BlackRock, the world’s largest asset manager, is all-in on Saudi

It’s a busy morning on Planet Finance. Here’s what you need to know:

#1- The world’s biggest asset manager is on an “aggressive hunt for growth in Saudi Arabia,” Bloomberg writes in a long piece out overnight. CEO Larry Fink is here to visit multiple times per year, its 20-person Saudi team is the biggest among its peers and challengers, and the firm is “embedding itself in different parts of the country’s institutions and capital markets,” the business information service writes.

But BlackRock will face plenty of competition in Saudi, it warns, noting that Franklin Templeton has recently opened an office here, that KKR just got regulatory clearance to add new services to its license, Brookfield is here, and so is Macquarie.

#2- A terrible, horrible, no good, very bad year for private equity? That’s the contention of the outgoing CIO of Princeton University’s endowment, who told the Financial Times in an exclusive that private equity is facing its “worst-ever environment … as a slump in dealmaking and public listings weighs on returns.” Andrew Golden, a PE bull, has has run the USD 34 bn fund for nearly 30 years.

#4- FURTHER AFIELD- China’s capital markets are increasingly isolated: Declining global investor interest in China has pushed activity in the country’s equity capital markets to multi-decade lows, writes the Financial Times.

By the numbers: Mainland IPOs along with follow-on and convertible share offerings have brought in some USD 6.4 bn in the first four months of 2024, the lowest number ever recorded. Outbound M&A transactions came in at their lowest since 2005 at USD 2.5 bn.

What gives? Investors are spooked by the meltdown of major Chinese real estate players, a crackdown on the business elite, and rising tensions between Beijing and Washington.

On the other hand… China’s economy grew at a faster-than-anticipated rate of 5.3% y-o-y in 1Q 2024, according to data from China’s National Bureau of Statistics, as we noted yesterday.

MARKETS THIS MORNING-

Asian markets are trending mainly lower, with the Shanghai Composite (+0.7%) the only outlier at dispatch time. US and European stock futures are little changed, with most major benchmarks up very slightly overnight after the S&P 500 notched yesterday its third day of losses.

THE CLOSING BELL: TADAWUL-

The TASI fell 1.6% yesterday on turnover of SAR 10.2 bn. The index is up 4.5% YTD.

In the green: Red Sea (+10%), Atheeb Telecom (+6.6%) and SSP (+4.6%).

In the red: Advanced (-5.3%), ELM (-4.7%) and Sipchem (-4.3%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.9% yesterday on turnover of SAR 266 mn. The index is up 7.3% YTD.

In the green: Pro Medex (+16.2%), Tam Development (+7.6%) and Obeikan Glass (+6.6%).

In the red: Raoom (-7.4%), Watani Steel (-5.6%) and Mayar (-5%)

CORPORATE ACTIONS-

#1- Al Jouf Cement has started the liquidation of its subsidiary Eastern Industrial Company, it said in a disclosure to Tadawul. Al Jouf expects to get a full or partial return on its SAR 136 mn investment, forecasting positive impacts on its books, it added.

#2- Al Moammar Information Systems’ BoD recommended the distribution of a SAR 24 mn dividend for 1Q 2024 at SAR 0.8 per share, it said in a disclosure to Tadawul. The IT company also outlined its dividend policy up until 2026, which will seek to maintain a minimum dividend per share equivalent to 50% of its annual net income, it said in another disclosure. MIS later issued a correction announcement, explaining that dividends have been deferred until the audited financial statements are issued.

ALSO FROM MIS: Trading of the company’s shares was suspended yesterday for one hour upon the company’s request, according to a Tadawul disclosure. MIS’ reasoning for the suspension was that it would announce a “material event,” but no further details were provided.