Saudi Stock Market Declines as Tadawul Index Closes at 11,840

On Thursday, the Saudi Arabia’s Tadawul All Share Index experienced a slight decline, closing at 11,840.52 points after losing 27.40 points, which is equivalent to a 0.23 percent drop. This movement in the stock market reflects the ongoing fluctuations that investors have been observing in recent times. The total trading turnover for the benchmark index reached SR5.39 billion, or approximately $1.43 billion. In this trading session, 98 stocks saw an increase in their prices, while 131 stocks faced a decline.

In contrast, the Kingdom’s parallel market, known as Nomu, showed a positive trend, gaining 681.17 points, or 2.28 percent, to close at 30,540.28. This indicates that while the main index struggled, some sectors within the market are still thriving. In this parallel market, 63 stocks advanced, while only 23 retreated, showcasing a more favorable environment for certain investors.

The MSCI Tadawul Index also faced a setback, losing 4.52 points, or 0.30 percent, to settle at 1,486.82. Among the stocks, Al-Baha Investment and Development Co. stood out as the best performer of the day, with its share price surging by 10 percent to reach SR0.33. Other notable performers included Saudi Reinsurance Co., which saw a 7.05 percent increase in its share price, closing at SR43.30, and Saudi Chemical Co., which experienced a 5.46 percent rise to SR10.24.

On the downside, Saudi Cable Co. recorded the largest decline, with its share price dropping by 4.02 percent to SR97.90. Additionally, CHUBB Arabia Cooperative Insurance Co. saw its stock fall by 3.13 percent to SR49.50, while Naseej International Trading Co. experienced a 2.64 percent drop, closing at SR92.30.

In terms of corporate announcements, Saudi Awwal Bank revealed its plans to issue an SR-denominated Additional Tier 1 Sukuk through a private placement. This initiative is part of a larger SR20 billion issuance program aimed at strengthening the bank’s capital base and supporting its long-term strategic goals. The bank has appointed HSBC Saudi Arabia as the sole lead manager for this proposed offer. The specific amount and terms of the sukuk will be determined later, depending on market conditions.

Saudi Awwal Bank’s stock closed the session at SR31.40, reflecting a decrease of 0.63 percent. Meanwhile, the Saudi Investment Bank announced the successful completion of its US dollar-denominated Additional Tier 1 capital sustainable sukuk offering, valued at $750 million. This offering consists of 3,750 sukuk, each with a par value of $200,000 and a return of 6.275 percent. These sukuk have a perpetual maturity and can be called after five years. The settlement for this issuance is scheduled for November 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market. The Saudi Investment Bank’s stock closed at SR13.88, down 0.29 percent.

The fluctuations in the Saudi stock market highlight the dynamic nature of investments in the region. While some stocks are thriving, others are facing challenges, reflecting the diverse landscape of the market. Investors should remain vigilant and informed, as these movements can present both opportunities and risks. Understanding the underlying factors driving these changes is crucial for making informed investment decisions.