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The National
07-04-2025
- Business
- The National
Middle East markets tumble after sharp fall in Asia amid Trump tariff chaos
The global stock market rout deepened on Monday with equities across Middle East markets plummeting after sharp falls in Asia, caused by US President Donald Trump's tariff chaos and slumping oil prices. Equity markets in the Middle East extended losses after suffering their worst rout in five years on Sunday, amid fears of a global trade war and a sharp slowdown in the global economy as US and Beijing hunker down for a tariff showdown. Saudi Arabia's benchmark Tadawul Index fell 2.7 per cent at 11am UAE time, extending an almost 7 per cent fall a day earlier. In the UAE, the Dubai Financial Market General Index slumped by more than 6 per cent, while the Abu Dhabi Securities General Index was down 4.48 per cent. Bourses in Kuwait and Bahrain were also trading down nearly 1 per cent each, while the Qatar Stock Exchange was down almost 2 per cent. Out of 253 companies listed on the main Tadawul exchange, the biggest bourse by market capitalisation in the Arab world, 250 fell while only one advanced, according to exchange data. "Market response to the tariff announcement has been enormously negative as the individual country levels and baseline of 10 per cent were higher than seemingly many market participants had been expecting," said Edward Bell, acting group head of research and chief economist at Emirates NBD. Energy stocks in particular took a beating, while shares of listed property companies as well as banks also tumbled. Saudi Aramco, the largest oil exporting company in the world, stemmed losses after falling by 4.75 per cent on Sunday and was trading 0.4 per cent lower on Monday. However, Adnoc Gas in Abu Dhabi dropped by 9 per cent, while Aldar Properties also fell by almost 8 per cent. Shares of Abu Dhabi Commercial Bank and First Abu Dhabi Bank slumped by 8.4 per cent and 5.2 per cent, respectively. Analysts say volatility would be the new normal in GCC markets, in line with the global risk market moment. "In the case of Dubai stocks specifically, the overall volatility could be much higher than its peers because they were the consistent top performers over the last two-year period," Vijay Valecha, chief investment officer at Century Financial, said. "The initial reaction across the GCC indices suggests that regional risk assets are likely to stay and mimic the movement of the developed market indices. For GCC indices, another headwind factor is the ongoing downfall in oil prices." In Dubai, Emaar Properties, the biggest-listed developer in the emirate, fell by more than 9 per cent while Dubai Islamic Bank slumped by 7.6 per cent. With oil trading below $70 per barrel level, "we are certainly sellers of petrochemicals and commodity stocks, having already started the year with an 'underweight' on both sectors", EFG Hermes analyst Mohammed Abu Basha wrote in a note. However, "raising our heads beyond the short-term volatility/panic, we believe such a macro setting is relatively benign for emerging markets, particularly the Mena region's oil-exporting economies" as they offer investors: "fundamental strong growth stories, driven by structural transformation" as well as strong balance sheets, good access to capital markets and pegged currencies. "We favour fundamentally domestic-demand-driven sectors, led by property, financials, utilities and logistics," Mr Abu Basha said. Asian shares also nosedived on Monday after Wall Street's meltdown on Friday over after Mr Trump revealed his tariff agenda and Beijing's retaliation. Tokyo's Nikkei 225 index closed 7.83 per cent lower on Monday. South Korea's Kospi lost 5.57 per cent, while Australia's S&P/ASX 200 tumbled 4.23 per cent. Hong Kong's Hang Seng index dropped by 13.55 per cent, while China's Shanghai Composite Index fell 7.34 per cent. Monica Malik, chief economist at Abu Dhabi Commercial Bank, said the fall in markets reflects fears that a global trade war could lead to recession, alongside the fall in the oil price. "China's counter measures further add to the concerns, though we believe that it could reflect a negotiation tactic,' Ms Malik said. 'We expect significant volatility in the coming weeks, given the time for countries to negotiate new trade deals with the US.' Mr Trump unveiled his most wide-ranging tariff policies last week, targeting all trading partners of the US with a minimum 10 per cent tariff and much higher rates for countries that the US claims to place high tariffs on US imports. Among the major trading partners hit with new higher tariff rates include China at 34 per cent, the EU at 20 per cent, India at 26 per cent, Japan at 24 per cent and South Korea at 25 per cent. Many smaller, emerging economies have been hit with much higher tariff rates on the US government's claim that they charge near 100 per cent tariffs on imports of US goods. China has already retaliated with its own 34 per cent tariff on imports from the US, while other trading partners are considering their responses to the US's major disruption to global trade. Beijing plans to impose tariffs starting April 10. The baseline 10 per cent rate took effect on April 5, while the higher individual levels will be implemented on April 9. The six-nation GCC bloc – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – along with Middle East and North Africa nations Egypt, Iran, Lebanon, Morocco and Yemen, all received the minimum 10 per cent tariff. Syria was the hardest hit at 41 per ent, followed by Iraq (39 per cent), Libya (31 per cent), Algeria (30 per cent), Tunisia (28 per cent) and Jordan (20 per cent). US futures also signalled further weakness. The futures for the S&P 500 lost 3.47 per cent while that for the Dow Jones Industrial Average dropped 3.05 per cent. The futures for Nasdaq lost 3.76 per cent. The US dollar weakened against the yen and euro, as the market turmoil continues. The Dow Jones index dropped 8 per cent last week, the US dollar index fell 1 per cent and 10-year US Treasury yields fell 25 basis points as markets price in a greater chance of a US recession. Markets have increased their rate cut expectations to four 25bps cuts by the end of the year even amid the inflationary risks the tariffs pose.
