By: Elsayed Gamal
Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) closed Wednesday in red territory, after its benchmark Tadawul All Share Index (TASI) plunged 249.14 points, or 3.1%, to 7,719.10 points, recording its sharpest loss in two years, or since 28 September 2016.
TASI’s trading volume stood at 176.14 million shares on Wednesday, up from 109.59 million in the prior session, while the market's traded value surged to SAR 3.94 billion, from SAR 2.5 billion.
The current events in emerging markets have negatively affected the regional stock markets, especially the Saudi bourse, market analyst Mohammed Ashemimry told Mubasher.
The hike of Saudi Arabian Interbank Offered Rate (SAIBOR) also adversely impacted the bourse, Ashemimry added, noting that there are some media sources stated that liquidity was withdrawn from banks.
The market analyst further indicated that TASI continued its downward trend after breaking the level of 7,826 points, then reaching 7,602 points, and it closed on Wednesday at 7,719 points.
Ashemimry noted that Tadawul’s weekly closing must be noticed after the end of Thursday’s session, as the stock exchange may start a sideways moevement.
The media sector levelled down 4.9%, followed by the consumer durables and apparel sector with 4.3%.
The insurance, materials, telecommunication and banking sectors fell 4.1%, 3.5%, 3.2%, and 3.1%, respectively.
Amana Cooperative Insurance’s stock led losers with 9.8%, followed by Saudi United Cooperative Insurance’s (Walaa) stock with 7.5%, and Malath Insurance’s stock with 7.4%.
On the other hand, the Saudi Cable Company’s stock topped gainers after growing 6.9%, while Saudi Arabian Fertilizer Co.’s (SAFCO) stock inched up 0.8%.
Alinma Bank’s stock topped the bourse in terms of trading volume after 34.8 million shares were exchanged, with a liquidity of SAR 720.14 million.
In the meantime, the main index of the Nomu secondary market, NOMU, tumbled 34.70 points, or 1.3%, to finish at 2,620.87 points, registering its sharpest losses in 11 sessions.
Nomu’s trading volume increased to 161,600 shares, from 34,780 on Tuesday, while liquidity soared to SAR 2.1 million versus SAR 448,410.
Al-Kathiri Holding Company and Arab Sea Information System stocks’ went down 9.3% and 5.4%, respectively.
The stock of Arab Sea Information System led Nomu’s activities after 82,140 shares were exchanged, with a turnover of SAR 903,000.
Translated by: Mohammad Hesham Azab