https://arab.news/mxpmw
RIYADH: Saudi Arabia’s benchmark index recovered on Tuesday after registering a massive fall on Monday, signaling the surging volatility in the market.
The Tadawul All Share Index on Tuesday gained 25 points to close at 10,444.27 points after touching a low of 10,282.81 at 10:31 a.m. Saudi time. The recovery came close on the heels of the 304 points crash the bourse witnessed on Monday.
The parallel market Nomu, however, could not match the pace with the TASI momentum and fell nearly 291 points to close at 18,506.03.
The advance-decline ratio was pegged positively, with 109 stocks of the listed 219 heading north and 91 turning south. The total trading turnover was SR4.96 billion ($1.32 billion).
According to market sources, investors were pessimistic about the Saudi market as they expected the earnings might not meet the historical growth it booked.
The Saudi market is trading at a price-earnings ratio of 13.2x, which is relatively lower than its three-year average PE of 25.8x.
On Tuesday, financial market tracker Argaam reported that shares of 39 Saudi-listed firms, including Saudi Telecom Co., Al Rajhi Bank and units of two real estate investment trust funds, hit their lowest levels in 52 weeks on Tuesday.
The stocks that fell the most during this period included United Cooperative Assurance Co., which declined by 78 percent to SR7.6 and CHUBB Arabia Cooperative Insurance Co. by 58 percent to SR15.32.
Other stocks included Malath Cooperative Insurance Co., which fell by 57 percent to SR10.88, Tabuk Agricultural Development Co. declined by 51 percent to SR51.3, while Red Sea International Co. dropped by 48 percent to SR23.18.
On a positive note, however, information and communications technology firm Perfect Presentation for Commercial Services Co. on Tuesday announced a cash dividend of SR0.7 for the third quarter of the fiscal year, distributing a total of SR10.5 million. The company’s share closed 1.42 percent higher at SR156.70.
The National Agricultural Development Co. also disclosed the launch of its strategic plan to the exchange, including expanding its leadership in dairy, juice, food, and agricultural products across new markets. The share price of the company tipped lower to touch SR22.76.
The Saudi Exchange also celebrated the listing of AlRajhi Bank Tier 1 Sukuk. AlRajhi Bank is one of the world’s largest Islamic banks by market cap, with a strong presence in the Kingdom.
“The addition of AlRajhi Bank Sukuk to the Saudi Exchange is another step toward diversifying the products available to local, regional and international investors, in line with our commitment to Vision 2030 and its Financial Sector Development Program,” said Mohammed Al-Rumaih, CEO of Saudi Exchange.