Most Important News

1. US Tariffs Spark Global Market Turmoil;
2. Raydan Food Co. Reports Accumulated Losses of 48.95% of Capital, Plans Strategic Measures;
3. US Tariffs on Cambodia, Vietnam, and Thailand to Impact Global Supply Chain and Raise Prices;

1. Market Summary

The Saudi stock market experienced its largest daily point loss since 2008 on Sunday, April 6, closing down by over 800 points, or 6.7%, at 11,077 points. This marks the lowest closure since November 2023 and the largest daily percentage drop since March 2020, during the COVID-19 outbreak.

Last Friday, US stocks experienced their second consecutive day of sharp declines. The Dow Jones Industrial Average(DJI.US) fell 5.5% to 38314.86 points, over 10% below its record high, confirming a correction. The  S&P 500 INDEX(SPX.US) dropped 5.97% to 5074.08 points, the most significant single-day drop since March 2020. The  NASDAQ(IXIC.US) fell 5.82% to 15587.79 points, over 20% below its peak, confirming a bear market. Major tech stocks plummeted:  Tesla Motors, Inc.(TSLA.US) -10.42%,  NVIDIA Corporation(NVDA.US) -7.36%,  Apple Inc.(AAPL.US) -7.29%,  Meta Platforms(META.US) -5.06%,  Amazon.com, Inc.(AMZN.US) -4.15%,  Microsoft Corporation(MSFT.US) -3.56%, and  Alphabet Inc. Class A(GOOGL.US) -3.4%.

2. Quick News

US Tariffs Spark Global Market Turmoil

Global markets are reeling from tariff concerns, with US stock futures sharply lower on Monday. S&P 500 futures fell nearly 4%, Nasdaq 100 futures dropped almost 5%, and Dow Jones futures declined over 3%. On Sunday, senior economic officials dismissed investor fears of inflation and recession. Trump stated he did not intentionally trigger market sell-offs and has discussed tariffs with European and Asian leaders.

Saudi Aramco Sets May OSP for Arab Crude

Saudi Aramco announced the official selling price (OSP) for its Arab Light crude for May delivery. For North America, the price is set at $3.60 per barrel above the Argus Sour Crude Index (ASCI). In Western Europe, it's priced at $2.55 per barrel above ICE Brent. For East Asia, the price is set at $1.20 above the average of the Oman and Dubai benchmarks.

3. Stocks To Watch

KSA Stocks

2P Announces Increased and Renewed Sharia-Compliant Facility with Bank AlJazira

Perfect Presentation for Commercial Services Co.(7204.SA) (2P) has announced an increase and renewal of their Sharia-compliant bank facility with Bank AlJazira. The agreement, signed on April 6, 2025, involves financing of SAR 150 million, secured by promissory notes, and is set to last until January 22, 2026. The funds will be used for new projects, including issuing letters of guarantee, letters of credit, and invoice financing.

Buruj Cooperative Insurance Gains Sharia Compliance Certification

Buruj Cooperative Insurance Co.(8270.SA) has received Sharia compliance certification from the Shariyah Review Bureau (SRB) and its Sharia Supervisory Committee (SSC). The certification confirms that Buruj's activities, including separating accounts for shareholders and policyholders, investments, and insurance policies, comply with Sharia guidelines as of April 7, 2025. The purification amount per share is 0.0361 Saudi Riyal. The SSC will continue to oversee and monitor Buruj's adherence to Sharia principles and conduct annual audits.

Raydan Food Co. Reports Accumulated Losses of 48.95% of Capital, Plans Strategic Measures

Raydan Food Co.(6012.SA) has announced that its accumulated losses have reached 48.95% of its capital, amounting to SAR 77.39 million, as of December 31, 2024. The losses are attributed to decreased sales and revenues, increased expenses, asset impairments, and foreign currency valuation losses. The company plans to address these losses by restructuring operations, diversifying products, focusing on delivery services, enhancing the catering sector, reducing operational costs, and expanding geographically. Raydan will follow the applicable procedures for companies listed on the Saudi Capital Market with significant accumulated losses.

Saudi Enaya Cooperative Insurance Co. Announces Resignation of a Board Member

Saudi Enaya Cooperative Insurance Co.(8311.SA) announced the resignation of Mr. Khaled Atiq Al Dhaheri from the Board of Directors and the Executive Committee, effective April 6, 2025, due to personal reasons. Mr. Al Dhaheri, who served as an independent board member since January 22, 2024, was thanked by the Board for his contributions.

USA Stocks

Tariffs Won't Hinder Apple's Profit Margins

Nick Timiraos of "Fed Whisper" reported that Trump's tariffs could raise the cost of Apple Inc.(AAPL.US) iPhone components from US$549 to US$846. Despite significant tariffs, Apple can still achieve higher profits through its global supply chain compared to manufacturing in the US. However, the concern remains that Apple's sales in the US market might not be as strong as before.

US Tariffs on Cambodia, Vietnam, and Thailand to Impact Global Supply Chain and Raise Prices

Following Trump's April 2 tariff announcement, the US will impose over 30% reciprocal tariffs on countries like Cambodia, Vietnam, and Thailand. These nations, crucial to the global supply chain, will face significant impacts. According to the Vietnam Textile and Apparel Association, Vietnam's textile exports reached $44 billion in 2024, with the US as the largest market. Over 35% of NIKE, Inc. Class B(NKE.US)'s production is in Vietnam. Due to the new tariffs, these brands will likely be forced to raise prices.

4. Saudi Stock Calendar