Saudi Stock Market Declines as Tadawul Index Closes at 11,590

On Wednesday, the Saudi Arabia’s Tadawul All Share Index faced a downturn, closing at 11,590.79 after a loss of 145.28 points, which translates to a decline of 1.24 percent. This drop reflects the ongoing fluctuations in the market, as investors navigate through various economic factors. The total trading turnover for the day reached SR6.02 billion (approximately $1.6 billion), indicating a robust level of activity despite the overall decline.

In the trading session, 65 stocks managed to advance, while 168 stocks saw a decline. This uneven performance highlights the challenges faced by investors in the current market environment. Additionally, the Kingdom’s parallel market, known as Nomu, also experienced a setback, falling by 438.11 points, or 1.43 percent, to close at 30,164.72. In this market, 30 stocks advanced, while 52 retreated, further emphasizing the mixed performance across different sectors.

The MSCI Tadawul Index also reflected the downward trend, decreasing by 22.41 points, or 1.52 percent, to finish at 1,451.98. Amidst this backdrop, Tamkeen Human Resource Co. emerged as the best performer of the day, with its share price soaring by 30 percent to reach SR65. This significant increase showcases the company’s strong market position and investor confidence. Other notable gainers included United International Transportation Co., whose stock rose by 6.54 percent to SR76.60, and Anaam International Holding Group, which saw a 5.98 percent increase to SR1.24.

Conversely, the day was not as favorable for all companies. Saudi Cable Co. recorded the largest loss, plummeting by 6.67 percent to SR90.90. SHL Finance Co. also faced a decline of 4.74 percent, closing at SR16.90, while Filing and Packing Materials Manufacturing Co. dropped by 4.12 percent, ending the day at SR43. These losses serve as a reminder of the volatility that can occur in stock markets.

In terms of announcements, Saudi Awwal Bank revealed plans to launch its riyal-denominated additional tier-1 sukuk offering. The specifics regarding the terms and amount of the sukuk will be determined later, depending on market conditions. The minimum subscription is set at SR1 million, with a par value of SR1 million. The return on this investment will also be established later, based on market dynamics. The targeted investors for this offering are institutional and qualified clients, in line with the Capital Market Authority’s regulations. HSBC Saudi Arabia has been appointed as the sole lead manager for this sukuk issuance, although the bank’s stock closed down by 2.95 percent at SR32.15.

Furthermore, Tamkeen Human Resource Co. released its interim financial results for the period ending September 30, reporting a net profit of SR69.1 million for the first nine months of 2024. This figure represents a remarkable 40.7 percent increase compared to the same period in 2023. The growth was primarily fueled by a 40 percent rise in revenues and a 28 percent increase in gross profit, despite a rise in general and administrative expenses by SR10.3 million. Additionally, non-operating income grew by SR10.1 million, underscoring the company’s strong financial performance and effective management of its operations and risks.

The fluctuations in the Saudi stock market serve as a reminder of the inherent risks and opportunities present in investing. While some companies thrive, others face challenges, reflecting the dynamic nature of the market. Investors must remain vigilant and informed, as the landscape continues to evolve, influenced by both local and global economic factors.