Most Important News

• United International Sees 22% Revenue Growth, Net Profit Up 11% in Q3
• AME Company to Move from Parallel to Main Market
• Super Micro Computer Soars 28.68% After Probe Clears Leadership

1. Market Summary

Saudi Arabia's Tadawul All Shares Index(TASI.SA) merely down by 0.02% and the Parallel Market Capped Index (NomuC)(NOMUC.SA) increased by 0.38% on Monday. Walaa Cooperative Insurance Co. (Tradable Rights)(80602.SA) emerged as the top performer surged 6.82%, while SHL Finance Co.(1183.SA) witnessed the most significant drop, down by 3.87%.

Monday was a mixed session on Wall Street. Both the broad S&P 500 index(SPX.US) and technology-heavy NASDAQ(IXIC.US) closed at records on Monday after hitting fresh intraday highs.

However, the Dow Jones Industrial Average(DJI.US) ended about 0.3%, lower. That is despite the blue-chip index at one point topping the closely watched 45,000 level during the day.

2. Quick News

Saudi Contract Values Increase 10% YoY in Q2 2024

The value of contracts awarded in Saudi Arabia rose 10% YoY to SAR 66 billion in Q2 2024, according to the US-Saudi Business Council. However, quarterly values dropped 44% from SAR 118.8 billion. The oil and gas sector led with SAR 27.3 billion in contracts, followed by real estate with SAR 16.6 billion. Key growth drivers include Vision 2030 initiatives.

Saudi Arabia Partners with BGI Group to Enhance Healthcare

Saudi Arabia’s Public Investment Fund signed an MoU with China’s BGI Group to advance healthcare services. The partnership aims to localize medical services, improve supply chains, and promote preventive care. The initiative supports Saudi Arabia’s Healthcare Sector Transformation, aligning with Vision 2030.

Saudi Arabia Forms Key Partnership to Boost Housing Finance

Saudi Arabia’s real estate sector is set to grow with a new tripartite partnership between the Real Estate Development Fund, Saudi Real Estate Refinance Co., and Al-Ahli Bank. The agreement aims to develop a secondary mortgage market, enhance liquidity, and expand housing options. Mortgage disbursements rose 4.88% in 2024, supporting Vision 2030’s housing goals.

JPMorgan Predicts S&P 500 Could Reach 6,300 by Year-End

JPMorgan traders believe the S&P 500 still has room to rise, with the index potentially reaching 6,200-6,300 points by year-end. This represents a 3%-4% increase from last Friday's close of around 6,032, despite a strong rally post-dotcom bubble.

3. Stocks To Watch

KSA Stocks

Saudi Aramco Acquires 10% Stake in Horse Powertrain

Saudi Arabian Oil Co.(2222.SA) completed the purchase of a 10% stake in Horse Powertrain Ltd., valued at €7.4 billion, as part of its efforts to reduce transport emissions globally. The deal aligns with Saudi Aramco's mobility initiatives and follows June's agreement, with Renault and Geely retaining 45% each.

United International Gears Up for First Trading Day

The Saudi Exchange (Tadawul) listed and began trading United International Holding Co.’s shares (symbol 4083) on Dec. 3, 2024, today. Initial price fluctuation limits are set at +/-30% static and +/-10% daily, reverting to only +/-10% from the fourth trading day onward. The company floated 7.5 million shares (30% of its capital) at SAR 132 per share, with retail subscriptions covered 9.1x and a minimum of three shares allocated per subscriber. Institutional demand, achieving 132x coverage during the book-building process.

AlJazira Capital rated the stock “Overweight” with a target price of SAR 181.9, citing robust asset quality, prudent customer selection, and a strategic market approach as key strengths. United International Holding Co.(4083.SA), the second-largest consumer financing provider in Saudi Arabia, benefits from rising population demographics, middle-class growth, and increased credit card penetration due to digital payment preferences. Its market share is projected to grow from 8.1% in FY 2023 to 8.8% by FY 2028. 

Click to read more of company's performance outlook and potential risks

United International Sees 22% Revenue Growth, Net Profit Up 11% in Q3

United International Holding Co.(4083.SA) reported a 22.25% year-on-year increase in Q3 2024 revenue to SAR 161.7 million, driven by a 25% growth in its consumer finance portfolio. Net profit for the quarter rose by 11.08% to SAR 58.95 million. For the nine months ending September 30, 2024, total revenue grew by 17.7% to SAR 450.95 million, and net profit saw a slight 0.8% increase, reaching SAR 158.13 million. The growth was attributed to strong performance in Sharia-compliant financing solutions, despite higher SG&A and provisions for credit loss. The company maintained a strong financial position with equity rising 25.6%.

See Tadawul announcement

AME Company to Move from Parallel to Main Market

AME Company for Medical Supplies(9527.SA) announced its Board of Directors' approval on December 2, 2024, to transition from the Parallel Market to the Main Market, appointing Aldakheel Financial Group as a financial advisor. The move is contingent on market approval and requirements.

USA Stocks

Super Micro Computer Soars 28.68% After Probe Clears Leadership

Super Micro Computer, Inc.(SMCI.US) surged 28.68% after its special committee found no evidence of misconduct by the board or audit committee. While process errors were noted, the company will appoint a new CFO, CCO, and General Counsel. During night-trading hours, shares rose another 2%.

Intel CEO Pat Gelsinger Resigns Amid Board Conflict

Intel Corporation(INTC.US) CEO Pat Gelsinger retired on December 1 following an irreparable conflict with the board, which gave him an ultimatum of "resign or be fired." While the news briefly lifted Intel's stock over 5%, it ultimately closed down 0.5%.

Musk’s $56 Billion Tesla Pay Package Rejected Again

A Delaware judge reaffirmed her January decision rejecting Tesla Motors, Inc.(TSLA.US) CEO Elon Musk's $56 billion 2018 stock option plan (Initially worth $2.6 billion, it soared to $56 billion before cancellation and reached $101.5 billion by Monday’s close.), despite shareholder reauthorization earlier this year. If appeals fail, Musk's wealth could take a significant hit. Tesla shares fell over 1% after hours.

Nebius Raises $700 Million in Funding with Nvidia's Backing

AI infrastructure company Nebius Group N.V. Ordinary Shares - Class A(NBIS.US) secured $700 million from investors including Accel, NVIDIA Corporation(NVDA.US), and Orbis Investments. The company plans to issue 33.33 million Class A shares at $21 each. Nebius' stock surged over 17% by the close.

4. Saudi Stock Calendar

- Reporting by Zaid, Sahm News team