RIYADH: Upon completion of last week’s episode of IPOs and dividends, the Saudi stock market soared to end the trading week higher, which was offset by a fall in the previous trading session in line with Gulf indexes.
A series of initial public offerings, dividend announcements, and coronavirus cases have been the main drivers of the Kingdom’s bourse as it approaches the end of the year.
Its main stock index, TASI, closed the prior session at 11,168 points, down from last week’s close of 11,271 points.
This came in line with GCC bourses as stock indexes of Abu Dhabi, Qatar, Oman, and Kuwait all saw declines from 1 to 4 percent.
Omicron strain still poses a risk for stock markets in the region.
In a press conference on Sunday, Saudi Health Ministry spokesman Mohammed Al-Abd Al-Aly said that countries are witnessing a jump in COVID-19 cases globally, including Saudi Arabia.
Data by the Saudi Health Ministry revealed that infections more than doubled in a week. As many as 389 new coronavirus cases were confirmed together with one coronavirus-caused death on Dec. 26, the data unveiled.
The dominant variant has left Saudi Arabia’s financial market prone to volatility since its break back in November this year.
On another note, as we approach year-end, many companies have set their 2021’s dividends at higher rates compared to a year earlier, fueling investor optimism which was also heightened by a numerous wave of IPOs.
The Capital Market Authority has 54 IPO applications pending, 31 of which are direct listings, the authority’s chairman Mohammed El Kuwaiz said in November, adding that the Saudi bourse is now larger than the Kingdom’s entire economy.
As of early morning, Brent crude oil was up $0.10, or 0.13 percent, to $76.24 per barrel, while US WTI crude retreated 0.96 percent to $73.08 per barrel.
Stock news:
- Anaam International Holding Group signed an initial agreement with ARW Industry for a potential 55-percent acquisition at an initial purchase of SR23.5 million ($6.2 million). The aim of the acquisition is to diversify the business into new sectors
- Al-Moammar Information Systems Co. and Al Rajhi Capital signed an initial agreement to launch an investment fund worth SR1 billion
Calendar:
Dec. 28, 2021:
- Subscription to Batic’s unsubscribed shares starts with over 4 million rump shares available
Dec. 29, 2021:
- Last day to subscribe to Batic’s rump shares
Dec. 30, 2021:
- End of Al Wasail Industrial IPO bidding and book-building for qualified investors
- Sahara International Petrochemical Co., or Sipchem, will start paying out dividends of SR1.09 billion – SR1.5 per share – for the second half of 2021
- Yanbu Cement Co. will start paying out dividends of SR156 million – SR1 per share – for the second half of 2021
- Dallah Healthcare Co. will start paying out dividends of SR90 million – SR1 per share – for the second half of 2021
