Most Important News

• SPIMACO Signs 5-Year Distribution Deal Worth SAR 164M
• Almarai Posts Earnings, 2024 Net Profit Up by 13%
• TikTok Faces U.S. Ban; Trump Considers 90-Day Extension

1. Market Summary

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was up by 0.36% to reach 12,256 points on Thursday. Shatirah House Restaurant Co.(6016.SA) and Fourth Milling Co.(2286.SA) gained the most, up by 5.31% and 4.49%, respectively.

USA stocks climbed Friday, as the three major averages posted their first weekly gain of the new year.

The Dow Jones Industrial Average(DJI.US) added 334.70 points, or 0.78%, to end at 43,487.83. The S&P 500 index(SPX.US) gained 1% to 5,996.66, and the NASDAQ(IXIC.US) advanced 1.51% to 19,630.20.

2. Quick News

Saudi Cement Sales Surge 12.33% in Q4 2024 Amid Rising Demand

Saudi Arabia's cement sales increased 12.33% year-over-year in Q4 2024, reaching 14.87 million tonnes, with domestic demand accounting for 96% of sales, driven by Vision 2030 projects. Annual sales grew 3.67% to 51.15 million tonnes. 

Oversupply challenges persist, despite megaproject-driven future demand forecasts reaching 78 million tonnes annually. Rising fuel costs and oversupply pressure profit margins, but regulatory flexibility offers pricing buffers. 

Industry experts highlight the need for strategic exports and sustainable practices to tackle inventory and energy challenges. Long-term opportunities exist through efficiency upgrades and Vision 2030 decarbonization goals.

Saudi Delegation to Highlight Vision 2030 at Davos

Saudi Foreign Minister Prince Faisal bin Farhan will lead a delegation at the World Economic Forum in Davos next week under the theme "Collaboration for the Intelligent Age." Key ministers will showcase Saudi Arabia's Vision 2030 reforms, addressing economic diversification, innovation, and sustainability amidst global challenges.

3. Stocks To Watch

KSA Stocks

SIECO Takes Next Step in Energy Acquisition

Saudi Industrial Export Co.(4140.SA) (SIECO) has signed a non-binding MoU with Entaj Industrial Services to acquire the capital of Advanced Energy Trading and Contracting, a subsidiary of Entaj. SIECO has appointed Alinma Investment as a financial advisor to conduct due diligence for the acquisition, with further updates to follow.

SPIMACO Signs 5-Year Distribution Deal Worth SAR 164M

Saudi Pharmaceutical Industries and Medical Appliances Corp.(2070.SA) has signed a 5-year contract with Ibrahim Al-Hudhaifi International to sell and distribute medical products, including Fevadol and allergy medicines. The contract, valued at SAR 164.06 million annually, will have financial impact starting in 2025.

City Cement Signs Natural Gas Deal with Saudi Aramco

City Cement Co.(3003.SA) has signed a natural gas supply agreement with Saudi Arabian Oil Co.(2222.SA), supervised by the Liquid Fuel Displacement Program. The transition to natural gas aims to reduce emissions and improve operational reliability. Financial impact details will be disclosed later.

Almarai Posts Earnings, 2024 Net Profit Up by 13%

Almarai Co.(2280.SA)'s 2024 revenue rose 7% to SAR 20.98B, driven by growth in all products and markets. Net profit increased 13% to SAR 2.31B, supported by cost control and product mix improvements. Almarai plans further expansion and investments in its 5-year strategy.

Al Habib Medical Services Set to Open New Hospital in Riyadh

Dr. Sulaiman Al Habib Medical Services Group(4013.SA) has received final approval from the Ministry of Health for its new hospital in Al Hamra, Riyadh. The hospital will begin operations on January 21, 2025, with financial impacts expected in Q1 2025.

USA Stocks

TikTok Faces U.S. Ban; Trump Considers 90-Day Extension

TikTok has announced that the U.S. law banning its services will take effect on January 19, temporarily making its services unavailable. However, President-elect Trump hinted at potentially extending the ban deadline by 90 days after his inauguration on January 20, saying it remains a key consideration.

FTC Raises Antitrust Concerns Over Microsoft-OpenAI Partnership

The U.S. Federal Trade Commission (FTC) has expressed antitrust concerns regarding the partnership between Microsoft Corporation(MSFT.US) and OpenAI. In a new report, the FTC highlighted the growing influence of major tech firms in the AI sector, with Microsoft's involvement raising significant regulatory scrutiny. The FTC has already begun investigating large-scale AI investments in 2024.

4. Saudi Stock Calendar