RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,261.18 points on Monday, losing 1.46 points, or 0.01 percent.     

MSCI Tadawul 30 Index lost 0.40 points or 0.03 percent to finish at 1,536.44.     

The parallel market, Nomu, also fell 256.47 points, or 0.96 percent, to conclude the day at 26,433.91.     

The main index posted a trading value of SR9 billion ($2.4 billion), with 85 stocks advancing and 137 declining. On the other hand, Nomu has 26 gainers and 40 losers, reporting a trade volume of SR35.9 million.      

Al-Baha Investment and Development Co. was the top performer on TASI as its share price surged 8.33 percent to SR0.13. Saudi Real Estate Co. also jumped 6.33 percent to SR22.86.     

Saudi Pharmaceutical Industries and Medical Appliances Corp. was also among the top gainers, climbing 4.99 percent to SR33.65. Al-Omran Industrial Trading Co. and Saudi Research and Media Group rose 4.49 percent and 3.48 percent to SR40.75 and SR261.40, respectively.    

Savola Group was the day’s worst performer, with its share price dipping 5.01 percent to SR25.60.   

Wafrah for Industry and Development Co. and Herfy Food Services Co. also performed poorly with their stocks dropping by 3.62 percent and 2.90 percent, to close at SR41.25 and SR26.80, respectively.   

Saudi Automotive Services Co. and Kingdom Holding Co. were also among the worst performers.   

Savola Group’s share price drop followed shareholder approval of a board recommendation to increase the company’s capital through a rights issue aimed at strengthening its financial position and supporting future investments.   

The capital increase will involve offering 600 million ordinary shares at SR10 per share, raising a total of SR6 billion. This move will more than double Savola’s capital from SR5.34 billion to SR11.34 billion, enabling the company to pay off debts and distribute shares in Almarai Co. to eligible shareholders.  

The rights issue will be available to shareholders registered at the close of trading on the day of the extraordinary general assembly meeting, with eligibility being finalized two days later.

This capital increase will result in a 112.36 percent rise in the company’s share count, expanding from 533.98 million shares to 1.13 billion shares. 

In a separate bourse filing, Rawasi Albina Investment Co. reported a SR9.4 million loss for the first half of the year. The company’s net profit saw a significant drop from SR15.1 million in the same period last year, primarily due to increased spending on project implementation and operational capacity. Revenue also decreased by 59.5 percent year on year to SR38 million, down from SR94.2 million. 

Mohammed Hasan AlNaqool Sons Co. also announced its financial results for the same period, witnessing a 55.7 percent growth in revenue.   

The company’s sales reached SR29,233 in the first half of the year, up from SR18,770 in the same period last year. This was mainly attributed to an increase in revenue from subsidiaries.   

Net profit also increased to SR1,201, up from a loss of SR652 last year. 

JEDDAH: Saudi Arabia and Ethiopia are set to strengthen their economic ties with the establishment of a new business council for the 2024-2028 term, the Federation of Saudi Chambers announced. 

The Saudi-Ethiopian Business Council, recently approved by the General Authority for Foreign Trade, aims to enhance trade and investment opportunities between the two nations.

Abdullah bin Mohammed Al-Ajmi will lead the council as president, with Omar bin Abdullah Al-Kharashi and Misfer bin Musaad Al-Shahrani serving as vice presidents, according to the Saudi Press Agency. 

The formation of the council aligns with Saudi Arabia’s strategy to deepen economic relations with Africa, particularly with Ethiopia, which is one of the continent’s largest economies with a gross domestic product of approximately $205 billion in 2022.

Despite the substantial economic potential, trade between Saudi Arabia and Ethiopia remains below SR1.3 billion ($346 million). Al-Ajmi emphasized that the council is poised to capitalize on this untapped potential by fostering stronger business partnerships between the two countries.

The council is expected to serve as a pivotal platform for supporting Saudi exports and targeting key sectors in Ethiopia. Al-Ajmi highlighted Ethiopia’s attractive investment environment and its strategic role as a trade hub for Central Africa. 

He noted that the council will focus on promising sectors such as agriculture, mining, petrochemicals, food industries, tourism, real estate, and construction.

The creation of the council follows an agreement announced nearly three months ago during the Saudi-Ethiopian Business Forum, held on June 5 in Addis Ababa. 

The ceremony was attended by Hassan bin Moejeb Al-Huwaizy, chairman of the Federation of Saudi Chambers, along with over 250 investors and several Ethiopian ministers, officials, and representatives from both the public and private sectors.

Al-Huwaizy described the establishment of the council as the result of ongoing efforts and a shared commitment to enhancing economic cooperation. 

He underscored that the council will provide a vital platform for Saudi and Ethiopian businesspeople to expand their activities and forge new partnerships, driving mutual growth and investment.

As both countries look to the future, the new business council is set to play a crucial role in unlocking significant economic opportunities, fostering bilateral trade, and creating a more integrated economic landscape between Saudi Arabia and Ethiopia.