Majority of cement stocks rose on the Saudi Stock Exchange (Tadawul) on Sunday in anticipation of higher demand as construction starts on megaprojects in the Kingdom.
Arabian Cement, Qassim Cement and Yanbu Cement gained nearly 3 percent at 12.45 pm Riyadh time.
Yamama Cement edged up 2.2 percent, while Southern Province Cement was up 1 percent.
"Cement stocks have been rallying in the recent past on expectations of higher demand in the year coupled with better cement prices in the market," Muhammad Faisal Potrik, head of research at Riyad Capital, told Argaam.
"Construction is beginning in the big projects which will stimulate demand. In addition, exports have been rising with a few of the cement producers announcing concrete export orders and plans. In terms of earnings, 2018 hasn’t been too good but we think 2019 onwards will be better," he noted.
In a recent report, Aljazira Capital said that cement and clinker sales in the Kingdom climbed 7.2 percent year-on-year to 4.37 million tons (including exports) in December 2018 compared to 4.08 million tons in the previous year.
Write to Parag Deulgaonkar at parag.d@argaamplus.com
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