Weekly Stock Review as on 15h September, 2022
International Stock Market crisis holding back blue chips companies to progress. On weekly basis the market capitalization suffered a loss of SR 26 billion
By: Ghias Uddin, MBA
USA stock markets have seen worst first half year as compared to the last 50 years. The benchmark of S&P 500 Index fell by 20.6% and other major US Indexes also dropped sharply. It also affected Saudi Stock Market and halted the progress however TASI ended first half year of 2022 at 11523.25 depicting progress of 2.14% on half yearly basis. USA Federal Reserve Bank (Fed) implemented monetary policy and increased the interest rates during May and June, 2022 to curb inflation. It hurt All stock Markets. In May All Tadawul All Share Index fell by 2297.10 Points and in June It lost 812.13 Points. Though end results of Half Yearly outcome were positive. But shattered the inventors’ sentiments badly as they lost in 2 months what they earned in 2 years. International Stock Market crisis is holding back our blue chips to progress Maaden who declared 100% Bonus and STC who declared 150% Bonus shares are still traded at lower levels. In normal circumstances; those should have doubled after ex-Bonus!
Saudi Stocks performed very well in first 4 days of the week and taken the Index up but on last day at the news about international markets fall out due to inflation data; Saudi stocks plummeted by 63.33 points and taken the Index in negative zone. However, on WoW basis its was down only by 4.72 points as it closed at 11829.84. the value of trading was little up by 0.37%; volumes were up by 5.31% ; but numbers of trades were down by 11.15%. Due to reduction of prices the market capitalization suffered a loss of SR 26 billion and totaled to SR 11071 billion.
Total business in Saudi Aramco improved by 14.07% to SR 940.9 million; Volumes increased by 14.89% to 25.38 million shares. The price fluctuated between SR 36.50 to SR 37.60 but closed at SR 36.50 depicting fall of 0.14% on WoW basis. As a result of reduction of price, the market capitalization of Saudi Aramco reduced by SR 11 billion to SR 8030 billion (US$ 2.14 Trillion).
Highest Turnover :
Al-Rajhi Bank recorded highest turnover of SR 2,44 billion and its price enlarged by 2.22% and closed at SR 87.60. Maaden recorded turnover of SR 1.41 billion. However due to selling pressure its price plunged by 5.55% and ended at SR 65.50. Its price is likely to improve if market remains positive. There was lot of selling pressure in SABIC. Total trading summed to SR 1.13 billion. Its value plummeted by 4.19% and concluded at SR 93.70. Total trading in Saudi Agri Nutrients summed to SR 1.09 billion but its price tumbled by 4.30% and finished at SR 160.40. Saudi National Bank was placed in 5th position by turnover (SR 1.015 billion) and its price dropped by 1.36% and ended at SR 65.30.
Top Gainers:
Tihama Advertising and Public Relations Co ( (TAPRCO) was he top gainer of the week. Its price amplified by 12.28% and reached to SR 115.20. The price of Moammar Information System (MIS) augmented by 10.52% and closed at SR 104.00 Nama Chemicals surged by 10.02% and closed at SR 47.75. SEERA enlarged by 10.00% and finished at SR 19.80 Al-Amar Food amplified by 8.94% and finished at SR 134.00. Alamar Food is leading quick service Restaurant operating in many countries. They have the exclusive rights for Dominos to develop and operate in 16 countries in MENAP. Its price reached to SR 140.00 highest of the year on 13 September, 2022, however dropped later and closed at SR 134.00.
Other companies who contributed positively include NCLE improved by 7.14% and closed at SR70.00. Dallah Health augmented by 6.50% and concluded at SR 127.80; Al-Nahdi Pharmacy amplified by 5.95% and ended at SR 206.60. Ayyan also enlarged by 5.95% and finished at SR 17.80. Theeb Rent A Car improved by 5.06% and closed at SR 68.50.
Top Losers:
Bin Dawood was the top loser of the week. The price of which plummeted by 9.87% on WoW basis. Surprisingly its price dropped mostly in last minute of closing from SR 75.00 at 14.58 hrs hours to SR 71.20 at 15.10 hours. Sadr Logistics lost value by 8.58% and concluded at SR 45.80 The 3rd, 4th and 5th Company from Top losers were from Insurance sectors which included Saab Takaful down by 7.95%, Wataniya Insurance depleted by 5.88% and Al-Rajhi Takaful tumbled by 5.4% and closed at SR 13.90, SR 16.00 and SR 99.90 respectively.
Other companies contributed negatively are GASCO down by 5.25% and finished at SR 54.10; FIPCO plunged by 4.51% and closed at SR 41.30. Yamama Cement tumbled by 4.56% and conclude at SR 27.20. United Electronics tumbled by 4.70% and closed at SR 113.60. SIECO fell by 4.11% and concluded at SR 40.80. SRMG plummeted by 4.04% and finished at SR 204.20. Blue chips like TECO and DWF were down by 3.29% and 1.44% and concluded at SR 205.00 and SR 208.00 respectively. The price of STC was down by 0.38% on WoW basis and closed at SR 39.65. STC did not perform well after Bonus announcement or even after ex-Bonus. Last week 18.9 million shares were traded. Th shareholders of STC should not hurry to sell. It has great upward potential. There is good demand and they should try to sell in profit and not in loss. In fact it is buying time not selling time at present price.
Dividends, Bonus and Right Shares:
Qassim Cement declared 5% dividend with Book closing on 25/9/22 and payment on 12/10/22. Its price gone down by 4.16% and closed at SR 76.00. Saudi Province Cement Co (SPCC) announced to distribute 7.5% cash dividend. Its price increased by 0.36% on WoW basis. Al-Hammadi offered 3% dividend with Book Closing on19/9/22 and distribution on 27/9/2022. City Cement professed to distribute 4 % dividend. However, its price went down by 0.17% and ended at SR 23.48. SASCO came up with 5% dividend with book closing on 8/9/22 and distribution on 21/9/22. Its price dropped by 0.74% on WoW basis and ended at SR 33.65.
CMA has approved application of Saudi Paper Manufacturing to increase capital by SR 145 thru Right shares. Its present capital is SR 192 m, therefore it comes to SR 75.52%. The announcement came on last day of the week after trading time therefore this announcement did not impact the price. Nevertheless, its price improved by 0.98% on WoW basis and ended at SR 46.50. Its price is likely to jump on Sunday, 18/9/2022, if market remains positive.
United Electronics will hold shareholders meeting on 5/10/2022 for approval of 28% Bonus shares. Therefore, the shareholders who want to avail 28% Bonus shares should hold the shares till end of trading day of 5.10.22
Investors should remain cautious and invest only in fundamentally strong companies paying dividends regularly.
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