TASI sinks as SABIC extends decline

Saudi Arabia’s index was led lower on Monday by petrochemicals heavyweight Saudi Basic Industries (SABIC), as it extended losses from the previous session following its unimpressive second quarter result.

The Tadawul All Share Index (TASI) closed 0.3 percent down at 7,094, its lowest closing in more than a month. Volumes amounted to SAR 2.8 billion. The advances- declines ratio was 82/86.

SABIC closed 1.6 percent lower at SAR 97.30. Aljazira Capital expects its gross margin to remain weak in H2.

Al-Jouf Agricultural Development Co. sank 5 percent to SAR 27.60. Its Q2 net profit plunged 66 percent to SAR 7.7 million YoY.

Malath Insurance fell 4 percent to SAR 23.06. The company said its SAR 380 million capital hike plan has been approved .

Banks too put pressure on the index. Saudi British Bank dropped 2.7 percent to SAR 25.50 while Alawwal fell nearly 1.6 percent to SAR 11.90.

Among gainers, Middle East Paper Co. plateaued at SAR 15.72. The company made a Q2 net profit of SAR 18.17 million, up from the SAR 3.2 million in the previous quarter. Compared to same quarter in the previous year, however, profit fell nearly 80 percent.  

Southern Province Cement rose 1.4 percent to SAR 50.80.  Its Q2 net profit of SAR 95 million came largely in line with the consensus estimates.

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