TASI grinds lower; cement jumps on tariff cut news

A surge in cement stock prices failed to support the Saudi stock market on Thursday as the benchmark index extended gains from the previous session.

The Tadawul All Share Index (TASI) closed 0.9 percent lower at 7,204. Trading turnover took a further hit, dipping to SAR 2.2 billion. Of the 172 stocks that traded today, 114 declined.

The majority of sectors closed in the negative led down by banks, food & beverages and telcos.

Among banks, Al Rajhi fell around 1 percent to SAR 64.90. Banque Saudi Fransi, Saudi British Bank, Arab National Bank and Alinma Bank all dropped between 1 and 2 percent.

SABIC edged lower to SAR 101.20. The petrochemical major is forecast to see an 8 percent drop in Q2 net profit.

However, Advanced Petrochemical Co. rose 1.3 percent to SAR 45.95 after reporting a slight rise in Q2 net profit versus expectations of 27 percent decline.  

Cement stocks saw positive activity after the government said it would slash cement export tariffs by 50 percent.

Najran Cement, Al Jouf Cement, Tabuk Cement and Hail Cement all gained between 2 and 4 percent. These companies have already acquired export licenses earlier this year.

"The move should immediately benefit those companies that already have export licenses,” said Anoop Fernandes, senior analyst at Bahrain-based SICO.

Al Yamamah Steel Industries finished nearly 2 percent higher at SAR 27.25. The government said it would cancel all export tariffs on steel.

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