower spending on mega projects in the kingdom. NY Wins Order Against US Funding Freeze in Congestion Fight The Tadawul All Share Index has slumped 6.4% in May as of Tuesday's close, the most among 92 equity benchmarks tracked by Bloomberg. The Saudi gauge is also dropping for a fourth month, the longest losing streak since 2014. That's a sharp divergence with the broader emerging market index, which is heading for its best month since September and the longest sequence of gains for almost a year. Weakness in oil is at the heart of faltering sentiment toward Saudi stocks. Crude prices sank to a four-year low in early April, with the outlook clouded by trade tensions and increasing supply from OPEC+ members. That adds to pressure on Saudi finances after the kingdom reported the widest budget deficit since late 2021 in the first quarter. 'There are fears that the fall in oil revenues could affect the projects market,' said Junaid Ansari at Kamco Invest in Kuwait City, referring to plans for transformational development where the state is the key investor. Ansari sees this market view persisting, given expectations that oil prices will remain subdued. The weakness has been broad-based, with only 23 out of 253 Tadawul members trading in the green so far in May, according to data compiled by Bloomberg. Al Rajhi Bank, the kingdom's largest lender by market capitalization, and utility ACWA Power Co. have been the biggest drag by index points. Brent oil is trading around $65 a barrel, well short of levels Saudi Arabia needs to cover its outlays. First-quarter data showed the government needed crude at $96 to balance its budget, rising to $113 when the sovereign wealth fund's domestic spending plans are included, according to Bloomberg Economics' Ziad Daoud. Those thresholds are both at the highest since at least 2016, when Saudi Arabia launched its Vision 2030. Dominic Bokor-Ingram, a fund manager at Fiera Capital, said the timing on some 'aspirational mega projects' could be pushed back by financial constraints, a near-term challenge to his bullish view overall on the Tadawul. The breakeven level for oil required by the Saudi economy is higher than regional peers, he said. 'Oil prices are a headwind for them, and force the country to make capital allocation decisions that they wouldn't need to if oil prices were higher at around $100,' according to Bokor-Ingram. The Organization of the Petroleum Exporting Countries and its partners will gather online on Wednesday to review production quotas for this year and next. Eight key members will decide at the weekend whether to bolster output again in July. Goldman Sachs Group Inc. warned last month that Saudi Arabia's budget deficit may swell to $67 billion this year. That may force the government to borrow more and cut back on economic transformation plans. Still Bokor-Ingram bases his more optimistic long-term view on the Saudi market on expectations that the Vision 2030 plan is still intact and will keep luring investors. Given the potential for transformation in the economy, 'it's too much of a risk to ignore the Saudi market for an emerging-market investor,' he said. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Why Apple Still Hasn't Cracked AI Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
Mint
7 days ago
- Business
- Mint
Saudi Stocks Set to Be World's Worst in May After Oil-Price Drop
(Bloomberg) -- Saudi Arabia's sliding stocks are on course to be the worst performers globally this month as falling oil prices prompt concerns of slower spending on mega projects in the kingdom. The Tadawul All Share Index has slumped 6.4% in May as of Tuesday's close, the most among 92 equity benchmarks tracked by Bloomberg. The Saudi gauge is also dropping for a fourth month, the longest losing streak since 2014. That's a sharp divergence with the broader emerging market index, which is heading for its best month since September and the longest sequence of gains for almost a year. Weakness in oil is at the heart of faltering sentiment toward Saudi stocks. Crude prices sank to a four-year low in early April, with the outlook clouded by trade tensions and increasing supply from OPEC members. That adds to pressure on Saudi finances after the kingdom reported the widest budget deficit since late 2021 in the first quarter. 'There are fears that the fall in oil revenues could affect the projects market,' said Junaid Ansari at Kamco Invest in Kuwait City, referring to plans for transformational development where the state is the key investor. Ansari sees this market view persisting, given expectations that oil prices will remain subdued. The weakness has been broad-based, with only 23 out of 253 Tadawul members trading in the green so far in May, according to data compiled by Bloomberg. Al Rajhi Bank, the kingdom's largest lender by market capitalization, and utility ACWA Power Co. have been the biggest drag by index points. Brent oil is trading around $65 a barrel, well short of levels Saudi Arabia needs to cover its outlays. First-quarter data showed the government needed crude at $96 to balance its budget, rising to $113 when the sovereign wealth fund's domestic spending plans are included, according to Bloomberg Economics' Ziad Daoud. Those thresholds are both at the highest since at least 2016, when Saudi Arabia launched its Vision 2030. Dominic Bokor-Ingram, a fund manager at Fiera Capital, said the timing on some 'aspirational mega projects' could be pushed back by financial constraints, a near-term challenge to his bullish view overall on the Tadawul. The breakeven level for oil required by the Saudi economy is higher than regional peers, he said. 