The Sound of Success (21/02/2023)

The U.S. stock market was closed yesterday for President's Day.?

Meanwhile, in the Gulf, Saudi Arabia's stock market had the weakest performance on Monday due to concerns over rate increases by the U.S. Federal Reserve. Losses across the majority of sectors contributed to a 1.2% decline in Saudi Arabia's benchmark index. The banking, real estate, and industrial sectors all saw advances, helping Dubai's benchmark index tack on 0.1% while Qatar's stock index finished unchanged.

• The Saudi Telecom Company has?recorded a profit of more than SR12B ($3.2B), which is a first for the company. The telecoms company announced an?8% growth in net profit?for 2022, reaching SR12.17B. Overall?sales increased by 7%?to SR67.43B in 2022 from SR63B the previous year.
• The company, in which the?Public Investment Fund of Saudi Arabia maintains a 64% share, reported that EBITDA and zakat for the year totaled SAR25B, an increase of about 10% from SAR22.8B in the same period last year.

Why it matters

In addition to an initial $500M investment, the company last October pledged an extra $300M to Saudi venture capital firm STV in order to develop digital champions in the area. According to STC, the group's increased focus on innovation and technological advancement in the Kingdom and the MENA region is a reflection of its future vision and an important contribution to the digital transformation in Saudi Arabia and elsewhere.

• Meta?(META)?is developing a new paid subscription service that will give users a?verified blue badge?and other services that aren't available to free users. Those that subscribe to Meta Verified by?submitting their government ID?have access to a blue badge, enhanced impersonation security against other accounts, and direct customer assistance.
• Later this week, Australian and New Zealand residents will be able to directly purchase Meta Verified on Instagram or Facebook. The?monthly subscription fee is $11.99 for web users and $14.99 for iOS and Android users. This aligns Facebook and Instagram with other significant social media sites like Twitter and Snap, which already offer paid membership options in an effort to provide a?reliable revenue?stream aside from advertising, which may be highly dependent on market conditions.

Why it matters

Elsewhere, Elon Musk just introduced Twitter Blue, a premium subscription to the service with improved features including a blue tick (formerly reserved for accounts considered noteworthy) and other advantages. Now, U.S. subscribers can post tweets with 4,000 characters or less.

• China's securities regulator, the CSRC, has issued new rules requiring?domestic companies to comply with national security regulations?and personal data protection laws before listing overseas. The rules?don't ban the variable interest company structure?often used by Chinese firms for U.S. listings.
• The CSRC has?set a deadline of March 31?for implementing its international listing regulations and mandates that foreign underwriters submit an annual report on their participation in Chinese listings abroad.

Why it matters

This year, more China-based companies are returning to the U.S. IPO market after an 18-month hiatus in foreign listings. The risk of delisting was dramatically decreased last year, according to U.S. inspectors, who were able to evaluate the audit work documents of Chinese companies that are listed in the U.S.