Saudi Stock Market Experiences Mixed Day with Tadawul Index Closing at 11,792.40
The Saudi stock market experienced a mixed day on Tuesday, with the Tadawul All Share Index shedding 90.64 points or 0.76 percent to close at 11,792.40. This decline brings the benchmark index’s total trading turnover to SR5.94 billion ($1.58 billion), marking a notable decrease from previous days.
The Tadawul Index was not the only market to experience a decline; the Kingdom’s parallel market, Nomu, also shed 315.76 points to close at 30,718.93. The MSCI Tadawul Index declined by 0.73 percent to 1,492.90, reflecting the overall downward trend observed in the Saudi stock market.
However, not all stocks followed this downward trajectory; some firms experienced significant gains. On the main market, Aldawaa Medical Services Co.’s share price surged by 9.55 percent to SR78, marking a notable increase from previous days. Saudia Dairy and Foodstuff Co. also saw its share price edging up by 3.70 percent to SR313.60, while Walaa Cooperative Insurance Co.’s stock price increased by 3.62 percent to SR19.48.
In contrast, some firms experienced significant declines in their share prices. Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, saw its stock price drop by 7.21 percent to SR11.84. These fluctuations highlight the dynamic nature of the Saudi stock market and the need for investors to remain informed about market trends.
Company Announcements Influence Market Performance
In a notable development, Derayah Financial Co., which debuted on the Saudi main market on March 10, announced that its net profit for 2024 reached SR443.9 million, representing a rise of 34.64 percent compared to 2023. This significant increase in profits can be attributed to substantial growth across various business segments, including brokerage, asset and wealth management, as well as special commission income.
The company’s strong performance led to an initial surge in its share price, with Derayah Financial Co.’s stock rising by a notable margin before eventually declining by 3.25 percent to SR38.70. This volatility underscores the importance of closely following market developments and staying informed about company announcements that can impact investor decisions.
In contrast, Canadian Medical Center Co. announced that its net profit for 2024 stood at SR10.26 million, down by 34.63 percent from 2023. According to a Tadawul statement, the decline in net profit was attributed to increased operating and investment costs. Despite this setback, the company’s board of directors approved the payment of a cash dividend at 5 percent or SR0.05 per share for 2024.
Canadian Medical Center Co.’s share price dropped by 0.58 percent to SR6.86, reflecting the market’s reaction to the announcement. Elm Co. also announced that its shareholders approved the firm’s acquisition of the shares held by the Public Investment Fund in Thiqah Business Services Co. for SR3.4 billion.
This significant transaction follows a share purchase agreement signed by Elm Co. and PIF in January, under which the sovereign wealth fund sold its entire stake in Thiqah to Elm Co. The acquisition reflects the ongoing efforts of Saudi companies to expand their presence in various sectors through strategic partnerships and investments.
Capital Market Authority Approves New Listings
In a separate development, the Capital Market Authority (CMA) approved the request of Marketing Home Group Co. to float 4.8 million shares in the Kingdom’s main market for an initial public offering (IPO). The offer shares amount to 30 percent of Marketing Home Group Co.’s share capital.
Additionally, Qudra Communications & Information Technology Co. received approval from CMA to float 5 million shares, or 18.8 percent of the firm’s capital, on Nomu. Hawyia Auctions Co. also received approval from CMA to float 2.4 million shares, or 12 percent of the company’s capital, on Nomu.
The prospectus for these potential IPOs will be published well in advance of the offering’s start date. The authority’s approval is valid for six months from its resolution date.
Conclusion
In conclusion, the Saudi stock market experienced a mixed day, with some stocks experiencing significant gains while others declined. Company announcements played a crucial role in shaping market performance, highlighting the need for investors to remain informed about market developments and company performances.
The CMA’s approval of new listings underscores the Kingdom’s commitment to fostering a dynamic capital market that promotes economic growth and development. As the Saudi stock market continues to evolve, it is essential for investors and market participants to stay informed about market trends and company announcements to make informed investment decisions.