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00:00The movement is still red in terms of indicators, but how long will this pressure continue?
00:07We move to Dammam, Dr. Ali Boukhamsin, Director of the Development and Development Center for Financial Consultations joins us.
00:14Dr. Ali, welcome to us and thank you for your presence.
00:17Today, with a break of 12,200 points on the artistic and financial level of the market,
00:24to what extent can we give up the level of 12,100 points?
00:29And what are the reasons for the pressures you have experienced in today's session, in your opinion?
00:34Welcome, ladies and gentlemen. Thank you, Ms. Maysa, for the invitation.
00:39In fact, today the market has reached a very strong point of pressure that we have not reached previously in recent periods.
00:48Yesterday, we had a break of 12,252 points. Today, we have seen that we have broken this barrier significantly.
00:55In fact, I think that this pressure has very clear reasons.
01:01There are a number of factors, in fact, time periods for pressure factors that have come together.
01:08Therefore, I think that the investor reads this picture in a precise and preliminary way,
01:13based on which he translates his investment behavior.
01:16There is, of course, the OPEC meeting, which will determine the fate of the future of the amount of production.
01:25Therefore, this is a direct blow to the will of the Saudi government.
01:30We have seen that there are shortages in oil revenues.
01:35Therefore, this has a negative impact on the strength and resilience of the Saudi economy.
01:42It may pose a risk to government spending.
01:45Therefore, the investor reads this and exaggerates the translation of this information in a very negative way.
01:52There is also the issue of today's announcements, the results of the analysis of the numbers of purchases in the United States,
02:01which will be issued today.
02:03Therefore, this is one of the most important indicators of inflation, and therefore it affects the decision of the US Federal Reserve.
02:09This is exactly what caused the pressure today on the banking sector in large part,
02:13because it may be feared that there will be no decrease in the near future.
02:18Therefore, the benefits will continue, and therefore there may be concern about the fate of banks if they are reduced or not reduced.
02:26This is exactly what caused the pressure on the banking sector.
02:28There is also a continuation and rise in the extent of the surrounding geopolitical pressure,
02:32and there is no clear solution on the political horizon.
02:37Therefore, a series of pressure factors have led to the fact that the Saudi market, the global markets, and the Gulf markets today are almost all red.
02:48We remind you that the report we saw from OPEC Plus may be the last one.
02:53Dr. Ali, since we talked about the prices of oil and the decline that is happening,
02:57it established the expectations of a global economic growth of 2.8% in 2024 and 2.9% in 2025.
03:05Therefore, OPEC will also start, perhaps only in view of the demand process from OPEC Plus,
03:10starting in the coming months, away from the global demand,
03:14because it is the one that is forming the largest base to determine the prices of oil.
03:21Returning to Petrorabic, and today we see the losses for the company with the end of the first quarter in 2024 are increasing.
03:33But to what extent, in your opinion, will the petrochemical sector remain under pressure,
03:38despite seeing positive results in terms of consumer prices in China?
03:42This was giving a kind of hope for the return of demand again for China,
03:47specifically on petrochemical and oil products.
03:52The fact is that Petrorabic, as you mentioned, the sector in general is suffering,
03:57but Petrorabic is a major exception to the sector.
04:01Even when the sector was winning, it was suffering and losing.
04:05In fact, the company has been suffering since the beginning of its launch.
04:09Perhaps there were problems in the model of the main business that the company was based on,
04:14the foreign investor and the existing technology that was used.
04:21These were all problems from the beginning of the company's launch.
04:24On top of that, the cost of the oil products imported from Aramco, which is one of the company's shareholders,
04:34and the cost of running and cutting the refining unit,
04:38which is a specialized unit, for two months and ten days.
04:43A group of factors contributed to the increase in losses,
04:48in addition to the accumulated losses.
04:50In our opinion, the losses have increased from 926 million to more than 1.3 billion.
04:59Therefore, there is an old and renewed problem for this company,
05:05and it needs serious solutions.
05:07We do not know how, but the company's continuity in this case,
05:10especially now that it has announced that it has exceeded 20% of the capital's losses,
05:14and that it has a minimum of rights,
05:16therefore, they are on the verge of shrinking to a lower level,
05:21and therefore they may enter the subject of saving capital,
05:24and this is a shortcoming for investors.
