RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 175.70 points, or 1.41 percent, to close at 12,284.41.    

The total trading turnover of the benchmark index was SR7.31 billion ($1.94 billion) as 41 of the stocks advanced, while 184 retreated.  

On the other hand, the Kingdom’s parallel market Nomu rose 199.85 points, or 0.74 percent, to close at 27,086.44. This came as 20 of the stocks advanced, while as many as 45 retreated. 

Meanwhile, the MSCI Tadawul Index slipped 19.92 points, or 1.28 percent, to close at 1,537.54. 

The best-performing stock of the day was Al-Babtain Power and Telecommunication Co. The company’s share price surged 7.77 percent to SR45.75. 

Other top performers include Retal Urban Development Co. as well as Tanmiah Food Co. 

The worst performer was Gulf Union Alahlia Cooperative Insurance Co. whose share price dropped by 10 percent to SR22.68. 

Other worst performers were Allied Cooperative Insurance Group as well as Al-Etihad Cooperative Insurance Co. 

On the announcements front, Jamjoom Pharmaceuticals Factory Co. has announced its interim financial results for the period ending on March 31. 

According to a Tadawul statement, the company’s net profit hit SR102.9 million in the first quarter of 2024, reflecting a 22 percent surge when compared to the similar quarter last year. 

The increase was mainly driven by an increase in sales, which were slightly offset by the devaluation impact from the Egyptian pound. 

Moreover, the National Gas and Industrialization Co. also announced its interim financial results for the first three months of 2024. 

A bourse filing revealed that the firm’s net profit reached SR78.6 million by the period ending on March 31, up 7.6 percent in comparison to the corresponding period in 2023. 

The increase in net profits is primarily attributed to a surge in gross profit by SR9 million due to increased revenues, alongside a rise in investment and finance income by SR2 million. Additionally, there was an increase in other income by SR1 million, coupled with a decrease in zakat expense by SR2 million. 

Furthermore, Modern Mills for Food Products Co. also announced its interim financial results for the first quarter of the year. 

According to a Tadawul statement, the company’s net profits climbed 1.3 percent to reach SR64.9 billion in the first three months of 2024 compared to the same period a year earlier. 

This rise is mainly owed to revenue growth as well as improving efficiency. 

Additionally, Saudi Industrial Investment Group also announced its interim financial results for the period ending on March 31. 

A bourse filing revealed that the firm’s net profit stood at SR28 million at the end of the first quarter of 2024, compared to a net loss of SR242 million recorded in the same quarter a year ago. 

The increase in net profit is attributed to SIIG’s higher share of profit from joint ventures, coupled with a reduction in zakat expenses. 

RIYADH: An array of robust and diverse initial public offerings are poised for the Saudi Exchange thanks to new initiatives aimed at attracting international investors, the bourse’s CEO has revealed.

Addressing a panel discussion themed “Expanding Frontiers: Uncovering Investment Potential in Saudi Arabia and China” at the Capital Market Forum — CONNECT Hong Kong, Mohammed Al-Rumaih expressed confidence in the future trajectory of the Saudi Exchange. 

"We can see a very healthy pipeline of IPOs, not just small or large ones, but across different sectors and cycles, tracing their journey from being private to going public," Al-Rumaih said. 

The CEO attributed this to the Saudi Exchange’s new measures aimed at attracting international investors. 

“We’ve been doing a lot of work in the past few years, major projects every year, to accommodate the needs of international investors and the asset managers,” he explained. 

These include the introduction of Market Making and the debut of Single Stock Options.  

In 2022, it launched a market-making framework for its stock and derivatives markets, aimed at enhancing liquidity and improving price determination efficiency. 

Al-Rumaih also highlighted the upcoming launch of the second phase of the Saudi Exchange’s post-trade development program, expected in the third quarter of 2024.  

Moreover, the CEO elaborated on Tadawul’s close collaboration with the Kingdom’s Capital Market Authority. 

“So, when it comes to technology, we have state-of-the-art infrastructure similar to global exchanges, but it’s not only about technology; there’s a major element which is the regulations. We’ve been working closely with regulators, particularly the CMA because they are leading the development of the capital market,” he stressed.  

In addition, Al-Rumaih also addressed how the Saudi Exchange views Hong Kong as an ally.

“We believe Hong Kong is a great partner for us. They’ve been doing a great job in the past few years, and I think they’ve established themselves as a destination for international investors looking to invest in Asia,” the CEO affirmed. 

“So, for us, as a country that is gearing up to become thriving economy and having the biggest stock market, or the biggest skeletal market, within that time zone, I think Hong Kong is a great partner to connect the Middle East with the East,” he underlined. 

Also speaking at the same panel, Loai Bafaqeeh, head of securities at SNB Capital, explained what the Kingdom is doing to encourage international investors. 

“With the market evolving and focusing on listing companies and bringing more and more companies to the market, I think what’s happening in Saudi in terms of encouraging international investors basically we are addressing some of the key fundamentals that international investors are looking for,” Bafaqeeh said. 

He added: “One thing, for instance, is the introduction of Market Making. Today, if you want to get an ETF or another product, or if you want to ensure good liquidity in the market, your first question should be: ‘Do you have a Market Making?’”

During the same panel discussion, Ding Chen, CEO of CSOP Asset Management Limited, talked about the emergence of the Kingdom as an investment prospect. 

“Saudi Arabia, the Kingdom, has already done a great job promoting itself and also bringing itself in the spotlight globally by providing quite a lot of conference and events; nowadays, a lot of people travel to Riyadh,” Chen underscored. 

“But we constantly do seminars and also do client educations with clients,” the CEO added. 

She went on to note that in order to provide Saudi Arabia with more opportunities and make it more appealing to regional investors, conducting massive education sessions for clients is crucial. 

“CSOP probably will do around 2,000 seminars annually, and we hope that through doing this continually client education, we can make more people know more about Saudi opportunities,” Chen concluded. 

Saudi Arabia’s Capital Market Forum aims to bolster connections with China’s capital markets by extending its reach beyond borders to host the event in Hong Kong. 

In 2023, the Saudi Exchange saw a significant influx of IPOs and listings, introducing various industries to the Main Market and the Nomu Parallel Market.

On the Main Market, nine IPOs raised SR11.6 billion ($3 billion), with an additional SR5.04 billion raised across nine further offerings. Meanwhile, the Nomu Parallel Market saw 27 IPO listings raising SR1.2 billion, along with six companies completing direct listings.

In April, the Saudi Exchange welcomed its 400th listing across all securities, underlining the growing prominence of the bourse in the capital market. 

As of March 27, the exchange had 216 securities listed on the Tadawul All Share Index, with the parallel market Nomu featuring 83 listings.