Key Takeaways

1. UNWTO Applauds Saudi Arabia for Reaching Vision 2030 Tourism Goal Ahead of Schedule;
2. Saudi PIF Starts 7-Year Dollar Sukuk Sale;
3. Saudi's Sabic Posts FY Loss;
4. Positive Clinical Trial Results Propel Viking Therapeutics Stock to 121% Surge;

I. Market Recap

Saudi Arabia's Tadawul All Shares Index(TASI.SA) increased by 0.56% and the Parallel Market Capped Index (NomuC)(NOMUC.SA) increased by 2.59% on Tuesday. Saudi Steel Pipe Co.(1320.SA) emerged as the top performer, while Saudi Arabian Amiantit Co.(2160.SA) witnessed the most significant drop.

As of the close, the S&P 500 index(SPX.US) increased by 0.17%, the NASDAQ(IXIC.US) rose by 0.37%, and the Dow Jones Industrial Average(DJI.US) decreased by 0.25%.

II. Flash Headlines

UNWTO Applauds Saudi Arabia for Reaching Vision 2030 Tourism Goal Ahead of Schedule

The UN and World Travel and Tourism Council praised Saudi Arabia for surpassing its Vision 2030 goal of 100 million annual visitors. They also believe the Kingdom could reach its new target of 150 million visitors by 2030. In 2023, Saudi Arabia welcomed 27.5 million international tourists and 79.3 million domestic tourists, marking significant increases from the previous year.

Saudi PIF Starts 7-Year Dollar Sukuk Sale

Saudi Arabia’s Public Investment Fund began the sale of US dollar sukuk with seven-year priority payment terms. The initial indicative price for the bond sale is set to be 115 basis points above US Treasury bonds. Goldman Sachs, HSBC, and Standard Chartered have been appointed to arrange meetings with potential investors for the fund, which manages assets exceeding $700 billion. PIF and the government of Saudi Arabia are capitalizing on the rising demand for debt before expected interest rate cuts.

Aramco Signs Procurement Agreements Worth $6 Billion to Enhance Local Supply Chain

Saudi Aramco signs $6 billion procurement deals with local suppliers to enhance the domestic supply chain and support the energy services sector in Saudi Arabia. The agreements, part of the company’s localization program, also offer long-term demand visibility for suppliers.

III. Stocks To Watch

SA snapshot

Al Hassan Ghazi Ibrahim Shaker FY Profit Rises

Al Hassan Ghazi Ibrahim Shaker Co.(1214.SA) reported a net profit of 65.4 million riyals for the fiscal year, compared to 32.8 million riyals the previous year. Sales for the fiscal year were 1.23 billion riyals, an increase from 1.04 billion riyals the year before. The company saw double-digit growth in the HVAC solutions and home appliances segment. Furthermore, it reported a steady rise in market share.

Saudi's Sabic Posts FY Loss

Saudi Basic Industries Corp.(2010.SA) reported significant financial declines for the fiscal year, with a net loss of 2.77 billion riyals compared to a profit of 16.53 billion riyals the previous year. Sales also decreased, dropping to 141.54 billion riyals from 183.08 billion riyals, attributed to lower selling prices and quantities. The company intends to exercise capital expenditure discipline and aims for long-term growth in its core operating segments. As of December 31st, 2023, SABIC’s net cash position was 8.76 billion riyals. The quarterly revenue stood at 35.03 billion riyals, with a net loss of 1.73 billion riyals.

National Medical Care FY Profit Rises

National Medical Care Co.(4005.SA)  reported an FY net profit of 240.9 million riyals, an increase from 170.1 million riyals the year before. Sales for the FY were 1.08 billion riyals, up from 917.9 million riyals the previous year. The company attributed the increase in sales to a higher volume of business with GOSI and MOH.

Avalon Pharma Soars as Much as 30% in Market Debut

Middle East Pharmaceutical Industries Co.(4016.SA) shares debuted on the market, trading 10% above their listing price on Tuesday. The company raised almost 492 million riyals ($131.20 million) in an IPO, offering 30% of the business. Shares peaked at 106.6 riyals, a 30% rise, against an IPO offer price of 82 riyals per share. The stock hit the daily maximum limit for the first three days.

USA snapshot

Apple Reportedly Canceled the Electric Car Project and Shifted to Generative AI

On Tuesday, Apple Inc.(AAPL.US) internally disclosed the cancellation of its electric car project, surprising nearly 2000 employees. Many will be reassigned to the AI department, and several hundred engineers and designers may apply for other roles, indicating potential layoffs. Apple’s stock price rose nearly 1% after the news.

Positive Clinical Trial Results Propel Viking Therapeutics Stock to 121% Surge

The weight-loss drug VK2735’s positive clinical trial data led to a significant 121.02% surge in Viking Therapeutics, Inc.(VKTX.US) stock price. The Phase II clinical data indicated both effectiveness and the absence of a plateau in the weight loss process, hinting at promising results in the extended trial period. Viking Therapeutics’ stock price had doubled in the past two months following reports of a potential acquisition.

Tesla Launches AI Chat Assistant in Mobile App

Tesla Motors, Inc.(TSLA.US) added a new artificial intelligence chat assistant in a mobile software update. This chat assistant, called the “Tesla Assistant Beta,” can respond to queries about registered existing Tesla products or other Tesla products within the application.

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