Arab News, Thursday, Mar 16, 2023 | Sha'ban 24, 1444
Closing bell: TASI tanks 159 points as oil slide sparks selloff
Saudi Arabia’s Tadawul All Share Index fell 158.67 points — or 1.55 percent — to
close at 10,048.50 on Wednesday as Brent crude fell 4 percent, hitting its
lowest in over a year.
The contagion took off after Saudi National Bank,
Credit Suisse’s largest shareholder, pulled the plug on its financial assistance
to the beleaguered investment bank, citing regulatory reasons.
Brent crude fell $3.20, or 4.1 percent, to $74.25
a barrel by 3:33 p.m. Riyadh time after touching $74.01 for its lowest since
December 2021. US West Texas Intermediate crude was down $2.86, or 4 percent, at
$68.47, having also hit its lowest since December 2021.
Stock markets in the Gulf Cooperation Council
region also raised the guard as Bahrain, Dubai, Abu Dhabi and Muscat were in red
even as Kuwait closed slightly higher.
Closer to home, the parallel market Nomu dropped
124.80 points — or 0.66 percent — to 18,840 while MSCI Tadawul 30 Index fell
21.40 points — or 1.55 percent — at 1,356.49.
On the announcements front, Nama Chemicals Co.
reported a 33.68 percent increase in net profit to SR37 million in 2022 from
SR27.7 million in 2021.
Revenues of the Jubail-based firm rose 4.14
percent to SR577.21 million in 2022 from SR554.27 million in 2021.
In a filing to the stock exchange, the company
said that the profit growth was due to an increase in average selling prices of
almost all end products.
The chemical producer, however, bore a net loss of
SR17.7 million in the fourth quarter of 2022 compared to a net profit of SR3.28
million in the year-ago period. Its share price fell 1.09 percent to SR31.65.
Salama Cooperative Insurance Co.’s net losses
before zakat shrank 48 percent to SR55.32 million in 2022 from SR106.41 million
Losses were reduced as net written premiums
increased 72.2 percent to SR701.95 million in 2022 from SR407.58 in 2021 and
general and administrative operating expenses by 19 percent to SR74.7 million
from SR92.6 million. The insurer’s share price closed marginally higher at
Tabuk Agriculture Development Co. announced the
sale of 10 percent of its shares, or 800,000 shares, in its affiliate Horizon
Food Co. for SR29.6 million in the Nomu-Parallel Market.
According to a statement to the stock exchange,
the book value of these shares, as of Sept. 30, 2022, reached SR9.1 million,
which led to an exceptional decline in accumulated losses by SR19.3 million,
excluding the offering costs.
The company still owns a 40 percent stake, or 3.2
million shares, in Horizon Food. TADCO’s shares closed slightly higher at
Saudi Electricity Co. reported a 5.17 percent hike
in net profit to SR15.135 billion in 2022 from SR14.39 billion in 2021.
Its revenue advanced 3.95 percent to SR72.07
billion in 2022 from SR69.33 billion in 2021.
The surge in profit could be attributed to higher
operating revenue due to the growth in demand for electric power and the
increase in the balancing account amounts compared to the prior year.
SEC’s board of directors, on March 14, recommended
the distribution of a cash dividend at SR0.70 per share, or 7 percent of
capital, for 2022, totaling SR2.9 billion. Its share price closed flat at SR22.
Meanwhile, on Tuesday, the board of directors of
National Shipping Co. of Saudi Arabia, also known as Bahri, recommended
increasing capital from SR4.92 billion to SR7.38 billion via a 50 percent bonus
issue of one bonus share for every two shares held.
In a separate filing to Tadawul, Bahri announced
that the board proposed a cash dividend payment of 5 percent, or SR0.5 a share,
for 2022. Its share price jumped 1.18 percent to SR29.95.