Financial Morning Summary | Busy Day for Both markets: Saudi Fisheries Eliminates Losses to 0%, BSF, Alinma and Jarir Post Earnings; Meta Q4 Earnings Beat, Tesla Misses, Microsoft Surpasses

ALRAJHI +0.30%
MBC GROUP -0.90%
NVIDIA Corporation +0.40% Pre
SNB +0.14%
SFICO -4.31%

ALRAJHI

1120.SA

100.20

+0.30%

MBC GROUP

4072.SA

55.00

-0.90%

NVIDIA Corporation

NVDA

139.40

140.09

+0.40%

+0.49% Pre

SNB

1180.SA

34.90

+0.14%

SFICO

6050.SA

124.40

-4.31%

 Most Important News

  • Al Rajhi Bank Outpaces SNB in Deposits and Loans for 2024
  • Sumou Real Estate Signs Two Major Contracts with Saudi Arabia Railways (SAR)
  • Tesla's Q4 Earnings Disappoint, But 2025 Outlook Boosts Stock

1. Market Summary

Saudi Arabia's Tadawul All Shares Index(TASI.SA) was up by 0.15% to reach 12,439.48 points on Wednesday. Al Rajhi Bank(1120.SA) and MBC Group Co.(4072.SA) gained the most, up by 4.69% and 4.36%, respectively. 

Know more about yesterday's trending Saudi stocks

On Wednesday, all three major averages S&P 500 index(SPX.US), NASDAQ(IXIC.US), and Dow Jones Industrial Average(DJI.US) ended the session lower as a 4% decline in NVIDIA Corporation(NVDA.US) weighed on the market. 

The declines come after the Fed paused its interest rate-cutting campaign, leaving its borrowing rate unchanged in a range between 4.25% and 4.5%. In their post-meeting statement, policymakers noted that inflation remains “somewhat elevated.”

Know more about yesterday's trending USA stocks

2. Quick News

Mukaab: Saudi Arabia’s Futuristic Architectural Landmark to Reshape Riyadh’s Skyline

The Mukaab, part of Riyadh’s New Murabba development, is set to become the world’s most complex structure. The 400m by 400m building will feature a cavernous underground mall, multiple skyscrapers, and the largest roof in the world. Once complete, the development will house 400,000 people and attract millions annually.

Saudi Insurance Sector Grows 16.9% in Q3 2024, Driven by Motor and Medical Coverage

Saudi Arabia’s insurance sector (Insurance Index(TISI.SA) ) saw a 16.9% YoY revenue increase in Q3 2024, with motor and medical coverage up 22.7% and 13.6%, respectively. Regulatory reforms under Vision 2030, infrastructure growth, and digital advancements are key drivers. The sector’s net profit surged 25.9% YoY to SAR 3.9 billion, according to KPMG and Bloomberg data.

Trump Criticizes Fed’s Rate Decision, Markets React to Uncertainty

After the Federal Reserve held rates steady, President Trump criticized the decision, claiming the Fed failed to tackle inflation. He promised to address inflation through energy policies, trade adjustments, and manufacturing revival. The Fed’s cautious tone on inflation led to market declines, with major indices down. Trump warned that if the Fed doesn’t cut rates, he will take economic measures to achieve that goal. Despite pressure, Powell maintains the Fed’s independence, and markets are unsure about future rate changes.

3. Stocks To Watch

KSA Stocks

Al Rajhi Bank Outpaces SNB in Deposits and Loans for 2024

Al Rajhi Bank(1120.SA) surpassed The Saudi National Bank(1180.SA) in deposits and loans for the first time in 2024. Al Rajhi's deposits grew 10% YoY to SAR 628.2 billion, while loans rose 17% to SAR 693.4 billion. SNB’s deposits fell 2% YoY, while loans grew 9%. Both banks saw profit growth, with SNB's net profit rising 6% to SAR 21.19 billion and Al Rajhi’s up 19% to SAR 19.72 billion.

Saudi Fisheries Cuts Capital, Eliminates Losses to 0%

Saudi Fisheries Co.(6050.SA) reduced its capital by 83.25%, from SAR 400 million to SAR 66.99 million, extinguishing its accumulated losses. This move was approved during an Extraordinary General Assembly on January 26, 2025, leaving the company with no remaining accumulated losses.

