PMI rises for a third month in a row in October

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Aramco reports 3Q 2024 earnings + Saudi Tadawul Group eyes more M&A

Good morning, wonderful people. The newsflow continues to be mixed today as we close in on the weekend, although Aramco’s 3Q 2024 earnings are in the spotlight here at home.

MEANWHILE- Saudi Tadawul Group wants to boost the Kingdom’s capital markets landscape by studying more M&A transactions, Chief Strategy Officer Lee Hodgkinson tells Bloomberg. The goal is to look at “‘digestible’ and ‘strategically relevant acquisitions,’” the business information service said, although no further details were made available. “Hodgkinson didn’t rule out bolting on other stock exchanges in the future, but said the group’s current focus is on diversifying its revenue mix,” according to Bloomberg.

WEATHER- Riyadh is looking at a high of 32°C and a low of 20°C today. Over in Jeddah, the mercury will peak at 33°C and hit a low of 27°C. Meanwhile, Madinah is looking at some light rainfall with a high of 33°C and a low of 21°C.

PSAs-

Businesses subject to withholding tax to file their October tax returns by next Sunday, 10 November, via The Saudi Zakat, Tax and Customs Authority’s (Zatca) online portal, it said in a news release. Late penalties amount to 1% of the unpaid tax for every 30 days of delay.

WATCH THIS SPACE-

#1- China plans to issue up to USD 2 bn in bonds in Saudi Arabia next week, marking its first US-denominated debt sale since 2021, Bloomberg reports. Analysts suggest the bond sale is largely symbolic but could lead to further issuances as USD funding costs potentially decrease as the US Federal Reserve continues cutting interest rates.

IN CONTEXT- The Kingdom and China ties have been growing closer: China’s Baosteel, Aramco, and the Public Investment Fund (PIF) committed to more than double their investments in a joint venture focused on steel plate production in Saudi Arabia earlier this year. The PIF also acquired a 12% stake in Chinese PC maker Lenovo.

#2- Himmah Capital Investment Company secured a license from the Capital Market Authority to manage and advise on securities, after fulfilling all business requirements, according to a statement. Himmah is a Riyadh-based advisory and private equity firm that is a wholly owned subsidiary of Dubai-based Himmah Capital.

DATA POINTS-

#1- Expatriate remittances grew 23% y-o-y to SAR 12.2 bn in September, Argaam reports, citing central bank data. On a m-o-m basis, remittances increased 3% to SAR 365 mn.

#2- Consumer spending via point-of-sale transactions in the Kingdom rose 36.6% w-o-w for the week ending 2 November at SAR 15.2 bn, according to the Saudi Central Bank’s (Sama) weekly transactions report (pdf). Similarly, the number of transactions was up 18.6% at 227.8 mn transactions.

The breakdown: Spending was highest in the food and beverage sector (SAR 2.5 bn), followed by restaurants and cafes (SAR 2.1 bn). Riyadh led the pack in terms of weekly spending with SAR 5.1 bn across 71.5 mn transactions. Jeddah and Dammam followed at second and third with SAR 1.9 bn and SAR 745.7 mn in weekly PoS transactions.

SPORTS-

#1- Coco Gauff secured her spot in the semifinal match of the WTA Finals in Riyadh after defeating Iga Swiatek in a decisive two-set match. Gauff’s 6-3, 6-4 victory not only breaks Swiatek’s six-match WTA Finals streak but also positions Gauff as the youngest to reach back-to-back semis since Wozniacki in 2009, according to the WTA website.

Barbora Krejcikova also made it through to the semis after defeating Jessica Pegula 6-3, 6-3 yesterday.

#2- The PIF is reportedly planning an unprecedented offer to bring Real Madrid’s Brazilian winger Vinicius Jr. to Saudi, Madrid Universal reports. While there has yet to be an official offer, the proposal is rumored to include a hefty financial package and promotional roles in the hopes of securing the La Liga star. Vinicius has long been on the Kingdom’s radar, with past offers reportedly reaching USD 1 bn.

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THE BIG STORY ABROAD-

No surprises here: Election Day in the US is fully dominating news coverage in the international press this morning, as polls close and the ballot counting continues. The counting is likely to take several days, particularly as this year’s elections are closely contested and several states are “too close to call” and likely to hinge on the results from the country’s seven swing states — Georgia, North Carolina, Pennsylvania, Arizona, Michigan, Nevada, and Wisconsin.

