Saudi Stock Market Declines Amid Mixed Company Earnings Reports

On Thursday, the Saudi stock market experienced a downturn, with the Tadawul All Share Index falling by 63.74 points, or 0.53 percent, to close at 12,045.78. This decline reflects the ongoing fluctuations in the market, influenced by various factors including company earnings and economic conditions. The total trading turnover for the benchmark index reached SR5.98 billion (approximately $1.59 billion), indicating active trading despite the overall decline.

In the trading session, 52 of the listed stocks saw gains, while 171 stocks faced losses. The Kingdom's parallel market also experienced a drop, shedding 41.89 points to close at 26,609.30. Additionally, the MSCI Tadawul Index slipped by 0.48 percent, closing at 1,512.59. These figures highlight the mixed performance of the market, with some stocks performing well while others struggled.

Among the notable performers, Fawaz Abdulaziz Alhokair Co. stood out as the best-performing stock of the day, with its share price increasing by 5.91 percent to SR8.25. Other top performers included Rabigh Refining and Petrochemical Co. and National Medical Care Co., whose share prices rose by 4.96 percent and 3.58 percent, respectively. Conversely, Gulf Union Alahlia Cooperative Insurance Co. was the worst performer, with its share price declining by 9.99 percent to SR17.30.

In terms of company announcements, Perfect Presentation for Commercial Services Co. reported a significant increase in its net profit for the first half of the year, surging by 44.31 percent to SR88.45 million compared to the same period in 2023. The company attributed this growth to continued expansion across all business segments and the launch of a new cybersecurity enterprise earlier this year.

National Medical Care Co. also announced its financial results, revealing a net profit increase of 44.89 percent year-on-year, reaching SR150.8 million in the first half of 2024. However, not all companies reported positive results. Power and Water Utility Co. for Jubail and Yanbu experienced a significant decline in net profit, down by 59 percent to SR108.13 million, primarily due to rising fuel costs that increased by 46.62 percent year-on-year.

Another company, Salama Cooperative Insurance Co., reported a 29.10 percent drop in profit year-on-year, totaling SR21.48 million, driven by a decrease in revenue. These mixed earnings reports reflect the challenges faced by various sectors within the Saudi economy.

The recent trading session on the Saudi stock market illustrates the volatility and mixed performance of listed companies. While some firms are thriving, others are grappling with significant challenges. Investors should remain vigilant and informed about market trends and company performances to make educated decisions in this dynamic environment.