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Closing Bell: Saudi main index slips to close at 12,018 

The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   
The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   
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Updated 30 October 2024

Closing Bell: Saudi main index slips to close at 12,018 

Closing Bell: Saudi main index slips to close at 12,018 

RIYADH: Ƶ’s Tadawul All Share Index dipped on Wednesday, losing 43.28 points, or 0.36 percent, to close at 12,018.81. 

The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   

The MSCI Tadawul Index decreased by 6.42 points, or 0.42 percent, to close at 1,511.37 

The Kingdom’s parallel market, Nomu, edged up by 245.89 points, or 0.92 percent, to close at 26,868.99. This comes as 39 stocks advanced, while 36 retreated. 

The best-performing stock of the day was Etihad Altheeb Telecommunications Co., with its share price surging by 6.18 percent to SR116.8.  

Other top performers included Red Sea International Co., which saw its share price rise by 4.98 percent to SR75.9. 

MBC Group, and Ƶn Amiantit Co., also saw a positive change at 4.57 percent and 4.08 percent to SR42.35 and SR34.45, respectively. 

The worst performer of the day was Saudi Industrial Export Co., whose share price fell by 7.12 percent to SR2.48. 

Nahdi Medical Co. and Al-Baha Investment and Development Co., also saw declines, with their shares dropping by 3.86 percent and 3.85 percent to SR124.4 and SR0.25, respectively.  

Leejam Sports Co. and Fourth Milling Co., also saw a negative change at 3.63 percent and 3.58 percent to SR186 and SR5.11, respectively. 

On the announcements front, Retal Urban Development Co. reported its preliminary financial results for the nine months ending Sept. 30 with a net profit after zakat and tax of SR145.98 million. This marked a 20.32 percent decline compared to the same period last year. 

According to a statement, the decrease was primarily due to an 87.4 percent drop in revenues from real estate unit and land sales, despite an 87.6 percent rise in development contract revenues driven by more active projects. 

General and administrative expenses rose by 63.3 percent to SR60.68 million due to organizational growth. Selling and marketing expenses also increased by 66 percent to SR23.54 million to boost market share and brand strength. 

Additionally, financing costs surged by 245.4 percent to SR58.27 million, impacted by higher debt and an increased Saudi Interbank Offered Rate. 

The company’s stock closed at SR14.22, down by 2.47 percent. 

Nahdi Medical Co. reported net profit of SR662.9 million for the same period, marking an 8.2 percent annual decline. This was partly due to the prior year’s non-recurring inventory provision release of SR33 million. 

Operating expenses also rose by SR78.6 million as the company invested in strategic initiatives, including new openings and digitalization, though efficiency programs improved expenses as a percentage of revenue by 1.3 percent. 

The company’s stock closed the session at SR124.2, reflecting a decrease of 4.02 percent. 


Oil Updates – market sees losses on tight supply but cloudy demand caps gains

Oil Updates – market sees losses on tight supply but cloudy demand caps gains
Updated 13 November 2024

Oil Updates – market sees losses on tight supply but cloudy demand caps gains

Oil Updates – market sees losses on tight supply but cloudy demand caps gains

SINGAPORE: Oil prices edged up on Wednesday on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.

Brent futures rose 17 cents, or 0.24 percent, to $72.06 a barrel by 7:20 a.m. Saudi time, while US West Texas Intermediate crude futures gained 14 cents, or 0.21 percent, at $68.26.

“Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly,” ANZ analysts said in a note.

But falling demand projections and weakness in major consumer China continued to weigh on market sentiment.

“We may expect prices to consolidate around current levels for longer,” said Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.

“The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, coupled with the prospects of higher US oil production with a Trump presidency and looming OPEC+’s plans for an output raise,” Yeap added.

In its monthly report on Tuesday, the Organization of Petroleum Exporting Countries said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month, mostly due to weakness in China, the world’s biggest oil importer.

Oil prices settled up 0.1 percent on Tuesday following the news, after falling by about 5 percent during the two previous sessions.

OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd.

The International Energy Agency, which has a far lower view, is set to publish its updated forecast on Thursday.

“The re-election of former President Trump is unlikely to materially affect oil market fundamentals over the near term, in our view,” Barclays analysts wrote.

“Drill, baby, drill: this is likely to underwhelm as a strategy to drive oil prices materially lower over the near term” given that the stock of approved permits actually rose under the Biden administration, the analysts said.

However, markets would still feel the effects of a supply disruption from Iran or a further escalation between Iran and Israel, according to Barclays.

Donald Trump’s expected secretary of state pick, US Senator Marco Rubio, is known for his hard-line stance on Iran, China and Cuba. Tighter enforcement of sanctions on Iran could disrupt global oil supply, while a tougher approach to China could further weaken oil demand in the world’s largest consumer.

Two US central bankers said on Tuesday that interest rates are acting as a brake on inflation that is still above the 2 percent mark, suggesting that the Federal Reserve would be open to further interest rate cuts.

The Fed cut its policy rate last week by a quarter of a percentage point to the 4.50 percent-4.75 percent range. Interest rate cuts typically boost economic activity and energy demand.

US weekly inventory reports have been delayed by a day following Monday’s Veterans Day holiday. The American Petroleum Institute industry group data is due at 00:30 a.m. Saudi time on Thursday.

Analysts polled by Reuters estimated on average that crude inventories rose by about 100,000 barrels in the week to Nov. 8. 


