JEDDAH: Profit-taking dragged the Saudi market down almost 3 percent yesterday after surging 4.18 percent last week.
The Tadawul All-Share Index (TASI) fell 2.87 percent or 173.21 points to close at 5,871.57 points, pulled down by profit-taking in heavyweight Saudi Basic Industries Corp. (SABIC) and banks.
Almost all sectors contributed to the market weakness, with gains in only three sectors — building and construction up 0.07 percent; media and publishing up 1.47 percent, and hotel and tourism up 5.67 percent. On the other hand, losses were widespread, and led by a loss of 4.84 percent in the petrochemical sector, followed by a loss of 3.23 percent in telecom & I.T.
Liquidity remained relatively strong at SR8.6billion. Market breadth was also negative, with only 22 advancers to 101 decliners, giving an AD ratio of 0.22. Ahli Takaful held the position for biggest gainer, up 9.76 percent, while SABIC took a hard hit yesterday as the biggest decliner, losing 7.74 percent to close at SR62.50.
Yanbu National Petrochemical Co. shares dropped by 5.49 percent to SR27.50, Advanced Polypropylene Co. by 4.03 percent to SR24.95 and Saudi Kayan Petrochemical Co. by 3.88 percent to SR13.60
In the banks and financial services sector, Al-Rajhi Bank shed 3.14 percent to SR69.25, Samba Financial Group dropped down 4.20 percent to SR57, Bank Albiland fell 2.27 percent to SR23.60 and The Saudi Investment Bank declined 3.86 percent to SR22.40.
“Even though today’s (Saturday’s) drop has wiped off most of last week’s gains of 242.64 points, it is still within norms after recent strength,” Faisal Alsayrafi, managing director and CEO of Jeddah-based Financial Transaction House (FTH), said, adding on the technical side, the close at 5,871.57 is the first close below the short-term support of the 5 days exponential moving average for the first time since April 25 which may signal further weakness ahead.
Meanwhile, Dar Al-Arkan Real Estate Development Co. announced the closing of its third Sukuk issuance on May 13, amounting to SR750 million and maturing on April 15, 2014.
The board of directors decision is in line with the resolution of the fifth annual general meeting held on Oct. 13, 2008 which approved issuances of local or international Sukuk through a series of issuances in the future, according to information available on Tadawul website yesterday.
“We are very pleased with closing this first local investment Sukuk issuance successfully which will help to ensure continued growth and projects expansion which is consistently with the company’s policy to finance its project through medium and long-term financing solutions,” Abdullatif Al-Shalash, Dar Al-Arkan managing director, said.
This Sukuk issuance is the third issuance of series following the ones issued in the international markets previously.
This Sukuk issuance was managed by Samba Capital & Investment Management Company and HSBC Saudi Arabia Limited.