Saudi Stocks Experience Mixed Performance Amid Economic Uncertainty
The Saudi stock market has been experiencing a downward trend over the past few days, with the Tadawul All Share Index (TASI) continuing its decline for the third consecutive day on Wednesday. The benchmark index shed 13.03 points or 0.11 percent to close at 11,704.93.
The total trading turnover of the TASI was SR5.42 billion ($1.44 billion), with 155 stocks advancing and 83 declining. This mixed performance is a testament to the complexity of the current economic environment, where various factors are influencing investor sentiment.
Market Volatility: A Reflection of Underlying Economic Trends
The MSCI Tadawul index also declined by 0.43 percent to 1,476.91, indicating that the downward trend is not limited to the TASI alone. However, it’s worth noting that Saudi Arabia’s parallel market Nomu increased 410.19 points to close at 31,173.41, suggesting that there are still pockets of growth within the market.
Stock Performance: A Mixed Bag
The best-performing stock on the main market was Al-Baha Investment and Development Co., with its share price increasing by 8.33 percent to SR0.39. This surge can be attributed to a combination of factors, including improved operational efficiency and a successful strategy to diversify revenue streams.
Other notable gainers included Al-Babtain Power and Telecommunication Co., whose share price rose by 7.08 percent to SR41.60, and ARTEX Industrial Investment Co., which saw its stock price increase by 6.54 percent to SR14. These gains are a testament to the resilience of certain sectors within the market.
Contrasting Fortunes: A Tale of Two Companies
On the other hand, Saudi Industrial Investment Group (SIIG) experienced a decline in its share price, falling by 3.96 percent to SR15.02. This decrease can be attributed to various factors, including increased competition and a shift in investor sentiment.
Earnings Reports: A Glimpse into Company Performance
Arabian Drilling Co. reported a net profit of SR321.3 million for 2024, representing a decline of 46.85 percent compared to 2023. The company attributed this decrease to start-up costs associated with new unconventional rigs, as well as higher net finance expenses and depreciation costs.
In contrast, Savola Group witnessed a significant surge in its net profit, reaching SR9.97 billion for 2024. This increase was primarily driven by the distribution of its 34.52 percent stake in Almarai to shareholders, resulting in a net gain of SR11.3 billion.
Rental Market: A Bright Spot Amidst Uncertainty
Theeb Rent a Car Co.’s net profit stood at SR182.7 million for 2024, representing an increase of 28.6 percent compared to 2023. The company attributed this growth to improved utilization rates in both short and long-term rental segments.
Conclusion
The Saudi stock market continues to experience mixed performance amid economic uncertainty. While certain stocks are experiencing gains, others are struggling due to various factors. As the market navigates these challenges, investors would do well to remain vigilant and adapt their strategies accordingly.