COP29 Day 3: World leaders address urgent climate goals at high-level session

COP29 Day 3: World leaders address urgent climate goals at high-level session
Updated 26 min 37 sec ago

COP29 Day 3: World leaders address urgent climate goals at high-level session

COP29 Day 3: World leaders address urgent climate goals at high-level session

RIYADH: World leaders entered their third day of climate talks at COP29 in Baku, marking a critical juncture in discussions focused on climate action and multilateral cooperation. 

The High-Level Segment continued with addresses from heads of state and government as countries reiterated commitments to combat climate change.

As COP29 progresses, world leaders are expected to announce further initiatives to address climate threats through collaborative, international approaches.

10:00 a.m. – All energy sources should be used to cope with population rise – Italian PM

Screenshot

 

In her address to COP29, Italian Prime Minister Giorgia Meloni warned that population growth will increase energy demand.

“We need an energy mix in the transition process. We must use all energy sources, biogas, gas and even nuclear fusion in the future,” she said.

Meloni believes that technology neutrality is the right approach, and currently, there is no single alternative to fossil fuel supply.

9:46 a.m. – Day 3 begins with more world leaders addressing the conference

Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah emphasized his country’s long-term strategy for environmental sustainability and carbon reduction, stating that climate change “is a global concern and a threat to many countries.” 

Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah. Screenshot

Highlighting the visible impacts of climate change, he cited “rising temperatures, dust storms, and heavy rain” as growing challenges in the region.

Kuwait aims to achieve net zero emissions by 2060, supported by strategic initiatives and a significant shift toward renewable energy. The country plans to generate 50 percent of its electricity from solar power, a major component of its national sustainability efforts, Al-Sabah said.

The session opened with Shina Ansari, Iran’s vice president, followed by Joseph Owondault Berre, Gabon’s vice president. Berre underscored the importance of multilateralism, calling it “the only weapon that can tackle issues associated with climate change.”

He emphasized the need for “collective action based on trust, fairness, and shared responsibility,” highlighting that global collaboration remains critical in addressing climate impacts equitably.

 


IMF delegation in Pakistan, discusses ‘key benchmarks’ of $7 billion loan program — official 

IMF delegation in Pakistan, discusses ‘key benchmarks’ of $7 billion loan program — official 
Updated 13 November 2024

IMF delegation in Pakistan, discusses ‘key benchmarks’ of $7 billion loan program — official 

IMF delegation in Pakistan, discusses ‘key benchmarks’ of $7 billion loan program — official 
  • IMF has said Porter’s visit is not part of the first review of loan program
  • First review not scheduled to take place before the first quarter of 2025

ISLAMABAD: An International Monetary Fund (IMF) delegation is in Islamabad this week and will hold discussions with top Pakistani officials on the “key benchmarks” of a $7 billion loan program approved in September, a finance ministry official said on Tuesday.

The IMF delegation led by Pakistan mission chief Nathan Porter arrived in Islamabad on Monday on an unplanned visit. The team is expected to hold meetings until Friday with top officials from ministries such as finance and energy and the Federal Board of Revenue, the main tax collection agency, to collect data on “loan program performance to date,” a finance ministry official told Arab News, seeking anonymity. 

The IMF has said Porter’s visit is not part of the first review of the loan program, which is not scheduled to take place before the first quarter of 2025. 

“Some key benchmarks of the loan program will come under discussion during the meetings, as Islamabad faces some revenue shortfall and a recent botched attempt to privatize the Pakistan International Airlines,” the finance ministry official said. 

“Matters like external financing gap and reforms in the energy sector are also expected to be discussed with the IMF delegation.”

The IMF reached a staff-level agreement with Pakistan in July for a 37-month $7 billion bailout package, which the Fund’s Executive Board approved in September. This was the 25th loan program that Pakistan has obtained since 1958.

In a statement released on Tuesday, the ministry of finance said a delegation led by Porter had an “initial meeting” with finance minister Muhammad Aurangzeb.

Minister of State for Finance Ali Pervez Malik, Governor State Bank Jameel Ahmed, Federal Board of Revenue Chairman Rashid Mahmood Langrial and senior finance ministry officials were also present in the meeting, the ministry said.

Islamabad secured the bailout loan, critical to keeping its $350 billion fragile economy afloat, after taking painful measures such as hiking fuel and food prices and implementing reforms to broaden the country’s tax base and privatize state-owned entities.

“INTERIM CHECKS”

Pakistan’s macroeconomic conditions and investor sentiment have improved in recent months, which analysts say has led to a bullish trend in the country’s stock market.

Syed Atif Zafar, the chief economist at Topline Securities, said the IMF delegation’s meetings with Pakistani officials were part of “interim checks” to ensure a successful review of the loan facility next year. 

“The government failed to achieve the tax revenue target in the first quarter that has perhaps necessitated this IMF visit, but still the authorities have multiple options and time to overcome this gap,” he told Arab News. 

“The good thing at this point is that all structural and quantitative benchmarks of the loan program are on track.”

Tahir Abbas, a senior economist and head of research at Arif Habib Limited, said Pakistan last month requested the IMF for a $1 billion climate financing facility to mitigate climate risk, which would be discussed during the ongoing IMF visit.

“Pakistan’s revenue shortfall of around Rs200 billion ($720 million) in the first quarter has mainly necessitated this IMF visit,” he told Arab News. 

“The finance ministry will now inform the IMF delegation about the possible revenue measures to overcome the shortfall and cut the expenditures.”


NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
Updated 13 November 2024

NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
  • Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.


Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
Updated 13 November 2024

Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
  • Maldives President Mohamed Muizzu said small island developing states require trillions of dollars in climate finance
  • Bulgarian President Rumen Radev addressed the global impact of climate-related disasters

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”