Closing Bell: TASI edges up even as US Fed’s hawkish stance tips the scale
Saudi Arabia’s Tadawul All Share Index, closed 42.30 points higher — or 0.14 percent — on Thursday to end at 10,290.42, pitting itself against the negative sentiment that clouded the global markets after the US Federal Reserve’s interest rate hikes.
The benchmark index swung heavily between gains and losses, scaling to a high of 10.294.65 at 10:38 a.m. Saudi time and dropping to a low of 10,186 at 01:31 p.m..
The parallel market Nomu, however, could not gather momentum. It ended 115 points down to close at 18,526. 17, even as central banks across the Gulf Cooperation Council region increased their key rates following the US Fed’s decision on Wednesday.
The Saudi Central Bank increased its reverse repurchase rate by 50 basis points to 4.5 percent and repurchase rate by 50 bps to 5 percent, joining its peers in the UAE, Kuwait, Qatar and Bahrain.
“We believe that the impact on GCC markets from the rate hike and US Fed’s hawkish tone was muted as it is expected to be offset by robust domestic growth backed by a strong project pipeline coupled with the elevated oil price,” Junaid Ansari, senior vice president of investment strategy and research at Kamco Invest, told Arab News.
Out of the six stock exchanges, three closed higher. Abu Dhabi Securities Exchange topped the list closing 1.2 percent higher to 10,144.53 points, while Qatar Stock Exchange bottomed out, slipping 0.93 percent to finish at 10,976.75.
TASI’s market breadth was also pegged positively as 152 stocks of the total 220 advanced, while 53 declined. The total trading turnover was SR6.7 billion ($1.78 billion), up from Wednesday’s SR5.2 billion.
On the announcement front on Tadawul, Nama Chemicals Co. informed that its subsidiary, Jubail Chemicals Co., signed contracts with a consortium comprising Green Dimension Co. and Confident Engineering International Co. for SR56.54 million.
In a Tadawul statement, Nama Chemicals said the deals, which will run for 18 months, will help cut operational expenditure and improve production efficiency. The company topped the gainers’ list of the exchange, with its share price rising 8.69 percent to end at SR36.90.
Etihad Atheeb Telecommunication Co., the second-highest gainer of the day, added 7.46 percent to close at SR48.25. The other gainers included Elm Co., Tanmiah Food Co. and Retal Urban Development Co.
Retal Urban Development Co. was also in the news on Thursday as it signed two residential land purchase and development agreements for SR356.9 million with ROSHN Real Estate Co. to develop villas and apartment units within Sedra Compound in Riyadh. Its share price scaled 5.54 percent to culminate at SR125.80.
The worst performer of the day was healthcare major Al Hammadi Holding which shed 4.86 percent to wind up at SR40.15. The other stocks that made it to the top losers list included Bank Albilad, Alinma Tokio Marine Co., Gulf Union Alahlia Cooperative Insurance Co. and Saudi Arabian Mining Co..
The parallel market Nomu, however, could not gather momentum. It ended 115 points down to close at 18,526. 17, even as central banks across the Gulf Cooperation Council region increased their key rates following the US Fed’s decision on Wednesday.
The Saudi Central Bank increased its reverse repurchase rate by 50 basis points to 4.5 percent and repurchase rate by 50 bps to 5 percent, joining its peers in the UAE, Kuwait, Qatar and Bahrain.
“We believe that the impact on GCC markets from the rate hike and US Fed’s hawkish tone was muted as it is expected to be offset by robust domestic growth backed by a strong project pipeline coupled with the elevated oil price,” Junaid Ansari, senior vice president of investment strategy and research at Kamco Invest, told Arab News.
Out of the six stock exchanges, three closed higher. Abu Dhabi Securities Exchange topped the list closing 1.2 percent higher to 10,144.53 points, while Qatar Stock Exchange bottomed out, slipping 0.93 percent to finish at 10,976.75.
TASI’s market breadth was also pegged positively as 152 stocks of the total 220 advanced, while 53 declined. The total trading turnover was SR6.7 billion ($1.78 billion), up from Wednesday’s SR5.2 billion.
On the announcement front on Tadawul, Nama Chemicals Co. informed that its subsidiary, Jubail Chemicals Co., signed contracts with a consortium comprising Green Dimension Co. and Confident Engineering International Co. for SR56.54 million.
In a Tadawul statement, Nama Chemicals said the deals, which will run for 18 months, will help cut operational expenditure and improve production efficiency. The company topped the gainers’ list of the exchange, with its share price rising 8.69 percent to end at SR36.90.
Etihad Atheeb Telecommunication Co., the second-highest gainer of the day, added 7.46 percent to close at SR48.25. The other gainers included Elm Co., Tanmiah Food Co. and Retal Urban Development Co.
Retal Urban Development Co. was also in the news on Thursday as it signed two residential land purchase and development agreements for SR356.9 million with ROSHN Real Estate Co. to develop villas and apartment units within Sedra Compound in Riyadh. Its share price scaled 5.54 percent to culminate at SR125.80.
The worst performer of the day was healthcare major Al Hammadi Holding which shed 4.86 percent to wind up at SR40.15. The other stocks that made it to the top losers list included Bank Albilad, Alinma Tokio Marine Co., Gulf Union Alahlia Cooperative Insurance Co. and Saudi Arabian Mining Co..