Arab News
24-03-2025
- Business
- Arab News
Closing Bell: Saudi main index rises to close at 11,778
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Monday, gaining 83.31 points, or 0.71 percent, to close at 11,778.08. The total trading turnover of the benchmark index was SR4.25 billion ($1.13 billion), as 134 of the stocks advanced and 106 retreated. The Kingdom's parallel market Nomu gained 75.17 points, or 0.25 percent, to close at 30,610.63. This came as 44 of the listed stocks advanced while 37 retreated. The MSCI Tadawul Index gained 13.77 points, or 0.93 percent, to close at 1,493.24. The best-performing stock of the day was Umm Al Qura for Development and Construction Co., whose share price surged 30 percent to SR19.50. Other top performers included Naseej International Trading Co., whose share price rose 9.76 percent to SR92.20 as well as East Pipes Integrated Co. for Industry, whose share price increased 7.39 percent to SR154. Arabian Pipes Co. recorded the most significant drop, falling 4.68 percent to SR10.58, while Middle East Specialized Cables Co. also saw its stock prices decline 3.82 percent to SR37.80. Shares in National Medical Care Co. registered a drop of 3.16 percent to SR153. On the announcements front, Umm Al Qura for Development and Construction Co. has started trading today on the main market with a total offering size of 130.7 million shares, an offering price per share of SR15, and with Albilad Capital as lead manager. The company also announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR498.61 million in 2024, reflecting a 57.29 percent increase compared to 2023. This surge is mainly due to a jump in revenues coupled with a decrease in general and administration expenses as well as Zakat fees. Jarir Marketing Co. has also announced its annual financial results for the year, which ended on Dec. 31. A bourse filing revealed that the company reported a net profit of SR974 million in 2024, reflecting a 0.1 percent rise compared to 2023. This growth is owed to the increase of the selling and marketing costs, administrative and general expenses, and non-operating fees. The company has also announced the board of directors' recommendation to distribute SR276 million worth of cash dividends to shareholders for the fourth quarter of 2024. According to a Tadawul statement, the total number of shares eligible for dividends amounted to 1.2 billion, with the dividend per share standing at SR0.23. The statement also revealed that the percentage of dividends to the share par value stood at 23 percent. Jarir Marketing Co. ended the session at SR12.60, up 1.12 percent. Arabian Centers Co., or Cenomi Centers, announced it has approved the launch of sukuk with a local special offering of up to SR3.75 billion. The company's share price ended the session at SR20.40, up 1.96 percent. The Capital Market Authority has approved the registration and offering of shares of Wajd Life Trading Co. on the parallel market. The firm is offering 2.5 million shares, representing 20 percent of its share capital. CMA also approved the registration and offering of shares of Afaq Al Arabiya for Transportation & Storage Co. on Nomu, with the company offering 900,000 shares, representing 10 percent of its share capital. The authority also gave the go-ahead for the registration and offering of shares of Rawabi Marketing International Co. on the parallel market. The group is offering 1 million shares, representing 6.45 percent of its share capital.
