TASI rebounds on better valuations, strong oil

Crude oil prices at near two-month high of $53 a barrel on Tuesday kept investors in the Saudi Arabian stock exchange interested. In addition, following a sustained six-session dip in the benchmark index, local stock valuations were ripe for the picking.

The Tadawul All Share Index (TASI) closed 0.2 percent higher at 7,109, albeit slipping from session-high of 7,132.

Trading turnover rose to SAR 3.1 billion as 113 stocks advanced versus 58 decliners.

Gains were spread across most sectors, with petrochemicals leading the advance as nearly all companies within the sector closed in positive territory.

SABIC climbed over 1 percent to SAR 98.70 after two days of declines following its unimpressive second quarter result. Al Rajhi Capital said it expects the petrochemical major to increase its dividend per share (DPS) to SAR 2.5 in H2, taking the full year DPS to SAR 4.5, “implying a 12 month forward dividend yield of 5 percent.”

Maaden closed 1.2 percent higher at SAR 48.40, shedding some early gains. The miner on Monday said its Q2 net profit more than doubled YoY to SAR 356.5 million, slightly above analysts’ expectations.

Saudi Paper, meanwhile, was the top gainer, rising maximum to SAR 7.37. The company managed to nearly halve Q2 loss to SAR 3.8 million.

Middle East Paper Co. surged 9 percent to SAR 17.10. GCC’s technical secretariat has agreed to investigate investigate an anti-dumping complaint filed by the company against European competitors.

Meanwhile, Savola Group was the top decliner; down 4 percent to SAR 43. The food giant is expected to post 44 percent decline in quarterly profit.

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