What we know so far: Donald Trump is so far in the lead, with victories in Texas and Florida — each of which have a large number of electoral votes — as well as a smattering of other states. Kamala Harris has secured a victory so far in Washington, D.C., Vermont, and Massachusetts, among others. Meanwhile in the Senate, the Republican Party has so far gained a seat and is closing in on a majority.

You can check out live results from the Associated Press, Reuters, the New York Times, the Wall Street Journal. The Financial Times and Bloomberg also have coverage.

IN NON-ELECTION NEWS- Israeli Prime Minister Benjamin Netanyahu fired Defense Minister Yoav Gallant and appointed Israel Katz — who was foreign minister — in his stead. Gideon Saar is now Israel’s foreign minister in Katz’s place. Netanyahu’s decision to fire Gallant — a move he was reportedly considering for weeks — is due to the two disagreeing on critical issues, including Gallant supporting a ceasefire and hostage release agreement with Hamas in Gaza. The former defense minister was also pressing for an investigation into the country’s security failures in Hamas’ 7 October attack, and opposes a law that would allow ultra-Orthodox Jews to be exempt from mandatory military service. Reuters, the Financial Times, Axios, and Bloomberg have the story.

Saudi Arabia’s PMI hits a six-month high in October

Non-oil business activity in the Kingdom hit a six-month high in October, driven by stronger sales and renewed confidence across the board, according to the Riyad Bank Saudi Arabia PMI (pdf). The seasonally-adjusted headline figure inched up to 56.9 from 56.3 in September, remaining well above the 50.0 mark that separates growth from contraction.

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IN CONTEXT- This is the third consecutive month Saudi’s PMI figure has been on the up, and is “exactly aligned with its long-run average,” according to the report. “With this ongoing expansion, the non-oil sector's contribution is projected to exceed 52% of the overall GDP and grow beyond 4% in 2024,” Riyad Bank Chief Economist Naif Al Ghaith said.

New orders grew at their fastest pace since March: The uptick in private sector activity was mainly driven by a surge in new orders, which grew at its fastest clip in eight months. The sub-index for new orders — the most heavily-weighted PMI component — jumped to 62.5 in October, up from 59.3 the previous month, Reuters reports.

What the pundits said: “Over 40% of surveyed companies reported a surge in demand, spurred by robust domestic client interest, creative marketing strategies, and continuous infrastructure investments,” Al Gaith said, referring to government initiatives under Vision 2030 coupled with private sector engagement.

Output + purchasing activity: The output sub-index climbed to 60.2 last month, up from 59.7 in September, according to the business newswire. Businesses ramped up activity with all major sectors experiencing growth. As a result, companies reported quicker increases in production, and purchasing activity responding to heightened demand and an optimistic outlook for future activity.

The job market logged gains too, with employment climbing for the sixth month in a row, although job creation slowed slightly. Although the construction sector saw staffing cutbacks, the overall hiring trend maintained its upward trajectory, keeping workloads manageable, according to the report.

The caveat: October saw selling prices rise for the first time in four months, driven by an uptick in input costs due to higher material prices and wages. The rise was most notable in manufacturing and retail though competition kept prices somewhat in check across the construction and services sectors.

FROM THE REGION-

Egypt’s non-oil private sector activity marginally improved to 49 (pdf) in October, up from 48.8 in September, as strong cost pressures continue to beef up selling prices.
The UAE’s headline PMI rose to 54.1 in October, up from 53.8 in September, signaling an improvement while remaining below the readings of 1H 2024.

Aramco net income dips 15.4% in 3Q, as oil giant swings into net debt

Saudi Aramco posted SAR 103.4 bn (USD 27.6 bn) in net income in 3Q 2024, down 15.4% y-o-y, while revenues fell 1.8% during the period at SAR 416.6 bn, the company said in an earnings release (pdf) and a disclosure to Tadawul.

The third quarter also saw the state-owned oil giant swing into a net debt position of SAR 33.35 bn, compared to net cashflow SAR 102.75 during the same period last year. This marks the first time in two years that the company has found itself indebted as it maintains dividend payouts that exceed its earnings, Bloomberg said. The story also got ink from the Associated Press, Reuters, and CNBC.

