Most Important News

• TASI Ends 2024 at 12,037 Amid Key Market Developments
• US Stocks Soar in 2024 with Tech Leading the Way
• Savola Group Sells Iran Business for SAR 705 Million

1. Market Summary

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was up by 0.3% to reach 12,036.5 points. Al-Babtain Power and Telecommunication Co.(2320.SA) and Red Sea International Co.(4230.SA) gained the most, up by 4.84% and 4.59%, respectively.

The S&P 500 index(SPX.US) closed 0.43% lower at 5,881.63, while the NASDAQ(IXIC.US) dipped 0.9% to 19,310.79 on 2024's final day of trading. The Dow Jones Industrial Average(DJI.US) slipped just 0.07%, or 29.51 points, lower to 42,544.22.

2. Quick News

TASI Ends 2024 at 12,037 Amid Key Market Developments

Saudi Arabia's Tadawul All Shares Index(TASI.SA) rose 0.6% in 2024, closing at 12,036.5, its highest since 2005. Despite quarterly volatility, the index marked a 19-year high. Key drivers included rate cuts by the Federal Reserve and SAMA, Aramco's share transfers and secondary offering, OPEC's production delay, and Saudi Arabia's 2025 budget announcement.

US Stocks Soar in 2024 with Tech Leading the Way

The S&P 500 index(SPX.US) gained 23.31% in 2024, its second consecutive 20%+ annual rise, with a two-year increase of 53%. NASDAQ(IXIC.US) surged 28.64%, Dow Jones Industrial Average(DJI.US) rose 12.88%, and Russell 2000 ETF(IWM.US) gained 10%. AI and tech stocks drove growth, bolstered by Fed rate cuts and policy expectations.

3. Stocks To Watch

KSA Stocks

Saudi Cable to Pursue Legal Action Over Agreement Breach

Saudi Cable Co.(2110.SA) announced receiving the final SAR 10M payment from Rawafed Almostaqbal after a delay beyond the agreement's cancellation. Despite the payment, the company will seek legal action to protect shareholder rights and claim damages. No costs reported yet.

Savola Group Sells Iran Business for SAR 705 Million

Savola Group(2050.SA)'s subsidiary Savola Foods signed a binding agreement to sell its entire Iran business for SAR 705M, aligning with its strategy to exit non-core markets. The transaction may yield SAR 2.8M gains but result in a net loss of SAR 1.6B due to reclassifications.

Dr. Sulaiman Al Habib Group: Updates on Al Muhammadiyah and Al-Kharj Hospital Projects

Dr. Sulaiman Al Habib Medical Services Group(4013.SA) provided updates on its Al Muhammadiyah Hospital in Jeddah and Al-Kharj Hospital projects. Both projects are near completion, with key construction, mechanical, and furnishing works finalized in Q4 2024. Testing and commissioning, along with installations of medical and non-medical equipment, will continue through Q1 2025. Despite logistical challenges affecting supply chains, operations for both projects are expected to commence in Q2 2025, following necessary licensing approvals. The group confirmed no additional costs or financial impacts from these slight delays.

stc Finalizes Sale of 51% Stake in TAWAL to PIF

Saudi Telecom Co.(7010.SA) (stc) has completed the sale of a 51% stake in Telecommunications Towers Company (TAWAL) to the Public Investment Fund (PIF) and finalized the ownership transfer of Golden Lattice Investment Company (GLIC) to a newly established entity. Regulatory and commercial approvals were secured, and the deal's material financial impact will be reflected in stc's 2024 fiscal results.

Saudi Re A3 Rating Affirmed, Growth Anticipated

Saudi Reinsurance Co.(8200.SA) retained its Moody’s A3 Insurance Financial Strength Rating (IFSR) with a positive outlook. The rating reflects Saudi Re's strong market position, preferential local market access, conservative asset management, and robust capital adequacy. Moody's anticipates further improvement in Saudi Re's financial and business profiles over 12-18 months, driven by increased capital, favorable industry dynamics, and support from a strategic equity agreement with the Public Investment Fund.

Jarir Signs MoU with Aman Egypt for Consumer Finance Venture

Jarir Marketing Co.(4190.SA) signed a non-binding Memorandum of Understanding with Aman Egypt to establish a consumer finance company with an initial capital of 100 million SAR. Jarir will hold a 49% stake, Aman Egypt 41%, and Hamad Al-Manaya & Co. 10%. Regulatory approval is required, and the memorandum is valid for three months, extendable. Financial impacts are yet to be determined.

MBC Group Signs Major Agreements for Joy Awards 2025 and Media Services

MBC Group Co.(4072.SA) has signed two significant agreements as of December 31, 2024. First, its subsidiary MBC Media KSA Limited entered a service agreement with Sela Company to provide production and management services for the 2025 Joy Awards, scheduled for January 18, 2025, in Saudi Arabia. The agreement, worth over 10% of the company’s 2023 total revenue, runs from November 19, 2024, to January 31, 2025, with financial impacts reflected in the 2025 results. Sela will fully fund the event, including costs and management fees.

Second, MBC FZ-LLC received a $92 million service order from ARA International Productions Company under an existing Master Services Agreement. The order involves operational, broadcasting, production, marketing, and platform management services for a 12-month term. Financial impacts will appear in the 2024 fiscal results. The transaction involves related parties but adheres to regular business terms.

Tihama's Revenue Growth, Loss Reduction, and Strategic Updates

Tihama Advertising and Public Relations Co.(4070.SA) reported a 29.67% increase in Q3 sales to SAR 34.59M and turned a net profit of SAR 859K, reversing a SAR 6.77M loss from the same quarter last year. For the first half of 2024, sales grew by 20.71% to SAR 45.67M, though a net loss of SAR 6.49M persisted, improving by 64.25% YoY. Education and retail sector gains contributed significantly, offset by weaker advertising revenue. Accumulated losses reached 41.58% of capital.

Additionally, Tihama announced an update on its joint venture with WPP to establish ICG Saudi Arabia. The partners extended the timeline to finalize ownership transfer and regulatory approvals until June 30, 2025. Financial impacts will be recognized post-completion.

USA Stocks

EV Sales Face Challenges as Incentives Fade

Electric vehicle (EV) sales face pressure in 2025, with potential removal of USA’s $7,500 tax credits. Germany’s EV sales dropped 26% in 2024 due to subsidy cuts, signaling risks for USA’s market. Tesla Motors, Inc.(TSLA.US) plans a $30,000 model to stabilize demand. Global deliveries may grow 17% to 2.1M units in 2025 despite domestic pressures. In another news, Tesla's China recall impacts 77,713 vehicles, addressing manufacturing defects.

Li Auto and XPeng Post Record Deliveries

LI Auto(LI.US) delivered 58,513 vehicles in December 2024, up 16.2% YoY, totaling 500,508 vehicles in 2024. XPENG INC.(XPEV.US) set records with 36,695 deliveries in December, up 82% YoY, led by MONA M03 and P7+. Q4 deliveries reached 91,507, exceeding guidance.

UBS Updates Netflix and Vipshop Ratings

UBS maintains a "Buy" rating for Netflix, Inc.(NFLX.US) with a $1,040 price target, citing an opportune time to raise subscription prices. For Vipshop Holdings Ltd Sponsored ADR(VIPS.US), UBS raises the price target from $12.50 to $15, maintaining a "Hold" rating.

4. Saudi Stock Calendar