SABIC Deal Pushes Saudi Shares to Record Level

SABIC Deal Pushes Saudi Shares to Record Level

Saudi Aramco’s 70% purchase of Saudi SABIC raised the weekly monetary value in the Saudi Stock Exchange. So, it reached a historic level in which monetary liquidity recorded around SAR291.89bn ($77.83bn) on a weekly basis.

This coincided with the market index edging up for the fifth week in a row.

The Saudi Shares Exchange attained the longest series of weekly rises since the beginning of the year; in which the index made remarkable gains for five consecutive weeks. This occurred amid a positive performance of most trading firms; and the start of the second tranche of the fifth phase of Saudi Arabia’s inclusion of foreign funds affiliated to the FTSE Russell Emerging Market Index.

Saudi Shares Exchange’s trading saw a historic event last week; which is Aramco’s acquisition of a 70 percent share of SABIC for SAR259.125bn ($69.1bn). This deal reinforces Aramco’s strategy in diversifying its operations and income sources; and the fact that it isn’t an oil and gas firm only but also one of the biggest petrochemical companies worldwide.

Last week’s trading value recorded a sharp rise of SAR291.89bn ($77.83bn). This is after sealing four SABIC deals for SAR259.1bn ($69.1bn) compared to around SAR25.89bn ($96.90bn) in the past week.

Saudi Aramco’s weight in the FTSE Russell Secondary Emerging Markets index will increase from 0.51 percent to 0.77 percent on including the additional 450 million shares; which were allocated by Saudi Aramco to investors as bonus shares during the book-building process, FTSE Russell said in a statement.

In a related context, listed firms continued to declare fiscal results for Q1 of this year; in which 26 companies disclosed their quarterly outcomes last week bringing the total to 154 companies. A tally of 19 firms didn’t announce their results yet but will do by June 22 as a deadline.