Closing Bell: Saudi main index closes higher as key stocks gain

The total trading turnover of the benchmark index was SR5.4 billion ($1.4 billion), as 100 of the stocks advanced and 142 retreated.
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Updated 17 March 2025
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Closing Bell: Saudi main index closes higher as key stocks gain

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Monday, gaining 29.26 points, or 0.25 percent, to close at 11,883.04.

The total trading turnover of the benchmark index was SR5.4 billion ($1.4 billion), as 100 of the stocks advanced and 142 retreated.

Conversely, the Kingdom’s parallel market Nomu dropped 240.58 points, or 0.77 percent, to close at 31,034.69. This comes as 33 stocks advanced while 45 retreated.

The MSCI Tadawul Index increased 9.09 points, or 0.61 percent, to close at 1,503.88.

TASI’s top performer was Arabian Company for Agricultural and Industrial Investment, which surged by the 30 percent daily limit in its market debut on Monday.

Its share price jumped to SR65, significantly surpassing its initial price of SR50, which was set at the upper end of the offering range.

Other top performers included Retal Urban Development Co., whose share price rose 7.18 percent to SR15.82, as well as Astra Industrial Group, whose share price surged 4.45 percent to SR169.

Alkhorayef Water and Power Technologies Co. was also among the top performers, increasing 4.38 percent to SR166.80.

Naqi Water Co. was the worst performer with its stock price falling 4.33 percent to SR57.40.

Arabian Shield Cooperative Insurance Co. also saw its stock prices decline 3.94 percent to SR17.56. Arriyadh Development Co. also dropped to SR34.65, a 3.88 percent decrease.

On the announcements front, several major Saudi companies released their annual financial results for the period ending Dec. 31, 2024, showcasing mixed performances across industries.

Arabian Mills for Food Products Co. reported a 12.98 percent increase in revenue, reaching SR973.94 million, compared to SR862.08 million in the previous year.

This growth was primarily driven by a 39.75 percent surge in feed sales following the company’s entry into the poultry feed segment and reinforced production efforts.

Bran sales also grew by 17.91 percent, and flour revenues saw a modest rise of 4.02 percent, supported by business-to-business revenue growth of 3.19 percent and incentives in the modern trade segment.

Net profit increased by 5.93 percent to SR212.15 million, supported by improved product cost efficiency, administrative streamlining, and reduced financing costs.

Despite the growth, the company saw a 1.03 percent drop in its share price to settle at SR47.90.

The United International Transportation Co., also known as Budget Saudi, posted a significant 43.03 percent increase in revenue, reaching SR1.97 billion, up from SR1.38 billion in the prior year.

This surge was fueled by the expansion of both long-term and short-term rental fleets, alongside contributions from the acquisition of AutoWorld and the integration of revenue from the Overseas Development Co.

Net profit climbed 12.44 percent to SR311.69 million, benefiting from improved rental rates, fleet expansion, and operational synergies post-acquisition.

Budget Saudi’s share price saw a 0.26 increase to reach SR76.40.

Meanwhile, the Kingdom Holding Co. saw an 11.57 percent decline in revenue to SR2.39 billion, down from SR2.70 billion in the previous year.

The decline was primarily attributed to reduced dividend income and lower gains on investments at fair value through profit or loss.

Despite the revenue drop, net profit rose by 22.08 percent to SR1.24 billion, supported by lower financial charges, gains from the reversal of impairments, increased share of profits from equity-accounted investees, and higher income from hotel operations.

Kingdom Holding’s stock price increased by 1.64 percent to reach SR8.06.

BinDawood Holding Co. reported a modest 1.33 percent increase in revenue, reaching SR5.68 billion, compared to SR5.60 billion in the previous year.

The growth was driven by contributions from new store openings, increased sales from Jumeirah Trading Co. and Future Retail Tech, and improved point-of-sale performance.

However, this was partially offset by store closures during the year. Net profit grew by 1.88 percent to SR280.25 million, supported by stronger supplier terms, operational efficiencies, and a better product mix, though higher operating expenses related to talent acquisition and business expansion limited the increase.

