Three were mixed news about trade war between China and USA. Share market tumbled as Chinese official cast doubt over trade deal with USA though Trump said earlier that deal will soon be signed despite cancelled summit. Oil prices were down by 1.6% on WoW basis
Saudi Stock Market has taken a downward trend and lost 169.20 point on W/W basis and closed at 7749.08. All the indicators were down. Volumes and Number of trades were down by 14.81% and 0.18% respectively. Value of trade plunged by 4.6% to SR 12.6 billion. Due to fall of prices the investors lost SR 39.88 billion in form of Market Capitalization.
Blue chips companies like Rajhi Bank was plummeted by 3.05% and ended at SR 60.40. Al-Rajhi Bank was most active scrip in which shares worth SR 2.56 billion exchanged hands. Alinma Bank was 2nd most active scrip with turnover of SR 1.24 billion and the value dropped by 3.41% and closed at SR 20.96. SABIC is biggest company in Tadawul with Capital of SR 30 billion engaged in production of Petrochemicals, fertilizers, iron and steel, Aluminum, Hydrocarbon and plastic raw material. They announced 3Qs financial results. Net profit dropped by 65.2% from SR 18.3 billion (1-9, 2018) to SR 6.36 billion (1-9, 2019). Main reason for reduction in profit was lowering of Petrochemical prices in international market plus recording of SR 1.5 billion impairment provision in investment of Clariant AG. EPS for 9 months dropped from SR 6.1 (2018) to 2.12 (2019). They have excellent record of paying dividends. They have already paid 22% dividend for first half of 2019 in June, 2019. Therefore, their capacity to announce similar dividend for 2nd half is doubtful. Their share price dropped by 2.56% and closed at SR 87.70.
Jabal Omer Development Co was the top loser of the week. They announced 3 Qs financial results for 2019. Net profit of SR 192.3 million (1-9, 2018) turned to loss of SR 49.25 (1-9, 2019). The share price of Jabal Omer plunged by 9.55% and concluded at SR 25.10. The price of Zain Saudi dropped by 9.19% and closed at SR 12.06. Saudi Paper Manufacturing Company plummeted by 8.12% and ended at SR 9.05.
Savola was the top gainer of the week. They announced that their net profit for the period 1-9, 2019 increased to SR 338.3 million as compared to net profit of SR 5.6 million in similar period in 2018. This was due to higher sales and higher margins. The share price amplified by 10.36% and concluded at SR 30.90. The price of Nama Chemicals increased by 8.37% and ended at SR 23.30. SASCO augmented by 5.91% and finished at SR 25.80. SAPTCO announced that their net profit increased by 21.6% in 1-9, 2019 and its price enhanced by 4.27% and closed at SR 15.62.
There are some more companies who announced Nine months financial results for 2019.
Methanol Chemical company (Chemanol) having Capital 1,206 million producing Methanol and derivatives, and biggest Formaldehyde producer had net Loss of SR 41.25 million during 1-9, 2019 versus net profit of SR 43.82 during the same period of 2018. They claim that the loss is due to drop of international price for their types of products. The share price dipped by 2.03% on WoW basis and ended at SR 7.72
Saudi Industrial Services was in better position. They earned net profit of SR 45 million (1-9, 2019) vs Net profit of SR 23.7 million during same period of 2018. Their earnings soared due to increase of profit in port segment. Their share price increased by 2.04% on WoW basis and finished at SR 15.00
Advanced Petrochemical Company another notable company with capital of SR 2164.7 million; converting Propane gas into Polypropylene. Their net profit increased 2.56% to SR 567.3 million during 1-9, 2019 as compared to same period of 2018. It is due to increase of sales volume by 9.3% and reduction of raw material prices. They already announced to distribute 6.5% dividend which will be distributed on 6th November. The book closing date is already over on 17.10.2019.
The net loss of Saudi Steel Pipe Co reduced from SR 66.01 million (1-9, 2018) to SR 23.96 million during current period of 1-9, 2019. It is mainly due to non-recurring plant, equipment impairment charges which was SR 21 million during 1-9, 2018. The price was down by 1.38% and closed at SR 18.56.
Saudi Printing and Packaging Co. Net loss increased marginally from SR 33.56 (1-9,2018) to SR 34 million (1-9, 2019). However, the share price increased by 2.00% to the level of SR 12.22.
The net profit of Al-Moammar Information System increased from SR 28.21 million to SR 39.13 in current period, EPS 2.45 till Sep, 2019. The price improved by 0.51% to SR 49.75.
The Profit of SR 31.6 million of National Glass twisted to loss of SR 3.3 million in current period of 1-9, 2019. The price went down by 3.38% and ended at SR 16.60.
The net profit of Mouwasat Medical Services increased from SR 274.77 to SR 290.56 million in 1-9, 2019. EPS 2.91. However, its value depleted by 3.64% and ended at SR 82.00
In last week 3 companies declared dividends. Atta Educational Co. was listed in Tadawul on 31.7.2019. Their net profit till 31.7.2019 was SR 82.75 million (EPS 2.07). They declared 10% cash dividend However the value of share reduced by 2.40% to level of SR 28.50. Budget Saudi declared dividend of 5%, It lost its value by 1.43% and ended at SR 34.50. Al-Khabeer Reit declared 2% dividend and its price went down by 1.54% on WoW basis and closed at SR 10.20.
CMA imposed fine of SR 20,000 on Saudi Cable Co as they did not disclose the appointment of new CEO immediately. The BOD passed the resolution on 25/7/2019 and they did not disclose to public till 29/7/2019.
Shiller the Noble prize of Economic winner (2013) has indicated another stock market crash. He has written in Investor’s Business Daily that he expects only 4.4% average return in US stocks in next 30 years which is disappointing. He has indicated that US stock Market is up by 348% since May, 2009. He sees bubbles everywhere whether it is stock market, bond market or housing market. He has not indicated exact time period but somewhere in 2020. The investors prefer to make short term investments.
SOURCE : ALBILAD
