TASI rises 13% in first half of 2019

Saudi Arabia's Tadawul All Share Index (TASI) closed H1 2019 on a positive note, rising by 13 percent, or 995 points (pts), to 8,822 pts, compared to 7,827 pts at the end of 2018.

In Q1 2019, TASI rose 13 percent, or 992 points pts, while in Q2 it edged up by 3 pts.

The benchmark saw key events in Q2 topped by beginning of the first phase of Tadawul’s inclusion in MSCI index at an inclusion factor of 50 percent, while the second phase is set to start in August.

The second and third phases of Saudi Arabia's inclusion in FTSE Russell Emerging Market Index also took place in Q2 at an inclusion factor of 50 percent during the three phases.

The second quarter also saw the following events:

- Tadawul has delisted Sahara Petrochemical Co.’s shares on merger with Sipchem.

- Alawwal Bank stock was delisted for its planned merger with Saudi British Bank (SABB).

- The Capital Market Authority (CMA) approved the instructions regarding stake ownership of foreign strategic investors in listed companies.

- Saudi REITs were included in the FTSE European Public Real-estate Association (EPRA) Nareit Emerging Market Index.

- The par value of government debt instruments was reduced to SAR 1,000, and the fees were restructured for the services provided in the sukuk and bonds market.

- State budget recorded a surplus of SAR 27.8 billion in Q1 2019, as revenue reached SAR 245.4 billion, while total expenditure stood at SAR 217.57 billion.

On monthly performance level, the Saudi index reported gains in four months. The highest rise was in January and April at 9 percent and 5 percent, respectively. March and June each saw a 4 percent rise.

In contrast, TASI declined by 1 percent and 8 percent in February and May, respectively.

Fifteen market sectors ended H1 2019 on the upside, led by the telecom, banks and public utility sectors at 21 percent, followed by consumer services and the basic material at 17 percent and 6 percent, respectively.

Meanwhile, the pharmaceutical sector was the least-performing, falling 10 percent, followed by the energy sector at 6 percent.

During H1, TASI hit its highest level at 9,403 points on May 2, and May 1 closing session was the highest ever with 9,362 points. Its lowest level was on Jan. 2 at 7,766 points and recorded the lowest ever closing at 7,791 points.

The benchmark's highest daily trading value came on May 28 at SAR 28.76 billion (MSCI inclusion), while the lowest daily trading value was on Jan. 1 at SAR 1.63 billion.

The Saudi index recorded its highest daily rise of 183 points on June 9.

The biggest daily drop of 308 points was on May 13.

The benchmark's trading value dropped by 8 percent in H1 2019 to SAR 439 billion versus SAR 476 billion a year earlier.

Stocks saw mixed performance in H1 2019, with 85 companies closing lower and 82 companies closing on a high.

Zain Saudi was the best performer in H1 jumping 52 percent, followed by Mobily at 48 percent. Eight cement companies posted a rise ranging between 29 percent and 46 percent.

Dar Al Arkan and Seera reported a 31 percent and 28 percent increase, respectively.

Enaya was the biggest loser for the period, falling 45 percent, followed by Saudi Paper Manufacturing (SPM), Anaam Holding at 34 percent, while Bahri’s stock dropped 19 percent.

*Capital change during the period.

Most heavyweights reported a rise in H1 2019, led by Riyad Bank with a 36 percent increase, followed by Al Rajhi Bank and NCB at 22 percent and 16 percent, respectively. STC stock gained 13 percent for the period.

In contrast, SABIC lost 1 percent, but Jabal Omar was the biggest decliner with 18 percent, followed by Kayan at 7 percent.

*Capital change during the period.

As many as 21 stocks closed H1 2019 below their par value - SAR 10 – led by Al-Khodari at SAR 5.39, followed by Amiantit at SAR 6.10.

* Suspended.

 **Capital cut during the period- Suspended

Out of the three companies listed during H1 2019, Maharah and MIS reported a 26 percent and 16 percent rise, respectively. Arabian Centres stock fell by 1 percent.

The first half of this year saw mixed results when it comes to REITs, as the units of 11 funds reported a rise, while five funds dropped, compared to the end of 2018.

As for the newly-listed REITs, Alkhabeer REIT closed down 7 percent for the period, when compared to its listing price.