Saudi Arabia’s Investment Plans Boost Tadawul Shares and Market Confidence
The Tadawul All Share Index increased by 2.26%, led by gains in the household sector. Saudi Arabia plans a significant investment of 8.5 billion riyals in gold and phosphate projects for 2025, while Spimaco’s shares rose after a partnership for vaccine production. The Saudi bourse is seeking public input on investor categories in the Parallel Market.
The Tadawul All Share Index witnessed a notable increase, concluding Wednesday’s trading session with a rise of 2.26%, driven by gains across all 28 indices. The household and personal products sector dominated the gains, escalating by 3.48%. At the close, 239 shares experienced an upward trend while 14 shares declined, resulting in a total index value of 11,970.19 points. Notable individual performances included Umm Al Qura for Development and Construction, climbing 14.19%, whereas Gulf General Cooperative Insurance faced a decline of 2.60%.
Saudi Arabia plans to allocate 8.5 billion Saudi riyals towards its gold and phosphate production initiatives set for 2025. According to Almal, the Saudi Arabian Mining Company, known as Ma’aden, will direct these investments toward enhancing metal resource development, with its shares posting a slight uptick of 0.89% by the end of the trading session.
On a corporate level, the shares of Saudi Pharmaceutical Industries and Medical Appliances (Spimaco) increased by 0.97% following an exclusive partnership agreement with China’s CanSino Biologics. This strategic collaboration is designated for the supply, production, and marketing of the MCV4 meningococcal disease vaccine, which will significantly contribute to the region’s healthcare needs. Chairman Ahmed Aljedai expressed enthusiasm about this advancement, stating it aligns with the broader goals of Saudi Vision 2030.
Additionally, the Saudi bourse is currently soliciting public feedback regarding the proposed updates to the Development of Investor Categories in the Parallel Market draft, addressing investor classifications on the Nomu Parallel Market.
In summary, the Tadawul All Share Index’s significant rise reflects positive market activity, driven by major investments in gold and phosphate industries. With strategic partnerships enhancing the healthcare sector, alongside ongoing public consultations aimed at improving investor classifications, the Saudi market is poised for further growth and development. These developments underscore Saudi Arabia’s commitment to economic diversification as outlined in Vision 2030.
Original Source: www.tradingview.com
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