BUSINESS

Smaller companies support Saudi stocks

August 24, 2017
tadawul
tadawul

JEDDAH – Saudi Arabia stocks were higher after the close on Wednesday, as gains in the Media & Publishing, Financial Services and Multi Investment sectors led shares higher.

At the close, the stock benchmark Tadawul All Share Index added 0.14% to 7,264 points, hitting a new 1-month high.

Saudi stocks found support from smaller companies.

Nine-tenths of the top 20 gainers were small to mid-sized stocks including Saudi Indian Co for Cooperative Insurance (Wafa), which added 1.6 percent after saying it had received "temporary and conditional" approval from the central bank to sell some of its professional liability insurance policies.

Shares of Wafa had suffered heavy losses since Sunday when the company, along with three other insurers, was slapped by the central bank with a temporary ban on selling motor vehicle policies because of irregular practices.

Al Maather REIT, which listed on Tuesday, surged its 10 percent daily limit for a second straight day, while Al Jazira Mawten REIT gained 3.3 percent. Real estate investment trusts have been heavily traded this week as local investors have been lured by the sudden surge in activity.

"The trend is your friend - retail investors are just piling into shares because of headline news, as there is a lack of news in any other sector," said a Jeddah-based broker.

Al Rajhi added 1.7 percent to 66.90 riyals. The stock is up almost 8 percent since the start of the month; it has an average fair value of 70.32 riyals with an expected dividend yield of 4.17 percent in 2017 and 4.60 percent for 2018, according to Thomson Reuters data.

Property developers helped lift Dubai's index 0.4 percent; heavyweight Emaar Properties added 1.2 percent and DAMAC Properties added 0.5 percent

The best performers of the session were Saudi Enaya Cooperative Insurance, which rose 8.16% or 1.56 points to trade at 20.68 at the close. Meanwhile, Al Alamiya Cooperative Insurance added 3.46% or 1.05 points to end at 31.40 and Amana Cooperative Insurance Co was up 3.42% or 0.90 points to 27.20 in late trade.

The worst performers of the session were Fawaz Abdulaziz AlHokair Company, which fell 4.09% or 1.75 points to trade at 41.00 at the close. Allianz Saudi Fransi Cooperative Insurance Company declined 3.19% or 1.25 points to end at 37.95 and Arabia Insurance Cooperative Co was down 2.69% or 0.44 points to 15.90.

Falling stocks outnumbered advancing ones on the Saudi Arabia Stock Exchange by 98 to 64 and 15 ended unchanged.

Shares in Saudi Enaya Cooperative Insurance rose to 52-week highs; rising 8.16% or 1.56 to 20.68. Shares in Amana Cooperative Insurance Co rose to 52-week highs; gaining 3.42% or 0.90 to 27.20.

Crude oil for October delivery was down 0.27% or 0.13 to $47.70 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October fell 0.15% or 0.08 to hit $51.79 a barrel, while the December Gold Futures contract rose 0.27% or 3.53 to trade at $1294.53 a troy ounce.

Elsewhere, property developers helped lift Dubai's index 0.4 percent; heavyweight Emaar Properties added 1.2 percent and DAMAC Properties added 0.5 percent.

In Abu Dhabi, the index edged up 0.3 percent in very thin trade as three of the five most valuable companies rose; developer Aldar Properties advanced 0.9 percent.

Qatar's index edged down 0.1 percent as most banking shares declined; Commercial Bank fell 1.6 percent to 29.90 riyals.

Egypt's index lost 0.9 percent to 12,996 points, making it the worst performer in the region. All but one of the 30 most valuable shares fell, with investment bank EFG Hermes dropping 2.1 percent to a fresh closing low for this year.

The Egyptian index has been technically bearish since last week, when breaks below its July low of 13,261 points and its 100-day average triggered a head and shoulders pattern formed by the highs and lows since June, which points down to about 12,650 points. — SG/Agencies


August 24, 2017
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