'Oil prices are a headwind for them, and force the country to make capital allocation decisions that they wouldn't need to if oil prices were higher at around $100,' according to Bokor-Ingram. The Organization of the Petroleum Exporting Countries and its partners will gather online on Wednesday to review production quotas for this year and next. Eight key members will decide at the weekend whether to bolster output again in July. Goldman Sachs Group Inc. warned last month that Saudi Arabia's budget deficit may swell to $67 billion this year. That may force the government to borrow more and cut back on economic transformation plans. Still Bokor-Ingram bases his more optimistic long-term view on the Saudi market on expectations that the Vision 2030 plan is still intact and will keep luring investors. Given the potential for transformation in the economy, 'it's too much of a risk to ignore the Saudi market for an emerging-market investor,' he said. More stories like this are available on
Arab News
05-05-2025
- Business
- Arab News
Closing Bell: Saudi main index closes in green at 11,422
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Monday, gaining 11.45 points, or 0.10 percent, to close at 11,422.95. The total trading turnover of the benchmark index was SR5.21 billion ($1.39 billion), as 153 stocks advanced, while 84 retreated. The Kingdom's parallel market, Nomu, also rose, gaining 129.67 points, or 0.46 percent, to close at 28,142.99. This comes as 41 of the listed stocks advanced, while 33 retreated. The MSCI Tadawul Index increased by 4.27 points, or 0.29 percent, to close at 1,455.44. The best-performing stock was Mouwasat Medical Services Co., with its share price surging 9.97 percent to SR78.30. Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise 9.92 percent to SR14.18, and Saudi Reinsurance Co., which posted a 9.71 percent gain to reach SR53.10. Umm Al Qura for Development and Construction Co. recorded the day's steepest decline, with its share price slipping 3.47 percent to SR25.05. Sahara International Petrochemical Co. and Saudi Steel Pipe Co. also saw declines, with their shares dropping by 2.82 percent and 2.58 percent to SR17.90 and SR52.90, respectively. On the announcements front, Ades Holding Co. reported interim financial results for the first three months of the year, posting a net profit of SR196.6 million — a 6.3 percent decline compared to the previous quarter. It said that the drop in net profit reflects an increased ratio of depreciation and tax costs to revenue in this period. The company's total comprehensive income saw a 45.7 percent quarter-on-quarter decrease in the first quarter of 2025 to reach SR170.8 million. Ades Holding Co.'s share price traded 0.94 percent lower on the main market during today's session to reach SR14.78. In another announcement, Makkah Construction and Development Co. reported a 32.7 percent year-on-year increase in net profit for the same period, reaching SR150 million. The company credited the growth to higher revenues from the hotel and towers this quarter, driven by the inclusion of the last nine days of Ramadan, increased mall revenues, and gains from financial assets classified at fair value through profit or loss. Similarly, the company's total comprehensive income rose to SR758 during the quarter, up from SR576 last year. The MCDC's share price traded 1.5 percent higher to reach SR108.20.
Arab News
04-05-2025
- Business
- Arab News
Closing Bell: Saudi main index slips to close at 11,411
RIYADH: Saudi Arabia's Tadawul All Share Index slipped on Sunday, losing 132.17 points, or 1.14 percent, to close at 11,411.50. The total trading turnover of the benchmark index was SR3.5 billion ($944.3 million), as 41 stocks advanced and 198 retreated. Similarly, the Kingdom's parallel market Nomu lost 116.45 points, or 0.41 percent, to close at 28,013.32. This comes as 30 of the listed stocks advanced while 39 retreated. The MSCI Tadawul Index lost 20.74 points, or 1.41 percent, to close at 1,451.17. The best-performing stock of the day was Umm Al Qura for Development and Construction Co., whose share price surged 2.77 percent to SR25.95. Other top performers included National Industrialization Co., which saw its share price rise 2.26 percent to SR9.49, and Arabian Contracting Services Co., whose share price increased 1.69 percent to SR132.00. Zahrat Al Waha for Trading Co. recorded the most significant drop, falling 7.05 percent to SR27.70. Saudi Automotive Services Co. saw its stock prices fall 5.67 percent to SR61.50. Emaar The Economic City also saw its stock prices decline 4.50 percent to SR14.00. On the announcements front, Dar Alarkan Real Estate Development Co. reported its interim financial results for the period ending March 31. According to a Tadawul statement, the company posted a net profit of SR209.34 million in the first quarter of 2025, marking a 36.2 percent increase compared to the same quarter in 2024. The rise in net income was primarily driven by higher property sales. Increased lease revenues, lower finance costs, and greater non-operating income from Islamic Murabaha deposits also contributed to the gains, though these were partially offset by higher operating expenses and reduced earnings from associates. Dar Alarkan Real Estate