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Saudi Stock Exchange Starts 2019 up After Growing 8% in 2018

Saudi Stock Exchange Starts 2019 up After Growing 8% in 2018

Saturday, 5 January, 2019 - 14:00
An investor walks past a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia June 29, 2016. REUTERS
London- Motlaq Moneer
The Saudi stock market made strong gains in its last trading session, mostly backed by boosts for SABIC and Al Rajhi Capital Company stocks. The general market index gained 81.15 points or 1.05 percent, closing at 7,830.47 points.

Tadawul, the Saudi stock exchange, ended the first week of trading in 2019 with a rise of 1%, closing at 7,830 points, up by 81 points from its last 7,749 points closing. More so, the Saudi market index ended the year 2018 on gains of about 601 points, and by 8% closing at 7,827 points.

This week, the Capital Market Authority (CMA) also set a deadline for declaring 2018 financial gains, which will last for a period of three months ending 31 March 2019.

According to a report issued by Sahara Group, Amanah Insurance shares recorded the highest increase by 10.39 percent to 23.58 riyals (about $6.29 dollars), followed by Al Ahlia by 7.84 percent to SR 12.38 ($3.3).

As for corporate news, Batec Investment & Logistics has announced the extension of two acquisition agreements for Al Muhaidib Land Transport and AMNCO, in exchange for a share issue.

The company said that the period of time was extended to 31 March 2019 in order to complete the preconditions for the deal.

The Saudi Petrochemical manufacturing company SABIC has also teamed up with South Louisiana Methanol to evaluate whether to build a new 2 million mt/year methanol plant in Louisiana to serve domestic and export markets.

The companies have signed a six-month "initial agreement" to study development of the project, they said Monday.

SABIC said in a statement that the companies will study economic, technical, and financial aspects of the project and decide whether to move ahead with it once all required licenses and approvals have been secured. The agreement can be extended beyond six months, SABIC said.

The global petrochemical manufacturer added that the agreement is part of its strategy to focus on geographic diversification of its business to reach global markets and gain access to competitive feedstock.

SABIC is a minority owner of NOVA Chemicals' 884,500 mt/year cracker in Geismar, Louisiana, and is ExxonMobil's partner in development of a new petrochemical complex near Corpus Christi, Texas, with a 1.8 million mt/year cracker and polyethylene and monoethylene glycol derivative plants.

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