Weekly Stocks Review as on 22nd December, 2022
Negative Trend continues at Tadawul. Index plunged by 74.63 points and closed at 10215.79
Market Capitalization suffered loss of SR 10 billion
Large number of Dividend announcements encouraging. Sabic Agri declares 80% Dividend. Mouwasat announces 30% cash and 100% Bonus shares.
By : Ghias Uddin, MBA
Under influence of US Markets, negative trend continues in Saudi Stock Market. TASI plunged by 74.63 points and closed at 10215.79. Investors were reluctant to buy shares therefore total trading value depleted by 31.85% on WoW basis curtailed to SR 17.5 billion. Number of trades were down by 23.13%, volumes dropped by 64.34%. Due to lowering of prices Market Capitalization suffered loss of SR 10 billion which came down to SR 9571 billion.
Activities in Saudi Aramco also remain sluggish. Its total trading plummeted by 72.65% and summed to total SR 498 million. Number of Trades were down by 48.80%, volumes plummeted by 72.64%. Its price fluctuated between SR 30.55 and SR 31.20 and ended at SR 31.10 showing an increase by 0.16% on WoW basis. Due to increase of price The market Capitalization enlarged by SR 11 billion and summed to SR 6842 billion (US$ 1.824 trillion).
Heavy Turnover:
Riyadh Cables achieved the highest turnover during the week (SR 1.172 billion) . It has taken its debut on Tadawul on 19/12/2022. Primarily It was offered thru IPO at SR 43.00. But due to depressed market conditions it started decreasing from the first day and closed at SR 39.05 exhibiting decline of 9.19% in a week. It may fall further if market remain in red zone. Al-Rajhi attained 2nd position by Turnover (SR 1.095 billion). Its price however tumbled by 0.27% and closed at SR 73.20. Sabic Agri declared 80% dividend. Buying during the week totaled to SR 759 million and its price shoot up by 3.75% and ended at SR 143.00. It has lot of room to go further up. Turnover in Marafiq and SABIC summed to SR 670 m and SR 663 m respectively.
Top Gainers:
Perfect presentation for Commercial Services (2P) was the top gainer of the week. Its price augmented by 12.28% and closed at SR 177.40. The price of MEPCO improved by 11.54 and ended at SR 31.90. WALAA Insurance and Naseej amplified by 9.79% and 8.43% and concluded at SR 14.36 and SR 42.45 respectively. Shaker has taken a leap by 8.41% and closed at SR 20.10.
Some other companies who contributed positively were DUR augmented by 7.52%, SEERA better with 4.85% increase, MESC enriched by 4.18%, Sabic enhanced by 4.05, DWF enriched by 3.59%, SABIC and DWF have further potential to grow. APC improved by 3.96%
Top Losers:
TECO Right hares were merged with originals and trading of Right shares started on 20/12/2022. As predicted, there were many sellers and less buyers, therefore its price deteriorated by 26.23% on WoW basis and closed at SR 15.30. Its price actually reversed back to SR 16.32 but later on declined and closed at SR 15.30. TAPRCO tumbled by 10.94% and closed at SR 69.20. Riyadh Cables was 3rd top loser who traded only for 4 days but due to depressed market conditions lost 9.19% value and closed at SR 39.10. Nama chemicals and SPPC plunged by 7.99% and 7.40% and closed at SR 33.95 and SR 17.02 respectively.
Other companies which participated negatively included Al-Othaim Markets down by 5.79% , Sulaiman Al-Habib plunged by 6.94%, SAIB dropped by 6.02%, National Glass down by 5.22%, SIECO depreciated by 4.89%, QACCO weakened by 4.27%. Sharqiyah Development tumbled by 1.36%,
Dividend / Bonus / Right Shares / IPOs
Last weeks, 9 companies declared dividends / Bonus shares. . The best announcement was from Mouwasat who declared 30% cash dividend and 100% Bonus shares. Eligibility date cash is over. However, for Bonus shares, they need CMA and shareholders’ approval which may take 2-3 months. Its price though reduced by 3.88% on WoW basis and closed at SR 193.00. Its price is likely to go up in near future. Recommended to accumulate slowly.
The 2nd best announcement was from SABIC Agri who declared 80% cash. Eligibility will be end of trading day of company AGM which will be announced later. It price increased by 3.75% on WoW basis and closed at SR 143.80 . Accumulate slowly.
Subscription time is for Luberef is over. IPO worth 1.2 billion was 238% Oversubscribed. All individual investors who subscribed will get minimum 10 shares each. Remaining shares will be allocated on a prorate basis on average allocation factor of 30.8537%
Salama Insurance planning to increase the capital thru 100% Right shares. SAMA has approved but approval from CMA is needed.
International markets are still negative due to hike in Interest rates, poor Retail Sales data, spread of new virus in China. It is causing harm to international markets and also influencing Saudi Stock Markets Therefore, Investors of Tadawul need to be careful and buy good Dividend yielding stocks having strong fundamentals. Accumulate slowly stocks like Sabic Agri, SABIC, Mouwasat Medical, Marafiq, EPCCO, Bupa Arabia, DWF, Sharqiyah Development etc. which may go down temporarily but rise again in few months.
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