Most Important News

• Al Baha Announces Name Change to Saudi Darb Investment
• Extra Reports 36.9% Profit Growth on Higher Sales
• AppLovin Sees 27% After-Hours Surge on Q4 Beat, Strong Guidance

1. Market Summary

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was down by 0.31% on Wednesday. Fawaz Abdulaziz Alhokair Co.(4240.SA) and Abdullah Saad Mohammed Abo Moati for Bookstores Co.(4191.SA) gained the most, up by 5.48% and 3.35%, respectively. 

Check out yesterday's trending Saudi stocks

Wednesday is a mixed day on Wall Street. The Dow Jones Industrial Average(DJI.US) fell more than 200 points and the S&P 500 INDEX(SPX.US) shed 0.3% after the closely followed consumer price index reading showed inflation came in hotter than economists anticipated in January. The tech-heavy NASDAQ(IXIC.US), meanwhile, ended marginally above its flatline, buoyed by advances of more than 4% and 2% in Palantir Technologies(PLTR.US) and Tesla Motors, Inc.(TSLA.US), respectively.

Check out yesterday's trending USA stocks

2. Quick News

PIF Acquires 30% Stake in Masdar

The Public Investment Fund (PIF) acquired a 30% stake in Masdar for Building Materials Co. through a capital increase. Masdar, an affiliate of Al-Muhaidib Group established in 1971, is a leading building materials trader and distributor with 105 stores across the Kingdom.

The company offers a wide range of products, including steel, wood, plumbing, and electrical materials. This investment aims to support Masdar's expansion strategy and enhance its market position.

Saudi Arabia Attracts SAR 1 Billion in Telecom Investment

Saudi Arabia announced telecom licenses designed to attract SAR 1 billion ($267 million) in investment at LEAP 2025.

The Communications, Space, and Technology Commission (CST) issued four licenses, including carrier service provider licenses to Water Transmission and Technologies Co., Saudi Arabia Railways, and Raqeem Smart Solutions, and a non-terrestrial network license to SKYFive Arabia. These licenses aim to enhance telecom infrastructure, expand service reach, and improve aviation connectivity.

Other deals include: 

• ROSHN Group signed digital transformation partnerships with Saudi Information Technology Co., T2 company, and Jahez Group, and received the Top Google Cloud Customer Accelerated Growth Award.
• Globant partnered with Red Sea Global to develop a digital program for enhanced visitor experience.
• Accenture Plc(ACN.US) and Alphabet Inc. Class A(GOOGL.US)'s Google Cloud expanded their Joint Generative AI Center of Excellence to Saudi Arabia to promote AI adoption.

USA January CPI Surges, Fed Likely to Hold Rates

USA's January CPI rose by 0.5% month-over-month, marking the biggest increase since August 2023, pushing the annual rate to 3%. This stronger-than-expected data supports the Fed's stance on gradual rate cuts, now anticipated for December, not September. Chairman Powell implies that high tariffs and inflation still require restrictive monetary policies.

3. Stocks To Watch

KSA Stocks

Al Baha Announces Name Change to Saudi Darb Investment

Al-Baha Investment and Development Co.(4130.SA)’s Board of Directors has recommended changing the company’s name to Saudi Darb Investment Company. This aligns with the firm’s growth strategy, market expansion, and Saudi Vision 2030 goals.

SASCO Secures Key Certification for Growth

Saudi Automotive Services Co.(4050.SA) (SASCO) announced the renewal of its facility qualification certificate from the Ministry of Energy. This certificate, received on February 12, 2025, allows SASCO to manage, operate, and maintain petrol stations and service centers for two years, expiring on January 22, 2027.

The renewal enhances SASCO's ability to acquire new sites and pursue investment opportunities. The financial impact will be realized upon acquisition of new sites.

Saudi Aramco’s Motiva Boosts Port Arthur to Top US Fuel Plant

Motiva Enterprises, owned by Saudi Arabian Oil Co.(2222.SA), expanded its Port Arthur refinery in Texas to process up to 654,000 barrels per day, surpassing ExxonMobil and Marathon Petroleum’s largest US plants. The expansion follows the planned closures of LyondellBasell’s Houston and Phillips 66’s Los Angeles refineries.

Extra Reports 36.9% Profit Growth on Higher Sales

United Electronics Co.(4003.SA) (Extra) reported a 36.9% increase in net profit for 2024, rising to SAR 534.4 million, driven by a 9.4% revenue growth to SAR 6,781 million. Strong retail and e-commerce sales, along with a 28.4% boost in consumer finance income, supported the results. Adjusted net profit growth stood at 18.5% after excluding one-time items.

United International Holding Reports 4.8% Net Profit Growth in 2024

United International Holding Co.(4083.SA) posted a 4.8% increase in net profit for 2024, reaching SAR 222.4 million, driven by a 19.1% rise in revenue, mainly due to a 28.4% growth in its consumer finance portfolio. Despite higher credit loss provisions and SG&A costs, the company saw solid overall performance.

Saudi German Health Gains Approval for Hospital Expansion

Middle East Healthcare Co.(4009.SA) (Saudi German Health) has received final approval from the Ministry of Health to expand its Saudi German Hospital in Dammam to 300 beds, doubling its previous capacity. This expansion, with no additional construction costs, is expected to boost revenues, improve operational efficiency, and enhance healthcare services.

USA Stocks

OpenAI Axes o3 Model, Merges Tech into GPT-5

OpenAI CEO Altman announced the company is nearing the release of GPT-4.5, the last "non-chain-of-thought model," with GPT-5 expected within months. GPT-5 will integrate technologies like the o3 model, canceling its independent release.

AppLovin Sees 27% After-Hours Surge on Q4 Beat, Strong Guidance

AppLovin Corporation(APP.US) shares surged 27.23% post-market after Q4 revenue reached $13.73 billion, up 44% year-over-year, surpassing estimates of $12.6 billion. Net income soared 248% to $5.99 billion. Advertising revenue grew 73% to $9.995 billion, while app revenue declined 1% to $3.733 billion. The strong Q1 guidance further fueled investor optimism.

Intel Surges 7.2% on Potential TSMC JV

Intel Corporation(INTC.US) surged 7.2%, driven by Baird's report of a potential joint venture with TSMC, possibly backed by USA's CHIPS Act funding. The plan involves TSMC engineers aiding Intel's 3nm/2nm fabs, potentially spinning off the unit. Baird maintains a neutral rating on Intel with a target price of $20.

4. Saudi Stock Calendar