10 things you need to know on Tadawul today

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

1) Alawwal Bank and Saudi British Bank (SABB) have obtained approval from the board of directors to start preliminary talks on a potential merger between the two lenders, the banks said in a statement. The announcement comes shortly after First Gulf Bank and National Bank of Abu Dhabi officially merged earlier this month to create the largest bank in the United Arab Emirates with about $186 billion in assets.

2) The board of Tadawul-listed Nadec, one of the largest agricultural companies in the Middle East, has just approved a proposal to sell the company’s 17.2 percent stake in Pure Breed Poultry Co. for SAR 25 million. The company said it will record a capital gain of SAR 22 million from the transaction.

3) King Abdullah Financial District is reportedly planning a soft launch of its first phase in June or July despite red tape and uncertainty about its projects, Reuters reported citing Salman Albaiz, director of the project. The Kingdom’s Public Investment Fund is an investor in the business district, and is already committed to leasing office spaces there, along with Samba Financial Group and PwC.

4) As financial results of Tadawul-listed firms continue to trickle in, Yanbu Cement Co. reported a net profit of SAR 124 million for Q1 2017, marking a 27.5 year-on-year decline.

5) Electronics retailer United Electronics Company (eXtra) reported a net profit of SAR 13 million for Q1 2017 compared to a net loss of SAR 45.9 in the same period last year.

6) Meanwhile, Electrical Industries Co. said it will pay SAR 0.90 per share cash dividend for fiscal year 2016 on May 11, 2017 through Al Rajhi Bank.

7) The Saudi Real Estate Company said it plans to issue a SAR 0.5 per share cash dividend for the second half of 2016 on April 30, 2017 through the National Commercial Bank.

8) Yesterday, the National Shipping Company of Saudi Arabia (Bahri) has appointed acting chief financial officer Ali Abdullah al-Harbi as acting chief executive officer (CEO) effective April 25 after its former CEO Ibrahim Al Omar was appointed as governor of Saudi Arabian General Investment Authority by royal decree on Saturday.

9) Elsewhere, oil prices slipped this morning as rising US inventories dampened investor confidence. Brent crude was last down 0.12 percent at $52.06/bbl and WTI crude fell 0.1 percent to $49.47/bbl.

10) The Kingdom’s finance ministry said Wednesday that it will pay the restored bonuses, allowances, and financial stipends to state employees starting May 26. Payments will be appraised from April 22, the date that King Salman passed the decree to reinstate the allowances. 

Write to Reem Abdellatif at reem.a@argaam.com