RIYADH: Saudi Arabia’s Tadawul All Stock Index on Thursday continued its lackluster stride for the second day in a row as it shed 61.15 points — or 0.59 percent — to close at 10,215.79 as investor mood remained muted.
Despite the market breadth being pegged positively, with 117 stocks of the listed 221 gaining and 86 losing, and 13 out of the 22 indices closing in black, the total trading turnover declined 24.57 percent to SR2.67 billion ($710 million) on Thursday from SR3.54 billion on Wednesday.
“There is a clear calmness for the Saudi market index, as it has been moving sideways in the past few sessions. We may not see strong momentum till the end of this year because of continued fears and uncertainty that affect investor sentiments for the coming period,” Raed Mohamed Diab, vice president of investment strategy and research of Kuwait-based Kamco Invest, told Arab News.
The lack of enthusiasm could be felt across all the indices in the Gulf Cooperation Council region, with four falling between 0.08 and 0.5 percent. Boursa Kuwait and Muscat Securities Market, on the other hand, gained 0.13 and 0.86 percent, respectively.
Saudi Arabia’s parallel market Nomu also fell 116 points to close at 18,680.87.
However, the only saving grace for the bearish streak in the last trading week of the year would be oil prices which climbed for the fourth straight day in a row.
Brent crude futures gained $1.17 to trade at $83.37 a barrel at 2:35 p.m. Riyadh time, and US West Texas Intermediate crude futures were up $1.11 at $79.40.
“The stability of oil prices above the $80-per-barrel levels and their rebound in the recent period with expectations of a second weekly gain this week helps provide strong support to markets in the region in the coming period,” said Diab.
Diab is, however, optimistic that the earnings and dividend announcements in the coming year could change the fortune of the markets.
On Thursday, Mouwasat Medical Services Co.’s board of directors recommended a 100 percent capital increase to SR2 billion by distributing one bonus share for every share held, the company said in a statement to Tadawul. The company also proposed a 30 percent cash dividend or SR3 per share for 2022. The share price of the company increased by 1.05 percent to SR193.
Meanwhile, Nomu, on Dec. 22, hosted the debut of plastic and chemical trader Saudi Top Trading Co., which recently offered 880,000 shares, or 22 percent of its capital, at a price of SR133 per share. The company’s share price fell 10.68 percent on its opening day to close at SR118.80.
Edarat Communications and Information Technology Co. also announced that it would begin trading on Nomu on Dec. 26. Its capital currently stands at SR6.3 million, divided into 630,000 shares, and set its price guidance at SR300 per share.
In a statement to Tadawul, Seera Holding Group informed that it had applied to the Capital Market Authority to offer 16.5 million shares, or 30 percent of Lumi Rental Co.’s capital, in an initial public offering on the Saudi Exchange.
On the performance front, Saudi Arabian Cooperative Insurance Co. was the topmost gainer as its share price rose 6.38 percent to close at SR13. In comparison, another peer, Arabia Insurance Cooperative Co., logged the worst performance with a 3.47 percent drop to wrap up at SR10.2.
