The trade war between USA and China is still going on which indicates that global economy may be slowing down. However increased oil production in USA is keeping the oil price stagnant. WTI crude oil price increased by only 0.09% during last week.
This is 2nd consecutive week that market closed in negative zone. Tadawul All Share Index fluctuated in the range of 351 points and at the end closed at 7695.98 by losing 225.67 points on WoW basis. Trading activities remained dull during the week. Total trading value plummeted by 13.5% and contracted to 12.9 billion. Due to lower prices the investors lost SR 48.74 billion in form of market capitalization.
Blue chips companies like Al-Rajhi Bank plunged by 5.69% and closed at SR 58.00 while value of SABIC dropped by 2.96% and ended at SR 88.50. Alinma Bank was hit by 6.32% and concluded at SR 20.46. The price of STC reduced by 3.07% and finished at 101.00. However top loser of the week was Arabia Insurance Cooperative Co. which was down by 13.89% and closed at SR 15.50 while Amiantit lost its value by 10.06% and ended at SR 16.10. Saudi Ceramic was down by 9.52% and concluded at SR 23.48.
Most of the companies engaged in Petrochemicals were down. Petrochem plunged by 4.43% and closed at SR 22.46 while Saudi Kayan was down by 3.10% and ended at SR 9.69. Sipchem and Yansab were plummeted by 2.25% and 2.04% and closed at SR 16.50 and SR 52.70 respectively.
In banking sector, Al-Bilad Bank tumbled by 8.69% and closed at SR 23.42 while Bank Al-Jazeera was down by 4.02% and ended at SR 12.90.
The positive news emerged from Nama Chemicals which was the top gainer of the week as its price improved by 17.36% and closed at SR 21.90 while Tawuniya Insurance rose 7.26% and ended at SR 72.40. National Shipping (Bahri) already declared 5% dividend was up again by 5.44% reached to SR 32.00.
There was mixed trend in Cement sector. Yamama cement and Yanbu cement were down by 7.12% and 4.05% and closed at SR 20.60 and SR 8.30 respectively. Northern cement and Umm Al-Qura Cement amplified by 2.13% and 2.36% and closed at SR 10.58 and SR 17.38 respectively.
Buruj Insurance which declared 10% dividend got good response from investors and its price from SR 18.88 rose to SR 20.50 on 7.10.2019 but afterwards started dropping and closed at SR 19.18 which was 1.59% higher than previous week closing. The book closing of Buruj Insurance still not revealed.
Jadwa Reit Saudi announced to distribute 1.8% dividend, book closing on 15.10.19. Its price dropped 1.94% and ended at SR 10.10, Taleem Reit declared 1.6% dividend; book closing on 13.10.19. Its price increased by 0.94% and closed at SR 10.74.
There is great optimism of trade talk between USA and China as trade delegation from China arrived in Washington. President Trump also expected to meet Chinese Vice Premier. After 2 consecutive falls; the market is likely to rise in the beginning of coming week. However, the investors should be careful and invest in blue chips and dividend yielding stocks.
SOURCE : ALBILAD
