The Tadawul All Share Index (TASI) in Saudi Arabia closed Monday’s trading session 0.35% higher at 12,023.03 points, as investors anxiously awaited a speech from U.S. Federal Reserve Chair Jerome Powell regarding potential guidance on upcoming rate cuts. The market witnessed 142 shares closing in the green, while 81 shares ended the session in the red.
Among the top gainers, Buruj Cooperative Insurance saw a remarkable rise of 9.99%, while Riyadh Cement was the biggest loser, with its shares falling by 4.30%. The performance of the market was bolstered by expectations that Powell’s speech might signal a cautious approach by the Fed towards easing monetary policy, with rate cuts being viewed as a gradual process dependent on economic data.
Deutsche Bank noted in a report that while Powell is not expected to pre-commit to a specific rate cut trajectory, he might indicate that the Fed is gaining confidence in the appropriateness of soon beginning to ease policy. The rate cuts could be justified by both sides of the Fed’s dual mandate, with the exact path remaining data-dependent.
On the corporate front, Almajed for Oud, a prominent perfumer manufacturer and retailer, announced plans for an initial public offering (IPO) on the main market of the Saudi bourse. The company intends to offer 7.5 million shares, representing 30% of its share capital. The subscription period for the IPO is set to begin on August 25 and will continue until August 29.
In other developments, Marble Design Factory shares rose by 4.65% following an update that construction of showrooms and warehouses for its subsidiary, Tariq Al-Maskan For Real Estate Development, is 35% complete. The new facilities are expected to enhance the company’s product offerings.
Additionally, Red Sea International gained 9.97% at the close of trading after announcing the signing of a contract worth 658 million Saudi riyals with Webuild. The contract involves the design and construction of prefabricated buildings, including residential units for Webuild’s staff involved in the Trojena Dam project.