Saudi Arabian exchange drops even as Aramco hits $2 trillion valuation

Stock market officials watch the market screen displaying Aramco after its IPO. (File photo: AP)

Saudi Arabia’s main index fell in morning trading on Thursday even as Saudi Aramco’s stock soared over 9 percent on its second day of trading to hit the $2 trillion mark.

TASI - the all share index - was down 0.3 percent as Aramco traded at 38.40 riyals per share, up from its Wednesday closing of 35.20 riyals.

Aramco was the top percentage gainer and the most traded stock on the market.

“Interest in Aramco is still high as evidenced by the 300 million shares traded as of now,” Vrajesh Bhandari, senior portfolio manager at Al Mal Capital said.

Al Yamamah Steel Industries Co was the biggest loser, down 3.4 percent, followed by Raydan Food Co, down 2.5 percent.

Saudi Aramco’s listing has moved the Saudi Stock Exchange (Tadawul) up in global stock exchange rankings to the top 10, the exchange’s head Sarah al-Suhaimi said on Wednesday.

The IPO, which raised $25.6 billion, is a cornerstone of Saudi Arabia’s Vision 2030 plan. The proceeds will go to towards the Kingdom’s diversification efforts and could be invested in sectors such as logistics, mining or developing the manufacturing and industrial economy.

A week before the listing, the Tadawul introduced an equity index cap of 15 percent to address concerns over Saudi Aramco’s weighting on the exchange.

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Last Update: Wednesday, 20 May 2020 KSA 10:01 - GMT 07:01
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