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Third quarter earnings vs. forecasts: The latest earnings exceeded Aramco’s median estimate of USD 26.9 bn, as well as Citi’s USD 26.3 bn projection, Reuters notes. Meanwhile, results for third quarter adjusted net income attributable to shareholders fell short of analyst estimates collected by Bloomberg.

On a 9M basis: The state-owned oil giant’s bottom line dropped 11.3% y-o-y at SAR 314.7 bn in the first nine months of the year, while its top line remained largely unchanged, up 0.02% at SAR 1.24 tn.

Why the numbers moved the way they did: Aramco attributed the decline in net income to falling crude prices and weaker refining margins, with its nine-month performance also taking hits from lower volumes sold. The firm sold crude at an average of USD 79.30 a barrel during 3Q, USD 10 lower than the previous year, Bloomberg said. Meanwhile Saudi production has been capped at 9 mn bbl / d for upwards of a year due to ongoing Opec+ production cuts.

ICYMI: Opec+ pushed back a planned 180k bbl / d output hike for December for another month earlier this week, amid lingering concerns of soft oil demand from China and a glut in supply. This marks the second time the global oil group postpones productions restarts that were originally slated for October.

Business as usual in terms of dividends: The world’s largest oil exporter maintained its generous dividend payouts for the quarter, distributing a total of SAR 116.45 bn (USD 31.05 bn) composed of a SAR 76.06 bn base dividend, and a SAR 40.39 bn performance-linked dividend, Aramco said in a separate disclosure to Tadawul.

Concerns remain on dividend sustainability: Analysts had previously pegged Aramco’s dividend payments as “unsustainable” given that they exceed FCF and would ultimately drive the company to increase borrowing. The world’s largest dividend payouts are starting to weigh on the company’s finances, particularly against a backdrop of a weak outlook for oil, Bloomberg wrote in its coverage.

Aramco will have to decide early next year between maintaining its generous payouts to shareholders — and consequently increasing borrowing — or cutting back dividends and depriving the Saudi state of key financing it needs to shore up its budget, Bloomberg reported separately. The Saudi government is by far Aramco’s largest stakeholder and relies heavily on its dividends to finance economic diversification plans. Aramco had previously leveraged debt to maintain its dividend payments during the covid-19 pandemic — a strategy that is not uncommon among large oil companies during slowdowns, the business information service notes. Aramco’s 2% net debt-to-equity ratio remains far lower than that of other major oil players, Bloomberg said.

REMEMBER: Aramco closed its first bond sale in three years in July, and tacked on another in August — raising a combined USD 9 bn so far this year.

Despite FCF hitting SAR 82.47 bn in 3Q 2024, up SAR 6.19 bn y-o-y on the back of “favorable movements in working capital,” the measure shed more than SAR 40 bn on a yearly basis to settle at SAR 238.91 bn in 9M — with Aramco attributing the decline to lower earnings.

Capex is still on the rise: Aramco’s capital expenditure stood at SAR 49.59 bn in 3Q 2024, up SAR 8.24 bn y-o-y, as the company funneled considerable investments into its upstream operations to maintain a maximum sustainable production capacity of 12 mn bbl / d, while also boosting downstream assets.

Red Sea International unit First Fix secures financing for bond sale

First Fix locks in financing for bond rollout: The Fundamental Installation for Electric Work (First Fix) lined up a SAR 280 mn Shariah-compliant loan from Saudi National Bank (SNB) to issue bonds, its parent company Red Sea International said in a filing to Tadawul. The loan is guaranteed by a promissory note, as well as corporate guarantees from Red Sea International and MSB, the disclosure said.

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First Fix will use the funds to facilitate bond issuances including a bid bond, advanced payment bond, performance bond, and retention bond. The bond program is intended to raise additional capital to finance the company’s upcoming projects, according to the filing. Part of the funds will also be allocated to letter of credit facilities.

About First Fix: Established in 2015, the Jeddah-based company specializes in mechanical, electrical, and plumbing (MEP) services, offering integrated design, engineering, and construction solutions, according to its website. Its clientele includes the likes of Neom, the Finance Ministry, and Aramco, among other high-level government, semi-government, and private sector outfits.

