RIYADH: Saudi shares tumbled on Sunday as the benchmark index fell 17 points – or 0.16 per cent – to close at 10,726.87, without any redeeming factors on the horizon ahead of earnings season.
At 10:58 am, the Tadawul All Share Index stood at 10,808.05; From there, it was a bumpy ride down the hill.
The index could not sustain Thursday’s momentum when it closed 1.27 per cent higher after improving oil prices and reassuring US inflation data resulted in a confidence blow.
“At the end of last week, US markets found some support following a fall in inflation levels and optimism about the Federal Reserve slowing interest rate hikes, while oil prices rose on expectations that sanctions will ease further. Later demand from China will increase. related to COVID-19,” Raed Mohammed Diab, vice president of investment strategy and research at Kuwait-based Kamco Invest, told Arab News.
He added: “Despite this, the Saudi market stabilized at the same level as last week, as it appears to be somewhat cautious about the investment climate and awaits brighter signs.”
While the MSCI Tadawul 30 index ended 0.19 per cent lower at 1,491.66, the parallel market Nomu gained 0.7 per cent to close at 19,367.21.
Total trading turnover of the benchmark index TASI fell 32 percent to SR3.5 billion ($930 million) from Thursday’s SR5.2 billion on Sunday, with 133 stocks declining and 79 rising out of 223 listed.
“The Saudi market has stabilized with minimal changes in the performance of sectors,” Diab said.
Additionally, bourses in the Gulf Cooperation Council region showed mixed reactions on Sunday as Dubai, Abu Dhabi and Bahrain edged marginally higher, while Kuwait, Qatar and Muscat declined.
On the announcement front, Al Rajhi Bank informed the stock exchange on Sunday that its board of directors has recommended a 12.5 per cent cash dividend, or SR1.25 per share, for 2022 after doling out SR5 billion by deducting zakat. The bank’s share price, however, fell 0.1 percent to SR77.80.
Subscription to the Albilad MSCI US Tech exchange-traded fund also opened on Tadawul on January 12, with an offer period of 30 business days, ending on February 22.
The minimum amount required to start fund operations is SR10 million. If the amount is not collected during the Initial Public Offer period, the Fund Manager will return the subscription amount to the Unitholders.
Meanwhile, Saudi Chemical Holding Company on January 15 signed a non-binding MoU with Orica Mining Services Portugal through its subsidiary Saudi Chemical Company Limited for technical cooperation on localization of ammonium nitrate and nitric acid. Production.
As part of the MoU, a project for localization of the ammonium nitrate and nitric acid industry will be set up, which will be the first of its kind in the region, besides introducing modern technologies in the mining sector. Share price of SCC closed down 0.37 per cent at SR27.
On Sunday, the technology company Nasij also announced that it had won a project from the Ministry of Education worth SR56.99 million, including value-added tax.
The project involves providing the Saudi Digital Library with access to available digital information resources, the company said in a statement on Tadawul.