Saudi Stock Market Overview: Mixed Performances Across Major Companies
The Saudi stock market has been experiencing a mix of growth and decline in various sectors, with some major companies showcasing impressive performances while others struggle to keep pace. As the benchmark index, Tadawul All Share Index (TASI), edged up by 29.26 points or 0.25 percent to close at 11,883.04 on Monday, several key players in the market stood out for their remarkable gains.
Market Trends: Indices and Turnover
On the flip side, Saudi Arabia’s parallel market Nomu dropped 240.58 points, or 0.77 percent, to close at 31,034.69. This development came as a surprise, given that 33 stocks advanced while 45 retreated in this sector. The MSCI Tadawul Index increased by 9.09 points or 0.61 percent to settle at 1,503.88.
Market Turnover and Trading Activity
The total trading turnover of the benchmark index was a significant SR5.4 billion ($1.4 billion), with 100 stocks advancing and 142 retreating. The substantial activity in the market is a clear indicator of investor confidence and interest in various sectors.
Sector Performance: Key Highlights
Arabian Company for Agricultural and Industrial Investment emerged as TASI’s top performer, surging by the 30 percent daily limit in its market debut on Monday. Its share price jumped to SR65, significantly surpassing its initial price of SR50, which was set at the upper end of the offering range.
Other notable performers include:
- Retal Urban Development Co., whose share price rose by 7.18 percent to SR15.82
- Astra Industrial Group, with a 4.45 percent increase in share price to SR169
- Alkhorayef Water and Power Technologies Co., which saw its stock price surge by 4.38 percent to SR166.80
On the other hand, Naqi Water Co. was the worst performer, with its stock price falling by 4.33 percent to SR57.40.
Company Announcements: Financial Results
Several major Saudi companies released their annual financial results for the period ending December 31, 2024, showcasing mixed performances across industries.
Arabian Mills for Food Products Co., a prominent player in the food sector, reported a 12.98 percent increase in revenue to SR973.94 million, compared to SR862.08 million in the previous year. This growth was primarily driven by a 39.75 percent surge in feed sales following the company’s entry into the poultry feed segment and reinforced production efforts.
The company’s net profit increased by 5.93 percent to SR212.15 million, supported by improved product cost efficiency, administrative streamlining, and reduced financing costs. Despite this growth, Arabian Mills saw a 1.03 percent drop in its share price to settle at SR47.90.
United International Transportation Co.: Impressive Growth
The United International Transportation Co., also known as Budget Saudi, posted a significant 43.03 percent increase in revenue to SR1.97 billion, up from SR1.38 billion in the prior year. This surge was fueled by the expansion of both long-term and short-term rental fleets, alongside contributions from the acquisition of AutoWorld and the integration of revenue from the Overseas Development Co.
Budget Saudi’s net profit climbed 12.44 percent to SR311.69 million, benefiting from improved rental rates, fleet expansion, and operational synergies post-acquisition. The company’s share price saw a 0.26 increase to reach SR76.40.
Kingdom Holding Co.: Revenue Drop but Net Profit Rise
Kingdom Holding Co., another prominent player in the market, saw an 11.57 percent decline in revenue to SR2.39 billion, down from SR2.70 billion in the previous year. The decline was primarily attributed to reduced dividend income and lower gains on investments at fair value through profit or loss.
Despite this drop in revenue, Kingdom Holding’s net profit rose by 22.08 percent to SR1.24 billion, supported by lower financial charges, gains from the reversal of impairments, increased share of profits from equity-accounted investees, and higher income from hotel operations. The company’s stock price increased by 1.64 percent to reach SR8.06.
BinDawood Holding Co.: Modest Growth
BinDawood Holding Co. reported a modest 1.33 percent increase in revenue to SR5.68 billion, compared to SR5.60 billion in the previous year. The growth was driven by contributions from new store openings, increased sales from Jumeirah Trading Co. and Future Retail Tech, and improved point-of-sale performance.
However, this was partially offset by store closures during the year. BinDawood’s net profit grew 1.88 percent to SR280.25 million, supported by stronger supplier terms, operational efficiencies, and a better product mix, though higher operating expenses related to talent acquisition and business expansion limited the increase. The company’s stock price grew 0.63 percent on Monday to reach SR6.42.
Conclusion
The Saudi stock market continues to exhibit a mixed performance, with some companies showing remarkable growth while others struggle to keep pace. The benchmark index, TASI, edged up by 29.26 points or 0.25 percent to close at 11,883.04 on Monday, but the parallel market Nomu dropped 240.58 points, or 0.77 percent, to settle at 31,034.69.
The financial results announced by major Saudi companies for the period ending December 31, 2024, have highlighted the challenges faced by various sectors in achieving consistent growth and profitability. The performances of Arabian Mills for Food Products Co., United International Transportation Co., Kingdom Holding Co., and BinDawood Holding Co. demonstrate the complexities and nuances of the market.
As investors and analysts closely monitor these developments, it remains to be seen how the Saudi stock market will navigate the challenges ahead and achieve sustained growth in the future.