00:00 We will talk about the details of the Saudi market movements.
00:02 We have with us Dr. Ali Boukhamsi, Director of the Development and Development Center for Economic Consultations.
00:08 Welcome Dr. Ali, and thank you for being here.
00:12 We are continuing the fourth session of these consultations.
00:17 Today, we are also falling below the level of 11,700 points,
00:21 although in July we may have seen good profits in terms of oil prices,
00:27 which are the best monthly profits in more than a year.
00:29 Why did the market not continue, in your opinion, today with the beginning of the month to achieve some profits?
00:36 Welcome, ladies and gentlemen.
00:39 Thank you for having me.
00:41 In fact, as you mentioned, the main elements of the market are good and supportive.
00:48 Therefore, it was necessary to take the market in a positive direction,
00:52 and the fact is that the global economy and global markets are also positive,
01:00 especially with a good and stable rise in the oil markets.
01:06 Therefore, it was surprising.
01:08 But in fact, the market also falls to the end.
01:11 The big investors are looking for investment opportunities
01:15 and they take the market movement as much as possible,
01:18 as long as it serves their interests.
01:20 Everyone is trying to earn sales, to earn quick sales,
01:24 therefore there is a struggle to create investment opportunities.
01:29 Everyone thinks it is better for them.
01:32 Therefore, we see that the market is actually under economic pressure,
01:36 perhaps due to the directions of some investment banks,
01:40 which have taken an investment position contrary to what it is currently.
01:45 Therefore, they are investing in the exit and sale of some companies,
01:50 and if, as you mentioned, their profits are good,
01:54 but they also believe that in the case of exit,
01:58 they can also return at better prices.
02:01 This is on the one hand.
02:02 On the other hand, there is a reading that says that the current prices are high in terms of profit,
02:10 therefore, it is possible that these prices will be increased,
02:16 and then they will return to investment better.
02:20 So, there is a kind of struggle between economic interests
02:24 and economic predictions, as the global economy will say,
02:30 and the effect of the US federal tightening pressure.
02:36 We conclude that the market is currently suffering from a downward wave,
02:42 but we believe that it is temporary,
02:44 because the conditions of the companies are good and their announcements are acceptable.
02:48 Today, we are monitoring the previous feeders.
02:50 It is clear that the company also has some pressures on profits in the second quarter.
02:56 It is clear that the total income has decreased by more than 53% for the company,
03:02 and even the income of operations is more than 78%, Dr. Ali.
03:08 We know that SABIC has a share in the previous feeders.
03:12 How will the impact of these results be clear in the data of the Thursday session,
03:16 which SABIC will announce its results in, and where will SABIC contribute to the feeders after these results, in your opinion?
03:22 In fact, this is a continuation of the previous question,
03:26 that the sectors that are left with water are inevitably greatly damaged,
03:30 and these damages will leave a devastating impact on the general indicator of the Saudi market.
03:36 Therefore, the exit of some investors and their stay in the announcement of the previous company on Thursday
03:44 will be a warning, and in fact, there may be great damage.
03:48 This is also another justification.
03:50 As for the previous feeders, the real natural decline,
03:54 if we know that it is a company that produces urea and ammonia,
03:58 the price of tons in the global market has decreased from $ 1,000 to $ 300.
04:02 Therefore, it is natural that there is this decrease.
04:06 We cannot measure the profits of the company compared to the previous year,
04:12 because there was a huge jump in prices in view of the Russian-Ukrainian war,
04:16 but this crisis has been resolved in terms of supply of feeders.
04:20 Therefore, we believe that it is natural that the company's sales are affected by numbers.
04:26 So, in view of the decrease in profits, there is a strange information that has passed.
04:32 In fact, the previous feeders company was used by the company of MyG for $ 320 million,
04:40 which is close to 1.2 billion Saudi riyals.
04:44 Therefore, this is a good performance for the company, and it is calculated for it,
04:48 but in view of the decrease in the economic indicators of the company's operating performance,
04:54 the company has lost among the numbers.
04:58 We believe that this will reflect the previous announcement on Thursday.
05:02 Also, the petrochemical sector was affected by a decrease of 85% to 50% of its revenues.
05:10 Therefore, the previous announcement was very painful, as expected.
05:16 Today, the result of the previous announcement of feeders,
05:20 which is one of the best companies in the previous kingdom,
05:24 was disappointing, and therefore, the price of feeders increased.
05:28 Today, what happened to MEPCO is striking.
05:32 It is clear that the General Investment Fund is strengthening its presence in the companies.
05:38 Today, MEPCO is expecting an agreement to sign with the General Investment Fund to increase capital.
05:44 Dr. Ali, what is the importance of this agreement today for MEPCO?
05:50 And how much will we see the increase in capital?
05:54 It may draw a part of the liquidity, in your opinion, from the market.
05:58 The truth is that before the birth of their importance for MEPCO,
06:04 there was a message that the General Investment Fund,
06:08 in this announcement, is implementing what it announced previously,
06:14 which is to increase its investment share in the Saudi market
06:18 and strengthen the internal investment fund in contrast to the external investment fund.
06:24 This is being implemented in several procedures.
06:28 This procedure today is a continuation of what was announced previously.
06:32 This procedure will definitely have excellent positive effects for MEPCO,
06:38 and for you in general.
06:40 The entry of the General Investment Fund to any company means more support,
06:44 capital boost, and expansion of the production capital base,
06:48 and therefore, the company's ability to generate profits and achieve profits for its shareholders.
06:54 The good news is that the increase in capital did not come from the shareholders,
07:02 but came from an external source, for example, in the General Investment Fund.
07:06 This will be an additional gain for the owner.
07:10 The price of the share was also excellently paid to the owner, as he believes.
07:18 As a result, the participation of the General Investment Fund in the balance sheet reaches 23%.
07:24 This is a great ability for the company to expand in projects.
07:30 It was previously announced that the company is implementing a large project
07:34 that reaches one billion Riyals, meaning that this investment came at the right time,
07:38 and will stop the owner and shareholders from taking advantage of this investment
07:43 from the profits of the project that is expected to enter it.
07:46 Thank you Dr. Ali Boukhamsine, Director of the Development and Development Center for Financial Consultations.
07:52 You were with us from Dammam. Thank you very much.
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