SoftBank has lots of appetite for AI: Japan’s SoftBank plans to earmark around USD 9 bn a year to AI investments as it looks to fuel the expansion of its chip-design subsidiary Arm, the Financial Times wrote.

All for the group’s “crown jewel:” The group’s founder and CEO Masayoshi Son has been pushing to transform it into an AI powerhouse, in hopes of securing acquisitions that can feed into its Arm. Much of the company’s USD 180 bn net asset value has been driven by the UK-based Arm, which saw its share price jump nearly 25% after its blockbuster September 2023 market debut. Arm’s valuation has soared since then to exceed USD 100 bn currently.

Refresher: SoftBank has shifted its investment strategy to AI and semiconductors after backtracking on venture capital investments and selling assets owned by its startup fund Vision Fund, which included a USD 14 bn stake in defunct coworking startup WeWork.

MARKETS THIS MORNING-

Asian markets are up slightly in early trading this morning as investors look forward to a week packed with macro data in the run-up to Friday’s release of US core personal consumption expenditures — a report that Reuters says “could set the stage for a cut in interest rates there, albeit not for a few months yet.”

European futures were down slightly overnight, and both Wall Street and the City are off today for holidays.

TASI

11,850

-1.2% (YTD: -1.0%)

MSCI Tadawul 30

1,473

-1.4% (YTD: -5.0%)

NomuC

26,638

-0.2% (YTD: +8.6%)

USD : SAR (SAMA)

3.75 Sell

3.75 Buy

Interest rates

6% repo

5.5% reverse repo

EGX30

27,539

+1.2% (YTD: 10.6%)

ADX

8,833

-0.6% (YTD: -7.8%)

DFM

4,013

-0.3% (YTD: -1.2%)

S&P 500

5,305

+0.7% (YTD: +11.2%)

FTSE 100

8,318

-0.3% (YTD: +7.6%)

Down

Euro Stoxx 50

5,035

0.00% (YTD: +11.4%)

Brent crude

USD 82.12

+0.9%

Natural gas (Nymex)

USD 2.52

-5.2%

Gold

USD 2,357

-0.1%

BTC

USD 68,431

-0.9% (YTD: +63.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.2% yesterday on turnover of SAR 4.4 bn. The index is down 1% YTD.

In the green: Bupa Arabia (+4.8%), Sfico (+4.5%) and Care (+3.8%).

In the red: Al Baha (-7.1%), Eic (-5.1%) and Maaden (-4.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.2% yesterday on turnover of SAR 29.6 mn. The index is up 8.6% YTD.

In the green: Naseej Tech (+14.3%), Watani Steel (+10.1%) and AlMohafaza For Education (+7.2%).

In the red: Riyadh Steel (-17.2%), Nofoth (-5.4%) and Pro Medex (-4.5%)

CORPORATE ACTIONS-

Perfect Presentation for Commercial Services is set to double its capital to SAR 300 mn by granting one new share for every current share held, according to a disclosure on Tadawul. The Capital Market Authority has approved the move.

Alkhorayef Water and Power Technologies has approved a 40% capital increase to SAR350 mn through the distribution of new shares by capitalizing SAR 100 mn from retained earnings, it said in a filing to the exchange.

Shareholders of Nomu-listed snacks manufacturer Fesh Fash have approved SAR 2 mn in dividends at SAR 0.18 apiece for FY 2023, it said in a disclosure to Tadawul.

Tadawul-listed vehicle rental firm Budget Saudi will distribute dividends of SAR 71.2 mn at SAR 1 apiece for the second half of 2023 on Thursday, 6 June, it said in a disclosure to Tadawul.

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