Closing Bell: Saudi Main Index Declines To Close at 11,012

JEDDAH: Saudi Arabia’s Tadawul All Share Index declined on Wednesday, losing 88.56 points, or 0.8 percent, to close at 11,012.18.

Investors traded more than 204.5 million shares worth over SR4.25 billion ($1.13 billion), with 63 stocks advancing and 197 declining.

The Kingdom’s parallel market Nomu fell 148.2 points, or 0.68 percent, to close at 21,697.96, with 23 companies gaining and 38 declining.

 The MSCI Tadawul 30 Index also decreased 14.47 points, or 0.97 percent, to close at 1,478.72.

Market movers

The main market’s top performer was Arabian Pipes Co., whose share price increased 5.1 percent to end the session at SR5.56.

Also, East Pipes Integrated Co. for Industry recorded a 4.75 percent rise to close at SR205.20, while Taiba Investments Co. advanced 3.91 percent to end the day at SR19.66.

On the losing side, Ladun Investment Co. decreased 5.49 percent to close at SR2.24, while Dar Alarkan Real Estate Development Co.

 declined 5.07 percent to end the session at SR19.47.

Saudi Azm for Communication and Information Technology Co. dipped 4.23 percent to close at SR26.74.

Corporate disclosures

The Saudi Exchange announced it has suspended trading in the shares of four companies listed on the Parallel Market for failing to announce their financial statements for the period ended June 30, within the timeframe specified under the Rules on the Offer of Securities and Continuing Obligations.

The companies are Rawasi Albina Investment Co., Ghida Alsultan for Fast Food Co., and Alhasoob Co., as well as Amwaj International Co.

The statement added that trading in the companies’ shares will resume on Sept. 3, for 20 trading sessions, during which the companies must announce their financial statements no later than Oct. 1.

It warned that if any company fails to make the required announcement within that period, trading in its shares will be suspended again from Oct. 4, until the financial statements are announced.

Arab National Bank announced it has opened subscription for a dollar-denominated additional Tier 1 capital sukuk, under its international additional tier 1 capital sukuk issuance program.

The bank, which ended the day advancing 0.85 percent to close at SR22.59, said in a Tadawul announcement that the offering will run from Sept. 2 through Sept. 3, subject to market conditions. The size of the issuance, issue price, and return will also be determined according to market conditions.

The perpetual sukuk will have a minimum subscription of $200,000, with additional subscriptions available in increments of $1,000. The sukuk will be callable after five years, subject to the terms and conditions outlined in the base offering circular.

ANB has appointed ANB Capital, Arab Bank, and Arqaam Capital as joint lead managers and bookrunners.

The list also includes ASB Capital, Citigroup Global Markets, and Goldman Sachs International.

HSBC Bank, Mizuho International, Standard Chartered Bank, and Warba Bank were also included.

The issuer noted that the sukuk will be listed on the London Stock Exchange's International Securities Market and may be sold outside the US in reliance on Regulation S under the US Securities Act of 1933, as amended.

In another announcement, Nofoth Food Products Co. said it has received the General Authority for Competition’s no-objection to its planned acquisition of a 65 percent stake in Plenty Food Co., bringing the transaction closer to completion.

The food products company, which declined 0.16 percent to SR6.17, said the approval is one of the conditions required to complete the deal, which remains subject to fulfilling the other conditions outlined in the Sale and Purchase Agreement and meeting any applicable regulatory requirements.

The firm added that there has been no change to the transaction consideration previously announced when it signed the sale and purchase agreement on Aug. 19, emphasizing that it will announce any other material developments in accordance with applicable regulatory requirements.

In a Tadawul filing, Saudi Investment Bank, or SAIB, said it had signed an agreement to sell its 50 percent stake in American Express Saudi Arabia to Amex Middle East for SR1.43 billion, payable upon completion, plus additional deferred consideration under the shareholders’ agreement.

American Express Saudi Arabia is a Saudi closed joint stock company equally owned by Amex Middle East and SAIB. Licensed by SAMA, the company provides credit and charge cards, corporate payment solutions and other American Express network products and services, in addition to merchant acquiring services in the Kingdom.

SAIB, whose shares rose 0.55 percent to close at SR14.60, said the transaction remains subject to regulatory approvals and is expected to generate a gain of SR792.41 million for the bank.