IN OTHER DEBT NEWS-

Saudi Printing and Packaging (SPP) is lining up a capital increase through debt conversion after inking a two-part debt settlement agreement with Alinma Bank to settle SAR 178.1 mn in outstanding debts, according to a disclosure to Tadawul. SPP will convert some SAR 73.6 mn in debt owed to Alinma Bank into new ordinary shares as per its board’s recommendation, with the move pending approval from regulators and shareholders. SPP tapped our friends at EFG Hermes KSA as financial advisor for the transaction.

And the rest? SPP will settle the remaining SAR 110 mn balance by transferring two land plots with a combined area of 122.3k sqm in Al Manarat District, Jeddah to Alinma bank, according to a separate disclosure outlining both transactions.

Industry Ministry awards six mining licenses

The Industry and Mineral Resources Ministry awarded exploration licenses for six exploration sites in Riyadh, Makkah, and Asir, according to a statement. The sites cover an area of 850 sq km located in Riyadh, Asir, and Makkah regions. The sites’ reserves contain a mix of gold, silver, copper, zinc, and lead.

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The details: The companies and consortiums awarded the licenses all committed SAR 75 mn in investments for the exploration efforts, and an additional SAR 5 mn for community development near the sites. The tenders were part of the Exploration Enablement Program announced by the government earlier this year that aims to incentivize mineral exploration by reducing early-stage risks for mining investments.

The awardees:

A consortium of ANS Exploration Company and Odyssey Metals Ltd. landed the Umm Qusur site in Riyadh;
The Shaib Marqan site in Riyadh went to the Auking Mining Ltd. and Barg Alsaman consortium;
Saudi Gold and Minerals Ltd landed Wadi Ad Dawsh in Asir;
A consortium, including the Metal Bank Ltd., secured the Wadi Al Junah site in Asir;
A consortium between RWAKED Construction & Mining and Masharf was awarded the Hazm Shubat site in Asir;
The Midad Almona and Tinka Resources Ltd. consortium landed Huwaymidan in Makkah.

More mining licenses in the pipeline: The ministry announced earlier in October it is accepting bids for seven new mining exploration licenses across Makkah and Riyadh, covering an area of nearly 1.1k sq km. The ministry said it will be accepting bids from local and foreign investors until mid-November through its Taadeen platform. The sites have reserves of key minerals, including gold, copper, zinc, and silver.

REMEMBER- Saudi Arabia has big mining plans: The ministry launched a fresh incentive package worth SAR 685 mn earlier this year as part of efforts to expand the sector and tap reserves of gold, phosphate and others. The goal is to attract local and foreign mining investors as part of a push to become a global hub for metals critical for the energy transition and become an EV manufacturing hub. The nation’s untapped mineral resources are now worth as much as USD 2.5 tn, or 90% more than the last forecast in 2016.

ALSO- The ministry signed an MoU with Sukuk Capital to facilitate access to financing solutions for startups in the mining sector, it said in a post on X.

MBG sets price range for Nomu IPO at SAR 13-15 apiece

Local contractor Multi Business Group (MBG) is guiding on a price range of SAR 13-15 per share for its offering of a 20% stake on Tadawul’s parallel market Nomu, the transaction’s financial advisor Amwal Financial said in a disclosure to Tadawul.

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Proceeds + market cap: At the top of the range, MBG’s IPO would raise SAR 45 mn in proceeds, and give it a market cap of SAR 225 mn at listing, according to EnterpriseAM Saudi calculations. After deducting SAR 2.8 mn for offering-related expenses, the remaining proceeds will go to stocking up on retail inventory for building materials, and shoring up the company’s working capital.

Ownership + lock-up: The company’s majority shareholder Adel Abdullah Suleiman Al Basri will see his direct and indirect ownership diluted from a 97.5% stake to 78% at listing. He will not be able to sell down their positions for a 12-month period from the first day of trading. Minor shareholders will see their positions reduced on a pro rata basis.

What’s next? Qualified investors can book a minimum of 10 shares and a maximum of 750k apiece between Tuesday, 12 November and Monday, 18 November. Final allocations are set for Thursday 21 November, while any available refunds will be processed by Monday, 25 November.

