Category
🗞
NewsTranscript
00:00 about the Saudi market closure. Mr. Ibrahim Linnweibet, CEO of Kasab Financial, joins us.
00:06 Mr. Ibrahim, welcome to us and thank you for being here.
00:09 Although Aramco still has a green spot and we entered the sixth session on the emergence of these highs,
00:15 but the market is still losing very important levels today to 11,500 points.
00:21 Therefore, can we say that Aramco's influence on the market, which has been extended for more than a week after the announcement of the results,
00:28 has started to disappear and therefore the profit-making processes have started quickly on the market?
00:34 Welcome, Maysa.
00:36 Let's talk about Aramco.
00:41 It has been on the rise for two weeks after the positive and historical distribution announcements.
00:52 The market was in a state of turmoil and Aramco's responsibility was taking over.
00:58 We reached a level of about 11,500 points, which was a level of artistic resistance.
01:13 Today, Aramco, after continuing to sit for more than a session after the announcement,
01:18 and we reached a price increase of 7% on a huge company of this size,
01:24 has returned to the decline or at least not to the continuity of the rise.
01:31 This is normal and today there is no positive trend in the Saudi stock market in general,
01:38 but there are other sectors that support the market, such as the second sector, which supports the market,
01:49 to have any positive trends to achieve highs to create balance and to change centers after the growth in Aramco's price
01:58 and to maintain good price levels.
02:04 This has affected the market and we reached the decline after two days of rising.
02:10 Today is almost the end of the announcement of the results for the second quarter, Mr. Ibrahim.
02:17 So the question now is what are the milestones that we will expect after the end of the season of announcing the results,
02:23 also after the major companies announced, as we mentioned before, Aramco, Banuk for this period.
02:31 Especially that we are still monitoring the most important data in the United States,
02:35 which was issued by the markets in relation to the inflation data, which came somewhat negative.
02:42 Now what is the market waiting for to start the movement again?
02:46 In general, the market, the milestones that were on it after the announcements,
02:55 there was almost a price increase in many companies.
03:00 The banking sector recorded positive results and could be an exception to the highest in its history.
03:10 Banks were focusing on some of them and were improving their prices.
03:16 The energy sector or the basic materials sector is still suffering from the past period
03:24 and the demand for oil has decreased, which affected the oil and petrochemicals products.
03:34 The incentives made us be realistic, they decreased from what they had before.
03:42 Even the growth companies that were good in the previous period,
03:46 they had four times higher profits.
03:50 The new incentive that could be one of the incentives,
03:56 if we look at the indicators of the emerging markets,
04:00 which will be available at the end of this month,
04:04 could be the main incentive after more companies entered the security sector,
04:10 the entering of the cooperative company, and the energy sector, the entering of the accompanying companies.
04:18 This incentive could help the Saudi market to recover from the current situation.
04:28 Ok, Jabal Omari, today, despite the fact that the company was able to reduce part of its losses to 38%,
04:35 the loss-related loss was reflected by 44%.
04:40 But the share is still under pressure of more than 3%.
04:44 In your opinion, Mr. Ibrahim, the current situation of the company,
04:48 especially the regular commitments to the Zakat Authority,
04:52 will it be able to turn the profit into the third quarter at least?
04:58 At the beginning of the first quarter, there was a turn in the profit,
05:02 the company reached net profits in the first quarter of 2023,
05:06 approximately 11 million.
05:08 In the second quarter, the company achieved net profits of about 110 million,
05:13 and the specializations contributed to reducing the profits and turning them into losses,
05:19 which reached approximately 67 million.
05:22 The reason is the transformation of approximately 44 million,
05:25 in addition to the Zakat Authority's specialization of 190 million Riyals,
05:30 for the event that the company announced two days ago,
05:35 which is the announcement of the refusal of the Zakat Authority's specialization,
05:40 which is approximately 357 million Riyals.
05:43 The third quarter, or what we are now in,
05:47 after improving in the first and second quarters,
05:50 in the results and achieving the wills,
05:52 especially in the income of operations,
05:54 we reached more than 300 million Riyals in the second quarter,
05:58 and we expect that the company will achieve positive results,
06:01 in addition to the exceptional income from the sale of land that was previously announced.
06:06 As the company mentioned, the contract will be signed and transferred in July,
06:12 and it will undoubtedly affect the company's results in the third quarter,
06:16 especially since, as mentioned, the acquisition of land was worth 130 million,
06:21 and the sale value exceeded 500 million Riyals,
06:24 so it will affect the total income from the other wills of the company.
06:30 Yes.
06:31 In the third quarter.
06:32 Okay.
06:33 We will list the details of Mahara, but I want to ask you about this growth that we see,
06:37 because it is one of the companies that works well,
06:40 meaning that it has the workforce in the Kingdom.
06:45 Today, it has a 45% increase in the second quarter.
06:49 How do we see the company's ability to maintain growth levels, Mr. Ibrahim?
06:54 And also, are the company's operational activities today reflecting the fair value for Sahem Mahara?
07:00 In fact, there is a continuation of the company's operational wills,
07:05 and this is an important thing for the company.
07:08 The general situation in the Kingdom of Saudi Arabia,
07:13 and the rise in the average and small number of employees,
07:19 will undoubtedly contribute to the rise in contracts for Mahara,
07:25 because if the number of companies that require workers increases,
07:30 contracts will be signed with Mahara,
07:33 and this will contribute to the rise in the number of contracts,
07:36 and this is what the company mentioned.
07:38 Of course, if we notice that this quarter was affected by the rise in prices in the financing cost,
07:43 which is about 10 million,
07:46 if there is a decrease in the financing costs,
07:49 the profits of Mahara will be higher.
07:52 In general, the results achieved by Mahara in the last period,
07:58 and the continuation of the rise in the operational income of Mahara,
08:01 give a good impression, especially with the economic conditions that help this kind of activity,
08:06 which is the activity of the working forces in the Kingdom of Saudi Arabia,
08:11 with the large growth in the number of companies and the economic sectors.
08:16 In general, we will listen to the executive chief in response to this performance of Mahara after the break.
08:21 We thank you, Mr. Ibrahim, to the executive chief of the financial company,
08:26 for all these details. You were with us from Riyadh. Thank you.
08:29 Thank you.