Saudi bourse gains on upbeat earnings, non-oil activity; Egypt falls | Reuters
Saudi Arabia's stock market extended gains for a third session on Sunday on buoyant earnings and upbeat non-oil business activity, while the Egyptian bourse fell further on profit taking.
The benchmark index (.TASI) in Saudi Arabia gained 1.3%, buoyed by a 1.9% rise in Al Rajhi Bank (1120.SE) and a 0.8% increase in Retal Urban Development Co (4322.SE).
The kingdom's non-oil business sector activity soared to its highest level in eight years in February, a survey showed on Sunday, based on a strong increase in demand and an optimistic economic outlook.
According to Ahmed Negm, Head of Market Research MENA at XS.com, the favourable business conditions in non-oil sectors could help companies maintain their profit levels despite monetary policy tightening and eroding global conditions.
"However, the developments in oil markets could still have an uncertain impact on Saudi stocks due to the current volatility."
Oil prices - a key catalyst for the Gulf's financial markets - gained by more than $1 per barrel on Friday and ended the week higher, driven by renewed optimism around demand from top oil importer China.
Leejam Sports (1830.SE) advanced 2.6% following a sharp rise in annual profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.1%, extending losses on profit-taking after the market hit a high in February.
Expectations of tighter monetary policy in the U.S. and Europe could exacerbate this trend further as investors could move toward safer assets in other markets, said Ahmed Negm.
However, the index's losses were limited by a 7.7% surge in Telecom Egypt (ETEL.CA).
According to a media report, the telecom firm and Huawei Egypt inked a cooperation agreement to foster cooperation in digital transformation.
Oil Prices Threaten to Hit $100 a Barrel With Chinese Demand Soaring - Bloomberg
As Covid-19 lockdowns gripped the world in 2020, Bernard Looney, chief executive officer of BP Plc, made a startling admission: He thought that oil demand might never return to its pre-pandemic peak. But recently, Looney has done an about-face.
After announcing ambitious plans to cut emissions, BP, one of the world’s top crude producers, is now plowing more money into fossil fuels. Oil consumption is heading for a record this year, according to the International Energy Agency, which advises major economies. Supply — buffeted by Russia’s invasion of Ukraine, a slowdown in US shale growth and lackluster investment in production — can’t keep up.
It all comes down to China: The world’s second-biggest oil consumer is snapping up crude after reversing its strict Covid-19 policies. Against a backdrop of tight supply, the demand boost has everyone from Goldman Sachs Group Inc. to trading powerhouse Vitol Group predicting a rally to $100 a barrel later this year.
“The demand from China is very strong,” Amin Nasser, CEO of Saudi Aramco — the world’s biggest oil company — said in a March 1 interview in Riyadh.
By the second half of the year, analysts say, the market will face a shortage — a scenario that will loom over the industry leaders meeting this week in Houston for CERAWeek by S&P Global, a major annual energy conference.
Saudi Arabia Economic Conditions in 2023 Near 2014 High - Bloomberg
Business activity in Saudi Arabia’s non-oil private sector expanded at the fastest pace in almost eight years as an economic boom fueled rising demand.
New orders rose in February by the most since September 2014, and companies are optimistic about the year ahead, according to a survey of purchasing managers compiled by S&P Global.
The Riyad Bank Saudi PMI rose to 59.8 last month from 58.2 in January, well above the 50-mark separating growth from contraction and the highest since March 2015.
Saudi non-oil business activity surges in February on strong demand-PMI | Reuters
Saudi Arabia's non-oil business sector activity soared to its highest level in eight years in February, a survey showed on Sunday, based on a strong increase in demand and an optimistic economic outlook.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index jumped to 59.8 in February, from 58.2 the previous month, the fastest rate of increase since March 2015.
A substantial rise in new orders indicated improved economic conditions for businesses. The New Orders sub-index rose to 68.7 last month - the highest reading in more than eight years - from 65.3 in January, continuing a recent trend upwards on strong demand momentum.
As a result the Output sub-index also recorded a strong increase, at 65.6 in February from 63.6 in the previous month, leading to further expansion in employment and purchasing.
Alpha Dhabi records net profit of $2.88bln in 2022
Alpha Dhabi Holding PJSC (Alpha Dhabi or the Group), listed on the Abu Dhabi Securities Exchange (ADX: Alphadhabi), has reported its financial results for the full year period ending 31 December 2022, and the numbers are impressive.
In 2022, Alpha Dhabi achieved a net profit of AED 10.6 billion, a staggering increase of 104% year-on-year from AED 5.2 billion. This achievement has exceeded the guidance of AED 10 billion net profit provided at the beginning of the year, showcasing the Group's ability to outperform its targets.
Revenues also experienced significant growth, reaching AED 40.0 billion, which represents an increase of 114% year-on-year. The growth was primarily driven by strong contributions from the existing portfolio and new acquisitions, particularly across core verticals such as real estate and construction, healthcare, and industrials. These sectors continue to be key engines of growth for the Group.
Hamad Al Ameri, CEO of Alpha Dhabi Holding, commented on the results, stating, "Alpha Dhabi continues to go from strength to strength as we completed our first year as a listed company, which set the tone for 2022 and ushered a new phase of growth for Alpha Dhabi. We delivered a record set of results, driven by the successful execution of our growth agenda which continues to move forward at pace, resulting in enhanced scale, diversification, and earnings growth across our Group."
He further added, "Looking ahead to 2023, we are committed to building on the strong transaction activity and performance momentum garnered in what was a transformational year. Our financial strength and accelerated growth are creating considerable sustainable value and will position us well for the year ahead as we continue to cement our position as a leading regional investment holding company and a pivotal actor in the UAE's thriving investment and business landscape."
Overall, Alpha Dhabi's financial results for the full year 2022 demonstrate the Group's successful execution of its strategic priorities and its ability to generate significant returns for its shareholders, underpinned by the robust fundamentals of the UAE economy and market.
