Nomu sheds 49% since debut

Saudi Arabia’s Nomu Parallel Market closed its first year 49 percent lower at 3,041 points on Monday Feb. 26, compared to a close of 6,000 points on its debut the same date in 2017.

Nine companies have listed on the parallel market so far: Raydan Cuisines and Restaurants Co., Arab Sea Information Systems Co., Baazeem Trading Co., Al-Omran Industries & Trading Co., Abdulla Saad Abo Moati For Bookstore Co., Development Works For Food Co., Al-Samaani Factory For Metal Industries Co., Thob Al-Aseel Co. and Al Kathiri Holding Co.

The secondary bourse is aimed at companies seeking a more flexible alternative to listing on Tadawul, allowing them to access the market under more relaxed conditions.

Companies seeking to list on Nomu should have a market value of SAR 10 million, with at least 35-50 shareholders. They also need to float at least 20 percent of their shares in an initial public offering (IPO).

Non-resident foreign investors were allowed to invest in Nomu as of Jan. 1, 2018.

Since its listing in February, Nomu has been on a downtrend for most of last year, losing 15 percent in March, and 13 percent in May.

However, the benchmark recorded a three-day rally of 20 percent in February 2017. It also gained 7 percent in December 2017 and 1 percent this month.

* Three days. Variation compared to 5,000 base points.

The parallel market recorded a trading turnover of SAR 704,500 on Feb. 26, 2018, plunging from volumes of SAR 256.3 million on its debut.

The index saw 47,1200 shares traded yesterday, compared to 7.57 million shares on the same day last year.

Nomu recorded a lifetime high of 6,469 points on Feb. 27, 2017. It hit its lowest level of 2,861 points on Feb. 28, 2017.

The index reached its highest daily limit of SAR 256 million on Feb. 26, 2017 and its lowest daily limit of SAR 212,000 on Oct. 25, 2017.

The highest number of shares traded on Nomu was 7.57 million upon debut, while the lowest was 10,190 shares on Oct. 25, 2017.

All Nomu-listed stocks declined during the year, dragged by Raydan Cuisines, which plunged 59 percent over the past 12 months.

It was followed by Al-Omran (down 52 percent) and Baazeem Trading (down 45 percent).

* Listing in June 2017                                                                                                

** listing in July 2017