Petchems lift TASI over 7,000; Kayan jumps on Q1

A couple of strong earnings from petrochemical producers lifted both the sector and broader Saudi Arabian market on Sunday to over 7,000-mark.

The Tadawul All Share Index (TASI) closed 1 percent higher to 7,013 as 119 stocks advanced compared to 45 decliners. Volumes strengthened slightly to SAR 3.7 billion.

Meanwhile, Jadwa REIT Al Haramain, which debuted trading today, hit its maximum daily limit within 30 minutes of open. The REIT closed at SAR 11.

Energy and petrochemical stocks outperformed while nearly all sectors notched advances.

Saudi Kayan rose to its maximum at SAR 9.75, its highest close in around 18 months amid 50 million transactions.  

The SABIC affiliate swung to a net profit of SAR 265.5 million from losses in the same period last year.

“Net income and gross margin are at the highest level since inception, supported by higher operating rate and efficiency, despite higher feedstock costs,” said Aljazira Capital in an earnings review.

SABIC jumped nearly 3 percent to SAR 98.75. The petrochemical giant is set to post Q1 earnings on May 2.

SAFCO rose 1 percent to SAR 69.50 after posting 52 percent rise in a Q1 net profit to SAR 423.4 million. However, the effort came in weaker than NCB Capital’s expectation of SAR 470 million “due to higher than expected opex.”

Petro Rabigh jumped 7 percent to SAR 14.80. The company is expected to swing to a Q1 net profit of SAR 84 million compared to loss of SAR 33 million the year ago according to Riyad Capital.

City Cement was among top decliner; down 5 percent to SAR 12. The company reported a 48 percent drop in Q1 net profit. 

Write to Brinda Darasha at brinda.d@argaamplus.com