10 things to consider as Tadawul starts trading

Here are a few things you need to know as Saudi stocks start trading on Sunday.

1) The inclusion of the Saudi Stock Exchange (Tadawul) in Emerging Market index by S&P Dow Jones Indices will boost investor confidence in the equity market and signal the Kingdom’s position among the world’s biggest and most liquid markets, said Khalid Al Hussan, chief executive of Tadawul.

2) Tadawul All Share Index (TASI) could rise another 20 percent between now and early next year to reach 10,000 points, compared to the current 8,400-level, Jadwa Investment said in a report.

3) Tadawul has approved the listing and trading of SAR 3.47 billion in local-currency government debt instruments, as per the listing rules of the Capital Market Authority (CMA).

4) Al Rajhi Bank posted a net profit of SAR 4.95 billion for H1 2018, an increase of 12.5 percent year-on-year (YoY) as total operation income rose.

5) Saudi Investment Bank (SAIB) reported a net profit of SAR 723 million in H1 2018, a 3 percent increase YoY driven by higher total operating income.

6) Saudi Telecom Co. (STC) reported a net profit of SAR 5.03 billion in H1 2018, a 2.8 percent rise YoY due to decline in cost of revenues and operating expenses.

Separately, the telco said its board of directors has recommended a 10 percent cash dividend for Q2 2018, at SAR 1 per share, amounting to SAR 2 billion.

7) Hail Cement Co. recorded SAR 13.8 million losses for the first half of 2018, versus SAR 11 million profit in the same period last year.

8) Yamama Cement Co. recorded SAR 12.4 million losses in the first half of 2018, after achieving SAR 63 million profits in the year-ago period.

9) Middle East Healthcare Co. (MEAHCO), which owns and operates Saudi German Hospitals, has signed a SAR 500 million Islamic financing (Musharka) agreement with Alinma Bank.

10) Saudi Aramco is considering issuing international bonds for the first time to finance a stake acquisition in petrochemical giant Saudi Basic Industries Corporation (SABIC), Bloomberg reported.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com