Weak Q2 earnings weigh on TASI

Another slew of indifferent second quarter earnings weighed on Saudi Arabia’s benchmark stock index on Tuesday. The Tadawul All Share Index (TASI) closed 0.3 percent lower at 7,228.

Al Rajhi Bank fell 0.5 percent to SAR 63.70. The heavyweight lender’s second quarter net profit rose 6 percent to SAR 2.2 billion, mostly in line with the consensus estimate.

Al Yamamah Steel Company fell 5 percent to SAR 25.35 after its third quarter profit plummeted 75 percent. Its chief executive Youssef Bazaid told Argaam the huge decline was due to many local projects being stalled.

Bahri dropped 6 percent to SAR 33. The oil shipper saw its Q2 net profit more than halve on lower spot tanker rates, well below estimates. Al Rajhi Capital said in a review that Bahri’s 2017 dividend could be lower due to pressure on profitability and cash flows.

Saudi Arabia Fertilizer Co. dropped 3 percent to SAR 62.10 after it reported a second quarter net profit fall of 32 percent, missing the consensus estimate by a wide margin.

Al-Hassan Ghazi Shaker was top decliner, down 6 percent, after the LG dealer swung to a quarterly net loss.

Elsewhere, Al Abdullatif rose 1.2 percent to SAR 13.18 after its Q2 rose 9 percent.  

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