Key Takeaways

1.  PIF Debuts New Investment Company to Develop the Kindom's Automotive Industry;
2.  Saudi Arabia’s Real GDP Expects to Rise by 4% in 2024 Amid Reginal Rebound;
3.  SRMG Debuts 'Asharq Discovery' with Warner Bros;
4.  Rivian Gets UBS Boost After Recent Selloff;
5.  Palantir Lands $250M Contract with the U.S. Army;

I. Market Recap

The Tadawul All Shares Index(TASI.SA) bounced back from a losing streak, ending 0.61% higher at 10,640.06. In contrast, Meanwhile, the Parallel Market Capped Index (NomuC)(NOMUC.SA) dropped by 145.38 points to close at 22,278.01. Meanwhile, the MSCI Tadawul Index saw an upswing, gaining 13.07 points to settle at 1,369.64.

The best-performing stock on the main index was Thimar Development Holding Co.(4160.SA) which witnessed a share price surge of over 6.26% to SAR17.32.  Not far behind were Bupa Arabia for Cooperative Insurance Co.(8210.SA)  and Riyad Bank(1010.SA), with their shares surging by 5.49% and 5.09%, respectively.

On the flip side, Gulf Union Alahlia Cooperative Insurance Co.(8120.SA) faced a setback, witnessing its share price dip by 5.33% to SAR12.78.

Top Gainers	Top Losers

U.S. stocks rose Tuesday as Treasury yield declines contributed to the uptrend. The Dow Jones Industrial Average(DJI.US) rose by 0.40% to close at 33,739.30. The NASDAQ(IXIC.US) added 0.58%, landing at 13,562.84. The S&P 500 index(SPX.US) climbed 0.52% to finish at 4,358.24.

II. Flash Headlines

PIF Debuts New Investment Company to Develop the Kindom's Automotive Industry

On Tuesday, the Public Investment Fund (PIF) introduced the National Automotive and Mobility Investment Company, or Tasaru Mobility Investments, dedicated to developing local supply chain capabilities for the automotive industry in the kingdom. PIF has brought in Michael Müller as the CEO steering the helm of Tasaru, who has worked at Porsche AG and Volkswagen Group. 

PIF's vision for future mobility shines with substantial investments, including setting up the kingdom's first national electric vehicle brand, Ceer, in collaboration with FOXCONN TECH CO(FXCOF.US).

IMF Insights: Saudi Arabia’s real GDP Expects to rise by 4% in 2024 Amid Reginal Rebound

The International Monetary Fund projected Saudi Arabia's real GDP to increase by 4% in 2024 but trimmed its 2023 forecast to 0.8% in its latest report.  These updated fiscal projections are anchored primarily on its understanding of government policies outlined in the 2022 budget. 

The projected revenues heavily hinge on the baseline oil price assumptions detailed in the World Economic Outlook and the current oil policy under the OPEC+, agreement.  

In terms of regional trends, the Middle East and Central Asia's GDP is expected to moderate down to 2% in 2023, rebounding to 3.4% in 2024.

KSA's Electricity and Gas Sector Soars 21.5% while Mining and Quarrying Faces Slight Setback

Saudi Arabia saw a 21.5% rise in its electricity and gas sector in August, while manufacturing grew by 4.6%, per GASTAT's report. Conversely, the dominant mining and quarrying sector slipped by 1.1%, leading to a 0.3% dip in the overall Industrial Production Index compared to July.

This decrease can be attributed to the sectoral relative weights: mining and quarrying dominate with 74.5%, followed by manufacturing at 22.6%, and electricity and gas supply accounting for a mere 2.9%. 

Fed Officials Suggest Rising Treasury Yields May Limit Rate Hikes

Federal Reserve officials signaled that increasing U.S. Treasury yields might curb future rate hikes. Fed Vice Chair Philip Jefferson suggested a cautious approach, while Dallas Fed President Lorie Logan noted higher returns on long-term U.S. bonds could lessen the need for rate adjustments. Decisions by the Fed typically influence monetary policy in the Gulf Cooperation Council (GCC), as most regional currencies are pegged to the U.S. dollar.

III. Stocks To Watch

SA snapshot

SRMG Debuts 'Asharq Discovery' with Warner Bros

Saudi Research and Media Group(4210.SA), the leading media conglomerate in the MENA region, has launched 'Asharq Discovery', a novel free-to-view Arabic infotainment platform, collaborating with  Warner Bros Discovery(WBD.US) Discovery. 

Saudi Networkers Services Approves 20% Cash Dividend for First Half

Saudi Networkers Services Co.(9543.SA) announced that its shareholders have greenlit the board of directors' proposal to distribute cash dividends of SAR2 per share, representing 20% of its capital, for the initial half of the year.

US snapshot

Rivian Gets UBS Boost After Recent Selloff

Shares of the electric vehicle manufacturer Rivian Automotive, Inc.(RIVN.US) climbed 4.5% after UBS upgraded its rating from neutral to buy. Analyst Joseph Spak highlighted that a recent sell-off had created a lucrative entry point for investors.

Arm Holdings Witness a Rise in Share Price as it Wins Over Analysts

Arm Holdings Ltd.(ARM.US) witnessed a 2.7% increase in its share price following bullish initiations from major banks and institutions. Deutsche Bank and JPMorgan were among the firms that initiated coverage of Arm Holdings with buy ratings on Monday, expressing optimism about the semiconductor company's revenue growth.

Palantir Lands $250M Contract with the U.S. Army

Shares of Palantir Technologies(PLTR.US) rose over 1% after the data analytics and software company secured a $250 million contract with the U.S. Army. The contract emphasizes AI and machine-learning projects until 2026.

PepsiCo Surpasses Expectations, Raises Annual Forecast for Third Time

PepsiCo, Inc.(PEP.US) announced on Tuesday its quarterly earnings and revenue outpacing analysts' predictions.  Pepsi now anticipates a 13% constant currency earnings per share growth for 2023, a notch above its earlier 12% projection. This marks the third straight quarter where the beverage titan has hiked its annual forecast.

IV. Upcoming Events

Economic Calendar

Earnings Calendar

[This newsletter is written and edited by Candce Luo from Sahm News Team]