ADVISORS- Amwal Financial is quarterbacking the transaction as financial advisor, with AlMaghthawi & Partners providing counsel. Derayah is the lead manager. Receiving agents include Alinma Investment, AlRajhi Capital, SNB Capital, BSF Capital, Riyad Capital, ANB Capital and Alistithmar Capital, among others.

FDI guidelines get cabinet sign-off

The Council of Ministers signed off on several agreements and decisions at its weekly meeting yesterday, including granting its preliminary approval for the general national framework and guidelines for foreign direct investment (FDI), state news agency SPA reports. No further details were provided on the guidelines.

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Other approvals include:

An agreement with Qatar to prevent double taxation and counter tax evasion;
A framework agreement with the US for cooperation on air navigation and the exploration and use of space for peaceful purposes;
An MoU on political consultations with Estonia;
An MoU on meteorology between the World Meteorological Organization and Saudi’s National Center of Meteorology;
Approval of the the previous fiscal year’s final accounts for the Nuclear and Radiological Regulatory Authority and the Support and Liquidation Center;
Saudi’s accession to the Cement and Concrete Breakthrough Initiative, launched at COP28;
Several promotions to the fifteenth rank for key advisory and technical positions in a number of ministries and government bodies.

Neom Sports Club taps new CEO

Neom Sports Club appointed Alex Leitao (Linkedin) as its new CEO, according to a press release. Leitao succeeds Moaath Alohali (Linkedin), who will transition to an advisory role after more than a year in the position. Leitao previously served as CEO of Brazil’s Club Atletico Paranaense and the US Major League team Orlando City.

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Reuters looks at PIF’s wager on homegrown startups

On a morning where the conversation on Saudi in the foreign press is predominantly focused on Aramco’s earnings, PIF’s portfolio mix got some long-form commentary from Reuters. The newswire notes that the Saudi Sector Development — PIF’s largest and fastest growing segment — holds about 100 local firms valued at USD 251 bn as of last December, or about a third of PIF’s AUM. The segment “is halfway between a startup incubator and a private equity portfolio,” Reuters says, with the division housing familiar names such as Riyadh Air, SURJ Sports, and Savvy Games — each of which grabbed plenty of limelight at the recently-concluded FII forum.

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PIF’s wager: “Assessing the current financial health of these entities is complicated by their youth, and limited disclosure,” Reuters explained, adding that at least a few — Savvy Games got special mention — appear to be taking off. Nevertheless, the PIF’s job is complicated by a double mandate to increase jobs and boost local spending. Moreover, and despite the considerable resources available to the state budget and PIF, there is a limit to how much capital can be invested in these homegrown startups before they are expected to become profitable.

Al Hammadi Holding inches closer to launching a new hospital in Riyadh

HEALTHCARE-

Healthcare group Al Hammadi Holding purchased a land plot in Riyadh’s Al Mansiyah district for SAR 171.4 mn to build a hospital, it said in a disclosure to Tadawul. The land was bought from real estate investor Hamad Mohammed bin Saedan & Partner.

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LOCALIZATION-

Riyadh-based investment platform Ewpartners committed USD 50 mn to support Leshines in localizing its manufacturing footprint here at home, according to a press release. The Beijing-born company is the supply chain arm of multinational tech heavyweight Lenovo.

Leshines is exploring a move into the KSA-Sino Logistics Special Economic Zone at King Salman International Airport, a hub designed to streamline logistics and facilitate regional distribution. This zone — which is managed by E wpartners — and targets over 3k wholesalers, 200 manufacturers from China and Asia, and an initial investment of USD 2 bn, enabling Leshines and other companies to produce locally for global markets.

AVIATION-

Flynas adds two new routes to Africa: Saudi budget airline Flynas plans to launch two new routes connecting the Kingdom to Uganda and Djibouti starting 8 January, 2025, according to a LinkedIn post. The airline will operate three weekly flights between Riyadh and Entebbe in Uganda, and three others between Jeddah and Djibouti’s capital.

STARTUP WATCH-

Arzan VC and VCpreneur Ahmad Takatkah (Linkedin) are setting up revenue-based financing firm Revenya Capital, aimed at supporting tech startups in the MENA region, according to a press release (pdf). Backed by a USD 2 mn seed investment and additional credit from Arzan Financial Group’s network, Revenya Capital will offer short-term financing to startups’ marketing, inventory, and event expenses. The firm will target high-growth startups with predictable revenues, offering loans ranging from USD 50k–500k, repayable over 3-9 months with a fixed monthly fee.

