Key Takeaways

1. Analysts: TASI Rebound Expected Post-Holiday, Eyes 12,200 Points;
2. MESC Signs Up to SAR 225M Contract with NPCC-Saipem JV;
3. ADES Secures SAR 185M Drilling Contract with SUCO;

I. Market Recap

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was down by 1.31% and the Parallel Market Capped Index (NomuC)(NOMUC.SA) was up by 0.39% on June 13, before the Eid Al-Adha Holiday. Al Moammar Information Systems Co.(7200.SA) emerged as the top performer, while ACWA POWER Co.(2082.SA) witnessed the most significant drop.

The S&P 500 index(SPX.US) ticked lower Friday as shares of market bellwether NVIDIA Corporation(NVDA.US) pulled back for a second day.

The broad market index fell 0.16%, while the NASDAQ(IXIC.US) dipped 0.18%. The Dow Jones Industrial Average(DJI.US) edged up 0.04%.

II. Flash Headlines

Fossil Fuel Consumption Hits Record High Despite Renewables Surge

Global fossil fuel consumption and energy emissions reached all-time highs in 2023, with primary energy demand rising 2% to 620 EJ and emissions exceeding 40 gigatons of CO2, despite renewables hitting record contributions. Fossil fuels still accounted for 81.5% of energy use, slightly down from 2022. This trend presents significant challenges for transitioning to lower-carbon energy sources.

Saudi Shariah-Compliant Savings Sukuk Launches June 23

Individuals can subscribe to the June issuance of the Shariah-compliant, government-backed savings product (Sah) starting June 23. Issued by the Ministry of Finance and arranged by the NDMC, the sukuk offers a 5.55% annual return. Allocation is on July 9, with redemption from June 14 to July 17, and payments on July 21. Targeted at Saudi citizens over 18, the product is low-risk, fees-free, and compatible with Shariah standards.

TASI Rebound Expected Post-Holiday, Eyes 12,200 Points

The Tadawul All Shares Index(TASI.SA) (TASI) dropped 4% year to date due to IPO pressures, falling oil prices, the Federal Reserve meeting, and pre-Eid Al-Adha selling, according to analysts surveyed by Argaam. Analysts expect a rebound post-Eid Al-Adha with positive Q2 results and higher oil prices, potentially breaking 12,200 points by July's end. They are optimistic about the banking sector's recovery and the impact of higher oil prices on the energy sector.

III. Stocks To Watch

SA snapshot

MESC Signs Up to SAR 225M Contract with NPCC-Saipem JV

Middle East Specialized Cables Co.(2370.SA) (MESC) signed a contract through its subsidiary in the UAE, MESC-Ras Al Khaimah, with the NPCC-Saipem joint venture. The contract, signed on June 19, 2024, is valued up to USD 60 million (SAR 225 million) for an 18-month period. The agreement is non-exclusive, and the exact value depends on supply schedules.

ADES Secures SAR 185M Drilling Contract with SUCO

Ades Holding Co.(2382.SA) signed a 2-year offshore drilling contract with Suez Oil Company (SUCO) in Egypt on June 13, 2024. The contract, valued at approximately SAR 185 million, involves a standard jack-up rig from ADES' fleet, with operations commencing in the second half of 2024.

USA snapshot

Sarepta Therapeutics Shares Surge 30% on FDA Approval

Shares of Sarepta Therapeutics, Inc.(SRPT.US) surged 30% after the FDA approved the expanded use of its gene therapy, Elevidys, for Duchenne muscular dystrophy. The therapy received traditional approval for ambulatory patients aged 4 and older and accelerated approval for non-ambulatory patients.

Hertz Global Shares Rise 16% on Upsized Bond Offering

Shares of HERTZ GLOBAL HOLDINGS, INC.(HTZ.US) rose 16% after the car rental giant upsized its bond offering to $1 billion from the initially planned $750 million. The company aims to use the funds to refresh its fleet of vehicles.

This Week’s Biggest Dow Winners

The Dow Jones Industrial Average(DJI.US) is up 1.4% since the start of the week and headed for its best weekly performance since May.

Powering those gains in the 30-stock index is Salesforce.com, inc.(CRM.US), which is on pace to advance 5.3% for the week. Other significant winners include Amgen Inc.(AMGN.US) and NIKE, Inc. Class B(NKE.US), both up nearly 4% since the start of the week. Cisco Systems, Inc.(CSCO.US) has gained 4.4%.

UnitedHealth Group Incorporated(UNH.US) is the biggest weekly loser in the index, down nearly 3%.

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