Closing Bell: TASI closes in green to reach 12,198 points 

TOKYPO/SINGAPORE: US crude prices fell by nearly 2 percent on Tuesday as US tariffs on China took effect, though President Donald Trump paused for a month a decision on steep levies on neighbors Canada and Mexico.

US West Texas Intermediate crude declined $1.32, or 1.8 percent, to trade at $71.84 per barrel, while Brent futures fell 87 cents, or 1.2 percent, to $75.09 by 9:17 a.m. Saudi time.

US tariffs of 10 percent on Chinese imports took effect at mid-day in Asian trade, spurring Beijing to retaliate with levies of 15 percent on US coal and liquefied natural gas and 10 percent on crude oil starting from Feb. 10.

“China’s counter-tariffs on the US may be perceived as a sign of escalation and may reduce the likelihood of a temporary resolution akin to US agreements with Mexico and Canada,” IG market strategist Yeap Jun Rong said in an email.

“As such, broader risk sentiments pare some optimism amid the changing dynamics, with oil prices extending losses further.”

He added, “Market participants are back to price for potential downside risks to global growth in the event of further tit-for-tat measures from both the United States and China.”

China’s 2024 crude oil imports from the US make up 1.7 percent of its total imports of crude, customs data show.

“WTI flows to China will be impacted, as a 10 percent tariff ... will render WTI delivered to China very expensive against other alternative crude like Kazakhstan’s CPC and Abu Dhabi’s Murban,” Sparta Commodities’ senior analyst June Goh told Reuters.

“However, in the big scheme of things, this should not impact the price of WTI significantly as WTI can still flow to other regions easily,” she added on messaging app WhatsApp.

Earlier, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum said they had agreed to bolster border enforcement efforts in response to Trump’s demand to crack down on immigration and drug smuggling.

That would pause for 30 days tariffs of 25 percent, with a 10 percent tariff on energy imports from Canada, that had been set to take effect on Tuesday.

On the demand side, investors will be looking out for weekly US oil stockpile data for the week to Jan. 31. Analysts polled by Reuters expected that crude inventories rose, while gasoline and distillate inventories probably fell. 

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped on Monday, losing 32.84 points, or 0.26 percent, to close at 12,377.03.  

The total trading turnover of the benchmark index was SR6.55 billion ($1.75 billion), as 65 of the listed stocks advanced, while 170 retreated.   

The MSCI Tadawul Index also dropped by 3.79 points, or 0.25 percent, to close at 1,541.82.  

The Kingdom’s parallel market Nomu lost 48.69 points, or 0.16 percent, to close at 31,056.38. This comes as 37 of the listed stocks advanced and 43 retreated.  

Mutakamela Insurance Co. was the best-performing stock of the day, with its share price surging by 4.88 percent to SR18.90.  

Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.59 percent to SR18.70, and Saudi Cable Co., which saw a 3.30 percent increase to SR131.60.  

Arriyadh Development Co. rose 3.01 percent to SR35.95, while Al Mawarid Manpower Co. gained 2.87 percent to SR136. 

The National Co. for Glass Industries saw the steepest decline of the day, with its share price easing 3.72 percent to close at SR54.40. 

Elm Co. fell 2.84 percent to SR1,123, while Mouwasat Medical Services Co. dropped 2.78 percent to SR87.50. 

Bawan Co. also faced losses, with its share price dipping 2.75 percent to SR56.50, while Saudi Awwal Bank saw a 2.46 percent decline to settle at SR35.75. 

Saudi Tadawul Group Holding Co. announced that its subsidiary, Tadawul Advanced Solutions Co., also known as WAMID, has finalized the acquisition of the remaining 49 percent stake in Direct Financial Network Co., completing the regulatory requirements on Feb.2. 

The shares, previously owned by National Two Ventures, were acquired for SR220.5 million, making WAMID the sole owner of DirectFN. 

The transaction follows WAMID’s initial purchase of a 51 percent stake in DirectFN in May 2023 for SR134 million. 

With this latest acquisition, WAMID now holds full ownership of the financial technology company, aligning with Saudi Tadawul Group’s strategy to enhance its technological and financial services offerings. 

Saudi Tadawul Group Holding Co.’s share price saw a slight 0.76 percent dip on Monday to settle at SR209.80. 

Riyad Bank announced its financial results for 2024, posting a 15.9 increase in net profit, reaching SR9.32 billion, up from SR8.04 billion in 2023. 

The growth was driven by an 18.16 percent rise in total income from special commissions, which reached SR21.62 billion, supported by higher income from loans and investments. 

Total operating profit rose 8.71 percent to SR17.28 billion, bolstered by increases in fee income, exchange income, and gains on non-trading investments. 

Operating expenses related to credit losses and asset impairments dropped 17.2 percent to SR1.63 billion, reflecting improved asset quality. 

Assets grew by 16.42 percent to SR450.37 billion, with loans and advances rising 16.65 percent to SR320.08 billion. 

Client deposits also increased significantly, up 20.21 percent to SR306.42 billion. Earnings per share rose from SR2.58 in 2023 to SR3.01 in 2024. 

Riyad Bank saw a 0.34 percent increase in its share price on Monday to reach SR29.60.