Saudi stocks fall; Kayan plunges after swinging to Q3 loss

Petrochemicals shares weighed on the Tadawul All Share Index (TASI) on Thursday as two of SABIC’s affiliates reported weak financial results for third quarter.

TASI closed 1.1 percent lower at 7,699. Volumes amounted to SAR 4.7 billion, while the advances-declines ratio was 29/137.

Saudi Kayan shares plunged to SAR 9.20 after reporting a Q3-15 net loss of SAR 13.8 million compared with a net profit of SAR 66.9 million for the same period last year. 

Yansab said its Q3 more than halved to SAR 302 million. Its shares fell 3.7 percent to SAR 46.50.

Muhammad Faisal Potrik, head of research at Riyad Capital said Kayan’s losses are likely to continue into 2016. 

While for Yansab, “we have revised downwards our margins and earnings forecast going forward," he added. 

SABIC itself declined over one percent to SAR 88.25. 

Elsewhere, banks saw some buying mid-session before losing steam. Index heavyweight, Al Rajhi Bank, gained slightly to SAR 57 while Saudi British Bank was up 1.4 percent at SAR 28.30. 

HSBC in a sector report said Saudi banks showed strong liquidity, but lower profitability during Q3-2015 due to a steady drop in net interest margin, and a low ratio of non-funded income to average assets.

Write to Brinda Darasha at brinda.d@argaamplus.com