Most Important News

• JABAL OMAR Sells Land Plot for SAR 1.07 Billion
• Nvidia Shares Dip Post-Earnings Despite Beating Estimates
• PIF Assets Reach SAR 145 Billion in Q2 2024

1. Market Summary

Saudi Arabia's benchmark index Tadawul All Shares Index(TASI.SA)  was down 0.1% after three consecutive session of gains, with most sectors in the red. Saudi Arabian Mining Co.(1211.SA)  fell 1.1% and Jabal Omar Development Co.(4250.SA)  slipped 2.3%. Real estate developer said in a statement to the Exchange it had appointed Abdulrahman Bajunaid as new CEO, effective Jan 2025.

The S&P 500 ended Wednesday flat, with NVIDIA Corporation(NVDA.US)  shares slipping nearly 1% ahead of the company’s highly anticipated earnings report. The broad index S&P 500 index(SPX.US) closed little changed at 5,917.11, while the Dow Jones Industrial Average(DJI.US)  gained 139.53 points, or 0.32%, to settle at 43,408.47. The NASDAQ(IXIC.US)  lost 0.11% to close at 18,966.14.

2. Quick News

OPEC+ May Extend Output Cuts Amid Weak Demand Concerns

The OPEC+ may extend their current output cuts when they meet in December.  This potential decision is due to weak global oil demand and the challenges associated with increasing production, as some members are keen to increase their output.  The alliance had previously postponed a plan to gradually increase production by a few months earlier this year.  According to three sources familiar with the OPEC+ discussions, the alliance could delay output increases again at the December 1 meeting.

PIF Assets Reach SAR 145 Billion in Q2 2024

In Saudi Arabia, public investment fund assets increased to SAR 145 billion in the second quarter of 2024, marking a 6% rise from SAR 136.7 billion in the first quarter of 2024, as reported by the Saudi Central Bank (SAMA). The growth was primarily driven by an 8% increase in local fund assets, which now stand at SAR 125 billion, accounting for 86% of the total assets. In contrast, foreign fund assets, constituting 14% of the total, experienced a 5% decrease, amounting to approximately SAR 20 billion. This shift reflects a strengthening of domestic investment and a potential shift in investment strategies within the Kingdom.

3. Stocks To Watch

KSA Stocks

LUMI Secures Vehicle Rental Services Contract with Tahakom

Lumi Rental Co.(4262.SA)  has announced the signing of an award and volume commitment letter with the Saudi Technology and Security Comprehensive Control Company (Tahakom) to provide vehicle rental services.   The contract details include providing rental services for 1,189 vehicles as per the delivery schedule outlined in the commitment letter, with purchase orders to be issued periodically by Tahakom.  The contract value is significant, exceeding 5% of the company's total revenue for the year 2023, based on audited annual financial statements, contingent upon the purchase orders to be issued by Tahakom.

JABAL OMAR Sells Land Plot in Makkah Project for SAR 1.07 Billion

Jabal Omar Development Co.(4250.SA)  has entered into an agreement to sell a land plot in its Makkah project for SAR 1.07 billion to Hamad Al Mohaisin.  The transaction was signed on November 20.  According to a statement to Tadawul, the book value of the land, including development value, is SAR 254.12 million.  The land plot covers a total area of 5,649.1 square meters. 

RETAL to Construct 60 Residential Units in Jeddah City

Retal Urban Development co.(4322.SA)  has announced the signing of a contract with Building Construction Company, a subsidiary, to construct 60 residential units in Jeddah city.  The contract was signed on November 20, 2024. The contract is valued at 112.67 million SAR, excluding taxes if applicable.  The project, which is expected to have a positive impact on the company's financial results from 2024 through to 2027, will take 30 months to complete from the effective date of the contract. 

USA Stocks

Nvidia Shares Dip Post-Earnings Despite Beating Estimates

NVIDIA Corporation(NVDA.US) 's shares experienced a decline of over 2% in after-hours trading following the company's third-quarter financial results. Nvidia reported revenue of $35.1 billion, marking a 94% increase year-over-year, which surpassed the Street's consensus estimate of $33.12 billion, as per data from Benzinga Pro. The company also reported earnings per share of 81 cents, exceeding the Street's consensus estimate of 75 cents per share. This achievement continues Nvidia's streak of outperforming analyst revenue estimates, having done so for nine consecutive quarters.

Snowflake Inc. Q3 Earnings Beat Expectations, Shares Jump

Snowflake(SNOW.US)  shares rose nearly 20% after the company reported third-quarter earnings that surpassed estimates. Snowflake's Q3 revenue was $942.09 million, topping the consensus estimate of $896.99 million. The company's adjusted earnings were 20 cents per share, exceeding the expected 15 cents per share. Year-over-year, total revenue grew by 28%, with product revenue up 29% at $900.3 million, and a net revenue retention rate of 127%.

4. Saudi Stock Calendar