Closing Bell: TASI stages a sprightly comeback, rises 1.87% to close at 10,221 points
Saudi Arabia’s benchmark index posted a marked revival on Tuesday as the global indices mustered courage before the US inflation data results expected this week.
The outcome could convince the US Federal Reserve to proceed with aggressive interest rate hikes.
Tadawul All Share Index closed 187.95 points — or 1.87 percent – higher to end at 10,221.14 points. The recovery came after the index fell 105.12 points on Monday, in line with the global indices.
“Saudi market witnessed the biggest single-day gain in almost two months, defying the declines across all major markets in the Gulf Cooperation Council countries during the day,” Junaid Ansari, senior vice president of investment strategy and research, Kamco Investment Co., told Arab News.
The market breadth was also pegged positively as 178 stocks of the total 220 advanced, while 34 declined. Interestingly, the total trading turnover was SR5.64 billion ($1.5 billion), a tad lower than Monday’s SR5.94 billion.
“The TASI index maintained the upward trajectory since the start of the day amid a broad-based rally with almost all sectors closing in the green. The index gains reflected oversold stocks with a steep declining trend seen since the last week of October,” said Ansari.
“Crude oil future gains of almost 2 percent yesterday led by easing restrictions in China and lower supplies from the US also contributed to the overall optimism in the Saudi market,” added Ansari.
Brent crude futures on Tuesday were up 62 cents to $78.61 per barrel by 1226 GMT, while US West Texas Intermediate crude futures gained 34 cents to $73.51.
Parallel market Nomu, however, could not sustain its Monday’s 52-points gains. Instead, it closed 46 points lower to finish at 18,541.83 points.
The markets also had a reason to cheer with the dividend announcements of Banque Saudi Fransi and Naqi Water Co.
Banque Saudi Fransi, in a statement to Tadawul, announced a 9 percent cash dividend for the second half of 2022, at SR 0.90 per share, leading to a total dividend outlay of SR1.07 billion. Its share price rose 1.75 percent to close at SR37.85.
Naqi Water Co also recommended paying a 10 percent cash dividend, or SR1 per share, for the second and third quarters of 2022, doling out SR20 million. While the date has not been set, it’s the first dividend payment since the company listed in August.
Saudi Real Estate Co., also known as Al Akaria, also announced a land purchase agreement under a development obligation with ROSHN Real Estate Co., at a total value of SR323.7 million, excluding the real estate transaction tax.
The deal is conditional on Al Akaria developing 290 residential plots spanning 92,450 square meters within notified packages C1, C2 and C3 in Phase 2A of the Sedra masterplan community.
On Tuesday, the company’s share price increased by 1.82 percent to end at SR11.20.
Another highlight was Americana Restaurants International, which debuted on Monday on Tadawul and the Abu Dhabi Securities Exchange.
The stock was the topmost gainer on Tuesday as it closed an impressive 12.41 percent to conclude at SR3.08. It was also the highest-traded stock in both value and volume.
Tadawul All Share Index closed 187.95 points — or 1.87 percent – higher to end at 10,221.14 points. The recovery came after the index fell 105.12 points on Monday, in line with the global indices.
“Saudi market witnessed the biggest single-day gain in almost two months, defying the declines across all major markets in the Gulf Cooperation Council countries during the day,” Junaid Ansari, senior vice president of investment strategy and research, Kamco Investment Co., told Arab News.
The market breadth was also pegged positively as 178 stocks of the total 220 advanced, while 34 declined. Interestingly, the total trading turnover was SR5.64 billion ($1.5 billion), a tad lower than Monday’s SR5.94 billion.
“The TASI index maintained the upward trajectory since the start of the day amid a broad-based rally with almost all sectors closing in the green. The index gains reflected oversold stocks with a steep declining trend seen since the last week of October,” said Ansari.
“Crude oil future gains of almost 2 percent yesterday led by easing restrictions in China and lower supplies from the US also contributed to the overall optimism in the Saudi market,” added Ansari.
Brent crude futures on Tuesday were up 62 cents to $78.61 per barrel by 1226 GMT, while US West Texas Intermediate crude futures gained 34 cents to $73.51.
Parallel market Nomu, however, could not sustain its Monday’s 52-points gains. Instead, it closed 46 points lower to finish at 18,541.83 points.
The markets also had a reason to cheer with the dividend announcements of Banque Saudi Fransi and Naqi Water Co.
Banque Saudi Fransi, in a statement to Tadawul, announced a 9 percent cash dividend for the second half of 2022, at SR 0.90 per share, leading to a total dividend outlay of SR1.07 billion. Its share price rose 1.75 percent to close at SR37.85.
Naqi Water Co also recommended paying a 10 percent cash dividend, or SR1 per share, for the second and third quarters of 2022, doling out SR20 million. While the date has not been set, it’s the first dividend payment since the company listed in August.
Saudi Real Estate Co., also known as Al Akaria, also announced a land purchase agreement under a development obligation with ROSHN Real Estate Co., at a total value of SR323.7 million, excluding the real estate transaction tax.
The deal is conditional on Al Akaria developing 290 residential plots spanning 92,450 square meters within notified packages C1, C2 and C3 in Phase 2A of the Sedra masterplan community.
On Tuesday, the company’s share price increased by 1.82 percent to end at SR11.20.
Another highlight was Americana Restaurants International, which debuted on Monday on Tadawul and the Abu Dhabi Securities Exchange.
The stock was the topmost gainer on Tuesday as it closed an impressive 12.41 percent to conclude at SR3.08. It was also the highest-traded stock in both value and volume.
