Tadawul Trading Week Wrap-Up: Key Highlights and Insights You Must Know

Tadawul Trading Week: Saudi Arabia’s main stock market, the Tadawul All Share Index (TASI), continued its upward trend for the second consecutive day, fueled by robust earnings reports from listed companies. TASI surged by 2.3 percent, closing at 12,588 points, indicating a positive sentiment among investors. In contrast, the parallel market, known as Nomu, experienced a slight decline of 1 percent, settling at 22,020 points. This positive performance in the Saudi stock market was reflected across the Gulf region, with Abu Dhabi’s stock market gaining 0.9 percent and Kuwait’s BKP rising by 0.6 percent. However, Qatar’s and Bahrain’s stock exchanges saw a marginal decline of 0.1 percent, while Dubai’s and Oman’s markets remained relatively stable.

Moving to the broader Middle East region, the Egyptian blue-chip index, EGX30, faced a decline of 1.6 percent, signaling a challenging day for investors in Egypt’s stock market.

On the commodities front, oil prices exhibited an upward trajectory. Brent crude, a benchmark for international oil prices, reached $114.29 per barrel, while US West Texas Intermediate stood at $110.69 per barrel as of 9:14 a.m. Saudi time. These price increases could impact the profitability of oil-dependent economies and potentially influence investor sentiment in the stock markets.

Tadawul Trading Week: Here are some significant news updates

  1. Saudi Reinsurance Co.: The Saudi central bank approved the company’s request to raise its capital from SR891 million ($238 million) to SR1.34 billion. This move aims to strengthen the company’s financial position and support its future growth plans.
  2. Growth Avenue Investment Co.: A unit of Maharah Human Resources, Growth Avenue Investment Co., successfully concluded the acquisition of a 40 percent stake in Salis for Trading & Marketing. This strategic investment is expected to enhance Growth Avenue’s portfolio and diversify its revenue streams.
  3. Naqi Water Co.: The Capital Market Authority (CMA) granted approval for Naqi Water Co.’s initial public offering (IPO) of a 30 percent stake on the Saudi Exchange. This IPO presents an opportunity for investors to participate in the company’s future growth prospects in the water industry.
  4. Saudia Dairy and Foodstuff Co.: The company’s board recommended a dividend payout of SR3 per share for the second half of the fiscal year ended March 31, 2022. This dividend distribution reflects the company’s strong financial performance and its commitment to delivering value to its shareholders.
  5. Academy of Learning Co. and Keir International Co.: The CMA approved the direct listing of Academy of Learning Co. and Keir International Co. on the parallel market, Nomu. This listing provides these companies with additional avenues for growth and access to capital.
  6. Batic Real Estate Co.: Batic Real Estate Co., a subsidiary of Batic Investments and Logistics Co., secured a loan worth SR200 million to fund potential investments. This funding will enable the company to explore new real estate opportunities and expand its operations.
  7. Ataa Educational Co.: The CMA authorized an increase in Ataa Educational Co.’s capital to SR421 million to facilitate the complete acquisition of Naba’a Educational Co.’s shares. This move strengthens Ataa Educational Co.’s market position and allows for enhanced educational services in the region.
  8. Salama Cooperative Insurance Co.: The company submitted a filing to the CMA, seeking a reduction of its capital by 60 percent to SR100 million. This strategic decision aims to optimize capital structure and ensure efficient utilization of resources.

Upcoming events and important dates in the market include:

  • May 26, 2022: National Environmental Recycling Co., commonly known as Tadweeer, will commence trading on the parallel market, Nomu.
  • End of Ladun Investment Co.’s IPO book-building on May 26, 2022.
  • May 30, 2022: Closure of Anaam International Holding Group’s rights trading.
  • End of Retal Urban Development Co.’s IPO book-building on May 31, 2022.
  • June 2, 2022: Closure of Anaam International Holding Group’s new shares subscription.

In conclusion, the Saudi Arabian stock market, led by TASI, witnessed another day of gains supported by strong earnings reports from listed companies. Positive momentum was also observed in other Gulf markets, while Egypt’s stock market faced a decline. Oil prices continued to rise, potentially impacting regional economies. Notable developments in individual companies included capital increases, strategic acquisitions, IPO approvals, and dividend recommendations. Investors should keep an eye on upcoming events and important dates in the market for potential opportunities.

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