Tadawul Equities End Monday Higher Amid Earnings Buzz; Saudi's June Industrial Production Declines
The Tadawul All Share Index closed Monday 0.26% in the green, supported by the latest round of Saudi corporate earnings, as well as the optimism regarding the prospect of the Strait of Hormuz's reopening.An undisclosed US official said that Iran and Oman were set to conclude the deal that would potentially reopen the Strait of Hormuz. The agreement would reportedly set up new shipping lanes in the Strait, Reuters reported.Iranian Foreign Minister Abbas Araqchi, meanwhile, said that the reopening of the waterway is subject to conditions, such as the US paying compensation and ending maritime blockades, among others.Back at home, official preliminary data from the General Authority for Statistics showed that the kingdom's industrial production index dropped 16.3% year over year in June. Month over month, industrial production ticked up 4.3%.Meanwhile, earnings season is still in full swing as both Marble Design Co. (SASE:9575) and Nofoth Food Products (SASE:2288) logged lower net profit and revenue for the six months ended June 30. Ades Holding (SASE:2382) reported mixed results in the first half as its attributable net profit decreased year over year, while revenue increased.Marble Design and Nofoth Food Products closed 2.93% and 0.98% in the red, respectively. Ades, on the other hand, edged up 0.11%."Financially, the Group delivered strong year-over-year growth during the first half, with revenues increasing by 49.0% and EBITDA rising by 29.2%, despite the temporary suspensions that weighed more significantly on second-quarter performance. The resilience of our diversified international platform helped offset these pressures, supported by strong contributions across key offshore markets and the continued growth of our production model in Egypt's brownfields," Ades' Chief Executive Officer Mohamed Farouk said in its report.In other news, Banan Real Estate (SASE:4324) shares closed 0.33% lower as its Emaar Al-Wasil Al-Motamayezah unit purchased a land plot in Riyadh for 43.4 million Saudi riyals. The land plot will be used for development and future leasing.
