Saudi stocks extend gains; SABIC slips after Q1

02/05/2017 Argaam
by Brinda Darasha

The Saudi Tadawul All Share Index (TASI) extended gains on Tuesday closing 0.1 percent higher at 7,013 amid volumes close to SAR 3.7 billion. The advances- declines ratio was 92/73.

 

Sectors closed mixed with energy rising more than 1 percent. Food retailing fell 1 percent, while commercial services also slipped.

 

Petro Rabigh rose over 1 percent and Bahri jumped 2.3 percent to SAR 36.70. The oil shipper is expected to report Q1 earnings soon.

 

Bahri is one of Arbah Capital’s preferred stocks. “We expect VLCC segment of the company which contributes ~75 percent revenue to grow with the projected increase in demand for oil in 2017.”

 

Further, the segment is also expected to get support from the new contracts like the one with Saudi Railway Organization (SRO) to provide logistic support, the brokerage said in a note.

 

Saudi Electric jumped over 4 percent to SAR 23.85, amid trading of above 5 million shares.

 

Elsewhere, eXtra (+3 percent) and SASCO (+4 percent) pulled up the retail segment. Emaar EC rose close to 5 percent at SAR 16.95.

 

Meanwhile, SABIC closed 0.6 percent lower at SAR 99, trimming early gains. The petrochemical maker reported an 80 percent year-on-year jump in Q1 net profit to SAR 5.24 billion. However, the effort was mostly in line with street views. 

 

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

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