JEDDAH: Saudi Arabia’s Tadawul All-Share Index gave up early gains in the final hour of trade Wednesday.
“For now the markets will continue to trade in a very narrow range, at least until further details concerning the Vision 2030 economic plan are announced,” said a Jeddah-based trader, referring to Saudi Arabia’s economic reform scheme.
Advanced Petrochemical surged 2.0 percent after the company announced plans to increase its share capital by 20 percent to support future growth. The company also said it recommended distributing a cash dividend of 0.75 riyal per share for the first quarter.
“We expect the company will distribute 3.0 riyals per share for 2016. If annualized, the dividend yield will be 6 percent,” said a note by NCB Capital. The range of dividend yields is between 4 and 9 percent for Saudi petrochemical producers, according to Reuters data.
Saudi International Petrochemical Co. (Sipchem) also rose 2.0 percent after it said it had restarted three plants that were shut for maintenance earlier this month.
Banking shares were the main laggards with heavyweights Samba Financial Group and National Commercial Bank each slipping 0.2 percent.
“In times of economic uncertainty investors should be more weary of banking shares, especially as non-performing loans will start to claw at their bottom lines,” said an Abu Dhabi-based analyst.
Dubai’s index also failed to hold onto early gains and fell 0.5 percent as investors booked profits in small and mid-sized companies. Arabtec dropped 0.7 percent.
But Islamic insurer Takaful Emarat rose 6.7 percent in unusually high volume. Dubai Parks and Resorts edged up 0.8 percent; Wednesday was the final day of trade in its rights issue, which will increase its share capital to AED8 billion ($2.2 billion).
Doha’s index edged down 0.01 percent as Industries Qatar fell 1.4 percent.
“For now the markets will continue to trade in a very narrow range, at least until further details concerning the Vision 2030 economic plan are announced,” said a Jeddah-based trader, referring to Saudi Arabia’s economic reform scheme.
Advanced Petrochemical surged 2.0 percent after the company announced plans to increase its share capital by 20 percent to support future growth. The company also said it recommended distributing a cash dividend of 0.75 riyal per share for the first quarter.
“We expect the company will distribute 3.0 riyals per share for 2016. If annualized, the dividend yield will be 6 percent,” said a note by NCB Capital. The range of dividend yields is between 4 and 9 percent for Saudi petrochemical producers, according to Reuters data.
Saudi International Petrochemical Co. (Sipchem) also rose 2.0 percent after it said it had restarted three plants that were shut for maintenance earlier this month.
Banking shares were the main laggards with heavyweights Samba Financial Group and National Commercial Bank each slipping 0.2 percent.
“In times of economic uncertainty investors should be more weary of banking shares, especially as non-performing loans will start to claw at their bottom lines,” said an Abu Dhabi-based analyst.
Dubai’s index also failed to hold onto early gains and fell 0.5 percent as investors booked profits in small and mid-sized companies. Arabtec dropped 0.7 percent.
But Islamic insurer Takaful Emarat rose 6.7 percent in unusually high volume. Dubai Parks and Resorts edged up 0.8 percent; Wednesday was the final day of trade in its rights issue, which will increase its share capital to AED8 billion ($2.2 billion).
Doha’s index edged down 0.01 percent as Industries Qatar fell 1.4 percent.
