S&P 500 jitters: While earnings forecasts for S&P 500 companies over the next 12 months are at a record high and have helped the index surpass the 5k mark for the first time earlier this month, the risk of Israel’s war on Gaza further disrupting Red Sea shipping and leading to larger consumer boycotts could potentially upend the index’s historic rally in the event that earnings forecasts have to be scaled back, writes Bloomberg.

A nightmare on Wall Street: Mentions of the Red Sea and geopolitics in American and European companies’ earnings calls have occurred as frequently in the first half of 1Q2024 as during the entirety of 4Q2023, according to data collected by Bloomberg.

ICYMI- Geopolitical uncertainty was the defining feature of forecasts for 2024 at the end of last year. A poll of 500 global institutional investors saw geopolitics as the biggest economic risk in 2024. Almost half of respondents (49%) cited “geopolitical bad actors” as a key concern.

MEANWHILE- Asian markets are mixed this morning as Shanghai opens for the first trading day since the weeklong Lunar New Year holiday. The Shanghai Composite and the Kospi are up, while the Hang Seng and Nikkei have slipped into the red in early trading. Europe looks set to open in the red later this morning, while the Nasdaq, Dow, and S&P look set to open the trading day flat.

TASI

12,502

+0.14% (YTD: +4.5%)

MSCI Tadawul 30

1,606

-0.2% (YTD: +3.6%)

USD : SAR (SAMA)

3.75 Sell

3.75 Buy

Interest rates

6.5% repo

5.5% reverse repo

EGX30

29,126

+0.7% (YTD: +17.0%)

ADX

9,427

+0.2% (YTD: -1.6%)

DFM

4,259

+0.5% (YTD: +4.9%)

S&P 500

5,006

-0.5% (YTD: +4.9%)

FTSE 100

7,712

+1.5% (YTD: -0.3%)

Euro Stoxx 50

4,766

+0.5% (YTD: +5.4%)

Brent crude

USD 83.47

+0.7%

Natural gas (Nymex)

USD 1.61

+1.8%

Gold

USD 2,024.10

+0.5%

BTC

USD 51,874.54

+0.1% (YTD: +22.5%)

THE CLOSING BELL-

The TASI rose 0.14% yesterday on turnover of SAR 9.2 bn. The index is up 4.5% YTD.

In the green: Nadec (+10%), DWF (+9.9%) and Atheeb Telecom (+9.8%).

In the red: Solutions (-5.3%), AWPT (-3.9%) and Salama (-3.2%).

CORPORATE ACTIONS-

#1- The Saudi Investment Bank (SAIB) is set to distribute SAR 450 mn in dividends for 2H 2023 at SAR 0.45 per share, it said in a disclosure to Tadawul. Dividends will be paid out Wednesday, 6 March.

ALSO- SAIB is proposing a 25% capital increase to SAR 12.5 bn by way of issuing bonus shares, it said in a separate disclosure to Tadawul.

#2-Almasane Alkobra Mining has appointed Al Rajhi Capital as a market maker for its shares for a six-month period, which may be extended, it said in a disclosure to Tadawul.

#3- Academy of Learning’s board of directors decided to distribute SAR 9 mn in dividendpayouts for 2H 2023 at SAR 0.15 per share, it said in a disclosure to Tadawul. Dividends will be paid out on Thursday, 4 April.

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