JEDDAH: Saudi Arabia’s Tadawul All-Share Index edged up 0.3 percent on Thursday but trading volume dropped to its lowest in 12 weeks.
The National Commercial Bank (NCB) jumped 3.9 percent after posting a 7.5 percent rise in net profit in the three months to Dec. 31 to SR2.29 billion ($611 million). The bottom-line was boosted by higher income from commissions and investments.
That was slightly ahead of estimates as analysts at Alistithmar Capital and SICO Capital had given forecasts for NCB’s fourth-quarter net profit of SR2 billion and SR2.09 billion respectively.
Al-Rajhi Bank rose 0.4 percent after it reported a 5 percent rise in fourth-quarter net profit, meeting analysts’ forecasts as financing, investment and other income increased.
Shares in NCB are trading at a small discount to analysts’ average fair value estimate while Al-Rajhi is trading at a premium, according to Reuters data.
Saudi Basic Industries Corp. (SABIC) slipped 0.3 percent to SR93.00. The largest petrochemical maker reported a 47.7 percent jump in fourth-quarter net profit but that was at the lower end of forecasts. SABIC said lower average operating and other non-core costs were the main reason for the rise in profit.
But PetroRabigh surged its 10 percent daily limit after it swung to a net profit of SR183 million in the fourth quarter from a loss of SR1.01 billion a year earlier, citing relatively stable operations and the positive impact on inventory valuations of feedstock price increases.
Sahara Petrochemical jumped 5.1 percent after swinging to a net profit in the fourth quarter of SR160 million, its highest quarterly profit since the second quarter of 2014. It cited higher sales volumes, product prices and income from associates.
With most of the petrochemical sector having reported quarterly results, earnings grew by roughly 5 to 10 percent, said Santhosh Balakrishnan, senior analyst at Riyad Capital.
Among telecommunications firms, Zain Saudi climbed 2.5 percent after reporting a narrower fourth-quarter loss, marginally beating estimates as revenue increased.
But Mobily fell 0.7 percent after it swung to a loss, though it beat estimates.
On Mobily, analysts at NCB Capital said: “Sales weakness is a concern while the companyís ability to control operating expenses is a key strength.”
Mouwasat Medical Services fell 2.1 percent despite posting a 34.2 percent rise in fourth-quarter net profit to SR72.2 million, ahead of analysts’ average forecast of SR59.4 million.
Builder Abdullah Abdul Mohsin Al-Khodari Sons Co. rose 2.9 percent after making a fourth-quarter loss of SR32.14 million compared with a loss of SR1.04 million in the year-earlier period.
EFG Hermes had forecast a net loss of SR42.84 million. Al-Khodari said contract awards in the fourth quarter rose.
Kuwait’s key stock index, which is usually thinly traded, continued to gain and added 1.3 percent in the heaviest daily volume since 2013.
The index is up 11.8 percent since Jan. 1, outperforming other regional and most emerging markets.
Telecommunications operator Zain climbed 2.2 percent on Thursday.
EGF Hermes said in a note the reasons for the strong volumes were unclear but it believed weaker real estate prices were pushing money into other assets, and local brokers reported high participation among local investors.
Also, foreign investors were significantly underweight, and were probably trying to catch up.
Egypt’s blue-chip stock index tumbled after Reuters reported that authorities were considering temporarily reintroducing a stamp duty on stock market transactions.
Mohammad El-Nabarwy, chief investment officer of Cairo-based HC Securities & Investment, said investors had priced in an expected three-year delay in the launch of a capital gains tax, so “the market entered panic mode.”
Wafik Dawood, portfolio manager at Compass Capital, said however that the market had overreacted. The index had soared 56 percent since the Egyptian pound was floated on Nov. 3, leaving it ripe for profit-taking.
“The market needed a breather and with the strong retail participation, any dip in the market could turn into a sell-off.”
Six shares in the index slumped their 10 percent daily limits, including Ezz Steel.
The National Commercial Bank (NCB) jumped 3.9 percent after posting a 7.5 percent rise in net profit in the three months to Dec. 31 to SR2.29 billion ($611 million). The bottom-line was boosted by higher income from commissions and investments.
That was slightly ahead of estimates as analysts at Alistithmar Capital and SICO Capital had given forecasts for NCB’s fourth-quarter net profit of SR2 billion and SR2.09 billion respectively.
Al-Rajhi Bank rose 0.4 percent after it reported a 5 percent rise in fourth-quarter net profit, meeting analysts’ forecasts as financing, investment and other income increased.
Shares in NCB are trading at a small discount to analysts’ average fair value estimate while Al-Rajhi is trading at a premium, according to Reuters data.
Saudi Basic Industries Corp. (SABIC) slipped 0.3 percent to SR93.00. The largest petrochemical maker reported a 47.7 percent jump in fourth-quarter net profit but that was at the lower end of forecasts. SABIC said lower average operating and other non-core costs were the main reason for the rise in profit.
But PetroRabigh surged its 10 percent daily limit after it swung to a net profit of SR183 million in the fourth quarter from a loss of SR1.01 billion a year earlier, citing relatively stable operations and the positive impact on inventory valuations of feedstock price increases.
Sahara Petrochemical jumped 5.1 percent after swinging to a net profit in the fourth quarter of SR160 million, its highest quarterly profit since the second quarter of 2014. It cited higher sales volumes, product prices and income from associates.
With most of the petrochemical sector having reported quarterly results, earnings grew by roughly 5 to 10 percent, said Santhosh Balakrishnan, senior analyst at Riyad Capital.
Among telecommunications firms, Zain Saudi climbed 2.5 percent after reporting a narrower fourth-quarter loss, marginally beating estimates as revenue increased.
But Mobily fell 0.7 percent after it swung to a loss, though it beat estimates.
On Mobily, analysts at NCB Capital said: “Sales weakness is a concern while the companyís ability to control operating expenses is a key strength.”
Mouwasat Medical Services fell 2.1 percent despite posting a 34.2 percent rise in fourth-quarter net profit to SR72.2 million, ahead of analysts’ average forecast of SR59.4 million.
Builder Abdullah Abdul Mohsin Al-Khodari Sons Co. rose 2.9 percent after making a fourth-quarter loss of SR32.14 million compared with a loss of SR1.04 million in the year-earlier period.
EFG Hermes had forecast a net loss of SR42.84 million. Al-Khodari said contract awards in the fourth quarter rose.
Kuwait’s key stock index, which is usually thinly traded, continued to gain and added 1.3 percent in the heaviest daily volume since 2013.
The index is up 11.8 percent since Jan. 1, outperforming other regional and most emerging markets.
Telecommunications operator Zain climbed 2.2 percent on Thursday.
EGF Hermes said in a note the reasons for the strong volumes were unclear but it believed weaker real estate prices were pushing money into other assets, and local brokers reported high participation among local investors.
Also, foreign investors were significantly underweight, and were probably trying to catch up.
Egypt’s blue-chip stock index tumbled after Reuters reported that authorities were considering temporarily reintroducing a stamp duty on stock market transactions.
Mohammad El-Nabarwy, chief investment officer of Cairo-based HC Securities & Investment, said investors had priced in an expected three-year delay in the launch of a capital gains tax, so “the market entered panic mode.”
Wafik Dawood, portfolio manager at Compass Capital, said however that the market had overreacted. The index had soared 56 percent since the Egyptian pound was floated on Nov. 3, leaving it ripe for profit-taking.
“The market needed a breather and with the strong retail participation, any dip in the market could turn into a sell-off.”
Six shares in the index slumped their 10 percent daily limits, including Ezz Steel.
