TASI falls 0.6% as oil prices slide, Yemen conflict continues

The Tadawul All Share Index (TASI) lost 0.6 percent on Monday, or 56 points, to end trading at 9,532 on weak oil prices triggered by lower Chinese imports.

New data revealed that China bought nearly a quarter less of crude in May than it did a month earlier. This comes as bad news for the Saudi market, which has been supported by the Asian country’s strong demand in recent months.

Meanwhile, Brent crude for July fell throughout Monday and later dropped by 0.55 percent to settle around $62.96/bbl by the end of trading day in Saudi Arabia.

TASI’s drop also came on the back of reports that the kingdom had reinforced its troops in the southern city of Jizan near its border with Yemen. The move comes after Saudi Arabia said on Saturday that it intercepted a scud missile aimed at the province from Yemen’s Houthi rebels.

The value of total shares traded on Tadawul fell to SAR 4.3 billion, its lowest level in a year and a half.

The session ended with declines across a majority of stocks, as blue chips fell.

Shares of Saudi Basic Industries Corp. (SABIC) and Al Rajhi Bank fell by one percent to SAR 102.1 and SAR 65.34, respectively.

Makkah Construction and Development Co. closed 1.6 percent lower after its share price fell to SAR 94. The company earlier reported a 10.2 percent year-on-year decrease in first-quarter profit. Makkah Construction’s reporting periods are different from other listed firms as it follows the Islamic calendar.

Saudi Telecom Co. (STC) saw its stock fall 0.76 percent to SAR 66.25 despite a positive rating from Aljazira Capital.  The brokerage firm maintained its “overweight” recommendation on the telco and set a target price of SAR 82.70 per share.

Saudi Hollandi Bank (SHB), Bank Albilad, Saudi Company for Hardware (SACO), and Saudi Public Transport Co. (SAPTCO) witnessed declines between one percent and three percent.

Etihad Etisalat Co. (Mobily) saw its shares fall by 0.73 percent to SAR 33.80, following news that it had slashed call rates, as well as SMS fees to SAR 0.19.

On a positive note, Dallah Healthcare Holding Co. gained over two percent to hit SAR 143.

Saudi Arabian Cooperative Insurance Co. (SAICO) saw its shares jump by over 7.7 percent to SAR 28.80 after the company said it had issued a final prospectus for its upcoming SAR 150 million rights issue. The insurer plans to offer 15 million shares at SAR 10 per share as it aims to raise its capital from SAR 100 million to SAR 250 million.