All seven stocks traded on Saudi Arabia’s new Nomu parallel equity market surged during their first day of trading on Sunday, as investors flocked to put their money in the exchange designed to support small and medium-sized businesses in the kingdom.
Al Omran Industrial Trading, Development Works Food, Raydan Cuisines and Restaurants, Abdullah Saad Mohammed Abo Moati for Bookstores and Arab Sea Information System all surged 20 per cent – the maximum daily allowed amount – from their IPO prices.
The new index forms part of the kingdom’s economic development programme and is designed to reduce pressure on banks by providing alternative sources of capital for smaller businesses while at the same time offering lighter listing requirements than the main Tadawul stock exchange.
The new market also allows companies listed on Nomu to move up to the Tadawul after trading there for at least two years.
Elsewhere in the Gulf, trading remained fairly flat.
In Dubai, the benchmark Dubai Financial Market General Index edged up 0.2 per cent to 3,642.51. It was led by logistics firm Aramex, which increased 5.8 per cent to Dh4.92 and Ajman Bank’s 5.1 per cent rise to Dh1.43.
In the capital, the Abu Dhabi Securities Market General Index increased just 0.07 per cent to 4,656.73. Key gainers included Emirates Driving Company, which rose 5.3 per cent to Dh8.50.
In Doha, the Qatar Exchange Index increased 0.1 per cent to 10,937.07. It was led by the Qatari Investors Group, whose shares surged 9.9 per cent to 65.40 riyals. Qatar Navigation fell 4.4 per cent to close at 88 riyals.
lbarnard@thenational.ae
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