Weekly Stocks Review as on 15th December, 2022

Market recovers a little.   TASI up by 43.80  points and closed at 10290.42

Market Capitalization suffered loss of SR 20 billion

Fed Reserve increased interest rate by 0.50%. American markets are down due increased interest rate to decline of retail sale in November.  

 

 

By : Ghias Uddin, MBA                    

Fed Reserve increased Interest rates by 0.50%.  However American markets were depressed after seeing consumers spending data showing decline of retail sales by 6% in November against expected decline of 3%. It suggests that inflation is taking its toll on consumers which shows that Fed Reserve’s persistent interest rate hikes are taking economy into recession.

TASI however recovered a little as TASI was up by 43.80 point and closed at 10290.42 points. The impact of Interest rate hike on TASI will be seen on Sunday 18 December, 2022.  Index closed higher however Market Capitalization suffered loss of SR 20 billion which reduced to SR 9581 billion.

The price of Saudi Aramco fluctuated between SR 30.00 to SR 31.55 and ended at SR 31.05 showing decline of 1.11% on WoW basis. Market Capitalization of Aramco suffered loss of SR 77 billion and totaled to SR 6831 billion (US$ 1.82 trillion).

Heavy Turnover:

Americana Restaurants was on top by achieving highest turnover (SR 3.6 billion) and its price increased by 17.16% and closed at SR 3.14.  Trading in Al-Rajhi Bank totaled SR 1.92 billion, however its price plunged by 2.13% and ended at SR 73.40.  Turnover in Saudi Aramco summed to SR 1.82 billion and its value dropped by 1.11% and finished at SR 31.05. Trading in Maaden totaled to SR 1.13 billion and its price plummeted by 5.10% and concluded at SR 65.10. SNB was also in good demand (Turnover SR 0.93 billion) as its price increased by 5.44% and settled at SR 49.45.

 

Top Gainers:

As mentioned above Americana Restaurants gained 17.16% and finished at SR 3.14. They were top gainer of the week.   Tadawul Group augmented by 16.64% and closed at SR 175.20. Tawuniya was pl3rd best share of the week as Its price increased by 15.83% and concluded at SR 84.90. The Price of Saudi Kayan jumped up by 13.22% and ended at SR 13.36. ACWA amplified by 12.71% closed at SR 149.00.

Other companies those contributed positively include, Tanmiah amplified by 10.27, Mouwasat augmented by 10.35%, Arabian Drilling up by 9.68%, ANB improved by 8.15% Tasnee enlarged by 4.03%, , Sulaiman Al-Habib up by 4.20%,   SPM improved by 2.08%, Yamama Cement rose by 1.92%, Petro Rabigh up by 0.74%, Sabic Agri better by 0.73%. 

Top Losers:

Tihama Advertising (TAPRCO) was worst hit and was the top loser o the weeks. Its price plummeted by 26.14% and closed at SR 77.70. Alinma Tokio plunged by 19.20% and ended at SR 12.80. SAIC and Abo Moati tumbled by 12.24% and 10.45% and closed at SR 27.60 and SR 25.70 respectively.  DWF fell by 10. 33% and came down to SR 156.20.

Some other companies who contributed negatively include Al-Bilad Bank down by 9.51%,  GACO, down by 8%, Mahara tumbled by 7.85%, Raydan deprecated by 6.85%, East Pipes, depleted by 6.38%, SACO dropped by 5.82%, Maaden plunged by 5.10%, BCI plummeted by 4.75%,

Sector wise performance:

Last week 8 sectors closed in negative zone all other ended in Positive. Wort sector was Media and Entertainment whose Index was down by 3.50%.  The best performance was seen in Software and Services whose index was up by 9.95% while Index of Diversified Financials was up by 8.12%.

Dividend / Bonus / Right Shares / IPOs

Last weeks, 4 companies declared dividends. The best dividend was announced by SABIC who declared 20% cash with book closing on 18/03/2023 and payment on 02/04/023. AS the book losing is too far away, therefore did not attract many investors. Its price did not change on WOW basis and closed at previous rate of SR 81.50.00 Bank Saudi Al-Fransi confirmed 9% dividend. They did not announce the Book Closing and payment dates as yet. However, its price increased by 7.29% on WoW basis and reached to SR 39.75. GASCO affirmed 10% dividend with book closing on 15/12/2022 and distribution on 27/12/2022.  Its price plunged 1.87% on WoW basis and finished at SR 49.85.   Yanbu Cement declared 7.5% cash with book closing on 12/12/2022 and distribution on 12/12/2022. Its price improved by 2.55% on WoW basis and closed at SR 32.50.

TECO announced that Rumps shares offering is complete. The subscribed Right shares will be deposited in respective accounts on 20.12.2022.  TECO price plummeted by 2.17% on WoW basis and closed at SR 20.74

Riyadh Cables shares have been deposited in Shareholders’ portfolio accounts. Trading is expected to start on 19.12.2022 with code 4142.

Al-Saif Gallery announced that IPO subscription is over.  They will allocate 10 shares per subscriber and remaining shares will be allocated on pro-rata basis 9.9%.

Sales of Luberef is going on at SR 99.00/ share. Recommended to subscribe.  Due to depressed market conditions, if price goes down then buy more later after listing.

Due to Interest rate hike and low retail sales data, US markets were down on Thursday and Friday. TASI is also expected to fall on Sunday. Therefore, investors should be alert and careful in buying.