Saudi Stock Market Sees Positive Closes Amid Strong Earnings Reports
The Saudi stock market witnessed a positive close on Sunday, with the Tadawul All Share Index gaining 127.90 points, or 1.09 percent, to settle at 11,853.78. This upward trend was mirrored in the Kingdom’s parallel market, Nomu, which rose by 139.42 points, or 0.45 percent, to close at 31,275.27.
Market Performance
The Tadawul All Share Index recorded a trading turnover of SR4.67 billion ($1.24 billion), with 207 stocks advancing and 35 declining. This significant increase in market activity is a testament to the growing confidence of investors in the Saudi economy. The parallel market, Nomu, also saw increased participation, with 50 stocks rising while 30 experienced declines.
Notable Gainers
Among the top performers on Sunday were Arriyadh Development Co., whose share price surged by 9.91 percent to SR36.05, and Saudi Research and Media Group, which saw its shares climb 7.97 percent to SR189.60. Banan Real Estate Co. also experienced a notable increase of 6.27 percent, closing at SR6.95.
Laggards in the Market
On the downside, Saudi Paper Manufacturing Co. faced the largest drop, falling 3.62 percent to SR58.50. Al-Baha Investment and Development Co. also saw a decline of 2.56 percent, with its shares ending at SR0.38. Tihama Advertising and Public Relations Co. experienced a 1.84 percent decrease, closing at SR16.
Saudi Reinsurance Co.’s Earnings Report
Saudi Reinsurance Co. announced its annual financial results for the year ending Dec. 31, reporting a net profit of SR440 million for 2024, representing a remarkable 628 percent increase compared to 2023. The surge in profits was primarily driven by capital gains from the sale of its stake in Probitas Holding, which amounted to SR365.9 million.
Capital Gain Distribution
In addition to this significant profit increase, the company’s board of directors recommended a 46.6 percent increase in capital by distributing 51.48 million bonus shares to shareholders, translating to four shares for every nine held. This move not only rewards existing investors but also provides an incentive for employees through a long-term incentive plan, allocating 2.5 million shares.
Najran Cement Co.’s Earnings Report
Najran Cement Co. also released its annual financial results for the year ending Dec. 31, reporting a net profit of SR68.4 million for 2024, reflecting a 24.05 percent increase from 2023. This growth was driven by higher sales and improved gross margins, despite rising general and administrative expenses and finance costs.
Market Reactions
Despite strong earnings reports, Saudi Reinsurance Co.’s share price dipped by 0.53 percent, closing at SR48.10. On the other hand, Najran Cement Co.’s stock rose by 3.34 percent, closing at SR8.75.
Conclusion
The positive closes in the Saudi stock market on Sunday are a testament to the resilience and growth of the Kingdom’s economy. With strong earnings reports from key companies like Saudi Reinsurance Co. and Najran Cement Co., investors continue to show confidence in the sector. As the market moves forward, it will be interesting to see how these developments impact future trading activity and stock prices.
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