Closing Bell: Saudi benchmark index rises 130 points as China eases quarantine norms
RIYADH: Saudi Arabia’s Tadawul All Stock Index climbed 130.62 points – or 1.28 per cent – to close at 10,359.26 on Tuesday, as China announced its plan to end quarantine requirements for incoming travelers from January 8.
The news sparked a wave of euphoria in markets around the world as it eased three years of border controls that had halted international trade and global supply chains.
Junaid Ansari, head of investment strategy and research at Kamco Invest, said, “The announcement that China will lift the last remaining COVID-19 restrictions created hopes of easing pressure on global supply chains and therefore lower inflation and an increase in oil demand.” Improvement is expected.” , told Arab News.
The benchmark index’s total trading turnover on Tuesday rose 78 percent to SR3.45 billion ($920 million) from Monday’s SR1.92 billion, the lowest value traded on the exchange in three years. The market breadth clearly reflected the spectacle as 107 stocks out of 222 listed advanced while 83 declined.
“Gains in Saudi Arabia were broad-based, with 17 out of 21 sectors seeing gains, while declines were marginal. Trading activity also recovered from yesterday’s multi-year low, which reflects investor optimism,” said Ansari.
The energy index led the sectoral rally, rising 99.55 points to close at 5,411.15.
Riding on the wave of optimism, parallel market Nomu also closed at 19,182.04, up 294.29 points.
Stock markets in the Gulf Cooperation Council region, except for Qatar, were up north, ending a gloomy streak that has engulfed the region in recent days.
The top performer of the day was Co-operative Insurance Company which was up 8.42 per cent at SR15.20.
In contrast, the worst performer was Alsaf Stores for Development and Investment Company, also known as Alsaf Gallery, which debuted on SR115 in Tadawul on Tuesday. The share price closed at SR98, down 14.78 per cent, despite the company declaring a cash dividend soon after the launch.
The electric appliance retailer informed Tadawul on January 12 that it will distribute a 10 per cent cash dividend, or SR1 per share, for the third quarter of 2022.
On 27 December the Academy of Learning company also recommended a cash dividend of 20 per cent of capital, or SR2 a share, for the second half of 2022, totaling SR12 million.
Glass manufacturing company Raum Trading Company also announced the distribution of a cash dividend at SR1 per share for the second half of 2022, according to a statement from Tadawul.
At the end of the day, the Al Rajhi Company for Co-operative Insurance, also known as Al Rajhi Takaful, informed that it has signed a contract with Rabig Refining and Petrochemical Company to provide insurance to the latter’s employees and their families. To provide health insurance services.
In a statement to Tadawul, the insurer said the contract is effective for one year, adding that contract revenue is expected to exceed 2021 annual gross written premium by 5 per cent.
The contract will reflect positively on its 2023 financial results, the company said in the statement.