It’s a mixed morning on Planet Finance, where the big story of the day has analysts and investors alike wondering what’s next with AI as Google, OpenAI, Microsoft, and Apple all jockey for position. (See this morning’s Big Story Abroad, above.) Meanwhile:

It’s not Groundhog Day, and you’ve not stumbled into a real-world Hot Tub Time Machine: GameStop really is back in the headlines. Short-selling hedge funds lost USD 1 bn yesterday after Roaring Kitty re-entered the chat: The meme lord posted on X yesterday for the first time since 2021, triggering a frenzy that saw GameStop shares soar 74% and put the squeeze on the shorts. Kitty’s memes have flown fast and furious in the hours since.

Does it have legs? Bloomberg’s amazing Money Stuff columnist Matt Levine is back on the trail and even the WSJ is taking note.

BACKGROUND, for those of you who may have forgotten (or were otherwise blissfully unaware of what a “meme stock” is), courtesy CNBC: The 2021 “meme stock frenzy involved individual investors taking aim at short sellers and hedge funds who were pessimistic about the outlook for GameStop and other companies, forcing them to cover their short positions and drive up the price of the target stocks.”

ALSO worth knowing about: Melinda French Gates is hitting the eject button. She’s resigning as the co-chair of the Gates Foundation and will take with her some USD 12.5 bn to continue doing philanthropy. (Financial Times)

MARKETS THIS MORNING-

Asian markets are mixed with no real catalyst appearing to drive early trading and both European and US stock futures are little changed as we prepare to hit “send” on this morning’s issue.

TASI

12,260

+0.4% (YTD: +2.4%)

MSCI Tadawul 30

1,536

+0.4% (YTD: -1%)

NomuC

26,859

-1.2% (YTD: +9.5%)

USD : SAR (SAMA)

3.75 Sell

3.75 Buy

Interest rates

6% repo

5.5% reverse repo

EGX30

25,381

+0.9% (YTD: +2%)

ADX

9,093

0.0% (YTD: -5.1%)

DFM

4,173

0.0% (YTD: +2.8%)

S&P 500

5,2215,221

0.0% (YTD: +9.5%)

FTSE 100

8,415

-0.2% (YTD: +8.8%)

Euro Stoxx 50

5,079

-0.1% (YTD: +12.3%)

Brent crude

USD 83.44

+0.8%

Natural gas (Nymex)

USD 2.37

+5.0%

Gold

USD 2,343

-1.4%

BTC

USD 63,046

+2.9% (YTD: +49.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.4% yesterday on turnover of SAR 7 bn. The index is up 2.4% YTD.

In the green: Acig (+9.9%), Al Jouf (+7.8%) and Acwa Power (+5.7%).

In the red: Medgulf (-10%), Gulf General (-10%) and Walaa (-10%)

THE CLOSING BELL: NOMU-

The NomuC fell 1.2% yesterday on turnover of SAR 28.3 mn. The index is up 9.5% YTD.

In the green: Qomel (+16.8%), Pro Medex (+9.2%) and Food Gate (+7.9%).

In the red:Osool and Bakheet (-9%), Future Care (-8.1%) and AZM (-6.9%).

CORPORATE ACTIONS-

#1- Our friends at First Mills have completed a share buyback of 300k shares worth SAR 25.4 mn earmarked for its employee shares program, according to a disclosure to Tadawul. The move comes as the milling company looks “to attract and retain key talents and to motivate them to further strengthen their performance to achieve its strategic objectives.”

#2- The Capital Market Authority has cleared Dammam-based Bena Steel to increase its capital by 20% to SAR 60 mn through a bonus issuance, it said in a statement yesterday. The capital increase will see the transfer of 1 mn shares from the company’s retained earnings to the company’s capital. This will bring the steel maker’s total shares up to 6 mn.

#3- The board of Jarir Marketing (Jarir Bookstore) approved disbursing SAR 228 mn in dividends at SAR 0.19 apiece for 1Q 2024, the leading bookstore chain said in a disclosure to Tadawul yesterday. Eligible shareholders can cash out on Wednesday, 29 May.

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