LOGISTICS-

Mawani adds new shipping service to Jeddah Islamic Port: The Saudi Ports Authority (Mawani) added MSC’s Türkiye Red Sea Express service to Jeddah Islamic Port, it said in a statement. The new service, which has a 6k standard container capacity, will link the Jeddah port to the local King Abdullah Port in Rabigh, as well as ports of Tekirdağ, Aliağa, Mersin, and İskenderun in Turkey, and Aqaba in Jordan.

ENERGY-

Arabian Drilling deployed 10 unconventional land rigs over the past six months, part of a contract that was awarded in 3Q 2023, it said in a statement (pdf). Three additional rigs that were awarded in 1Q 2024 will also be installed by the end of the year, ahead of schedule. The five-year contracts add SAR 3.9 bn to the company’s backlog.

ENTERTAINMENT-

A new local film studio is live and rolling in Riyadh: The Saudi General Entertainment Authority launched one of the largest film and TV production studios in the Middle East, AlHisn Big Time Studios, according to state news agency SPA. The studio complex features seven buildings spanning 10.5k sqm within a 300k sqm production site. It includes carpentry, blacksmithing, and costume workshops, as well as VIP suites, production offices, and editing rooms.

Investors watch equities, bonds, and crypto as US election unfolds

We’re hours away from the results of one heated US presidential race, and financial markets are gearing up for the wild swings to come. Traders are bracing for heightened volatility amid a tight race between Republican candidate Donald Trump and Democratic candidate Kamala Harris. The stakes are high, with potential policy shifts, economic ramifications, and the Federal Reserve’s imminent rate decision all poised to impact investor sentiment and market movements.

We have the latest on the election in this morning’s What We’re Tracking Today, above.

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This election’s outcome is poised to reshape various sectors, from healthcare and energy to technology and banking. A Trump victory could boost traditional energy stocks, while a Harris victory might favor renewable energy and tech sectors due to anticipated regulatory changes. Market participants are adjusting their portfolios accordingly, preparing for sector-specific impacts based on the election’s result.

What’s at stake for markets? As the dust settles on one of the most divisive US presidential elections in history, investors are zeroing in on the potential market ripples. From equities to bonds, currencies, and crypto, each asset class is poised for unique shifts depending on whether Trump or Harris claims victory.

Equities: Post-election market movements are expected to be sector-specific rather than broad-based. Stuart Kaiser from Citigroup notes that traders are bracing for a 1.8% swing in either direction for the S&P 500 immediately following the results. Goldman Sachs' indexes — which track stocks favorable to either a Trump or Harris victory — show divergent trends; Trump-linked baskets waned in late October while Harris-aligned stocks gained momentum. “This will be one of the most easily investible election results ever, given the policy divergence between the two candidates,” David Wagner from Aptus Capital Advisors told Bloomberg.

Pulse check: All of the nation’s major indices closed in the green last night — the benchmark S&P 500 was up 1.2%, the Dow Jones closed 1.0% higher, and the Nasdaq saw the most significant increases with a 1.4% gain.

Bonds: “The markets are most concerned about a sweep and the lack of checks and balances,” BNY Mellon Wealth Management’s John Flahive told Bloomberg. Meanwhile, JPMorgan strategists predict that a Republican sweep could push 10-year yields higher, while a Harris victory with a divided Congress might stabilize the bond market, fostering a relief rally.

Currencies: Trump’s tariff policies are likely to bolster the USD, potentially pushing it by 7% higher on a trade-weighted basis, according to JPMorgan’s Meera Chandan. This would weaken other currencies like CNY, MXN, and most notably the EUR. A Harris victory, on the other hand, could weaken the USD and strengthen the EUR, with the threat of new tariffs in the rearview.

Crypto: It appears unlikely that the crypto sector would be harmed by which way the election race goes — A Trump administration will create a strategic reserve of BTC and ease regulatory constraints, spurring optimism in the crypto market, while a Harris administration “wouldn’t necessarily be a negative for the sector,” writes Bloomberg. “Whoever the next administration is, it’s going to take a very different approach on a regulatory perspective toward crypto,” Chris Rhine from Galaxy Digital is quoted as saying by Bloomberg.

