JEDDAH: Shares in Saudi Arabian Mining Co. (Maaden) soared almost 54 percent on their first day on the Tadawul (Saudi stock market) yesterday. The SR20 stock hit a high of SR32 and a low of SR28.50 before closing at SR30.50. Over SR9 billion worth of Maaden shares changed hands.
Maaden’s initial public offering (IPO), the Middle East’s largest by a mining firm, was twice oversubscribed. Maaden sold 462.5 million shares or a 50 percent stake at SR20 each in July.
Maaden is the first company in the region to invest in major projects in the mineral sector. Currently, Maaden is involved in investments of SR60 billion in its projects to develop gold and industrial minerals as well as the bauxite and phosphate projects.
The Tadawul All-Share Index (TASI), however, plunged 137.44 points or 1.54 percent yesterday to close at 8,805.45 points. The index is down 20.23 percent or 2,233.21 points so far this year and more than 55 percent below its all-time highs.
Out of 123 companies traded, shares in 16 firms were in positive territory, while 88 companies were in the red.
The stock market turnover was over SR13 billion yesterday.
The banks and financial services index was down 1.26 percent. SABB (The Saudi British bank) shares were down by 2.24 percent, Arab National bank by 2.07 percent and Al-Rajhi Bank by 1.19 percent. Riyad bank shares were trading at SR33.50 as Standard & Poor’s Ratings Services said yesterday that it raised its long-term counterparty credit rating on Riyad Bank to ‘A+’ from ‘A’. At the same time, the ‘A-1’ short-term counterparty credit rating was affirmed. The outlook is stable.
Assuming the bank maintains its current financial profile, the ratings could be raised under the combination of a better diversified business profile and structural improvements in the Saudi macro-economic environment.
Shares in Saudi Basic Industries Corp. (SABIC) shares dropped 2.47 percent to SR128. In the telecom sector, shares in Saudi Telecom Co. fell by 1.42 percent, Etihad Etisalat by 1.97 percent and Zain KSA by 1.06 percent.
BMG index down
The BMG Saudi Index ended yesterday’s trading session on a negative note, marking the fourth session in a row for the index’s downtrend.
The index closed at 475.94 points, down by 1.9 percent. The total turnover also declined slightly by 2.3 percent to SR1.9 billion ($500 million), compared to SR2.9 billion ($512 million) registered in Sunday’s trading session. With the market witnessing the first trading day of Maaden, and with the latest listing of several IPOs taking place in the market, investors emerged as net sellers in the BMG Saudi Index’s shares, pulling its total turnover down.
Five sectors went down, whereas the agricultural sector stood still, with only the electricity sector stepping up by 2.2 percent. The session’s worst performer was the industrial sector, dropping by 2.4 percent, whereas the telecommunications sector lost 1.4 percent of its previous closing level. Both the insurance and the banking sectors fell by 1.2 percent each, whereas the telecommunications sector suffered the biggest losses, deteriorating by 1.1 percent.
Nineteen shares lost ground, whereas only four moved up. United International Transportation Company (Budget Saudi) was the session’s best performer, advancing by 2.8 percent to SR83.75. The worst performer, however, was Advanced Polypropylene Company, depreciating by 4.8 percent to SR50 per share.
