Emerging economies are expected to attract USD 903 bn in capital inflows this year, marking a 32% y-o-y increase thanks to a recovery of foreign direct investment and increased cash inflows into equity portfolios, according to a report by the Institute of International Finance (IIF) cited by Reuters. “A global 'soft landing' scenario makes for a positive picture for capital flows to EMs," the report writes.

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Saudi Arabia, Egypt, and the UAE are expected to account for 80% of all capital inflows to the Middle East — in no small part thanks to the UAE’s USD 35 bn investment in Ras El Hekma, which the Egyptian government thinks could pull in a further USD 150 bn in investment. For the Middle East and Africa as a whole, the IIF thinks we will see some USD 149 bn in net nonresident capital flows in 2025, up from USD 115 bn last year, while also seeing net outflows of resident capital settling.

The fine print: These inflow projections hinge on accelerated economic growth in emerging markets as well as “significant” rate cuts in developed economies, the report writes. The report’s projections are based on the assumption that the Federal Reserve will cut interest rates by 0.25 percentage points later this year and bring down rates to 3.7% by the end of 2025, along with the EU and UK beginning rate cuts in June or July.

MARKETS THIS MORNING-

TASI

11,503

-1.7% (YTD: -3.9%)

MSCI Tadawul 30

1,436

-1.7% (YTD: -7.4%)

NomuC

26,610

+1.2% (YTD: +8.5%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

6% repo

5.5% reverse repo

EGX30

26,923

-0.6% (YTD: +8.2%)

ADX

8,863

+1.3% (YTD: -7.5%)

DFM

3,978

+0.2% (YTD: -2.0%)

S&P 500

5,278

+0.8% (YTD: +10.6%)

FTSE 100

8,275

+0.5% (YTD: +7.0%)

Euro Stoxx 50

4,984

0.00% (YTD: +10.2%)

Brent crude

USD 81.11

-0.9%

Natural gas (Nymex)

USD 2.59

+0.6%

Gold

USD 2,346

-0.9%

BTC

USD 67,737

+0.3% (YTD: +61.2%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.7% on Thursday on turnover of SAR 13.1 bn. The index is down 3.9% YTD.

In the green: Medgulf (+7.7%), Amak (+5.4%) and Awpt (+4.6%).

In the red: Acwa Power (-10%), Cenomi Retail (-7.9%) and Tawuniya (-6.4%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.2% on Thursday on turnover of SAR 36.4 mn. The index is up 8.5% YTD.

In the green: Alrasheed (+12.6%), Osool & Bakheet (+12.4%) and Al Babtain Food (+6.9%).

In the red: Miral (-8.9%), Riyadh Steel (-7.8%) and Alrashid Industrial (-7.0%)

CORPORATE ACTIONS-

#1- The board of Tadawul-listed Banque Saudi Fransi has recommended more than doubling the bank’s capital increase to SAR 25 bn by way of capitalizing some SAR 12.9 bn in retained earnings and statutory reserve, it said in a disclosure to Tadawul. The move aims to “strengthen the bank's financial position which contributes to achieving its strategic objectives.”

#2- Shareholders of Tadawul-listed Al Etihad Cooperation Ins. approved the board’s recommendation to increase the company’s capital by 11.1% to SAR 500 mn, it said in a disclosure to Tadawul. The capital increase will be made by transferring SAR 50 mn from retained earnings to the company’s capital.

ALSO- Shareholders approved a dividend of SAR 27 mn for FY 2023 at SAR 0.6 a piece to eligible shareholders, according to the disclosure.

#3- The board of Tadawul-listed fertilizers maker Sabic Agri-nutrients approved a dividend of SAR 1.4 bn at SAR 3 apiece for 1H 2024, it said in a disclosure to Tadawul. The distribution date was set for Monday, 22 July.

#4- Shareholders of Tadawul-listed Solutions by Stc approved the board’s recommendation to distribute dividends of SAR 714 mn at SAR 6 per share for FY 2023, it said in a disclosure to Tadawul . The dividends will be distributed on Wednesday, 26 June.

#5- Shareholders of Tadawul-listed Makkah Construction and Development approved the board’s recommendation for a dividend of SAR 247 mn at SAR 1.5 apiece for FY 2023, it said in a disclosure to Tadawul (pdf). The distribution date is yet to be announced.

#6- Shareholders of Tadawul-listed Gulf Insurance Group approved the board’s recommendation for a dividend of SAR 78.8 mn at SAR 1.5 per share for FY 2023, it said in a disclosure to Tadawul (pdf). The distribution date is yet to be announced.

#7- Tadawul-listed homegrown supermarket group BinDawood Holding completed the purchase of shares allocated to its employee’s stock long-term incentive program, it said in a disclosure to Tadawul. The supermarket group bought 2 mn shares worth SAR 15 mn at SAR 7.50 per share. The move aims to attract and retain key talents to help in contributing to the group’s growth.

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