RIYADH: Saudi Arabia’s benchmark index fell 105.12 points — or 1.04 percent — on Monday, to close at 10,033.19, trailing the major global indices that plunged in anticipation of the US consumer index report to be released on Tuesday.
The apprehension emerges from the US wholesale inflation figures that have been rising for the last two months, and Federal Reserve could hike interest rates to tame inflation.
The outcome of the Fed decision would increase the cost of borrowing, resulting in lesser economic activity and spurring a global recession.
Most of the leading global indices dropped, with the S&P 500 and Nasdaq composite each falling 0.7 percent, while the Dow Jones Industrial Average declined 0.9 percent.
Similarly, Germany’s DAX fell by 0.5 percent, CAC 40 in Paris by 0.4 percent and Britain’s FTSE by 0.3 percent.
The tremors could also be felt in the Asian markets, with Hong Kong’s Hang Seng losing by 2.1 percent, the Shanghai Composite index by 0.9 percent and Tokyo’s Nikkei 225 index by 0.2 percent.
In the case of the Tadawul All Share Index, the last time the market touched 10,033.19 was 19 months ago when it closed at 10,048.70 points on April 18, 2021.
The total trading turnover was SR5.94 billion ($1.58 billion) compared to SR3.05 billion on Sunday when TASI closed at 10,138.31. The parallel market Nomu also gained 52.98 points to close at 18,587.84.
The day’s highlight was Americana Restaurants International’s debut on Tadawul and the Abu Dhabi Securities Exchange. The final offer price was set at 2.62 dirhams ($0.71) per share in the UAE and SR2.68 in Saudi Arabia.
The company was founded in 1964 in Kuwait and began with its “Wimpy” brand operations in 1970, then KFC in 1973.
From 1964 to 2016, the group diversified franchise partnerships to include Pizza Hut in 1979, Hardee’s in 1980, TGIF in 1994, and Krispy Kreme in 2006.
Notably, the stock registered the highest trading volume on its opening day, exchanging 513 million shares for a value of SR1.41 billion. It closed 2.24 percent higher to end at SR2.74.
Another notable gainer on TASI on Monday was Tanmiah Food Co., which finished 5.94 percent higher at SR103.40. National Shipping Company of Saudi Arabia, also known as Bahri, ended 3.54 percent higher at SR27.75.
The other top performers were ACWA Power and Dallah Health, which scored 2.9 percent and 2.85 percent higher, respectively.
Tourism Enterprise Co., however, was the worst performer of the day, as its share price dwindled 9.95 percent to close at SR20.28.
Other top losers on Monday were Tihama Advertising and Public Relations Co., Al Gassim Investment Holding Co., Perfect Presentation for Commercial Services Co. and Saudi Advanced Industries Co.
On the announcement front, Abdulaziz and Mansour Ibrahim AlBabtin Co., also known as Albabtain Foods, brought in some relief for its shareholders when on Monday it recommended a 5 percent cash dividend, at SR0.5 per share, for the first half of 2022, handing out a total of SR1.7 million in returns.
The share price closed 3.79 percent higher to SR52.