Closing Bell: Saudi Arabia’s main index closes in green at 12,439

The main index saw a total trading turnover of SR8.878 billion ($2.36 billion), with 58 stocks advancing and 174 retreating. File
The main index saw a total trading turnover of SR8.878 billion ($2.36 billion), with 58 stocks advancing and 174 retreating. File
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Updated 29 January 2025
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Closing Bell: Saudi Arabia’s main index closes in green at 12,439

Closing Bell: Saudi Arabia’s main index closes in green at 12,439

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 18.84 points, or 0.15 percent, to close at 12,439.48.

The main index saw a total trading turnover of SR8.878 billion ($2.36 billion), with 58 stocks advancing and 174 retreating.

The Kingdom’s parallel market, Nomu, also gained 25.69 points to close at 31,048.66. The MSCI Tadawul Index rose by 3.99 percent to close at 1,548.14.

The best-performing stock on the main market was Al Rajhi Bank, with its share price surging by 4.69 percent to SR100.4.

MBC Group Co. also emerged as a top gainer, with its share price increasing by 4.36 percent to SR55.10.

The share price of Bank Aljazira also rose by 3.96 percent to SR18.92.

Conversely, Bupa Arabia for Cooperative Insurance Co. saw its stock price decline by 7.09 percent to close at SR194.

On Nomu, Twareat Medical Care Co. saw the highest gain, with a 30 percent increase, reaching SR15.60.

Al Rashid Industrial Co. was the worst performer on Nomu, declining by 5.20 percent to SR47.40.

On the announcements front, Al Rajhi Bank reported a net profit of SR19.72 billion for the fiscal year ending Dec. 31, marking an 18.66 percent increase compared to 2023.

According to the bank’s statement on Tadawul, the surge was driven by an increase in net income attributable to the bank’s equity holders by 5.9 percent, reaching SR21.2 billion due to the rise in total operating income by 4.2 percent.

The Saudi National Bank also announced its annual financial results for the same period, with net profit reaching SR21.193 billion and marking an increase of 5.91 percent.

Shares of the Saudi National Bank ended the session at SR34.05, down 2.85 percent. 

Bupa Arabia for Cooperative Insurance Co.’s annual financial results for the period ending Dec. 31 reported a net profit of SR1.16 billion, marking a 24.02 percent increase compared to the year before.

The insurance company said in a statement on Tadawul that the increase was primarily driven by business growth and a boost in the number of insured lives.

Additionally, the net investment results for the year amounted to SR672.37 million, compared to SR513.28 million in the previous year, recording a 30.99 percent increase.

The Saudi Investment Bank also reported an 11.07 percent increase in net profit during the fiscal year ending Dec. 31, reaching SR1.95 billion compared to the same period in 2023.

This growth was mainly due to an increase in total operating income, as well as a decrease in provisions for credit and other losses.

Saudi Investment Bank shares closed at SR15.04, up 0.27 percent.

Other banks, including Banque Saudi Fransi and Alinma Bank, also announced their financial results for the same period.

Banque Saudi Fransi reported a 7.6 percent increase in net profit for the period, reaching SR 4.54 billion compared to 2023. The bank attributed this growth to a 3.6 percent rise in total operating income, alongside a 0.6 percent reduction in operating expenses. Despite the positive results, Banque Saudi Fransi’s stock closed at SR 16, down 0.12 percent.

Similarly, Alinma Bank saw a significant 20.51 percent increase in net profit for the fiscal year ending Dec. 31, 2024, reaching SR 5.83 billion.

The bank cited a 12.5 percent rise in total operating income, driven by higher net income from financing and investment, fee income, exchange income, and FVSI income. This was partially offset by a decline in other operating income. Alinma Bank’s shares closed at SR 30.55, up 1.83 percent.


Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps
Updated 25 sec ago
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Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps

SAO PAULO: Brazil has decided to adhere to the declaration of cooperation of the OPEC+ group of oil-producing countries, the local energy ministry said on Tuesday, formalizing a move it had initially announced in 2023.

Brazil is the largest oil producer in South America. Its output hit 4.32 million barrels of oil equivalent per day in 2024, according to the country’s oil regulator.

It will join nations such as Saudi Arabia and Russia in the group’s declaration, but is not expected to take part in its coordinated output caps.

The move shows Brazil’s “growing relevance in the oil and gas market,” the mines and energy ministry said in a statement, adding, however, that the country would “continue to develop its energy policy in line with its own interests.”

“It is important to highlight that the declaration does not include the participation of countries in decisions aimed at cutting oil production,” the ministry said.

Brazil first said it was going to join the OPEC+ cooperation in late 2023, but President Luiz Inacio Lula da Silva reiterated at the time the country had no intention to be a full member, instead acting as an “observer.”

The country on Tuesday has also decided to become a member of the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), the government said.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait
Updated 10 min 39 sec ago
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Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.


Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India
Updated 19 February 2025
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Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India

NEW DELHI: Qatar has committed to investing $10 billion in India across various sectors, the two nations said in a joint statement on Tuesday, after Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani visited New Delhi.

