Most Important News

1. Saudi Banks Poised for Strong Q1 2025: Fitch;
2. Savola Group Reports 2024 Net Profit Surge to SAR 9.97 Billion, Driven by Almarai Stake Distribution;
3. Riyad Capital Recommends Buying Fourth Milling, Sets Target Price;

1. Market Summary

On Tuesday, Saudi Arabia’s Tadawul All Shares Index(TASI.SA) continued its downward trend for the second consecutive day, dropping by 27.67 points or 0.24 percent to close at 11,717.96. Similarly, the Parallel Market Capped Index (NomuC)(NOMUC.SA) fell by 268.15 points to close at 30,763.22.

On the same day, U.S. stocks continued declining, with all three major indices closing lower. The market experienced significant volatility, with all three indices initially dropping more than 1% during the trading session. The Nasdaq and the S&P 500 briefly turned positive, with the Nasdaq climbing over 1% at one point, but both indices fell back in the final stages of trading, ultimately closing in negative territory.

By the close of trading, the Dow Jones Industrial Average(DJI.US) had fallen by 1.14% to 41,433.48 points; the S&P 500 INDEX(SPX.US) had decreased by 0.76% to 5,572.07 points; and the NASDAQ(IXIC.US) had dropped by 0.18% to 17,436.10 points.

2. Quick News

US House Passes Stopgap Spending Bill, Moves to Senate

The US House, led by Republicans, passed a stopgap spending bill to keep the government running past Saturday's shutdown deadline. The bill, supported by President Trump, allows operations until September 30. Earlier negotiations collapsed over Democrats' demands for restrictions on Elon Musk. After the vote, House Speaker Mike Johnson sent members home to pressure the Senate to accept the bill or face blame for a shutdown, holding Democrats responsible for any negative outcomes.

Saudi Banks Poised for Strong Q1 2025: Fitch

Saudi banks are projected to have a robust start in 2025, with asset-quality metrics expected to stay strong, according to Fitch Ratings. Lower interest rates boosted net interest margins (NIMs) in Q4 2024, aided by significant lending growth. Fitch anticipates Saudi banks' lending growth to surpass Gulf peers in 2025, with total lending estimated to rise by 12%.

3. Stocks To Watch

KSA Stocks

Savola Group Reports 2024 Net Profit Surge to SAR 9.97 Billion, Driven by Almarai Stake Distribution

Savola Group(2050.SA)  has announced its annual financial results for the year ending December 31, 2024. The company reported stable revenues of SAR 24.0 billion, slightly down from SAR 24.1 billion in 2023. This stability was underpinned by a 3% growth in the Retail segment and a 6% rise in the Frozen Food segment, which offset declines in the Food Processing segment due to lower commodity prices and the divestment of Savola Morocco Company.

Net profit surged to SAR 9.97 billion from SAR 899 million in the previous year, driven primarily by the distribution of Savola’s 34.52% stake in Almarai Company, yielding a net gain of SAR 11.3 billion. Additionally, the Retail segment's net profit increased to SAR 154 million, supported by the CXR program and store expansions. Other contributing factors included a customs duty refund in the Food Processing segment and higher associate profits.

More details:

Arabian Drilling Co. Reports 2024 Results and Approves 120.15 Million SAR H2 Dividend

Arabian Drilling Co.(2381.SA) 's Board of Directors also approved a cash dividend distribution for the second half of 2024, totaling 120,150,000 SAR. Shareholders holding 89,000,000 eligible shares will receive 1.35 SAR per share, equating to 13.5% of the share's par value. The eligibility date is set for March 13, 2025, with distribution scheduled for April 8, 2025.

Saudi Arabian Cooperative Insurance Co.(8100.SA) Reports 2024 Net Profit Decline of 30.63% Despite Revenue Growth

Riyad Capital Recommends Buying Fourth Milling, Sets Target Price

Riyad Capital reported that Fourth Milling Co.(2286.SA)'s Q4 profit of SAR 42 million, up 20% year-on-year but down 11% quarterly, met their SAR 45 million forecast. The annual increase was driven by higher sales and improved margins, while the quarterly drop was due to rising non-operating expenses. They recommend buying the stock with a target price of SAR 5.37. The company announced a H2 2024 dividend of SAR 0.11 per share, totaling SAR 0.22 annually, with a 70% payout ratio.

Maaden to Invest SAR 8.5B in Strategic Growth Projects for 2025

Saudi Arabian Mining Co.(1211.SA) is set to invest SAR 8.5 billion in 2025, focusing on strategic expansions in phosphate, aluminum, and gold projects. CEO Bob Wilt emphasized the company's commitment to sustainable growth, including increasing recycled water use to 70%. Additionally, Maaden is in talks with Saudi Arabian Oil Co.(2222.SA) for a joint venture in mineral exploration. Financially, the company issued a $1.25 billion sukuk to support its aluminum expansion, highlighting its strategic growth ambitions.

Strong Demand Drives Q4 Sales Without Branch Expansion: SACO CEO

Saudi Company for Hardware(4008.SA) CEO Abdel-Salam Bdeir reported a 17% increase in Q4 sales without expanding its 33 branches. The growth was attributed to an 11% rise in the customer base, driven by a transformation plan launched in March 2023. The gross profit margin improved by 6.3 percentage points, increasing gross income by SAR 21 million. E-commerce sales also saw a 107% year-over-year increase.

Amlak Renews SAR 1.06B Credit Facility Agreement with SAIB

Amlak International Finance Co.(1182.SA) has renewed its Sharia-compliant credit facilities agreement with the Saudi Investment Bank(1030.SA), securing 1,064,500,000 SAR in funding for one year. The financing is intended to support Amlak's business operations and enhance its client financing capabilities. The agreement includes guarantees such as the assignment of receivables and a promissory note. The Saudi Investment Bank, a significant shareholder, along with several of its executives and board members, holds direct and indirect interests in this agreement. Amlak stated that the terms of the agreement are in line with standard business practices and no preferential treatment was given.

USA Stocks

NVIDIA Gains 1.66% as Market Eyes Upcoming GTC Conference

NVIDIA Corporation(NVDA.US)  closed up 1.66% with anticipation building for its annual GTC conference from March 17-21. This year's event will highlight new AI chip architecture, multimodal model optimization, and advancements in digital twins and robotics. CEO Jensen Huang is set to deliver a keynote. Rosenblatt analyst Kevin Cassidy noted the market's focus on GTC, expecting updates on NVIDIA's tech developments and AI applications to boost enthusiasm.

Tesla Rebounds Over 3% as Trump Buys Red Model S

Tesla Motors, Inc.(TSLA.US) surged more than 3% after US President Trump purchased a new red Model S outside the White House on March 11, signaling his support for Elon Musk's electric car company. Despite facing domestic criticism due to Musk-led federal spending cuts, Trump expressed his preference for the Model S, stating he would pay in full without seeking a discount.

4. Saudi Stock Calendar