The story is getting a lot of ink in international press: Bloomberg | CNBC | Reuters | The Guardian | CNN.

MARKETS THIS MORNING-

Asia-Pacific markets are mostly in the green in early trading. Japan’s Nikkei is leading the gains, up over 1.7%, Shanghai is up 0.6%, and South Korea’s Kospi is up 0.1%. The Hang Seng Index is in the red, down 1.1%.

Over on Wall Street, stock futures are flat as investors sit awaiting the results of the presidential election.

TASI	12,015	-0.2% (YTD: +0.4%)
MSCI Tadawul 30	1,508	-0.3% (YTD: -2.8%)
NomuC	28,832	+2.7% (YTD: +17.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	5.5% repo	5.0% reverse repo
EGX30	30,794	+0.5% (YTD: +23.7%)
ADX	9,384	+0.6% (YTD: -2.0%)
DFM	4,595	+0.2% (YTD: +13.2%)
S&P 500	5,783	+1.2% (YTD: +21.2%)
FTSE 100	8,172	-0.1% (YTD: +5.7%)
Euro Stoxx 50	4,870	+0.4% (YTD: +7.7%)
Brent crude	USD 75.57	+0.7%
Natural gas (Nymex)	USD 2.67	-4.0%
Gold	USD 2,750	+0.1%
BTC	USD 69,606	+2.4% (YTD: +64.5%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.2% yesterday on turnover of SAR 5.7 bn. The index is up 0.4% YTD.

In the green: Riyadh Cables (+7.0%), ACC (+4.5%) and MIS (+4.4%).

In the red: Wataniya (-10.0%), AlEtihad (-9.3%) and Burgerizzr (-5.8%).

THE CLOSING BELL: NOMU-

The NomuC rose 2.7% yesterday on turnover of SAR 113 mn. The index is up 17.5% YTD.

In the green: Purity (+16.3%), Gas (+12.9%) and Jahez (+7.9%).

In the red: Naba Alsaha (-9.8%), Knowledge Tower (-8.2%) and Paper Home (-7.7%)

CORPORATE ACTIONS-

#1- The National Environment Recycling Company received CMA approval to increase its capital by 100% by granting bonus shares to shareholders, it said in a disclosure to Tadawul. The capital hike will be financed by capitalizing SAR 58.1 mn from the firm’s retained earnings.

#2- SAL Saudi Logistics is set for a shareholder reshuffle: The Tadawul-listed logistics player received a letter from Tarabot Air Cargo — a major shareholder that holds a 21% stake in SAL — indicating that it will transfer its shares in SAL to the investment portfolios of companies owned by Tarabot’ partners, according to a disclosure to Tadawul.

Saudi and Iraqi defense ministries ink MoU on military cooperation

More military cooperation with Iraq: Defense Minister Khalid Bin Salman inked an MoU on military cooperation with his Iraqi counterpart Thabet Mohammed Al-Abbasi during a visit to Riyadh, state news agency SPA reported yesterday. The pair also discussed means to boost collaborations in defense as well as efforts for de-escalation in the region.

CALENDAR

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

3-23 November (Sunday-Sunday): NEOM Beach Games, Neom.

4-7 November (Monday-Thursday): Saudi Build, Riyadh.

5-9 November (Tuesday-Saturday): Biban24 Forum, The Front Exhibition and Conference Center, Riyadh.

11 November (Monday): Last day for qualified investors to subscribe to Mufeed's 10% stake on Nomu.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh Exhibition and Convention Center.

11-22 November (Monday-Friday): The Diplomatic Conference to Conclude and Adopt a Design Law Treaty, Riyadh.

11-12 November (Monday-Tuesday): World Advanced Manufacturing Logistics Summit & Expo, Riyadh.

11-12 November (Monday-Tuesday): Saudi Airport Exhibition, Riyadh.

11-12 November (Monday-Tuesday): Expenditure Efficiency Forum, The Hilton, Riyadh.

11-13 November (Monday-Wednesday): Saudi Intermobility Expo 2024, Jeddah.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

11-17 November (Monday-Sunday): Launch of China’s USD 2bn bond issuance in Saudi.

12-18 November (Tuesday-Monday): Offering period for Multi Business Group’s (MBG) Nomu IPO.

