Weekly Stocks Review as on 8th December, 2022
Worst week during last 6 months. TASI down by 571.64 points and closed at 10296.61
Investors lost SR 515 billion in form of Market Capitalization
Despite Investor Friendly Budget of 2023 Tadawul is not likely to celebrate on Sunday due to depressed American Markets
By : Ghias Uddin, MBA
US Economic data showing strength suggests that Fed Reserve will take further action to bring the economy down by increasing the Interest rates. Such news is taking its tool.
Last week was worst week during last 6 months. TASI declined by 571.64 points and closed at 10296.61. Total trading value plummeted by 16.91% and restricted to SR 19.9 billion. The worst day of the week was 5.12.2022 in which the Index dropped by 304.68 Points. Due to reduction in prices the investors lost SR 515 billion in a week in form of market capitalization.
The price of Saudi Aramco fluctuated within 31.05 and SR 33.05 and closed at SR 31.40 which shows huge loss of 5.14% on WoW basis. AS a results of price reduction Saudi Aramco suffered a loss of SR 374 billion in market capitalization which summed to SR 6908 billion (US$ 1.842 trillion)
Heavy Turnover:
Al-Rajhi Bank was again the leader by turnover in which shares worth SR 2.120 billion exchanged hands. However, its price plunged by 6.37% and closed at SR 75.00. Its 52 weeks lowest price was seen on 8.12.2022 which was SR 73.80. Its 52 weeks highest price (SR 117.40) was noted on 9th May, 2022. SNB was in good demand at lower level of price. It achieved the turnover of SR 1.56 billion, however the price dropped by 7.68% and concluded at SR 46.90. Marafiq still the center of attention. Trading worth SR 1.35 billion took place in Marafiq, however its price tumbled by 1.95% and ended at attractive level of SR 47.80. SABIC attained turnover of SR 1.025 billion and down by 2.98% on WoW basis and closed at SR 81.50. Saudi Aramco was on 5th position by Turnover (SR 884 million) and price dropped by 5.14% as mentioned above.
Top Gainer:
SAICO was the top gainer of the week. Its price amplified by 7.83% and closed at SR 12.94. Price of ACIG improved by 6.36% and ended at SR 11.70. SIIG declared 10% dividend with book closing on 8.12.2022. Its value enlarged by 6% on WoW basis and closed at SR 21.20. The prices of TASNEE and MEPCO improved by 4.94% and 3.94% and closed at SR 11.90 and SR 29.05 respectively.
Further companies contributed positively included were very few which were up by very low margins. Petro Rabigh up by 1.51%, BATIC improved by 1.19%. Al-Etihad up by 1.09%.
Top Losers:
After becoming ex-Right Enya insurance lost 26.96% value and settled at SR 9.34. Enaya was the top loser of the week. Rump share offering of TECO will end on 12.12.2022, therefore the shareholders tried to sell the original shares ASAP as it is expected to drop drastically due to 1000% Right shares. TECO was the 2nd biggest loser of the week, whose price dropped by 24.29% on WoW basis and closed at SR 21.20. Al-Nahdi price deteriorated by 12.45% and closed at SR 164.40. The value of Tadawul Group and Amiantit depleted by 12.16% and 12.13% and closed at SR 150.20 and SR 33.70 respectively.
A large number of companies closed in negative zone which caused heavy loss to index. it includes Bank Al-Fransi down by 11.38%, RIBL tumbled by 10.50%. Atheeb Telecom depreciated by 11.28%. SARCO reversed by 11.03%, SASCO worsened by 10.57, ANB suffered a loss of 9.90%, Sharqiyah Development depleted by 9.28%
Status of other blue chips companies was as follows; Halwani Brothers down by 6.34% on WoW basis, Arabia Drilling suffered by 9.19%, DWF weekend by 7.83%, National shipping toppled by 7.22%, AMAK plunged by 6.79%, APC and Saudi Ceramic plummeted by 5.13% and 4.87%! respectively, SABIC Agri down by 4.18%, Bupa Insurance down by 5.36%, STC was depreciated by 2.53%,
Sector wise performance:
Only Transportation sector closed in Green, whose Index was slightly up by 0.83. Diversified Financials showed the worst performance whose index was down by 7.09% while Banking sector plunged by 6.62%.
Dividend / Bonus / Right Shares / IPOs
Last week 2 companies announced dividends. Ataa Educational Co declared 10% dividend. However its price plunged by 2.24% and ended at SR 52.00. SIIG also affirmed 10% dividend with Book closing on 8.12.2022. Its price increased by 6% on WoW basis and ended at SR 21.20.
Americana Restaurants will be listed on Tadawul on 12.12.202. Fluctuation limit will be 10% and not extended to 30% as in other cases it allows 30% for first 3 days.
Individual subscription of LUBREF IPO will start on 14.12.2022
Rump share offering of TECO will start on 11.12.2022 and finish on 12.12.2022. Further notification for merger of Right share is expected on 13.12.2022.
Saudi Arabi has revealed the budget of 2023 worth SR 1130 billion as compared to SR 1234 billion actual in 2022. Estimated expenditure are SR 1114 yielding surplus of SR 16 billion. It is Investors friendly budget as there is no increase of VAT as widely expected. There was no reason for increasing the TAX as they already had SR 102 billion surplus from budget of 2022. Healthy sign. Saudi Stock market is not likely to celebrate Friendly budget on Sunday as mostly American markets closed in red.
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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