Development Co. ended the session at SR21.04, down 1.05 percent. Saudi Aramco Base Oil Co. – Luberef has announced its interim financial results for the first quarter of 2025. A bourse filing showed the company recorded a net profit of SR221.5 million for the period ending March 31, reflecting a 7.3 percent decline compared to the same quarter last year. The drop in earnings was mainly due to lower by-product crack margins, despite an increase in base oil crack margins. Luberef's shares closed the session at SR98.70, down 0.20 percent. Dr. Sulaiman Al Habib Medical Services Group has announced its interim financial results for the period ending March 31. According to a Tadawul statement, the firm posted a net profit of SR557.01 million in the first quarter of 2025, marking a 1.09 percent increase compared to the same quarter in 2024. The growth was primarily driven by higher revenue, although fixed operating costs from recent strategic expansions have temporarily weighed on profit margins. These expansions are still ramping up and are expected to gradually reach full operational efficiency. The company's shares closed at SR289.00, down 2.15 percent. The National Agricultural Development Co. reported its consolidated financial results for the first quarter of 2025, posting a net profit of SR103.42 million for the period ending March 31 — a 2.06 percent rise compared to the year-earlier period. The increase was supported by higher revenue, reduced general and administrative expenses, stronger operating profit, and increased treasury income. These gains were partially offset by higher cost of sales, increased impairment losses on trade and other receivables, and a decline in finance costs. NADEC shares ended the session at SR22.20, down 1.54 percent. Saudi Basic Industries Corp. announced a net loss of SR1.21 billion for the first quarter of 2025, compared to a net profit of SR250 million in the same period last year. The loss was primarily due to a SR1.05 billion decline in gross profit, driven by higher feedstock prices and increased operating expenses. These included non-recurring costs of SR1.07 billion linked to a strategic restructuring initiative aimed at improving long-term performance and reducing costs. SABIC shares closed at SR60.70, down 2.77 percent.
Arab News
01-05-2025
- Business
- Arab News
Closing Bell: Saudi main index closes in red at 11,543
RIYADH: Saudi Arabia's Tadawul All Share Index dipped on Thursday, losing 127.90 points, or 1.10 percent, to close at 11,543.67. The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 52 stocks advanced, while 193 retreated. The MSCI Tadawul Index decreased by 16.97 points, or 1.14 percent, to close at 1,471.91. The Kingdom's parallel market Nomu also dipped, losing 147.4 points, or 0.52 percent, to close at 28,129.77. This came as 32 stocks rose, while 41 fell. The best-performing stock on the main index was Saudi Printing and Packaging Co., with its share price surging by 6.18 percent to SR13.06. Saudi Cement Co. saw the steepest decline on the main index in Thursday's session, with its share price slipping 5.75 percent to SR43.40. In a bourse filing, Banque Saudi Fransi announced that it has completed its $650 million offering of US dollar-denominated Additional Tier 1 capital notes. The issuance, conducted under the bank's Additional Tier 1 Capital Note Programme, was offered to eligible investors in Saudi Arabia and internationally, with settlement set for May 7. The notes were issued at a return of 6.375 percent per annum and are perpetual in nature, with a call option exercisable after six years. A total of 3,250 notes were issued, each with a par value of $200,000. According to the bank, the instruments may be redeemed prior to the scheduled call date under certain conditions outlined in the base offering circular. The notes will be listed on the International Securities Market of the London Stock Exchange and were offered in reliance on Regulation S under the US Securities Act of 1933, as amended. The bank's share price traded 0.54 percent lower on the main market to reach SR18.30. Halwani Bros. Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR11.51 million, a 4.58 percent decline compared to the previous quarter last year. The company attributed the decrease to higher general and administrative expenses, as well as increased selling and distribution costs. It also said that this was due to an increase in other income as a result of the reversal of provisions that are no longer needed. Halwani Bros. Co's share price traded 0.52 percent lower on the main market to reach SR47.95. In the first quarter of 2025, Fourth Milling Co's net profit rose 25.154 percent quarter on quarter to SR52.6 million, according to a filing on the stock exchange. The group attributed the increase to sales growing by 2 percent, amounting to an increase of SR3.4 million, and zakat and tax payments decreasing by SR1.4 million. The company's share price traded 0.25 percent lower on the main market to reach SR3.97. Saudi Steel Pipe Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR69 million, an 81.57 percent surge compared to the previous quarter. The company attributed the increase to higher volume, improved efficiency and product mix of products sold, and administrative expenses decreased to SR14 million in the first quarter 2025 from SR19 million in the fourth 2024. The company's share price traded 0.18 percent higher on the main market to reach SR56.10.
