Tadawul: Net selling by investors, net buying by Saudi institutions
The Saudi bourse is absorbing the shocks associated with the disappearance and now announced murder of journalist Jamal Khashoggi.
According to Foreign Minister Adel al-Jubeir telling Fox News, as reported by BBC, Khashoggi died following a fist fight at the Saudi Istanbul consulate.
Riyadh said over the weekend that Khashoggi died on the hands of rogue elements and that neither the Crown Prince Mohammed Bin Salman nor the Saudi leadership had any involvement in the incident.
This has led to a purge of senior officials and arrest of eighteen Saudi nationals.
According to Investing.com, Saudi stocks were higher after the close on Sunday, as gains in the Agriculture & Food, Industrial Investment and Financial Services sectors led shares higher.
Courtesy of Investing.com (at time of publishing)
At the close in Saudi Arabia, the Tadawul All Share added 0.16%, after falling as much as 3.5% earlier in the session.
Best and worst stocks
According to Investing.com, the best performers of the session on the Tadawul All Share were Saudi Industrial Export Co, which rose 9.88% at the close. Meanwhile, Saudi Ceramic Co. added 7.49% and Savola Group was up 6.79% in late trade.
The worst performers of the session were Saudi Industrial Services Co. which fell 6.08% at the close. Middle East Paper Co-declined 5.27% and BURUJ COOPERATIVE INSURANCE CO was down 5.25%.
“Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 151 to 33 and 1 ended unchanged,” said Investing.com.
Mixed overall performance
Some $1.1 billion in Saudi stocks registered a net sell-off in the week ending Oct. 18, Business Insider (BI) said in reference to a Reuters report based on a Sunday exchange data.
“A breakdown of the exchange data showed foreigners sold 5 billion riyals ($1.45bn) worth of stocks and bought 991.3 million ($267 million) worth,” said BI.
“The market started to price in a fundamentally different relationship between Saudi Arabia and the US,” said Jaap Meijer, head of equity research, at Arqaam Capital.
“We believe the US will keep Saudi Arabia as its close ally given the importance of the kingdom in the Middle East region and being the producer of 10% of the world oil supply.”
BI said that the stock exchange data also showed Saudi individual investors such as retail investors and high net worth individuals sold a net 3.4 billion riyals ($918,000) worth of stocks during the week, however, Saudi institutions bought a net 7.8 billion riyals ($2.1bn) worth of stocks.
The Saudi stock market is down about 4% since Khashoggi disappeared on Oct 2.
Jameel Ahmad, Global Head of Currency Strategy & Market Research commented on the Tadawul Index Sunday, saying: “The underperformance seen in the Tadawul Index at the beginning of the week is a general reflection of how investors have reacted to the outcome of the investigation. There is still a layer of investor uncertainty around the reaction from different world leaders that is encouraging the mixed performance in the Saudi Index, and it wouldn’t be a surprise if this momentum continues to show the same form until the conclusion of the upcoming Saudi Investment Summit.”
The summit labeled as ‘Davos in the Desert’ starts tomorrow and it is expected to garner global attention for its progressive social and business agenda.