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3 Firms Listed in Saudi Stock Market in 2018

The year 2019 is forecast to witness the biggest listings in the local Saudi stock market. (Getty Images)
The year 2019 is forecast to witness the biggest listings in the local Saudi stock market. (Getty Images)
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3 Firms Listed in Saudi Stock Market in 2018

The year 2019 is forecast to witness the biggest listings in the local Saudi stock market. (Getty Images)
The year 2019 is forecast to witness the biggest listings in the local Saudi stock market. (Getty Images)

The year 2019 is forecast to witness the biggest listings in the local Saudi stock market after 2018 witnessed the listing of two firms in the primary market and one in the Nomu parallel market.

Tadawul witnessed the issuance of eight sovereign funds in 2018 – the IPO of the two listed firms in the primary market witnessed operations covering up to 327 percent by individual investors.

In this regard, Tadawul witnessed in 2018 the IPO of Leejam Sports Company, representing a 30 percent stake. The National Company for Learning and Education (NCLE) issued an IPO for 30.2 percent.

In the same context, the Tadawul All-Share Index (TASI) jumped Thursday 0.5 percent, closing at 7,830 points, rising 40 points. The overall value of trading totaled around SAR1.9 billion (USD506.6 million).

Investors in the stock market are awaiting the results of financial firms in Q4 2018, which began to be released on Tuesday. The results are estimated to be close to Q3 2018 levels.

The Ministry of Commerce and Investment had previously reported that the number of companies and institutions in the Kingdom jumped 35 percent during Q3 2018, compared to the same period of 2017, to reach 945,600.

The number of enterprises reached 824,700 in 2017 compared to 701,300 in the third quarter in 2016.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.