Riyadh- The Saudi stock market remarkably bounced back, recording an approximated 114 point-jump on Monday. Investment companies and international research experts now are conducting extensive probes on opportunities presented by the Saudi financial market. The increased investment attraction is part due to the nearing launch of Saudi Arabia’s secondary market listing.
Chances of investing in the Saudi financial market will boost even more as the parallel market launches, economic expert Professor Ghanem al Salim told Asharq Al-Awsat.
“Main stock market activity is already on the road to recovery, presenting a valuable incentive for investing companies to secure a foothold in the Saudi market,” he added.
On 21 December 2016, the Capital Market Authority (CMA) of Saudi Arabia approved the Parallel Market Listing Rules , establishing the Parallel Market, an alternative market to the Main Market of the Saudi Stock Exchange, Tadawul.
The Parallel market’s objective is to provide an opportunity for a wider spectrum of issuers to obtain a listing on the Stock Exchange, as an alternative to obtaining a Main Market listing.
The introduction of the Parallel Market also completes another step in implementing “Saudi Vision 2030”, it is particularly relevant for small to medium sized enterprises (SMEs) that could benefit from a listing, but are not yet in a position to comply with the more strict eligibility for listing requirements of the Main Market.
Saudi Arabia stocks were higher after the close on Monday, as gains in the Energy & Utilities, Agriculture & Food and Financial Services sectors led shares higher.
At the close in Saudi Arabia, the Tadawul All Share rose 1.66%. The best performers of the session on the Tadawul All Shares were Saudi Industrial Investment Group, which rose 9.02% or 1.65 points to trade at 19.95 at the close.
Meanwhile, Southern Province Cement Co. added 8.03% or 5.50 points to end at 74.00 and The Saudi British Bank was up 6.51% or 1.40 points to 22.90 in late trade.
More so, Saudi Arabia’s stock market continued rebounding in early trade on Tuesday. The Saudi index climbed 1 percent in the first 80 minutes, adding to Monday’s 1.7 percent gain.
Mouwasat Medical Services jumped 4 percent after saying its board was recommending a cash dividend of 2.5 riyals per share for 2016, up from 2 riyals in the previous year. The company reported an estimate-beating 34.2 percent rise in fourth-quarter profit last week.
The Saudi Stock Exchange is one of the world’s top emerging markets in terms of vitality, the domestic market expanded to a main stock market, then a parallel market and incorporated bond trade, making it one of the leading markets globally.