United Electronics Co.’s (eXtra) powered Saudi Arabia’s shares higher on Monday after it posted an estimate-beating net profit for the second quarter. The company’s blow-out result lifted other stocks in the retail sector as investors hoped for similar performances from them.
The Tadawul All Share Index (TASI) closed 1 percent higher at 7,237, paring some early gains. Volumes strengthened to over SAR 3.3 billion as 106 stocks traded up compared to 64 decliners.
Gains were spread across most sectors, with retail rising over 2 percent.
eXtra went limit up at SAR 36.90, a 52-week high. The electronic and home appliances retailer posted a Q2 net profit of SAR 43.4 million compared with analysts’ estimate of SAR 19 million. The company also recommended 7.5 percent cash dividend for the first half.
The bank sector also rose almost 2 percent as all constituents ended in positive territory. Banque Saudi Fransi climbed 8 percent to SAR 31.10. The lender proposed 10.5 percent cash dividend for H1-17 compared to the 5.5 percent for the year earlier period.
Elsewhere, Al Rajhi Takaful and Saudi Research and Marketing Group (9.8 percent to SAR 44.70) also rose to their 52-week highs.
Meanwhile, Dar Al-Arkan led the decliner, down 3.6 percent to SAR 6.11.
Write to Brinda Darasha at brinda.d@argaamplus.com
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