Arab News
23-03-2025
- Business
- Arab News
Closing Bell: Saudi main index edges down to close at 11,694
RIYADH: Saudi Arabia's Tadawul All Share Index slipped on Sunday, losing 65.55 points, or 0.56 percent, to close at 11,694.77. The total trading turnover of the benchmark index was SR2.64 billion ($704 million), as 85 of the stocks advanced and 155 retreated. On the other hand, the Kingdom's parallel market, Nomu, gained 13.93 points, or 0.05 percent, to close at 30,535.46. This comes as 36 stocks advanced while 48 retreated. The MSCI Tadawul Index lost 10.73 points, or 0.72 percent, to close at 1,479.47. The best-performing stock was Al-Babtain Power and Telecommunication Co., whose share price surged 9.98 percent to SR46.30. Other top performers included Alujain Corp., whose share price rose 8.65 percent to SR37.70, as well as Arriyadh Development Co., whose share price surged 6.05 percent to SR34.20. Naseej International Trading Co. recorded the most significant drop, falling 9.58 percent to SR84. Al-Rajhi Co. for Cooperative Insurance also saw its stock prices fall 4.63 percent to SR136. Banan Real Estate Co. also saw its stock prices decline 4.31 percent to SR6.22. On the announcements front, Tam Development Co. declared its annual financial results for the year ending on Dec. 31, 2024. According to a Tadawul statement, the firm reported a net profit of SR30.13 million in 2024, reflecting a 25.77 percent drop compared to 2023. The decrease in net profit is primarily attributed to delays in government project awards and budget reviews in the first half of 2024 which affected contract pricing revenue recognition and utilization rates as well as strategic investments in talent acquisition and competitive pricing to secure new logo accounts temporarily compressing margins. The drop was also linked to higher general and administrative expenses which increased 39 percent due to workforce expansion to support growth. Tam Development Co. ended the session at SR175.80, down 6.02 percent. Riyadh Steel Co. has also announced its annual financial results for the year, which ended on Dec. 31, 2024. A bourse filing revealed that the company reported a net profit of SR1.99 million in 2024, reflecting an 82.06 percent drop compared to 2023. This decline is owed to a reduction in selling prices, a decrease in other income, and higher expenses in comparison to the previous year. Riyadh Steel Co. ended the session at SR2.01, down 0.49 percent. Middle East Pharmaceutical Industries Co. has announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR79.85 million in 2024, reflecting a 21.3 percent drop compared to 2023. This increase in net profit is primarily attributed to strong revenue growth and a higher gross profit margin, driven by product mix diversification and economies of scale from increased production. Nevertheless, the gain in gross profit was partially offset by higher selling, distribution, and general administrative expenses, which were largely due to ongoing investments in marketing, talent acquisition, and other growth-related initiatives. Middle East Pharmaceutical Industries Co. ended the session at SR135.40, down 1.34 percent. Alandalus Property Co. also announced its annual financial results for the year ending Dec. 31, 2024. A bourse filing revealed that the company reported a net loss of SR31.6 million in 2024, down from an SR36.42 million net profit in 2023. This decline is primarily attributed to a decrease in operating profit resulting from operational losses incurred by some affiliated companies, particularly West Jeddah Hospital, due to the opening and commencement of operations at Dr. Sulaiman Al-Habib Medical Hospital in Jeddah at the end of the first quarter of 2024, along with recorded losses in Al-Jawhara Al-Kubra Co. The net loss is also linked to an increase in general and administrative expenses along with a 31 percent surge in financing costs compared to the previous year. Alandalus Property Co. ended the session at SR23.00, down 1.13 percent.
