EARNINGS WATCH-

#1- Saudi Aramco’ posts record net income amid spiraling oil prices: Saudi Aramco reported record 2Q 2022 and 1H 2022 earnings on the back of soaring crude oil prices and volumes sold, the company said in its earnings release (pdf) yesterday. The oil giant’s net income soared 90% y-o-y in 2Q 2022 to USD 48.4 bn, and 86% to USD 87.9 bn in the first six months of the year.

This comes as no surprise: Oil prices have soared in the wake of Russia’s invasion of Ukraine, remaining above USD 100 a barrel for much of the past six months and briefly nearing a record high in March.

#2- ACWA Power profits up more than 20%: Saudi renewables giant ACWA Power’s net income rose 21% y-o-y to SAR 542 mn (EGP 2.8 bn) during the first six months of the year, according to its earnings release (pdf).

WATCH THIS SPACE #1- Does buyback drought spell trouble for US stocks? Ten US firms have pulled plans for stock buybacks due to fears of recession in what analysts say is a “very, very rare phenomenon” — threatening one of the equity market’s biggest sources of demand. (Bloomberg)

WATCH THIS SPACE #2- Is the cryptowinter thawing? BTC briefly exceeded USD 25k for the first time since mid-June yesterday thanks to a cooler US inflation reading and optimism over a major upgrade from Ether. (Bloomberg)

CLOSER TO HOME-

• Prince Mohamed to become #2 Emaar shareholder: Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum is set to become Emaar Properties’ second-biggest shareholder as part of a USD 2 bn transaction that will see the developer buy out its JV partner in a key project in the city. (Bloomberg)
• Prince Alwaleed went long on Russia following Ukraine invasion: Saudi b’naire Prince Alwaleed bin Talal invested almost SAR 2 bn (c. USD 526 mn) in Russian energy companies in the days around Moscow’s invasion of Ukraine. A disclosure published on the Saudi stock exchange yesterday showed the tycoon’s investment firm Kingdom Holding invested in Gazprom, Rosneft and Lukoil in February and March, though it’s not clear whether it still owns stakes. (Filing, pdf)

THE CLOSING BELL-

The EGX30 was essentially flat at yesterday’s close on turnover of EGP 1.45 bn (45.4% above the 90-day average). Local investors were net buyers. The index is down 16.4% YTD.

In the green: AMOC (+5.1%), Telecom Egypt (+3.9%) and Housing and Development Bank (+3.4%).

In the red: Ibnsina Pharma (-3.6%), Egyptian Kuwaiti Holding-EGP (-2.3%) and EFG Hermes (-1.6%).

Asian markets having a mixed start to the week, with Chinese equities having a downbeat reaction to a surprise rate cut by the People’s Bank of China this morning and stocks in Japan, Australia and New Zealand comfortably in the green. Shares in the US and Europe are on course for a similarly mixed open later today.