Banque Saudi Fransi's 2024 Profits Up 7.6% Despite Lower Impairments

Banque Saudi Fransi(1050.SA) reported a 7.6% increase in net profit for 2024, reaching SAR 4.544 billion. The rise was driven by a 3.6% boost in operating income and a 0.6% reduction in operating expenses. However, net impairments decreased by 26%.

BSF announced a recommendation to distribute cash dividends for the second half of 2024, being SAR 0.50 per share, eligibility date to be confirmed.

Alinma Bank Reports 20.5% Profit Increase, Declares Q4 2024 Dividends

Alinma Bank(1150.SA) reported a 20.5% increase in net profit for 2024, reaching SAR 5.83 billion, driven by higher special commission income and a reduction in impairment charges. The bank's board recommended SAR 746.1 million in cash dividends for Q4 2024, equating to SAR 0.30 per share.

Sumou Real Estate Signs Two Major Contracts with Saudi Arabia Railways (SAR)

Sumou Real Estate Co.(4323.SA) has signed two contracts with Saudi Arabia Railways (SAR) for commercial developments in Riyadh and Dammam.

  1. Al-Malaz Commercial Project (Riyadh)
    • Contract Value: SAR 34.87 million
    • Contract Duration: 26 months
  2. Arina Commercial Project (Dammam)
    • Contract Value: SAR 29.57 million
    • Contract Duration: 33 months

Impact: Both have positive impact expected on the company's results upon receiving the site.

Jarir Marketing Reports Modest Profit Growth in 2024

Jarir Marketing Co.(4190.SA) announced a slight 0.1% increase in net profit for 2024, reaching SAR 974 million. Despite a 2.2% sales rise, driven by higher smartphone and tablet sales, net profit growth was limited by rising operating expenses. Total revenue for the year was SAR 10.83 billion.

USA Stocks

Meta Reports Strong Q4 Earnings, Focuses on AI & Infrastructure for 2025

Meta Platforms(META.US)'s Q4 earnings exceeded expectations, with revenue of $48.39 billion and EPS of $8.02, up 21% and 49% YoY respectively. CEO Mark Zuckerberg expressed optimism for 2025, anticipating government support for US tech. Meta's core platforms grew, and AI chatbot MAUs hit 700M. However, Q1 2025 revenue guidance fell slightly short at $39.5B-$41.8B. Meta plans heavy investment in AI, infrastructure, and Reality Labs, despite a $5B loss in Q4 for its VR/AR division.

Tesla's Q4 Earnings Disappoint, But 2025 Outlook Boosts Stock

Tesla Motors, Inc.(TSLA.US)'s Q4 earnings missed expectations, with adjusted EPS of $0.73 versus the expected $0.75. However, the company's forecast for AI, software, and autonomous vehicle profit growth in 2025 lifted investor confidence. Despite a 2024 sales dip, Tesla's stock rose 4.37%, reflecting optimism about its future prospects and Elon Musk's broader influence. Tesla also plans to produce affordable cars and Cybercab by 2026, with a strategy to combine existing and next-gen platforms to boost production. Regulatory credits declined to $692 million.

Microsoft Q2 Earnings Beat Expectations, But AI Growth Faces Challenges

Microsoft Corporation(MSFT.US)'s Q2 2025 earnings surpassed expectations, with revenue up 12% YoY to $69.6 billion and EPS of $3.23, higher than the $3.12 forecast. Azure's AI-driven growth reached 13%, but limited data center capacity is slowing cloud growth. Despite strong demand and a 67% increase in commercial bookings, Azure's growth rate for Q3 is expected to slow to 32%. The company plans to invest $80 billion in AI data centers this fiscal year, but high spending raises investor concerns.

American Airlines Stock Drops Over 3% After Fatal Crash

American Airlines Group, Inc.(AAL.US)' stock dropped more than 3% after Flight AA5342, a Bombardier CRJ700, crashed near Ronald Reagan Washington National Airport, following a collision with a U.S. military Black Hawk helicopter. The flight had 60 passengers and 4 crew members aboard.

4. Saudi Stock Calendar

EventCompany
SAMA monthly bulletinSAMA
Eligibility for Cash DividendDerayah REIT Fund(4339.SA) 
Eligibility for Cash DividendMunawla Cargo Co.(9571.SA) 
Eligibility for Cash DividendSEDCO Capital Multi Asset Traded Fund(4703.SA) 
Final allocation dateLamasat
Every question you ask will be answered
Scan the QR code to contact us
whatsapp
Also you can contact us via