Indian Prime Minister Narendra Modi said he had a “very productive meeting” with Qatar’s Emir, who was on a two-day visit to New Delhi.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages,” Modi said in a post on X. It was the first such visit by a Qatari Emir to the South Asian nation in 10 years.

According to the statement, Qatar will invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.

The two countries will aim to double their annual trade to $28 billion in the next five years and are exploring the signing of a free trade agreement, the Indian foreign ministry said earlier in the day.

Bilateral trade between the two nations stood at $18.77 billion in the fiscal year that ended in March 2023, mainly comprising liquefied natural gas imports from Qatar.

Qatar accounted for more than 48 percent of India’s LNG imports that year.

The two sides said they would work to enhance bilateral energy cooperation, including mutual investments in energy infrastructure, as well as look at settlement of bilateral trade in their respective currencies. 


Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity
Updated 19 February 2025
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Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

HOUSTON/SINGAPORE: Oil prices edged up on Wednesday amid worries of oil supply disruptions in the US and Russia, and as markets awaited clarity on the Ukraine peace talks.

Brent crude futures were up 14 cents, or 0.2 percent, at $75.98 a barrel at 7:50 a.m. Saudi time, and possibly set for a third day of gains.

US West Texas Intermediate crude futures for March rose 16 cents, or 0.2 percent, to $72.01, up 1.8 percent from the close on Friday after not settling on Monday because of the Presidents’ Day public holiday. The March contract expires on Thursday and the more active April contract gained 14 cents, or 0.2 percent, to $71.97.

“The psychologically important $70 level appears to have held firm, aided by the Ukrainian drone attack on the Russian oil pumping station and fears that cold weather in the US may curtail supply,” said IG market analyst Tony Sycamore.

“On top of that there is some speculation that OPEC+ may decide to delay its planned supply increase in April,” he said, referring to the Organization of the Petroleum Exporting Countries and allies.

Russia said oil flows through the Caspian Pipeline Consortium, a major route for crude exports from Kazakhstan, were reduced by 30 percent to 40 percent on Tuesday after a Ukrainian drone attack on a pumping station. A 30 percent cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.

Meanwhile, cold weather threatened US oil supply, with the North Dakota Pipeline Authority estimating that production in the country’s No. 3 producing state would be down by as much as 150,000 bpd.

US President Donald Trump’s administration said on Tuesday it had agreed to hold more talks with Russia on ending the war in Ukraine. A deal could ease or help remove sanctions that have disrupted the flows of Russian oil shipments.

Analysts at Goldman Sachs said a potential Ukraine-Russia peace deal and associated easing in sanctions on Russia is unlikely to significantly raise Russia oil flows.

“We believe that Russia crude oil production is constrained by its OPEC+ 9 million barrels per day production target rather than current sanctions, which are affecting the destination but not the volume of oil exports,” they said in a report.

Israel and Hamas will also begin indirect negotiations on a second stage of the Gaza ceasefire deal, officials said on Tuesday.

However, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

Tariffs could raise prices for consumer products, weaken the economy and reduce demand for fuel. 


Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 
Updated 19 February 2025
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Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 

RIYADH: Saudi Arabia raised SR3.07 billion ($818 million) through its February sukuk issuance as the Kingdom continues to tap debt markets to support economic diversification efforts. 

The latest riyal-denominated offering, managed by the National Debt Management Center, follows a SR3.72 billion issuance in January. The Kingdom raised SR11.59 billion in December and SR3.41 billion in November, according to official data. 

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia has been a key player in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan. 

According to the NDMC, the February issuance was split into four tranches. The first, valued at SR585 million, matures in 2029, while the second, at SR1.70 billion, is set to mature in 2032. The third tranche, worth SR404 million, is due in 2036, and the final portion, totaling SR376 million, will expire in 2039. 

Saudi Arabia is expected to play a leading role in driving global debt and sukuk issuance over the next two years, Fitch Ratings said earlier this month. The Kingdom’s financial institutions and corporations are increasingly turning to international debt markets to diversify their funding sources, the agency noted. 

A separate report by Fitch projected Saudi Arabia’s debt capital market to reach $500 billion by the end of 2025, supported by a growing pipeline of infrastructure and development projects. 

The Kingdom is also set to lead bond and sukuk maturities in the Gulf region, with redemptions expected to total $168 billion between 2025 and 2029, according to a December report by Kamco Invest. Government-issued debt will account for the largest share, with maturities projected to reach $110.2 billion during the period. 

Across the Gulf Cooperation Council, the debt capital market surpassed the $1 trillion mark in outstanding issuances by the end of November, Fitch said in a separate report. 

Meanwhile, global sukuk issuance is forecast to range between $190 billion and $200 billion in 2025, driven by activity in key markets such as Saudi Arabia and Indonesia, according to S&P Global. The credit rating agency reported that global sukuk sales totaled $193.4 billion in 2024, slightly down from $197.8 billion in 2023.