BinDawood’s stock price grew 0.63 percent on Monday to reach SR6.42.


Saudi Aramco lowers propane, butane prices for May

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Saudi Aramco lowers propane, butane prices for May

RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for May 2025, according to a company statement issued on Tuesday.

The price of propane was cut by $5 per tonne to $610, while butane saw a steeper reduction of $15 per tonne, bringing it to $590. The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.

Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.

Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.

The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East.

Meanwhile, US shipments are being redirected to Europe and other parts of Asia.

This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.

Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.


Trump to reduce impact of auto tariffs, commerce secretary says

Updated 29 April 2025
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Trump to reduce impact of auto tariffs, commerce secretary says

WASHINGTON: President Donald Trump’s administration will move to reduce the impact of his automotive tariffs on Tuesday by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.

“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said in a statement provided by the White House.

“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”

The Wall Street Journal, which first reported the development, said the move meant car companies paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.

A White House official confirmed the report and indicated the move would be made official on Tuesday.

Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office, a period that the Republican president has used to upend the global economic order.

The move to soften the effects of auto levies is the latest by his administration to show some flexibility on tariffs, which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown.

Automakers said earlier on Monday they were expecting Trump to issue relief from the auto tariffs ahead of his trip to Michigan, which is home to the Detroit Three automakers and more than 1,000 major auto suppliers.

General Motors, CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” Barra said.

Farley said the changes “will help mitigate the impact of tariffs on automakers, suppliers and consumers.”

Last week, a coalition of US auto industry groups urged Trump not to impose 25 percent tariffs on imported auto parts, warning they would cut vehicle sales and raise prices.

Trump had said earlier he planned to impose tariffs of 25 percent on auto parts no later than May 3.

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.

The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.

“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.” 


IMF Executive Board to meet on May 9 to review Pakistan’s loan programs

Updated 29 April 2025
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IMF Executive Board to meet on May 9 to review Pakistan’s loan programs

  • IMF board’s approval of staff-level agreement with Pakistan will pave the way for disbursement of $1 billion
  • Islamabad also secured a new loan program with IMF in March to help build resistance against natural disasters 

KARACHI: The International Monetary Fund’s (IMF) Executive Board will meet on May 9 to review its staff-level agreement with Pakistan for an ongoing $7bn bailout program and a new climate resilience loan scheme with Islamabad, the global lender said on its website recently. 

The IMF reached a staff-level agreement with Pakistan in March on the first review of the country’s Extended Fund Facility (EFF) and a new $1.3 billion loan arrangement under the Resilience and Sustainability Facility (RSF). Pakistan secured the EFF program last year and deems it crucial to escape a prolonged economic crisis. The staff-level agreement, once approved by the IMF Executive Board, will pave the way for an immediate disbursement of about $1 billion for Pakistan.

The RSF, on the other hand, will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improve the efficient and productive use of water. It will also help in strengthening Pakistan’s climate information architecture to improve the disclosure of climate risks and align energy sector reforms with mitigation targets.

“May 9, 2025, Pakistan-first review under the extended arrangement under the Extended Fund Facility, request for Modification of Performance Criteria, and request for an arrangement under the Resilience and Sustainability Facility,” the IMF wrote on its website on Friday, disclosing its Executive Board’s schedule. 

Pakistan has been prone to natural disasters and consistently ranks among the most severely affected countries in the world due to climate change effects. Unusually heavy rains and melting of glaciers in 2022 triggered flash floods across the country, killing over 1,700 people and inflicting losses over $33 billion. 

The IMF program has played a key role in stabilizing Pakistan’s battered economy, which has made some gains in recent months, most notably a reduced inflation rate. The government has said the country is on course for a long-term recovery, while Finance Minister Muhammad Aurangzeb has vowed Islamabad will continue to implement financial reforms mandated by the international lender. 

Pakistan secured the $7 billion loan program in September 2024 as it attempted to consolidate its economy since averting a default in 2023. Islamabad has since undertaken several reforms to reduce public debt, maintain low inflation, improve energy sector viability, and accelerate growth.

