Saudi stocks flat as Q2 results underwhelm

Saudi Arabia’s Tadawul All Share Index (TASI) fluctuated widely on Sunday as investors mulled a mixed set of results. The index finally settled nearly unchanged at 7,264.    

Volumes pulled back slightly to SAR 2.2 billion, the lowest in two weeks, while the advances- declines ratio was 94/75.

Arab National Bank gained 1 percent to SAR 23.20.  The lender’s Q2 net profit rose 3.8 percent YoY to SAR 849 million, topping the consensus estimate by 9 percent.

Alinma Bank jumped over 3 percent to SAR 16.16, further extending gains from last week following its estimate-beating Q2.

Arabian Shield Cooperative Insurance settled 1 percent higher at SAR 48.35 after reporting that its Q2 net profit more than doubled from a year ago.

Fawaz Al Hokair jumped 5 percent to SAR 47.20 after the fashion retailer said it will acquire a 10 percent stake in Turkish bakery chain Simit Sarayi.

Meanwhile, Almarai Co. fell slightly to SAR 83.60. The region’s biggest dairy producer made a Q2 net profit of SAR 674 million, just 2.4 percent higher year-on-year (YoY). The result was a shade higher than the consensus estimate of SAR 670.3 million.

Yamama Cement fell 2 percent to SAR 16.78. The cement producer saw a 90 percent slump in Q2 net profit to SAR 12.2 million. Shuaa Capital has a Sell rating on the stock with the view that “as market discipline is missing and demand outlook remain sluggish.”

Aslak was the top decliner, down 3 percent to SAR 18.48.The wire manufacturer's Q2 net profit tumbled 99 percent. Its CEO told Argaam that following the profit-hit, which was due to the slowdown in the Saudi construction sector, Alsak is seeking new acquisitions and partnerships. 

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