Most Important News

1. Hormuz Strait Closure Sparks US-Iran Tension;
2. Al Arabia Secures 10-Year Airport Advertising Deal;
3. Masar Signs Deals to Sell Land Plots for SAR 239.8M;
4. SpaceX Shares Fall Amid IPO Rally Cooldown;

On June 18, Saudi Arabia's Tadawul All Shares Index(TASI.SA) increased by 0.1% to 11,121 points. Companies like Umm Al Qura for Development and Construction Co.(4325.SA) and Saudi Arabian Mining Co.(1211.SA) saw gains between 1% and 4%. Al Moammar Information Systems Co.(7200.SA) reached its highest closing since listing at SAR 213.80, up 4%. LIVA Insurance Co.(8280.SA) led with a 7% rise. The Parallel Market Capped Index (NomuC)(NOMUC.SA) also climbed 0.18%, closing at 23,228.84 points.

On Thursday, the S&P 500 index(SPX.US) rose 1.1%, while the Nasdaq 100 surged 2.5%. With US markets closed Friday for Juneteenth, last week marked a shortened trading period. The Nasdaq emerged as the only major index to fully recover losses from the Fed's hawkish statement. Chip stocks led the gains, with the Philadelphia Semiconductor Index soaring 6.4% in a single day.

Hormuz Strait Closure Sparks US-Iran Tension

Late Saturday, Iran announced the closure of the Hormuz Strait, citing US and Israeli violations. Iran warned ships to avoid the area, while the US Central Command reported increased commercial traffic through the strait. Amid Lebanon's ongoing conflict, Switzerland hosts US-Iran talks, with US VP Vance denying claims of closure and confirming his participation. Iran's delegation arrived in Zurich, pushing for US compliance with the memorandum of understanding.

Brent Rises Despite Weekly Loss Amid US-Iran Tensions

Oil prices edged higher on Friday, though Brent crude still recorded an 8% weekly decline. The uptick came amid uncertainty surrounding a potential US-Iran agreement, while reports of a ceasefire between Israel and Hezbollah in Lebanon also impacted market sentiment. Additionally, CME announced settlement delays due to the Juneteenth holiday. US WTI crude futures settled at $76.60 per barrel, down 0.25% for the day, marking a steep 9.75% drop for the week.

OPEC Dismisses IEA's Oil Surplus Forecasts

OPEC has rejected the International Energy Agency's prediction of a future global oil supply surplus. Secretary General Haitham Al Ghais criticized the IEA's forecast of an 8 million bpd increase in supply against a 2 million bpd increase in demand by 2027, calling it unrealistic. Al Ghais emphasized that OPEC relies on actual data and market fundamentals, warning that speculative forecasts could heighten market volatility.

KSA Stocks

Al Arabia Secures 10-Year Airport Advertising Deal

Arabian Contracting Services Co.(4071.SA) has finalized contracts with Cluster 2 Airports Co. for advertising at 18 Saudi airports over 10 years. The deal, effective June 18, involves revenue sharing or a minimum guarantee of SAR120,488,721. The contracts cover digital and interactive billboards, enhancing Al Arabia's presence in the airport advertising sector. Financial impacts are expected in Q3 2026.

Almasar Alshamil Signs MoU for 60% Stake in Al Qalam Educational

Al Masar Al Shamil Education Co.(6019.SA)l has signed a non-binding MoU to explore acquiring a 60% stake in Al Qalam Educational Trading Co. The agreement, effective June 18, 2026, will remain valid until September 30, 2026, with possible extensions. No financial advisor has been appointed yet, but specialized advisors will be selected for due diligence, according to a statement to Tadawul.

Modern Mills Appoints Majed Nofal as CEO

Modern Mills for Food Products Co.(2284.SA) announced Majed Nofal as CEO starting July 1, replacing Ahmed Abdul Karim Hijazi, who returns as VP of the Feed Business. Nofal brings over 25 years of experience in food production, FMCG, and industrial manufacturing across the Middle East. His expertise includes business transformation and digital initiatives. Nofal holds a degree from King Saud University and completed programs at IMD and INSEAD.

Masar Signs Deals to Sell Land Plots for SAR 239.8M

Umm Al Qura for Development and Construction Co.(4325.SA) announced agreements to sell three land plots in the Masar Destination project, Makkah, for SAR 239.8 million. The plots, located in Zone 3, cover a total area of 6,904.62 square meters. The sale excludes taxes and fees, as stated in a Tadawul filing.

Budget Saudi Approves 7.5% Dividend for H2 2025

United International Transportation Co.(4260.SA)'s shareholders approved a 7.5% cash dividend for H2 2025, equating to SAR 0.75 per share, at the OGM on June 18. The total dividend is SAR 78.17 million, with a record date of June 18, 2026, and payment within 15 working days. The board was also authorized to distribute interim dividends in 2026. A 33.74% capital increase was approved in February.

Leejam Approves 5.8% Dividend for Q1 2026

Leejam Sports Co.(1830.SA) shareholders approved a 5.8% cash dividend for Q1 2026, amounting to SAR 0.58 per share, during the meeting on June 18. The total dividend is SAR 29.32 million, with a record date of June 18, 2026, and payment on June 25, 2026. Shareholders also authorized interim dividends for 2026 and amended Article 3 of the company's bylaws regarding business activities. Treasury shares are excluded from dividend eligibility.

USA Stocks

Intel CEO Sets Ambitious 10x Growth Target

Intel Corporation(INTC.US) CEO Lip-Bu Tan aims for 10x returns within 5-10 years by focusing on advanced packaging, glass substrates, and new materials such as synthetic diamonds. He highlighted AI-driven growth in CPU demand and emphasized trust and yield in its chip foundry business. Collaborating with Elon Musk on the Terafab project, Chen believes Intel Corporation(INTC.US)’s true potential will emerge post-2030, extending beyond PCs into AI and edge computing markets.

SpaceX Shares Fall Amid IPO Rally Cooldown

SpaceX(SPCX.US) shares dropped 3.57% on Thursday following a record IPO and subsequent rally. The company, led by Elon Musk, briefly surpassed Amazon and Microsoft in market value, but closed at US$2.44 trillion, behind Amazon's US$2.62 trillion. Despite a 5% dip on Wednesday, SpaceX’s stock rose 15% this week and 37% since its IPO.