The Saudi Stock Exchange saw a boost as the Tadawul All Share Index (TASI) rose by 1.2 percent, its best daily pace since June. After three consecutive sessions of decline, the index closed at 11,914 points, gaining 145 points. Total turnover reached about SR7 billion, with more than 7.2 million shares worth SR 600 million traded on the day. TASI had experienced a 2.2 percent decline in the first three days of October and lost five percent from its peak the previous week due to geopolitical tensions. However, Monday’s session saw the Saudi index rise again, supported by the banking sector, particularly Al-Rajhi share, which increased by 5 percent to SR84.20.
One of the key performers during the trading session was Almajed Oud, which jumped by 30 percent on debut, reaching SR122.20 with about 226,000 shares traded. Other notable gainers included Al-Baha, Red Sea, Al-Omran, and Anaam, which all rose by 10 percent. Almarai also saw a 2 percent increase, reaching SR56.50, after its subsidiary signed an agreement to acquire Jordan’s Hammoudeh Food Industries for SR 263 million. On the other hand, the Saudi Aramco share fell by approximately 0.2 percent to SR26.95, its lowest level since August. Shares of Kingdom Holding, Advanced, SASCO, and Budget Saudi Arabia also experienced a decline of 1-3 percent.
The boost in the Saudi Stock Exchange can be attributed to the positive performance of key sectors, particularly the banking sector. Al-Rajhi Bank’s share saw significant growth, contributing to the overall increase in the TASI index. Additionally, the debut of Almajed Oud, with a 30 percent jump, added to the positive sentiment in the market. The acquisition agreement signed by Almarai’s subsidiary further bolstered investor confidence, leading to a 2 percent increase in the company’s share price. Despite the overall positive trend, some companies, such as Saudi Aramco and Kingdom Holding, experienced a slight decline in their share prices.
Investors and traders in the Saudi Stock Exchange are closely monitoring geopolitical developments that may impact the market. The recent decline in the TASI index due to geopolitical tensions highlights the market’s sensitivity to external factors. As the market recovered on Monday, investors remain cautious and vigilant, assessing the potential impact of ongoing geopolitical events on stock prices. The fluctuation in share prices of companies like Saudi Aramco and Kingdom Holding further illustrates the influence of external factors on the stock market.
Overall, the positive performance of the Saudi Stock Exchange on Monday reflects a rebound from previous declines, with key sectors such as banking contributing to the increase in the TASI index. The debut of Almajed Oud and Almarai’s acquisition agreement added to the market’s optimism, offsetting the slight declines seen in some companies’ share prices. As geopolitical tensions continue to impact market sentiment, investors are advised to stay informed and cautious in their investment decisions. The resilience of the Saudi Stock Exchange in the face of external challenges demonstrates the market’s ability to adapt and recover in the midst of uncertainties.
