Saudi SMEs sector records 83% rise in investors, says Monsha’at report 

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 126.03 points — or 1.28 percent — on Wednesday, to close at 10,485.29, reflecting renewed enthusiasm in investor sentiment for the second day in a row.

The total trading turnover of the benchmark index scaled 29 percent to SR4.46 billion ($1.18 billion) from Tuesday’s SR3.45 billion. While 109 of the 223 listed stocks gained, 95 trailed.

“Saudi market reported a second consecutive day of healthy gains backed by a broad-based rally, with 16 out of 21 sectors in the green,” Junaid Ansari, head of investment strategy and research at Kamco Invest, told Arab News.

Much of the firepower came from large-cap sectors such as materials, banks, and energy, which rose 2.01 percent, 1.5 percent, and 0.60 percent, respectively.

Stock markets in the Gulf Cooperation Council region, except Dubai, were northbound in contrast to the global markets, which cut short on Tuesday’s rally after rising infections in China dampened the spirits raised by its plan to scrap quarantine restrictions for inbound travelers beginning January.

Oil prices also took a dip even as the resulting gloomy outlook in the Western economies cast a shadow over the bourses worldwide. Brent futures for February delivery fell 66 cents to $83.67 a barrel at 1:20 p.m. Riyadh time, while US crude fell 53 cents to $79.00 per barrel.

What’s noteworthy about Tadawul’s gain on Wednesday is that it happened despite Saudi Aramco Base Oil Co. falling 4.04 percent to close at SR95 on its much-anticipated debut. On its opening day, 11.22 million shares were traded for SR1.07 billion vide 60,581 transactions.

The company offered 50.045 million shares, or 29.66 percent of its capital, at SR99 per share, allocating 75 percent to institutional parties and 25 percent to individual investors.

“Gains (in Tadawul) came despite a 4 percent drop in (the) newly listed Luberef, highlighting the recent cap on oil prices gains led by doubts on global economic growth next year,” said Ansari.

Meanwhile, the parallel market Nomu resonated with the overall mood and blipped up 17.71 percent to finish at 19,199.75.

The parallel market also hosted the wave of initial public offerings as Yaqeen Capital, the lead manager for Nofoth Food Products Co.’s IPO, announced that its client’s subscription was complete at the offering price of SR150 a share.

In a statement to Tadawul, Yaqeen Capital said that the IPO was 342,69 percent covered, and it will determine the date for the listing shares on Nomu after finalizing the procedures with the stock exchange.

The exchange also announced that food produce company Leen Alkhair Trading Co. will start trading on Nomu from Jan. 1, 2023.

On the dividend front, the National Co. for Glass Industries informed Tadawul that it had recommended a 5 percent cash dividend for the second half of 2022 at SR0.5 per share, totaling SR 16.45 million.