TASI edges lower as earnings disappoint

Lower-than-expected earnings from heavyweight firms weighed on Saudi equities on Sunday, pushing the main index to its lowest close in a month.

The Tadawul All Share Index (TASI) fell 0.8 percent to 7,116 points, with trading value at SAR 2.5 billion. The advance-decline ratio stood at 56-115.

Saudi Basic Industries (SABIC) lost 1.2 percent to reach SAR 98.9, after its second-quarter net profit of SAR 3.71 billion missed analysts' estimates SAR 4.7 billion.

“We believe losses in the metal segment and impairment related to Ibn Rushd led to the variance,” NCB Capital said in an earnings report on SABIC.

Saudi Cement Co. slipped 0.5 percent to SAR 50. The company reported a 62 percent year-on-year decline in net Q2 net profit.

In the telecom sector, shares in Zain Saudi plunged 5.5 percent to SAR 8.83. The telco swung to net profit in Q2 2017 versus net loss in the year-earlier period, but missed analysts’ estimates by a wide margin.

NCB Capital had forecast Zain Saudi to make a net profit of SAR 31.4 million, while Riyad Capital forecast a net profit of SAR 46 million.

Saudi Research and Marketing Group was among the top gainers for the day, going limit up at SAR 73.3 – its highest close in more than 10 years. The stock has gained 140 percent since the beginning on the month.

Alinma Bank rose 0.4 percent to SAR 15.9.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com