TASI edges higher in volatile trading

Saudi Arabia’s main stock index just managed to cling on to gains Tuesday after a day of volatile trading. The last hour of the session saw the index shed 17 points before recovering slightly.

The benchmark Tadawul All Share Index (TASI) closed 0.1 percent higher at 7,245 amid trading turnover of just under SAR 3 billion.  

“While the negative oil price movement continued to exert an effective pressure on the market index during the previous period, we expect its correlation to TASI to decline in the second quarter due to the quarterly results,” said Jassim Al-Jubran, analyst at Al Jazira Capital in a technical note Tuesday.

Materials and capital goods proved a drag on the index, while retailers and banks firmed up.

Al Rajhi Bank gained nearly 1 percent to SAR 64.90. Bank Albilad supported, rising 1 percent to SAR 19.10. The lender is expected to post a 25 percent rise in Q2 net profit.

Extra, which has posted exceptional Q2 net profit, extended gains from the previous session, rising 8 percent to SAR 39.90. The company’s CEO told Argaam that it plans to boost sales through its online portal and strengthen partnerships with suppliers and brands.

Saudi Steel Pipes climbed 8 percent to SAR 16.70 after it won a contract worth SAR 245 million from Saudi Aramco. 

Herfy Food Services Co. fell slightly to SAR 55.10. The company has proposed a 10 percent cash dividend for the first half of 2017; less that the 15 percent it paid in the year-ago period.

Southern Province Cement fell 5 percent to SAR 51.40. The company has proposed a 10 percent dividend for H1-17 versus a 25 percent dividend for the year-ago period.

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