Weekly Stock Review as on 22/9/2022

Market Depressed ahead of Increase of Interest rate by Fed. Lost 368.45 Points

Investors lost SR 210 billion in form of market capitalization.

 

By : Ghias Uddin, MBA                    

There were lot of rumors about raising interest rate by Federal Reserve to curb inflation. This affected all the international markets. Saudi Market was not the exception. In USA the inflation rate is running its highest levels since the early 1980s. Though Federal Reserve on Wednesday raised benchmark interest rate by another three quarter of a percentage, yet markets got depressed earlier than that and Saudi Stock Market lost 368.45 points on WoW basis and settled at 11481.09.  It is expected to decrease further on Sunday, 25^th September.

Saudi Aramco price fluctuated between SR 36.00to SR 38.75 and ended at SR 36.00 depicting down fall of 1.35% on WoW basis. Total trading value dropped by 41.70% to the value of SR 548 m. Volumes plunged by 40.25% and number of trades were down by 13.18%. due to decrease of price the market capitalization of Aramco plummeted by SR 110 billion and reduced to SR 7920 billion (US$2.112 trillion).

Heavy Turnover:

Sabic was the leader by Value of Trade in which shares value of SR 1.09 billion exchanged hands. However its price tumbled by 3.79% and ended at R 90.20.  Maaden was 2nd most active scrip by turnover. Total trading amounted to SR 1.067 billion but price declined by 1.83% and settled at SR 64.30. Al-Rajhi Bank plunged by 3.64% with turnover of SR 1.065 billion and closed at SR 84.50. Dar Al-Arkan closed on positive note as its price increased by 3.57% and ended at SR 15.10 with turnover of SR 0.89 billion. While Saic Agri Nutrient placed in 5^th position by turnover and its value plunged by 1.37% and settled at SR 158.00.

Top Gainers:

National Medical Care was he top gainers of the week as price increased by  9.12% and closed at SR 68.20. The prices of Tawuniya Insurance and Walla Insurance surged by 7.86% and 7.10% and closed at SR 80.00 and SR 14.00 respectively.  The prices of NCLE and Naseej flourished by 6.80% and 5.73% and finished at SR 63.60 and S 78.00 correspondingly. 

In this recession period there were few more companies which closed in positive zone which include Tanmiah Food improved by 4.19% and closed at SR 98.00, Al-Hammadi increased by 2.68% and ended at SR 48.00. Saudi Paper Manufacturing amplified by 4.73% and concluded at SR 48.00.

Top Losers:

Salama Insurance was the top loser of the week which dived by 17.09% and closed at SR 16.80. Anaam Holding and Tihama Advertising plummeted by 13.87% and 13.46% and closed at SR 20.36 and SR 99.90 respectively. Shaker plunged by 13.16% and closed at SR 17.02. Chubb Insurance tumbled by 13.10% and finished at SR 13.10. 

There are many other companies who suffered huge losses during the week, which included APC weakened by 12.14%; Al-Hokair worsened by 11.21%;   Bank Al-Fransi down by 11.15%; SIDC dropped by 9.33%;  In Blue chips companies; SPCC depleted value by 8.82%   TECO plummeted by 7.20%; MIS; tumbled by 6.83%; SARCO down by 6.85%; DWF reversed by 6.80%;  and STC depleted by 4.04%

Dividend / Bonus / Right Shares

During the week only 1 company declared dividend i.e., Dallah Health announced to distribute 10% cash with book closing on 25/9/2022 and distribution on 9/10/2022.  Its value appreciated by 5.63 and closed at SR 135.00.

Federal Reserve announced hike of interest rate by 0.75% on Wednesday, 21/9/2022. Its impact on Saudi market will come on Sunday 25/9/2022 as markets were closed from Thursday to Saturday due to Independence Day and weekly holidays.  The traders and investors should be careful in making any new investments. However, the discounted   stock prices provide the opportunities to accumulate the shares at cheaper rates for making gains in future.