Here’s what you need to know before Tadawul trading on Tuesday

TASI, the main benchmark index, ended the session at 12,560, while the parallel market Nomu added 0.3 percent to 21,724. (Shutterstock)
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Updated 23 August 2022
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Here’s what you need to know before Tadawul trading on Tuesday

RIYADH: Saudi stocks finished flat on Monday after declining a day earlier, as investor sentiment was dragged down by a weakening global economic outlook.

TASI, the main benchmark index, ended the session at 12,560, while the parallel market Nomu added 0.3 percent to 21,724.

Gulf markets were mixed on Monday, with the Qatari index slipping 1.2 percent, Abu Dhabi and Dubai down nearly 0.4 percent, and Bahrain, Oman, and Kuwait edging slightly higher.

The volatility across the oil-rich region’s markets came on the back of oil price fluctuations over the past period.

Brent crude traded higher at $96.89 a barrel on Tuesday, and US West Texas Intermediate fell to $90.23 a barrel by 9:11 a.m. Saudi time.

Outside the Gulf, Egypt’s EGX30 reversed on Monday with gains closing at 0.9 percent lower after the country’s central bank kept interest rates unchanged following the appointment of a new governor last week.

Stock news

Saudi Real Estate Co. swung into profits of SR15.9 million ($4.2 million) during the first half of 2022.

Al Abdullatif Industrial Investment Co. turned into losses of SR16 million in the first half of 2022.

Jazan Energy and Development Co. saw its first-half profit surge 187 percent to SR28 million.

Etihad Atheeb Telecommunication Co.’s losses narrowed by 86 percent to SR1.7 million during the second quarter of 2022.

Saudi Public Transport Co. saw its losses shrink by 97 percent to SR2.6 million in the first half of 2022.

Saudi Arabian Cooperative Insurance Co.’s half-year net loss before Zakat was cut by 34 percent to SR20 million.

Alkhaleej Training and Education Co. returned to profits amounting to SR1 million in the first half of 2022.

Salama Cooperative Insurance Co. suffered losses of SR67 million in the first half, after making SR144 million in profits in the prior-year period.

Hail Cement Co. turned into losses of SR14 million during the first half of 2022.

Filling & Packing Materials MFG. Co. was back to profitability in the first half of 2022 with SR1.3 million.

Electrical Industries Co.'s profits jumped 105 percent to SR31 million in the first half of 2022.

Jahez established a limited liability company, the BLU store, with AlHilal Club Investment Co. to sell and market products with different brands and provide online services.

Arabian Contracting Services Co., known as Al Arabia, posted a 63 percent surge in its first-half profit to SR128 million.

The Co. for Cooperative Insurance closed a deal to provide insurance services to National Water Co.’s employees and their families.

Sinad Holding Co.’s losses widened by 354 percent to SR10 million during the first half of 2022.

Alsagr Cooperative Insurance Co. announced it will not be able to publish its financial results for the first half of 2022.

Calendar

Aug. 25, 2022

End of the earnings season for the second quarter of 2022

Sept. 11, 2022

Start of Arabian Plastic Industrial Co.’s initial public offering book-building

Sep. 13, 2022

End of Arabian Plastic Industrial Co.’s IPO book-building


CMA CGM, global carriers suspend Gulf transits on security fears

Updated 15 sec ago
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CMA CGM, global carriers suspend Gulf transits on security fears

RIYADH: Shipping and logistics across the Middle East were disrupted after major carriers halted routes and ordered vessels to seek shelter following joint US-Israeli attacks on Iran and Tehran’s warning restricting transit through the Strait of Hormuz.

At least 150 tankers, including crude oil and liquefied natural gas vessels, dropped anchor in open Gulf waters beyond the Strait of Hormuz, while dozens more were stationary on the other side of the chokepoint, shipping data showed on March 1, Reuters reported.

The tankers were clustered in open waters off the coasts of major Gulf oil producers, including Iraq and Saudi Arabia, as well as LNG giant Qatar, according to Reuters estimates based on ship-tracking data from the MarineTraffic platform.

This comes as French shipping giant CMA CGM instructed vessels operating in the Gulf to move to safe shelter and suspended some Suez Canal transits as security risks escalated along one of the world’s busiest trade routes.  

The Strait of Hormuz, a narrow waterway between Iran and Oman, is one of the world’s most critical energy chokepoints, carrying about 30 percent of global oil supplies along with significant volumes of liquefied natural gas.

The world’s third-largest container line said all vessels currently inside or bound for the Persian Gulf had been instructed to proceed immediately to safe shelter, while certain canal transits were halted until further notice and ships were rerouted via the Cape of Good Hope, according to a statement.

The precautionary move comes as shipping companies reassess operations across the region following military strikes and retaliatory attacks that have heightened security risks along critical maritime corridors linking Asia, Europe, and the Middle East.

“This decision is dictated by safety considerations and is made in compliance with our Bill of Lading Terms and Conditions,” the statement said.

It added: “Customers will be contacted as soon as we have more details of the possible alternative ports where their cargo could be discharged.”

The UK Maritime Trade Operations warned that the regional maritime security environment remains unstable, citing heightened military activity across key shipping lanes.

“The maritime security environment across the Arabian Gulf, Gulf of Oman, North Arabian Sea, Bab al Mandab and the Strait of Hormuz remains highly volatile, with ongoing regional military activity contributing to an elevated threat to commercial shipping,” UKMTO said in an advisory.

The agency added that mariners should expect disruption to navigation and communications systems.

UKMTO said there is “significant military presence and activity across the region” and warned vessels of an increased risk of miscalculation or misidentification near sensitive maritime infrastructure.

Despite circulating reports, the agency said “no official closure of the Strait of Hormuz has been formally communicated to the maritime industry through recognized maritime safety channels.”

Separately, Japanese shipping companies have also begun restricting movements near the Strait of Hormuz, Reuters reported.

Nippon Yusen instructed vessels to halt transit in the area on Feb. 28, while Mitsui O.S.K. Lines said its ships were remaining in safe waters, citing crew and cargo safety as its top priority.  

Kawasaki Kisen Kaisha said several of its vessels in the Persian Gulf were placed on standby, noting that, unlike other maritime routes, there are limited diversion options for ships operating near the strait.

“Until the situation stabilizes, we will not attempt to send vessels through the strait, nor dispatch additional ships towards the area,” a spokesperson said.

German shipping group Hapag-Lloyd has also suspended all vessel transit through the Strait of Hormuz until further notice because of the evolving security situation, it said.

This comes as a Palau-flagged oil tanker was hit off Oman’s Musandam peninsula on March 1, injuring four crew members, the country’s Maritime Security Centre said, following drone strikes on the Gulf nation’s commercial port of Duqm, Reuters reported.

The incidents mark the first time targets in or near Oman have been struck since Tehran launched retaliatory attacks across Gulf states after joint US-Israeli strikes on Iran.

The 20-member crew of the Skylight tanker was evacuated after the attack, which occurred about five nautical miles north of Khasab Port in Musandam, according to the maritime authority in a post on X. The centre did not specify what hit the vessel but said four crew members, among them 15 Indian and five Iranian nationals, suffered injuries of varying severity.

Oman’s Musandam peninsula shares control of the Strait of Hormuz with Iran, a strategic chokepoint through which roughly one-fifth of global oil consumption passes.

Earlier in the day, Oman’s state news agency reported that Duqm commercial port was struck by two drones, injuring one expatriate worker. Debris from another drone fell near fuel storage tanks, though no additional casualties or material damage were recorded.