Weekly Stock Review as on 3rd November, 2022
Most of the world markets extended losses due to hike of interest rate by Fed
TASI down by 270.13 points on WoW basis and closed at 11439.19
Investors lost SR 175 billion in form of Market Capitalization.
By : Ghias Uddin, MBA
Most of the world markets extended losses due to hike of Interest rates by Federal Reserve. On Wednesday, 2nd November, 2022 they increase the interest rate by 75 basis points (0.75%). This was the 6th increase in Year 2022. The Chairman of the Fed indicated that it is difficult to say at this stage; when they will pause the rate hikes. UN has already indicated that hike of interest rates is causing world recession.
Saudi Stock Market was also influenced by international markets. Tadawul was under pressure whole the week. TASI closed in red zone all the days except on 31st October, 2022, when it closed 34.47 Points higher. TASI was down by 270.13 points on WoW basis and closed at 11439.19. All the indicators were down. Number of Trades and volumes were down by 4.30% and 2.65% respectively. Total trading Value plunged by 14.68% and summed to SR 26.7 billion. Due to reduction of prices the investors lost SR 175 billion in form of market capitalization.
Saudi Aramco declared dividend of SR 0.3198/ share with book closing on 8/11/2022 and distribution on 28/11/2022. Its price fluctuated between SR 34.00 to SR 35.15 and closed 1.15% lower on WoW Basis at SR 34.30. Volumes plunged by 8.57%, while number of trades increased by 30.64%. Trade value depressed by 11.26% to the value of SR 1.073 billion. Due to reduction of Price the market capitalization of Saudi Aramco suffered a loss of SR 88 billion on WoW basis and summed to SR 7546 billion (US$ 2.012 trillion)
Heavy Turnover:
Maaden was on top by turnover. It was in great demand at lower prices. Its value decreased by 12.45% on WoW basis and closed at SR 72.40 with turnover of 2.68 billion. The turnover of Dar Al-Arkan summed to SR 2.15 billion. Its price plummeted by 15.80% and ended at SR 13.22. Al-Rajhi was on 3rd position by Turnover ( SR 2.14 billion). Its price suffered a loss of 3.10% and closed at SR 84.30. Saudi National Bank depreciated by 3.01% and closed at SR 58.00 with turnover of SR 2.12 billion. Aramco was on 5th position by turnover (SR 1.07 billion) and its price plunged by 1.15% as discussed above.
Top Gainers:
Atheeb Telecom was the top gainer of the week. Its price surged by 18.57% and closed at SR 51.40. The price of Salama Insurance amplified by 16.36% and finished at SR 17.19. Fitness time declared 7% dividend. Its price augmented by 12.05% and settled at SR 84.60. The prices of TADCO and Al-Etihad flourished by 11.95% and 9.19% and closed at SR 18.70 and SR 14.74 respectively.
Other companies which contributed positively include Tanmiah improved by 7.28% and closed at SR 115.00; SPPC escalated by 7.18% and finished at SR 18.82, NCLE enlarged by 4.09% and ended at SR 61.10, Dallah Health shined by 3.63% and concluded at SR165.80, Al-Hokair Group enhanced by 3.31% and closed at SR 18.70, Abdul Latif twinkled by 2.70% and closed at SR 18.28.
Top Losers:
Al-Sager Insurance was top loser in previous week and again the top loser in last week. It plummeted heavily by 18.41% and closed at SR 16.66. Dar Al-Arkan plunged by 15.80% and ended at SR 13.22. Maaden and MEPCO tumbled by 12.46% and 9.81% and closed at SR 72.40 and SR 46.90 respectively. Petro Rabigh declined previous week by 7.19% and again lost it value by 9.54% and ended at SR 12.14.
Further companies which closed in negative zone included SPM down by 8.09% and closed at SR 26.70, Astra Industrial worsened by 6.07% and ended at SR 52.60. Saudi Kayan depreciated by 6.49% and closed at SR 12.10. Raydan tumbled by 5.68% and concluded at SR 24.76, Saudi Ceramic deteriorated by 4.62% and concluded at SR 39.20. In Cement industry QACCO declined by 5.97% and closed at SR 72.40, EPCCO reversed by 4.38% and closed at SR 42.60, Al-Jouf Cement down by 3% and closed at SR 11.64, UACC toppled by 2.99% and closed at SR 18.14, Yamama Cement declined by 3.70% and ended at SR 28.60. In other blue chips, MIS down by 3.78% and closed at SR 101.80, STC declined by 1.88% and closed at SR 39.25, TECO depressed by 3.90% and ended at SR 197.00, DWF dropped slightly by 0.55% on WoW basis and ended at SR 217.80
Sector wise performance:
AS a whole only 5 sectors were up while al other sectors were down. Software and services sector was the best which enhanced by 3.06%, Insurance sector was up by 2.02%. Worst performance was given by Materials sector which was down by 5.13%. Real Estate Management Sector was down by 3.16%
Dividend / Bonus / Right Shares / IPOs
Last week 5 companies announced to distribute dividend. AWPT declaration was the best who affirmed to distribute 15% dividend with boo closing on 8/11/22 and payment on29/11/22. Its price however plunged by 1.16% and closed at SR 134.20. Saudi Aramco declared SR 0.3198/ share with eligibility date on 8/11/22 and payment on 28/11/22. Its price suffered a loss of 1.15% and ended at SR 34.30. Fitness Time declared 7% dividend with book closing on 6/11/22 and payment on 20/11/22. Its price augmented by 12.05% and ended at SR 84.60. Al-Khabeer Reit affirmed 1.25% dividend with Book closing on 14/11/22. Its price increased by 0.15% and ended at SR 7.80. Banan Real Estate declared 3% dividend with book closing on 31/10/22 and payment on 20/11/22. Its price ended at SR 50.00.
Retail offering of Marafiq shares was completed and it was 632% over subscribed. Marafiq main business is focused on water supply, sewage, waste management and treatment, electricity, gas, steam supply air-conditioning and construction. It is very specialized field they have technical teams to cover all the areas. Offering price was SR 46.00 per share which seems low. It is likely to increase soon after coming on trading panel.
Allocation of ADC shares has been made. Its Shares are likely to be on trading platform on 7/11/22.
Middle Eastern Operators of KFC and Pizza Hut restaurants is set for dual listing in KSA and UAE in which Saudi Arabia’s PIF and Dubai based businessman Alabbar will sell 30% stake of the firm. This IPO could raise at least US$ 2 billion which will be biggest listing of 2022 in KSA.
Another IPO Riyadh Cable Group company is in the offing. The book building process has started from 6th Nov and will end on 10 Nov. The price range is SR 39 to SR 43 per share. The IPO price will be determined after Book building process is complete.
TECO investors are disappointed as there is no progress in price even after shareholders meeting date announced. This is unfortunate that the maturity date has fallen in the period of recession. TECO price depressed by 3.90% on WoW basis and ended at SR 197.00. In normal circumstances it should have crossed SR 300.00 by this time.
Investors also ignored 33.3% Bonus shares from MEPCO Book closing date 24.11.2022, as its price declined by 9.81% and closed at SR 46.90. In normal circumstances its price should have increased at this stage. But Fed Reserve decision to increase the interest rates are holding back the progress of good shares.
In the week starting on 6.11.2022; the investors should focus on Marafiq.
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