Weekly Socks Review as on 13th October, 2022

Cautious attitude observed in Tadawul, Trading value down by 24.56%

TASI plunged by 2.86% and closed at 11421.78

Investors lot SR 220 billion in form of Market Capitalization.

 

By : Ghias Uddin, MBA                    

Lower Global economic growth and less business activities caused less demand of oil last week. It has instigated oil prices to go down.  WTI fell by 5.79% and Brent dropped by 5.58% on WoW basis. The price of Gold fell by 1.76% and lastly seen at SR US$ 1670.30 / Oz.

Cautious attitude was observed in Tadawul. Trading value was down by 25.56% to the value of SR 21.8 billion. TASI plunged by 2.86% and closed at 11421.78 points. Volumes and Number of Trades were down by 25.08% and 18.64% respectively.  Due to reduction of prices the Investors lost SR 220 billion in form of market capitalization. Market Capitalizations   totaled to SR 10,754 billion.

The price of Saudi Aramco fluctuated between SR 35.40 to SR 36.20 and closed at SR 35.40 showing decline of 1.67% on WoW basis. Trading value curtailed by 47.20%, volumes plunged by 46.90% and number of trades down by 22.15%. Owing to lessening of price, the market capitalization was down by SR 132 billion and summed to SR 7788 billion (US$ 2.07 trillion). 

Heavy Turnover:

Al-Rajhi bank was on the top by turnover in which shares worth 1.01 billion were traded and its price decreased by 3.44% and closed at SR 81.30.. Investors of Dar Al Arkan are also in forefront to sell the shares which caused the price decline by 2.13% with total trading value of SR1.004 billion. Investors also preferred to sell SNB as its price dropped by 5.86% and closed at SR 61.00. with turnover of 0.835 billion. The price of STC reached SR 38.35 on last day of trading at 2.58 pm, just before closing, but suddenly some institution decided to sell big chunk and price dropped to SR 37.95 by 3.11 pm  (within 13 minutes) showing drop of 3.44% on WoW basis. The price of STC is likely to improve soon after recovery of international markets. The shareholders should have patience and should not sell STC in loss.   SABIC also came under pressure and its price reduced by 4.96% and finished   SR 90.00 with turnover of SR 0.78 billion. 

Top Gainers:

Dallah Health who declared 10% dividend with Book losing on 25/9 was the top gainer of the week. Its price accelerated by 9.06% and closed at SR 173.40. The price of Saudi German Health augmented by 7.65% and finished at SR 33.05. The price of Bupa Arabia jumped by 5.41% and concluded at SR 179.20. The prices of TCC and Zain Saudi amplified by 4.47% and 4.37% and closed at SR 17.30 and SR 12.42 correspondingly. 

Top Losers:

Salama Insurance was the top loser of the week. Its price plunged by 18.20% and ended a SR 14.22. Umm-Ul Qura Cement announced some technical failure in the plant and it price dropped by 13.12% and ended at SR 18.68.  The price of Al-Hokair tumbled by 11.40% and concluded at SR 19.20.  Extra after becoming ex-dividend lost its charm and lost it value by 11.30% and closed at SR 79.30.   

Further companies which contributed negatively included Saudi Fisheries down by 6.54% and concluded at SR 32.85. SPPC tumbled by 6.25% and closed at SR 16.92.  Other Blue chips companies which suffered losses are, TECO down by 5.39% and closed at SR 186.20, DWF plummeted by 6.39% an ended at SR 190.60, Jarir dropped by 7.75% and concluded at SR 164.20. SARCO depreciated by 5.42% and ended at SR 92.50, Petro Rabigh declined by 5.17% and closed at SR 14.32. 

Sector wise performance:

If we sturdy sector wise performance, we learn that only 9 sectors were up. All others closed in negative zone. Health Sector was the best while Retailing sector was the worst performer.

 

Dividend / Bonus / Right Shares / IPOs

Only MEPCO declared 5% dividend with book closing on 13/10/22. Beside that CMA has also approved their request to increase the capital thru 33.3% Bonus shares.  Its price however reduced by 3.85% on WoW basis and closed at SR 52.40.  In normal conditions its price should increase.

Most of the American markets were closed in Red on Friday. It is mainly due to Ukraine and Russia tension. Russia’s President Putin has signed final papers to annex four regions of Ukraine with Russia and warned that any attack on those 4 regions will be considered as attack on Russia and it will be dealt accordingly. Investors in Tadawul should be careful on Sunday 16^th October which is likely to open in Red.