Saudi water reforms hand Kingdom’s economy a head start as global supply problems increase

RIYADH: Saudi Arabia’s Tadawul All Share Index snapped its three-day rally by falling 129.04 points — or 1.21 percent —  on Wednesday to close at 10,516.90, burdened by the concerns of a sharp fall in crude oil prices and lingering demand concerns.  

Brent LCOc1 futures fell 2.3 percent or $1.88 to $80.22 a barrel by 1:32 p.m. Riyadh time, even as US crude CLc1 slipped 2.2 percent or $1.68 to $75.25 per barrel.  

The benchmark index touched 10,697.71 at 11:33 a.m. but erased its gains later in the day.  

“Oil prices came under some selling pressure due to demand concerns and the rising cases of COVID-19 in China. It is expected that the wave of fluctuations in the markets will continue in the coming period with continued caution until awaiting economic data from major countries indicate the overall economic picture,” Raed Mohamed Diab, vice president of investment strategy and research of Kuwait-based Kamco Invest, told Arab News.  

The advance-decline ratio reflected the pulse of the market as 177 stocks of the listed 223 slipped while 36 gained. 

Parallel market Nomu and MSCI Tadawul 30 Index declined 1.2 percent and 1.26 percent to close at 19,323.88 and 1,465.70, respectively.  

However, the total trading turnover of TASI on Wednesday rose to SR4.51 billion ($1.2 billion) from Tuesday’s SR3.88 billion.  

“The Saudi market declined in today’s trading after several sessions of bullishness, awaiting new incentives. Eyes now have shifted toward the financial results of the listed companies for the year 2022,” said Diab.   

He added that the sense of uncertainty persists about the prospects for the global economy in light of the high inflation rates, monetary tightening by the US Federal Reserve, continued interest rate hikes, and fears of entering a recessionary phase in several major global capitals.  

Stock markets in the Gulf Cooperation Council region on Jan. 4 also mirrored a lackluster mood as all indices except Dubai and Bahrain fell. However, the gains registered by the duo were minor.   

On the announcements front, Al Moammar Information Systems Co. informed the stock exchange that it won a contract worth SR36 million from the Saudi Data and AI Authority to develop solutions for the Boroog visual communication platform.  

The project aims to raise the level of compliance with cybersecurity controls, expand Boroog’s infrastructure, and build and develop the platform’s applications, the company said in a statement to Tadawul. Its share price inched up 0.43 percent to SR94.40.  

Malath Cooperative Insurance Co. announced it was awarded a contract to provide cooperative health insurance services for the employees and family members of Al-Othaim Holding Co. and its subsidiaries for one year. The insurer’s share price rose 1.74 percent to SR11.70.