Pakistan hopes to achieve further economic progress by increasing its exports and attracting foreign investment from regional allies, particularly the Gulf countries. Islamabad has signed memoranda of association (MoUs) regarding trade and investment worth billions of dollars with Saudi Arabia, the United Arab Emirates, Azerbaijan, China and other countries in recent months. 


Oil Updates — crude falls as economic jitters dampen demand outlook

Updated 29 April 2025
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Oil Updates — crude falls as economic jitters dampen demand outlook

SINGAPORE: Crude oil prices fell on Tuesday as investors lowered their demand growth expectations due to the ongoing trade war between the US and China, the world’s two biggest economies.

Brent crude futures fell by 78 cents, or 1.18 percent, to $65.08 per barrel by 10:49 a.m. Saudi time. US West Texas Intermediate crude futures fell 75 cents, or 1.21 percent, to $61.30 a barrel. Both benchmarks fell more than $1 on Monday.

“Markets are closely monitoring the US-China trade negotiations, understanding that deteriorating trade relations between the world’s two largest economies could lead the global economy toward a recession,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“The lack of confidence in future demand and the absence of concrete signals for demand revival in mainland China will continue to overshadow oil prices.”

US President Donald Trump’s push to reshape world trade by imposing tariffs on all US imports has created a high risk that the global economy will slip into a recession this year, according to a majority of economists in a Reuters poll.

China, hit with the steepest of those tariffs, has responded with its own levies against US imports, stoking a trade war between the top two oil consuming nations. That has prompted analysts to sharply lower their oil demand and price forecasts.

Barclays on Monday cut its 2025 Brent crude price forecast by $4 to $70 a barrel, citing elevated trade tensions and a pivot in production strategy by the OPEC+ group as drivers of a 1 million barrel per day oil supply surplus this year.

Meanwhile, several members of OPEC+, which comprises the Organization of the Petroleum Exporting Countries and its allies, will suggest an acceleration of output hikes for a second consecutive month in June, sources told Reuters last week.

“A substantial (oil) price decrease appears probable if exporting countries boost production,” oil analyst Philip Verleger said in a note.

US crude oil stockpiles also likely rose by about 500,000 barrels in the week ended April 15, according to a preliminary Reuters poll of analysts on Monday.

Industry group American Petroleum Institute will publish its estimates on US oil inventories on Tuesday. Official figures from the Energy Information Administration will follow on Wednesday.


PIF’s AviLease secures investment-grade ratings from Moody’s, Fitch

Updated 29 April 2025
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PIF’s AviLease secures investment-grade ratings from Moody’s, Fitch

RIYADH: Saudi Arabia’s AviLease has secured investment-grade corporate credit ratings from Moody’s and Fitch Ratings, as the global aircraft lessor continues to expand its portfolio and strategic role within the Kingdom’s aviation sector.

Owned by Saudi Arabia’s Public Investment Fund, AviLease announced it received a Baa2 rating with a stable outlook from Moody’s and a BBB rating with a stable outlook from Fitch.

The two agencies highlighted AviLease’s high-quality portfolio of new-technology aircraft with a strong credit mix, alongside its robust balance sheet and growth trajectory.

They noted that the company is expected to become one of the largest players in the global leasing industry by 2030.

“The ratings open the door for even greater financial flexibility, as we will be able to tap into the unsecured debt capital markets,” Edward O’Byrne, CEO of AviLease, said in a press release.

He continued: “Achieving investment-grade ratings in under three years since our establishment is a remarkable feat, and we believe it positions AviLease within a select group of lessors in the industry in record time.”

The ratings also recognize AviLease’s strategic role in supporting PIF’s aviation sector initiatives under Saudi Arabia’s Vision 2030.

“These ratings will enable AviLease to access global capital markets to finance its business strategies, positioning itself at the forefront of the aircraft leasing industry, in complete alignment with the National Aviation Strategy and Saudi Arabia’s Vision 2030,” Fahad Al-Saif, chairman of AviLease, said.