05:26And then the capital came back, and this is more of a burden for investors.
05:31We are in a state of great concern for investors in the company.
05:36That is why we see that this issue is being translated today, in a realistic way,
05:40to saving the share price.
05:42This is a very logical thing, as a result of what was announced from the financial results.
05:46Today, the health care sector is also under great pressure, Dr. Ali.
05:51We see, except for chemicals, that most of the stocks are on withdrawals,
05:55and some of them are intermediaries, which also gave us the results.
05:58We are facing a very big offer, which may be the biggest for Isleman Al-Faqih,
06:03and after we determined today the price of the offer at 57.50 riyals,
06:07how much do you think this new offer will attract market share from some companies,
06:14and how much will it affect the market?
06:18In fact, the offer, the results that were announced to cover the institutions,
06:24119 times, with two points of observation,
06:29that the price of the offer at 57.50 riyals is very high,
06:34with a nominal value of only 1 riyal per share.
06:37Therefore, this offer is equivalent to 320 billion riyals,
06:43for one company only in the market.
06:46Therefore, there is a very high demand, and a very high liquidity,
06:52which can attract and enter the market,
06:55and this number is now translated to 320 billion riyals,
06:59for a new company, a hospital that will be launched in the market.
07:02Of course, the medical sector is tempting,
07:06and is prone to expansion and expansion,
07:08not least with the announcement of the national insurance application,
07:12therefore, it will have a future,
07:14and the Isleman Al-Faqih company,
07:16the Isleman Al-Faqih hospital, of course, is an old and well-known company,
07:19and it has expanded in recent years.
07:22The opening of a branch in Riyadh,
07:24will reflect the company's income in the coming year.
07:29The Isleman Al-Faqih hospital will open in the second half of the year,
07:33and the company will expand, and its operations will expand,
07:36and the demand for it will be justified.
07:38However, the demand reached 119 times before the institutional sector,
07:42and this is very, very high,
07:44and indicates the presence of an investment force in the market,
07:47a vital force in the market, and a high liquidity.
07:49Today, the Isleman Al-Faqih company did not enter the market,
07:51but tomorrow, it may enter the companies that were announced at the end of the year.
07:56Okay.
07:57As for the cement companies,
07:58we see that cement companies have a 19% decrease in profits at the end of the first quarter,
08:03but even Najran cement today is deciding not to distribute its profits
08:07for the second half of the year, in 2023.
08:11Dr. Ali, we are used to the fact that,
08:13no matter what the results are,
08:15the cement companies are still cheap in distributing their profits to their contributors.
08:20In general, how can we predict the results for the cement sector,
08:25and will we see other companies refuse to distribute their profits to their contributors this time?
08:31Indeed, it may happen again.
08:33The cement sector's price has risen in the market in recent times,
08:39and it has benefited from the rise.
08:42The results are now disappointing in a way,
08:45less than they were expected.
08:47In fact, outside the company,
08:49for example, in the case of cement,
08:51there is an increase in costs,
08:54but the result is not at the level of the expected price.
08:58The profits are not at the expected level.
09:01Therefore, the price has decreased as a result of the reading of the indicator
09:05that there is a decrease in the growth rate of these companies and the sector in general.
09:10As I mentioned, Najran Cement will not distribute,
09:14and Ha'el, which knows that it will distribute,
09:18may not distribute,
09:20considering the reading that the sector will have a surplus in the future.
09:25Perhaps they have this reading,
09:27so they will not expand in the distribution of profits,
09:30which is considered a regular profit to cover their expenses
09:33instead of resorting to approaching in light of these approximate circumstances.
09:38If it is announced that there is a decrease in profits,
09:41and there is a reduction in profits,
09:43perhaps the companies will expand in the distribution of profits.
09:46In general, we will also wait for North cement.
09:48The company may also benefit from export operations during this period.
09:52We thank you, Dr. Ali Boukhamsi,
09:54Director of the Center for Development and Development of Economic Consultations.
09:58You were with us from Dammam.
10:00Thank you.