Arab News
02-03-2025
- Business
- Arab News
Closing Bell: Saudi main index edges down 0.63% to close at 12,035
RIYADH: Saudi Arabia's Tadawul All Share Index closed lower on Sunday, dropping 76.45 points, or 0.63 percent, to settle at 12,035.45. The benchmark index's total trading volume reached SR3.45 billion ($922 million), with 37 stocks advancing and 209 declining. Nomu, the Kingdom's parallel market, gained 177.88 points, or 0.57 percent, to close at 31,582.35. Of the listed stocks, 26 advanced, while 61 saw declines. The MSCI Tadawul Index fell by 2.59 points, or 0.17 percent, to close at 1,512.22. The top performer of the day was Saudi Cable Co., whose share price surged by 5.79 percent, reaching SR131.60. Other notable performers included Elm Co., whose share price rose by 4.24 percent, closing at SR1,110, and Middle East Pharmaceutical Industries Co., which saw a 1.96 percent increase, closing at SR135.40. On the downside, SAL Saudi Logistics Services Co. experienced the largest decline, falling by 9.98 percent to SR220.20. Batic Investments and Logistics Co. also saw a significant drop of 9.76 percent, closing at SR3.05, while Al-Baha Investment and Development Co. saw its stock price fall by 7.32 percent, ending at SR0.38. On the announcements front, Saudi Tadawul Group Holding Co. reported its annual financial results for the year ending Dec. 31, 2024. The company posted a net profit of SR621.8 million, reflecting a 59.4 percent increase compared to 2023. This growth was driven by a 34.8 percent rise in operating revenues, an 18.3 percent increase in operating expenditures, a 59.4 percent increase in earnings per share, a 50.3 percent rise in gross profit, and a 72.4 percent jump in operational profit. Saudi Tadawul Group Holding Co. ended the session at SR213, down 0.47 percent. Retal Urban Development Co. also reported its annual results for the year ending Dec. 31, 2024. The company posted a net profit of SR266.12 million in 2024, marking a 31.51 percent increase from the previous year. This increase was driven by a 32 percent rise in gross profit to SR499.65 million, along with a surge in equity-accounted investment results, totaling SR71.10 million. This performance came despite higher general and administrative expenses and increased finance costs. Retal Urban Development Co. ended the session at SR16.06, up 0.25 percent. Al-Rajhi Co. for Cooperative Insurance announced its financial results for the year ending December 31, with a net profit of SR332.3 million in 2024, reflecting a 1.3 percent increase compared to 2023. The increase is attributed to higher insurance service results before Re-takaful and a decrease in insurance service results for the year, alongside an uptick in operating expenses, a drop in total comprehensive income, and a rise in gross written premiums. Al-Rajhi Co. for Cooperative Insurance closed at SR165, down 2.04 percent. Shatirah House Restaurant Co. (BURGERIZZR) reported its financial results for the year ending Dec. 31, 2024, showing a net profit of SR8.44 million, a decrease of 31.25 percent compared to 2023. Despite a 7.3 percent increase in gross profit, the decline in net profit was attributed to a 10 percent rise in selling expenses, a 26.9 percent increase in administrative expenses, and other factors. Shatirah House Restaurant Co. closed the session at SR21.50, down 2.85 percent.
Arab News
26-01-2025
- Business
- Arab News
Saudi benchmark index inches up 0.26% to close at 12,386
RIYADH: Saudi Arabia's Tadawul All Share Index rose on Sunday, gaining 32.12 points, or 0.26 percent, to close at 12,386.16. The total trading turnover on the benchmark index reached SR5.11 billion ($1.36 billion), with 161 stocks advancing and 69 retreating. The Kingdom's parallel market, Nomu, also saw a modest gain, rising 49.70 points, or 0.16 percent, to close at 30,896.29, as 49 stocks advanced and 42 declined. The MSCI Tadawul Index closed up by 2.01 points, or 0.13 percent, finishing at 1,545.39. Kingdom Holding Co. emerged as the day's top performer, with its share price surging 9.80 percent to SR10.20. Other notable performers included Al-Baha Investment and Development Co., which rose 9.30 percent to SR0.47, and Saudi Fisheries Co., whose share price jumped 7.84 percent to SR24.28. On the downside, Al-Jouf Cement Co. recorded the largest drop, falling 3.57 percent to SR12.44. Arabian Pipes Co. also saw its stock decline by 2.50 percent, closing at SR13.26, while Rasan Information Technology Co. dropped 1.94 percent to SR90.80. On the announcements front, Al-Baha Investment and Development Co. announced its annual financial results for the period ending Dec. 31. The company reported a net profit of SR8.37 million for 2024, a 69.48 percent increase compared to 2023. The growth was primarily driven by a 13 percent rise in revenues, a 98 percent drop in zakat provisions, a 39 percent reduction in financing costs, and a decline of SR1.18 million in investment properties. Al-Moammar Information Systems Co. has signed a SR58.6 million contract with the Saudi Authority for Data and Artificial Intelligence to enhance the AI network through software and services. According to a bourse filing, the 36-month deal is expected to generate positive financial impacts starting in Q1 2025. The stock closed at SR160.40, up 0.51 percent. Al-Sagr Cooperative Insurance Co. received an Insurer Financial Strength Rating of 'BBB' and a National IFS Rating of 'A+' with a stable outlook from Fitch Ratings. The ratings reflect Al-Sagr's strong capitalization, solid financial performance, and well-diversified insurance portfolio, despite its moderate operating scale within the Saudi insurance market. Al-Sagr's stock closed at SR18.10, up 3.20 percent.
