Financial Morning Summary | Etihad Atheeb Plans Massive 277.78% Capital Boost; Solutions Secures SAR 191M Deal with STC
Tadawul All Shares Index TASI.SA | 11274.14 | -0.02% |
Parallel Market Capped Index (NomuC) NOMUC.SA | 22478.42 | -0.31% |
MBC GROUP 4072.SA | 26.96 | -0.07% |
ACWA 2082.SA | 170.30 | -1.10% |
Dow Jones Industrial Average DJI | 46565.74 | +0.48% |
Key Takeaways
- Etihad Atheeb Plans Massive 277.78% Capital Boost;
- Solutions Secures SAR 191M Deal with STC;
- Apple Modifies Watches Amid Patent Dispute;
I. Market Recap
In Monday's KSA stock market, the Tadawul All Shares Index(TASI.SA) was up by 0.51% at 12,122.11, the Parallel Market Capped Index (NomuC)(NOMUC.SA) dropped by 0.17% to 24,679.11, whereas the MSCI Tadawul 30 Index gained 0.78%, closing at 1,578.77.
The Main market's top performer, MBC Group Co.(4072.SA), surged 9.93% to SAR 49.80. In contrast, ACWA POWER Co.(2082.SA) declined the most, falling by 2.87% to SAR 230.20.
Last Friday in the U.S., The 30-stock Dow Jones Industrial Average(DJI.US) lost 118.04 points, or 0.31%, to close at 37,592.98. The S&P 500 index(SPX.US) ended the day 0.08% higher at 4,783.83, and the tech-heavy NASDAQ(IXIC.US) closed just above flat, gaining 0.02% to settle at 14,972.76.
The U.S. market was closed on Monday for the holiday in observance of Martin Luther King, Jr. Day.
II. Flash Headlines
Saudi Inflation Eases to 1.5% in December 2023
Saudi Arabia's inflation rate slowed to 1.5% in December 2023 from 1.7% in November, per GASTAT data. Key factors included a 0.3% decrease in food and beverage prices and a 0.4% drop in transport costs.
The Wholesale Price Index climbed 3% annually, driven by higher chemical and dairy product prices.
Alistithmar Capital Launches Diversified SAR Fund IPO
Alistithmar Capital has launched the Alistithmar Capital Diversified SAR Fund IPO on January 14, 2024, following CMA approval. This open-ended, Shariah-compliant fund, priced at SAR 10 per unit, focuses on a balanced investment approach between capital maintenance and positive returns.
The fund, with low to medium risk, charges a 0.5% annual management fee and sets a minimum subscription limit of SAR 2,000.
Read more: Alistithmar Capital Launches Diversified SAR Fund
Oil Stable Amid Middle East Tensions
Oil prices remain stable amid Middle East tensions and a weak global economy. Brent crude stays above $78/barrel, slightly down by 0.2%. Houthi attacks in the Red Sea, including a strike on a U.S.-owned vessel, raise regional risks, prompting diversion of oil and gas tankers.
III. Stocks To Watch
SA snapshot
Etihad Atheeb Plans Massive 277.78% Capital Boost
Etihad Atheeb Telecommunication Co.(7040.SA) has scheduled its 16th Extraordinary General Assembly for February 6, 2024, to vote on increasing its capital from SAR 89,999,000 to SAR 339,999,000, a 277.78% rise.
The capital hike involves issuing shares at a rate of 2.7778 per existing share. This move aims to modernize business systems and pay obligations.
Solutions Secures SAR 191M Deal with STC
Arabian Internet and Communications Services Co.(7202.SA) (solutions) signed a SAR 191.34 million contract with Saudi Telecom Co.(7010.SA) (STC) on January 15, 2024, for renewing Microsoft EA licenses with support services over three years. This deal's financial impact will reflect in the 2024 Q1 financial statements.
2P Lands SAR 45M Health System Contract
Perfect Presentation for Commercial Services Co.(7204.SA) (2P) signed a SAR 45.02 million contract with King Saud University on January 15, 2024, for operating and maintaining their health information system.
This three-year contract, encompassing a range of support and professional services, will positively impact 2P's revenues from 2024 to 2026.
US snapshot
Microsoft Widens Copilot Access for Users
Microsoft Corporation(MSFT.US) now offers its Copilot virtual assistant to small businesses and individual Microsoft 365 users. Businesses can subscribe at $30 per user per month, while individuals pay $20 monthly. This expansion, leveraging OpenAI's AI technology, aims to boost Microsoft's productivity and competitive edge in the AI market.
TSMC Reportedly Advancing in 2nm Chip Tech
Market news indicate that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) is advancing in its 2nm semiconductor technology, with construction at Baoshan P1 and equipment installation planned for April 2024. Production, utilizing GAA architecture, is anticipated in 2025.
Apple Modifies Watches Amid Patent Dispute
Apple Inc.(AAPL.US) is modifying its smartwatches to omit the blood-oxygen sensor, a move to circumvent a patent dispute and U.S. import ban. This decision follows a U.S. International Trade Commission ruling in October, finding Apple infringed Masimo's patents. The ban briefly halted sales last month, but resumed pending legal review.
IV. Upcoming Events
Economic Calendar
| Date | Market | Events | Forecast | Previous |
| Tues Jan 16 | U.S. | NY Empire State Manufacturing Index-Jan | -12 | -14.5 |
| Wed Jan 17 | KSA | OPEC Monthly Report | - | - |
| U.S. | Retail Sales MoM-Dec | 0.30% | 0.30% |
Earnings Calendar
| Date | Market | Company |
| Tues Jan 16 | KSA | Aldrees Petroleum and Transport Services Co.(4200.SA) |
| U.S. | Morgan Stanley(MS.US) | |
| U.S. | Goldman Sachs Group, Inc.(GS.US) | |
| U.S. | Interactive Brokers Group, Inc. Class A(IBKR.US) |
Note: All dates provided are estimates or based on company announcements, and are subject to change at any time, whether advanced or delayed.
[This newsletter is written and edited by Bruce from Sahm News Team]