16 November (Saturday): Latino Night at Riyadh Season, Riyadh.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

19-20 November (Tuesday-Wednesday): The Women's Economic Forum 2024, Dammam.

20-21 November (Wednesday-Thursday): The Saudi Rail Conference and Exhibition, Riyadh International Convention and Exhibition Center, Riyadh.

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam.

21 November (Thursday): Final allocation for Multi Business Group’s (MBG) Nomu IPO.

23 November (Saturday): Red Sea 600, Jeddah Yacht Club and Marina.

25 November (Monday): Refunds for Multi Business Group’s (MBG) Nomu IPO.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

25 November-1 December (Monday-Sunday): Offering period for Digital Research Company’s (DRC) Nomu IPO.

26 November (Tuesday): Saudi Aramco 3Q 2024 dividend distribution.

26-28 November (Tuesday-Thursday): Future Power Expo, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

28 November-14 December (Thursday-Saturday): Noor Riyadh, Riyadh.

29 November-2 December 2024 (Sunday-Wednesday): World Sailing Youth Match Racing World Championship, Jeddah Yacht Club and Marina.

DECEMBER

1 December (Sunday): Opec+ to meet.

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh.

3-5 December (Tuesday-Thursday): The International Business Exchange – IBEX EVENTS, Riyadh.

4 December (Wednesday): Final allocation for Digital Research Company’s (DRC) Nomu IPO.

4-5 December (Wednesday-Thursday): Zakat, Tax and Customs Conference, Riyadh.

8 December (Sunday): Refunds for Digital Research Company’s (DRC) Nomu IPO.

11 December (Wednesday): Billboard Arabia Music Awards (BBAMAs), King Abdullah Financial District, Riyadh.

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.

5-8 December (Thursday-Sunday): World Sailing Women’s Match Racing World Championship, Jeddah Yacht Club and Marina.

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

15-19 December (Sunday-Thursday): Internet Governance Forum, King Abdulaziz International Conference Center, Riyadh.

18-19 December (Wednesday-Thursday): Impact Makers Forum (ImpaQ), Mayadeen Hall, Riyadh.

23-26 December (Monday-Thursday): Aqarat Expo, Riyadh.

31 December (Tuesday): Last day for taxpayers to benefit from Zatca’s fines and penalties waiving initiative.

2025

1Q: BinDawood Holding expected to close 100% acquisition of Zahrat Al Rawdah Pharma

Saudi and Turkey plan to raise their bilateral trade volume to USD 10 bn

JANUARY 2025

1-17 January (Wednesday-Friday): 2025 Dakar, Bisha and Shubaytah.

14-16 January (Tuesday-Thursday): Future Minerals Forum, King Abdulaziz International Conference Center, Riyadh.

27-29 January (Monday-Wednesday): Real Estate Future Forum, Four Seasons Hotel, Riyadh.

28-29 January (Tuesday-Wednesday): Sustainability Forum Middle East, Riyadh.

29-30 January (Wednesday-Thursday): Global Labor Market Conference, Riyadh.

FEBRUARY 2025

4-5 February (Tuesday-Wednesday): The RLC Global Forum, Riyadh.

6 February (Thursday): Property registration deadline for owners in several districts of seven Qassim cities.

6-8 February (Thursday-Saturday): Liv Golf season opener, Riyadh Golf Club, Riyadh.

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.

14-15 February (Friday-Saturday): Formula E, Diriyah.

19-21 February (Wednesday-Friday): Saudi Media Forum, Riyadh.

22 February (Saturday): Founding Day.

MARCH 2025

31 March- 3 April (Monday-Thursday): Eid Al Fitr.

MAY 2025

31 May-5 June (Saturday-Thursday): Hajj.

JUNE 2025

6-9 June ( Friday-Monday): Eid al-Adha.

26 June (Thursday): 2024-2025 academic year ends.

JULY 2025

31 July (Thursday): Deadline for companies with SAR 2.5 mn or more in 2022/2023 revenues to integrate e-invoicing solutions with Fatoora.

SEPTEMBER 2025

23 September (Tuesday): Saudi National Day.

2026

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

26-29 October (Monday-Thursday): World Energy Congress, Riyadh.

2027

The World Water Forum takes place in Riyadh.

The Ocean Race finishes in Amaala on the Red Sea.

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