Key Takeaways

1. Moody’s Affirms Credit Ratings of Key Saudi Companies;
2. Saudi Green Projects Set to See Over $1.6 Billion Investments by 2030;
3. Saudi's Ma’aden FY Profit Falls;
4. Google Dropped Over 4% and Plans to Take Down AI Imaging Feature for a Few Weeks;

I. Market Recap

Saudi Arabia's Tadawul All Shares Index(TASI.SA) decreased by 0.58% and the Parallel Market Capped Index (NomuC)(NOMUC.SA) decreased by 0.43%. Saudi Arabian Amiantit Co.(2160.SA) emerged as the top performer, while Arabian Pipes Co.(2200.SA) witnessed the most significant drop.

 As of the close, the S&P 500 index(SPX.US) dropped by 0.38%, the NASDAQ(IXIC.US) fell by 0.13%, and the Dow Jones Industrial Average(DJI.US) decreased by 0.16%.

II. Flash Headlines

Moody’s Affirms Credit Ratings of Key Saudi Companies

Several prominent Saudi companies received affirmation on their credit ratings from Moody’s Investor Services, a leading global provider of financial assessments, research, and risk analysis. Among these firms, Saudi Basic Industries Corp.(2010.SA), Saudi Telecom Co.(7010.SA), and Saudi Electricity Co.(5110.SA). maintained their A1 ratings, while Saudi Arabian Mining Co.(1211.SA) continues to hold a Baa1 rating following the agency’s recent update to its Government-Related Issuers Methodology.

Saudi Green Projects Set to See Over $1.6 Billion Investments by 2030

Saudi Deputy Minister of Environment, Water, and Agriculture, Mansour bin Hilal Al-Mushaiti, announced a $1.60 billion investment for environmental projects in Saudi Arabia until 2030. These projects, including the Saudi Green Initiative, are vital for the Vision 2030 economic diversification initiative and public health. The national environmental strategy has been in development since 2016.

Saudi Arabia Records 10% Surge in Number of Factories

Saudi Arabia saw a 10% growth in industrial units, reaching 11,549, in 2023. Jarrah bin Mohammed Al-Jarrah, a spokesman for the Ministry of Industry and Mineral Resources, stated that these new establishments were set up with an investment of SAR 1.54 trillion ($48.4 billion). This increase aligns with the Kingdom’s goal of improving industrialization and reaching 36,000 plants by 2035. Additionally, 1,379 new industrial licenses were issued in 2023, with investments exceeding SAR 81 billion.

III. Stocks To Watch

SA snapshot

Saudi's Ma’aden FY Profit Falls

Saudi Arabian Mining Co.(1211.SA) reported a net profit of 1.58 billion riyals for the fiscal year, down from 9.32 billion riyals the previous year, with sales reaching 29.27 billion riyals, compared to 40.28 billion riyals in the prior year. The company also posted a quarterly net profit of 890 million riyals with revenue of 8.04 billion riyals. The fiscal year witnessed decreased commodity prices for most products except gold, alongside increased sales volumes of ammonia phosphate fertilizer, alumina, and gold. 

Sabic Agri-Nutrients Qtrly Profit Falls

SABIC Agri-Nutrients Co.(2020.SA) reported a decline in its fiscal year sales to 11.033 million riyals from 18.981 million riyals the previous year. The company’s net profit for the fiscal year also decreased to 3.659 million riyals from 10.037 million riyals in the prior year. Additionally, there was a decrease in the average selling prices of products by 43%. The quarterly net income dropped to 978 million riyals from 2,168 million riyals the previous year, with quarterly revenue also declining to 2,972 million riyals from 4,206 million riyals year on year. 

Saudi Exchange Announces the Listing of “Middle East Pharmaceutical Industries Co.”

Saudi Exchange announces the listing and trading shares of “Middle East Pharmaceutical Industries Co.” on the Main Market on Tuesday 27/02/2024, with the symbol Middle East Pharmaceutical Industries Co.(4016.SA) and ISIN Code SA160G51UO10, with +/- 30% daily price fluctuation limits and +/- 10% static price fluctuation limits.

USA snapshot

Google Dropped Over 4% and Plans to Take Down AI Imaging Feature for a Few Weeks

Alphabet Inc. Class A(GOOGL.US) - DeepMind CEO Demis Hassabis said on Monday that the company plans to re-launch its artificial intelligence image generator Gemini in the coming weeks. The company acknowledges that the tool has been “overfitting” in some cases to achieve diversity in the generated images, resulting in unrealistic images. The stock fell over 4% by the closing.

Meta Plans to Release a High-End Headset Next Year

According to South Korean media, Meta Platforms(META.US) plans to collaborate with LG to produce the next-generation Quest Pro headset, expected to be released in the first half of 2025. Media sources stated that Meta CEO Mark Zuckerberg will meet with LG CEO Kwang Mo Koo to finalize the details of the collaboration this Wednesday. This marks Zuckerberg’s first public visit to South Korea since finalizing the GearVR smartphone headset collaboration with Samsung in 2014.

Li Auto Announces Strong Financial Report, Stock Price Soars Nearly 19%

LI AUto(LI.US) shares surged nearly 19% after it announced its quarterly results. The company expects to deliver between 100,000 and 103,000 vehicles in the coming quarter, reflecting a potential increase of up to 95.9% year-over-year. Additionally, the company forecasts revenues of up to RMB32.19 billion ($4.53 billion), which would represent a rise of up to 71.3% from the first quarter of 2023.

IV. Upcoming Events

Economic Calendar

Earnings Calendar

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 Selena from Sahm News Team