Tech companies now top the world’s biggest three companies: US chipmaker Nvidia has surpassed oil and gas colossus Saudi Aramco in market value, becoming the world’s third-most valuable public company behind fellow American tech giants Apple and Microsoft, Bloomberg reports. Nvidia’s value climbed 2.5% to USD 2.1 tn yesterday, extending a sharp rally that saw the company’s stock surge nearly 70% and add some USD 883 bn in value this year already.

Fuelling the rally: Nvidia’s stocks were buoyed by bumper 4Q 2023 earnings last month that recorded a 265% y-o-y jump on the back of a splurge in AI spending. Net income also skyrocketed 770% during the same period to USD 12.3 bn. At the time, Nvidia’s CEO and founder Jensen Huang described the results as a “tipping point” for the AI industry.

Meanwhile at Aramco: The value of the majority state-owned Saudi Aramco dropped to USD 2 tn yesterday. Aramco’s stock has dipped over 5% this year due to oil supply cuts by OPEC+ and a potential follow-on offering in the company by the Saudi government.

MARKETS THIS MORNING-

In Asia, it’s red as far as the eye can see, with Chinese, Korean, and Japanese benchmarks edging lower this morning as China’s big annual political get-together kicked off this morning. Traders are looking for clarity on the Communist Party’s economic policy for the year. Officials are now guiding for GDP growth of “around 5%” for this year, a bit below the 5.2% it advanced in 2023.

Futures point to a soft open for stocks in Europe, on Wall Street, and on Bay Street later today.

ADX

9,285

+0.1% (YTD: -3.1%)

DFM

4,326

-0.7% (YTD: +6.6%)

Nasdaq Dubai UAE20

3,763

+0.2% (YTD: -2.1%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.3% o/n

5.3% 1 yr

TASI

12,434

-1.0% (YTD: +3.9%)

EGX30

30,542

+5.1% (YTD: +22.7%)

S&P 500

5,131

-0.1% (YTD: +7.6%)

FTSE 100

7,640

-0.6% (YTD: -1.2%)

Euro Stoxx 50

4,913

+0.4% (YTD: +8.7%)

Brent crude

USD 82.67

-0.2%

Natural gas (Nymex)

USD 1.92

+1.0%

Gold

USD 2,120.80

-0.3%

BTC

USD 67,869.51

+7.9% (YTD: +58.9%)

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 892.6 mn. The index is down 3.1% YTD.

In the green: Response Plus Holding (+15.0%), Fujairah Building Industries (+14.9%) and Sharjah Cement and Industrial Development (+6.7%).

In the red: RAK National Ins. (-10.0%), Rapco Investment (-9.6%) and ESG Emirates Stallions Group (-6.2%).

Over on the DFM, the index closed down 0.7% on turnover of AED 334.7 mn. And in Nasdaq Dubai, the index rose 0.2%.

CORPORATE ACTIONS-

#1- Dubai road-toll operator Salik proposed distributing AED 550 mn in dividends for 2H 2023,amounting to 7.33 fils per share, according to a DFM disclosure (pdf), after their board meeting yesterday.

#2- Abu Dhabi Commercial Bank proposed paying dividends of 56 fils per share for its earnings for FY2023, it said in an ADX disclosure (pdf).

#3- TECOM Group will pay AED 400 mn in dividends for 2H 2023, amounting to 8 fils per share, according to a DFM disclosure (pdf). The Group’s total payout during 2023 amounts to AED 800 mn.

#4- Sukoon Ins. submits formal offer to acquire the remaining shares of ASCANA: Sukoon Insurance made a cash offer at AED 1.65 per share to acquire up to 6.95% of the issued and paid-up ordinary shares of the Arabian Scandinavian Ins. Company (ASCANA), according to a formal offer submitted on the DFM. If ASCANA’s shareholders accept the offer, the total value of the transaction would amount to AED 17.6 mn.

Sukoon Insurance already owns a 93.1% stake in ASCANA, and our friends at Mashreq hold a 65.7% ownership in Sukoon Ins.’s share capital.

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