KHC, Al Tayyar stocks plunge on arrests of founders

Saudi Arabian equities declined in early session on Monday as corruption inquiry and related arrests continued to pressure investor sentiment for the second day. Kingdom Holding Co. (KHC) lost another 3.7 percent soon after Tadawul opened, while Al Tayyar Travel Group slumped nearly 10 percent.

The benchmark Tadawul All Share Index (TASI) was down 0.7 percent at 6,928 points within the first half hour. The advance-decline ratio stood at 33-125.

Investment firm KHC had declined 8 percent yesterday, following reports of chairman Prince Alwaleed bin Talal’s arrest. The company later said it continues to operate as usual and remains “committed” to its clients and stakeholders.

Al Tayyar Travel Group was down 9.98 percent to SAR 29.85, despite its assurance of normal operations to investors following the arrest of Nasser Al-Tayyar, non-executive board member at Al Tayyar.

Al Tayyar has posted a net profit of SAR 132 million for Q3 2017, down 29.4 percent year-on-year (YoY).

Among other decliners in the early session were: Al Sagr Cooperative Insurance Co. (down 5 percent) and National Gas and Industrialization Co. (down 2.2 percent).

Heavyweight stocks such as SABIC and Al Rajhi Bank also edged down.

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