Saudi bourse operator’s earnings drag the market down: Closing bell

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RIYADH: Saudi Arabia’s main index declined for the fourth consecutive day, dragged down by poor earnings announcements and a 23 percent drop in profit by Tadawul Group, the owner of the Kingdom’s bourse.

The Tadawul All Share Index fell 0.66 percent to end at 11,632, while the parallel market, Nomu, dropped 1.22 percent to finish at 19,606.

Saudi Tadawul Group Holding Co. plunged 2.24 percent, after its profit declined to SR367 million ($98 million) for the first nine months of 2022.

This was coupled with a 7 percent decline in revenue to SR849 million, mainly due to the decrease in trading services and post-trade services.

Higher salaries and employee-related benefits further weighed on profit during the nine-month period, leading to a 14.7 percent year-on-year increase in operating expenses to SR465 million.

Last week, Tadawul Group witnessed the 39th listing since the beginning of the year, with 18 listing requests approved by the Capital Market Authority through 2022, according to CEO Mohammed al-Rumaih.

This number surpasses the 2021 figure, which saw 21 listings, as well as the number witnessed in 2020, when the market recorded only eight listings, the Saudi stock exchange’s CEO said.

Tadawul is also reported to be developing a market marker for the stock exchange.

Tadawul also launched single stock futures contracts earlier this year as its second derivatives product.

Saudi oil giant Aramco ended the session 0.14 percent higher, while Rabigh Refining and Petrochemical Co. increased 1.64 percent.

Saudi National Bank, the Kingdom’s largest lender, shed 3.34 percent, while the Kingdom’s most valuable bank, Al Rajhi, decreased by 1.26 percent.

Sabic shed 2 percent, after it saw its profit decline by 10 percent to SR16 billion during the first nine months of 2022.

National Industrialization Co. added 0.30 percent, as its profit declined 39 percent to SR623 million during the first nine months of 2022.

Nama Chemicals Co. gained 0.78 percent, after its profit jumped by 124 percent to SR55 million in the first nine months of 2022.

Leejam Sports Co. gained 6.49 percent, after it soared by 25 percent to SR150 million during the first nine months of 2022.

Bawan Co. added 1.35 percent, after it posted a 6 percent profit increase to SR133 million for the period ending Sept. 30.