TASI extends loss; cement retreats on bleak outlook

Saudi Arabian shares extended losses from the previous session on Tuesday with the benchmark Tadawul All Share Index (TASI) closing 0.1 percent lower at 6,912.

Volumes were scant again at SAR 3 billion. The advances-declines ratio was 51/110 in a volatile session that saw the index rise up to 6,958, before retreating.

Energy and materials declined, shrugging off a bounce in oil prices. However, petrochemicals giant SABIC made slight gains towards end of trading.

Financial blue chip Al Rajhi Bank fell 0.7 percent to SAR 63.25. However, the sector finished in the positive, supported mainly by Riyad Bank (+2 percent) and Saudi Investment Bank (+1.5 percent).

Most cement stocks declined. An industry insider has warned of a bleak outlook for the sector with producers planning to cut output and lay off staff. Saudi Cement Co. and Southern Province Cement fell 3 and 2 percent respectively.

Elsewhere, Wafa Insurance went limit down on profit taking, to close at SAR 17.90. The stock had risen in the past few sessions. On Monday, the insurer said its board has recommended a 40 percent capital cut.

In contrast, eXtra went limit up at SAR 37.80, its highest close in more than a year. The stock has gained 40 percent over the past few sessions.

Saudi Vitrified Clay Pipes Co. rose 3 percent to SAR 56. The company said IFRS implementation had resulted in a SAR 42.7 million increase in shareholders’ equity. 

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