Closing Bell: Saudi stock market falls flat as traded value touches lowest in 3 years
Saudi Arabia’s Tadawul All Stock Index ran out of steam on Monday as it lost 5.88 points — or 0.06 percent — to close at 10,228.64 as the seasonal slowdown in the last trading week of the year cast its shadow on the bourse.
The total trading turnover stood flat at SR1.92 billion ($510 million) compared to Sunday’s close and declined against Thursday’s SR2.67 billion. The advance-decline ratio tilted south as 60 stocks of the listed 221 gained while 148 lost.
“Value traded on the exchange today was the lowest in three years while volume traded was the fifth lowest in three years, reflecting a seasonal slowdown in trades globally,” Junaid Ansari, head of investment strategy and research at Kamco Invest, told Arab News.
“Saudi market continued to move sideways with minimal change due to lack of catalysts,” he added.
Moreover, 12 of the 21 sector indices were in the red, partially offset by a gain in the Utilities Index, which rose 44.6 points to close at 7,119.15, led by ACWA Power Co., which ended 0.94 percent higher at SR150.60.
“A marginal increase in the Banking Index also helped after healthy gains in Banque Saudi Fransi, Riyad Bank and Arab National Bank were almost fully offset by the decline in five listed banks,” said Ansari.
The parallel market Nomu, on the other hand, rose 68 points to end at 18,887.75.
Stock markets in the Gulf Cooperation Council region remained muted as Dubai, Kuwait and Muscat gained 0.31 percent, 0.67 percent and 0.01 percent, respectively. However, exchanges in Abu Dhabi, Qatar and Bahrain fell 0.52 percent, 1.23 percent and 0.06 percent, respectively.
“The performance of regional markets remained mixed, failing to provide any meaningful direction to the Saudi market,” said Ansari.
On the announcement front, Saudi Top Trading Co. on Monday informed Tadawul that its board of directors has recommended distributing cash dividends of 120 percent or SR12 per share to its shareholders, excluding its chairman Abdullah Muhammad Al-Ajmi, who waived his profits for 2022.
The number of eligible shares is 1.2 million, and the company will distribute SR14 million in cash dividends. The company’s share price increased 5.16 percent to close at SR114.2.
Keir International Co. on Dec. 26 also announced that it signed a contract worth SR16.6 million, including the value-added tax, with the Saudi Ports Authority, also known as Mawani, to connect the authority’s ports to the fiber-optic network. The company’s share price gained 1.6 percent to wind up at SR127.