Most Important News

1. SIPCHEM Expands PDH-PP Plant;
2. Saudi Exchange Announces the Listing of “Naas Petrol Factory Co.”;
3. Gold Prices Dip but Remain Supported by Market Factors;

1. Market Summary

On Monday, Saudi Arabia's benchmark index Tadawul All Shares Index(TASI.SA)  finished flat, down 0.01%. The session was led by Al-Baha Investment and Development Co.(4130.SA)  at 8.33% in the green, while Savola Group(2050.SA)  lost the most out of the constituents at 5.01% in the red.

As of Monday’s close, the S&P 500 index(SPX.US)  dropped by 0.32%, the NASDAQ(IXIC.US)  dropped by 0.85%, and the Dow Jones Industrial Average(DJI.US)  increased by 0.16%.

2. Quick News

IBM Report: Middle East Data Breach Costs Surge in 2024

IBM's annual report shows the Middle East's average data breach cost rose to SAR 32.80 million in 2024, up 10% from 2023. Key factors include security skill gaps, regulation non-compliance, and system complexity. The energy sector faces the highest breach costs at SAR 36.90 million, followed by finance at SAR 35.81 million and industry at SAR 34.52 million.

Gold Prices Dip but Remain Supported by Market Factors

Gold prices saw a minor decline on Tuesday, with spot gold down 0.4% to $2,507.96 per ounce as of 5:38 in Riyadh. Despite this, the precious metal has enjoyed a 21.5% increase this year, reaching an all-time high of $2,531.60 on August 20. Market optimism for an imminent U.S. rate cut and ongoing Middle East tensions continue to support gold prices. Investors are now in a wait-and-see mode as they await new economic data to clarify the extent of the anticipated September rate cut, according to IG market strategist Yeap Jun Rong.

3. Stocks To Watch

KSA Stocks

Saudi Exchange Announces the Listing of “Naas Petrol Factory Co.”

Saudi Exchange announces the listing and trading shares of “Naas Petrol Factory Co.”  on Nomu – Parallel Market on Wednesday 28/08/2024, as a direct listing with the symbol 9609 and ISIN Code SA164054M3H7 with +/- 30% daily price fluctuation limits and +/- 10% static price fluctuation limits. As the company is planning to meet the liquidity requirements with a liquidity provider.

Sahara International Petrochemical Co. Expands PDH-PP Plant

Sahara International Petrochemical Co.(2310.SA)  has awarded engineering, procurement, and construction contracts for the expansion of its affiliate Al Waha's propylene and polypropylene plants. The expansion will add 72,000 tons of propylene and 150,000 tons of polypropylene to the existing capacity, with a total post-expansion capacity of 537,000 tons of propylene and 600,000 tons of polypropylene.

The contract is valued at 169 million US Dollars and is set to last for 28 months, aiming to complete in the 4th Quarter of 2026. The financial impact of the project is anticipated to be realized post-completion, marking a significant step forward in Sipchem's growth and production capabilities.

USA Stocks

PDD Holdings Shares Drop 28% After Q2 Earnings Miss

PINDUODUO INC.(PDD.US) ' stock fell over 28% on Monday as its Q2 2024 revenue of $13.36 billion, while up 86%, missed analyst estimates by $610 million. Finance VP Jun Liu warned of upcoming revenue growth pressures due to competition and external factors, and predicted profitability would be impacted by ongoing company investments.

Super Micro Computer Stock Drops 8% Amid Upcoming Stock Split

Shares of Super Micro Computer, Inc.(SMCI.US)  fell 8% by Monday's close, with the company preparing for a 10-for-1 stock split effective from October 1.   Despite a 36% decrease over six months since its peak of $1,088 in mid-March, the stock has seen a robust 112% increase year to date.

JR Research advises investors to purchase the stock following its recent dip.   However, the impact of delayed Nvidia (NVDA) Blackwell AI chips may have affected Super Micro's fiscal 2025 outlook, introducing a note of caution to investors.