RIYADH: Saudi Arabia’s benchmark indices slipped on Thursday as global inflation indicators showed no signs of easing, and fears over its impact on oil demand overshadowed the market.
The Tadawul All Share Index fell 24.6 points – or 0.23 per cent – to close at 10,548.45.
MSCI’s Tadawul 30 index fell 0.13 per cent to 1,444.35 and parallel market Nomu fell 0.78 per cent to 19,258.52.
TASI’s total trading turnover of the benchmark index was SR4.01 billion ($1.07 billion) as 90 stocks advanced and 122 declined out of 224 listed.
“Saudi’s TASI heavyweight energy and banking indices were offset by healthy gains in insurance, media and transportation indices,” Junaid Ansari, head of investment strategy and research at Kuwait-based Kamco Invest, told Arab News.
Equity markets in the Gulf Cooperation Council region also lost their sheen on Thursday as investor gloom overshadowed all key indices in the region.
While the Qatar Exchange Index closed 191.52 points higher at 10,641.45 among all the indices, the FTSE ADX General Index was the worst performer, falling 27.36 points to close at 9,962.74.
The Dubai Financial Market General Index and the MSX 30 Index ended the session with marginal gains at 3,469.59 and 4,653.35.
On the other hand, the Borsa Kuwait Premier Market Index and Bahrain All Share Index ended slightly lower at 8,232.43 and 1,935.70 respectively.
“The trend in oil prices once again decided the course of markets in the GCC this week, especially the Saudi Exchange, following the release of inflation data in the US. Ansari said that since inflation remained high, Fears of oil demand and its impact on prices have weighed on the markets.
However, the bearish sentiment was relieved this week by the International Energy Agency’s prediction that oil demand will rise by 2 million barrels per day in 2023, with China consuming an increase of 900,000 bpd.
“Qatar and Saudi benchmarks improved during the week after two consecutive weeks of decline. This week’s gains partially offset year-to-date declines for Qatar, while the TASI is now in the green with a gain of 0.7 percent,” Ansari said.
On the announcements front, Al Kathiri Holding Company informed the Saudi Stock Exchange about its plans to issue the first series of Saudi Riyal-denominated Sukuk in a public offering.
The issuance will be decided later based on market conditions, the company said in a statement to Tadawul.
The company has appointed Alkhair Capital as the financial advisor and sole lead manager to the issue. Its share price fell 0.38 percent to SR52.
The board of directors of Arabian Internet and Communications Services Company on February 15 recommended the payment of a cash dividend of 50 percent of the capital or SR5 per share for 2022, distributing a total of SR594.9 million.
The company on Thursday reported a 27 percent increase in net profit after zakat and tax to SR1.05 billion in 2022 from SR833 million a year earlier. However, its share price fell 9 percent to SR240.