Stock Movements in Saudi Arabia and Korea Unveiled
Explore the financial landscapes of Saudi Arabia and South Korea, examining notable stock performances, economic dependencies, and strategic company moves impacting these dynamic markets.
Published October 08, 2024 - 03:10am
In Saudi Arabia, the Tadawul All Share Index (TASI) recently demonstrated a significant upward movement, recording a 1.23 percent increase to close at 11,913.62 points. This was primarily driven by substantial growth in Al Majed Oud Co.'s stock price along with other high performers, as indicated in financial reports from Riyadh. As many as 185 listed stocks advanced, compared to 45 that retreated, highlighting a dynamic day of trading.
Al Majed Oud Co., a prominent perfume manufacturer, witnessed a remarkable 30 percent surge in its share price, closing at SR122.20. This rise is attributed to the company's stellar financial performance in the first half of the year, with recorded sales of SR513 million - a 21 percent increase from the previous year. The firm also saw an 18.2 percent rise in net profit to SR119.5 million, driven by an expansion in store numbers and the complete presence of the Hajj season, unlike the previous period.
Another noteworthy development is Almarai Co.'s strategic expansion into Jordan through its subsidiary, Teeba Investment. Almarai is set to acquire Hammoudeh Food Industries for SR263 million, a move aligned with its strategy to strengthen its market presence. This acquisition aims to enhance Almarai's regional operations, diversify its product range, and leverage operational scale for better growth and profitability.
Meanwhile, the Saudi parallel market Nomu experienced a slight dip, slipping by 6.79 points to close at 24,649.17, with fluctuating movements among the listed stocks. Firms such as Al-Baha Investment and Development Co. and Al-Omran Industrial Trading Co. also enjoyed positive trajectories, with share prices increasing by up to 10 percent. Rasan Information Technology Co. announced a capital increase plan from SR75.8 million to SR77.5 million through retained earnings, aimed at long-term employee incentives.
In parallel, South Korea presents a contrasting economic picture. The Korean economy shows dominant reliance on the greater Seoul area for its GDP and job market growth, emphasized by recent findings where the region contributes over 53 percent to Korea's GDP and holds 59 percent of job opportunities. Such concentration is unparalleled among other OECD nations in the 30-50 club, of which Korea and six other wealthy nations are a part.
Drawing comparisons, the United States capital's GDP contribution remains at a mere 5.1 percent, with similar lower figures in the UK, France, and Germany. The Seoul-centered growth model has provoked discussions in Korea about regional development strategies to combat potential economic disparities amplified by urban migration trends.
Samsung's recent tentative earnings report reveals a subdued performance, particularly in its flagship memory chip division, marking a stark contrast to booming urban statistics. This shortfall hints at broader market vulnerabilities, wherein US semiconductor sectors also report retractions. The Korean legislature calls for decentralized growth to avert rural economic decline, with Seoul's executive pushing for diversified regional policies.
Amidst these diverse financial narratives, defense stocks in Korea have gained traction due to rising Middle East tensions, highlighting divergent sectoral strategies and responses to geopolitical developments. The unique landscapes of both Saudi Arabia and Korea exhibit economic vitality tempered by intrinsic strategic challenges.