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) Crown Prince Mohammed bin Salman has directed to prepare investment regulations for NEOM megacity, based on the appropriate business practices and future prospects and in order to overcome bureaucracy and legal hurdles, Al-Madina newspaper reported, citing chief executive officer Klaus Kleinfeld.

2) Saudi Arabia’s budget deficit is expected to narrow over 2018 as a whole, despite the gap widening in first-quarter as compared to last year, Capital Economics said in a recent report.

3) Foreign direct investment (FDI) in Saudi Arabia has increased by 40 percent in Q1 2018 year-on-year, CNBC reported, citing Saudi Arabian General Investment Authority (SAGIA) governor Ibrahim Al-Omar.

4) Opening the way to foreign banks to enter the Saudi market is a key step towards boosting investments in the Kingdom, as Saudi lenders will coexist and compete with the newcomers, Musaed Al-Mineefi, Saudi Investment Bank’s (SAIB) CEO, told Al Arabiya.

5) National Industrialization Co.’s (Tasnee) subsidiary Advanced Metal Industries Cluster Company Limited (AMIC) signed an option agreement with NYSE-listed Tronox Ltd to sell 90 percent ownership in its titanium slag smelter facility (slagger) in Jazan City.

6) Saudi Basic Industries Corp (SABIC) is said to be seeking to buy about half of the $4.6-billion Oil and Natural Gas Corp. (ONGC) backed India’s biggest petrochemical plant.

7) Bupa Arabia for Cooperative Insurance (Bupa Arabia) reported a net profit before zakat of SAR 9.3 million for Q1 2018, a 74.5 percent year-on-year (YoY) plunge. The insurer attributed the lower profit to higher operating expenses and net claims incurred.

8) Riyad Bank reported a net profit of SAR 1.13 billion for Q1 2018, up 8.6 percent YoY as total operating income increased, on higher net special commission income, trading gains, net and fee and commission income.

9) Saudi Enaya Cooperative Insurance Co.’s board of directors recommended a 50 percent capital reduction to SAR 100 million from SAR 200 million to offset accumulated losses.

10) Declining oil production in Venezuela and potential export disruptions in Iran could push the price of Brent crude as high as $100 per barrel in 2019, Bank of America’s analysts said. Brent closed on Friday lower by 0.5 percent at $77.12/bbl, while WTI crude fell 0.9 percent to $70.7/bbl.

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