Weekly Stocks Review as on 1st December, 2022
Dull sessions whole week. TASI lost 116.10 points and closed at 10822.55
All indicators are up, but prices are down,
Investors lost SR 48 billion in form of Market Capitalization
By : Ghias Uddin, MBA
It is in rumors that Fed Reserves will make another hike in interest rate by 50-75 basis points (0.50 to 0.75%) in their next meeting scheduled on 14.12.2022. Therefore, the investors are reluctantly buying stocks in fear that prices will go further down. There is more pressure on sales therefore the indicators are up but price are going down. Trading value is up 44.89% to SR 23 billion, Number of trades and volumes surged by 31.83% and 41.68% respectively. But due to price reversals the investor lost SR 41 billion in form of market capitalization.
Same story is for Saudi Aramco. Total trading enlarged by 114.66%, Number o Trades and volumes are up by 90.23% and 115.97% respectively. But price was down by 0.30% on WoW basis and closed at SR 33.10. Due to erosion of price market capitulation of Aramco suffered loss of SR 22 billion and summed to SR 7283 billion (US$ 1.942 trillion).
Heavy Turnover:
Al-Rajhi bank was on top by heavy turnover (SR 2.33 billion). However, its price plunged by 3.26% and closed at SR 80.10. Marafiq was 2nd best by high turnover in which trading worth SR 1.68 billion took place. The price inflated by 2.42% and closed at SR 48.75. SABIC attained the turnover of SR 1.087 billion. Its price dropped by 0.47% and ended at SR 84.00. SNB was also in great demand at lower prices in which shares worth SR 1.053 billion exchanged hands and its price plummeted by 4.15% and concluded at SR 50.80. The price of Al-Nahdi enhanced by 2.51% and closed at SR 187.80. with turnover of SR 0.997 billion.
Top Gainers:
SASCO announced the 3rd quarterly results according to which its EPS increased by 72.88% from SR 0.59/ share ( 30.9.2021) to SR 1.02/ share (30.9.2022). Its price jumped by 12.18% on WoW basis and closed at SR 35.00 and they were the top gainer of the week. It was the rumor that Amiantit is planning to issue the Right shares. They received CMA nod to increase the capital by 250% thru right shares. However, they need the approval of shareholders as well. Its price enriched by 11.48% on WoW basis and closed at SR 38.35. The price of Sulaiman Habib Medical Services escalated by 11.43% and concluded at SR 234.00. Al-Kobra Mining Co. (AMAK) declared 6% dividend with Book closing on 21.11.2022 and payment on 30.11.2022. Its price enhanced by 8.46% and ended at SR 79.50.
Some other companies who contributed positively include Saudi Kayan enhanced by 8.30%, National care up by 7.63%, l-Hokair enriched by 7.06%, Bin Dawood enlarged by 5.28%, Tadawul Group improved by 4.91%, Astra Industrial progressed by 4.75%.
Top Losers :
Enaya Insurance was the top loser of the week. Its price plunged by 9.65% on WoW basis and closed at SR 12.74. Al-Maather Reitz became ex-dividend and its price plummeted by 7.33% and concluded at SR 8.34. The value of Yanbu Cement tumbled by 6.89% and closed at SR 35.80. The price of Eastern province Cement depreciated by 6.55% and ended at SR 39.25. Al-Alamiya Insurance declined by 6.54% and closed at SR 12.00
Some other companies who effected negatively on Index include Saudi British Bank tumbled by 5.56%, Petro Rabigh plunged by 4.51%, Al-Marai depreciated by 4.30%, STC plummeted by 4.09%, TECO lowered by 3.95%, DWF declined by 0.74%, Sabic down by 0.47%. However, Sabic has good future. As per Senior Technical Analyst / Trainer / Instructor Abdul Karim it may go up to SR 190.00, if Market remain positive. Saudi Ceramics was down by 0.47 on WoW basis and ended at SR 31.85. Senior Technical Analyst, Mohammed Sarfraz recommended to buy Saudi Ceramic at current price with Target of SR 42.00 very soon subject to Index remaining positive.
Sector wise performance:
Although total business was down yet only 4 sectors closed in negative zone. All other sectors closed in green. Worst performance was given by Telecom Services sector whose index was down by 1.55%. The best performance was seen in Health care sector whose Index gone up by 2.72%.
Dividend / Bonus / Right Shares / IPOs
Last week 3 companies announced dividends. Sahara International Petrochemicals (Sipchem) declared 15% cash dividend with Book closing on 5/12/22 and distribution on 15/12/22. Its price surged by 4.41% and closed at SR 37.90. Al-Hammadi affirmed 3.5% dividend with eligibility on 8/12/2022 and payment on 19/12/2022. Its price ascended by 3.85% and closed at SR 43.20. Jadwa Reit Saudi announced to distribute 2% dividend with book closing on 5/12/2022, Its price progressed by 1.79% and ended at SR 12.52.
MEPCO who declared 33.3% Bonus shares with Book Closing on 24.11.22. It has further declined by 4.95% and closed at SR 27.95. Due to less demand, it will go further down.
TECO has announced that Lat date of Right shares trading period will end on 4.12.2022 and subscription of new shares period will end on 7.12.2022. Its price already plunged by 3.95% on WoW basis and ended at SR 28.00. The next phase for the company will be to offer the unsubscribed shares to Institutions and compensate who did not subscribed the Right shares willingly or unwillingly. Then the shares will be merged with original and then real trading of Right shares will start. The shareholders should be alert at this stage to sell ASAP as it is likely to take multiple locks at lower levels. However, the investors should hold their breath as it may take nearly 2-3 weeks to reach this stage. In the meantime, the price will remain fluctuating.
CMA has given approval to Amiantit to increase the capital by nearly 250% thru Right shares. Its price increased by 11.48% on WoW basis and ended at SR 38.35.
Investors should tackle TECO with care. Short term investor should accumulate Marafiq and STC slowly for reasonable capital gain within 2-3 months.
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