TASI edges up 0.5% lifted by petrochemical stocks

The Tadawul All Share Index rose five points to 9,694 on Monday as most petrochemicals stocks closed higher despite retreating a day before.

The value of total shares traded on the Saudi Stock Exchange fell to SAR 5.8 billion.

Oil traded lower for much of the day amid a number of reports pointing to rising supply. Morgan Stanley said in a note that it expects OPEC to boost its oil output quota soon. An earlier survey from Reuters revealed that the producer group’s crude supply had hit a two-year high of 31.22 million barrels per day (bpd) in May. Brent crude for July fell 1.13 percent to $64.82/bbl just before market close.

Despite the pullback, most petrochemical stocks ended the day with gains. Saudi Basic Industries Corp. (SABIC) saw its shares rise by 0.45 percent to SAR 103.50, while shares of Yanbu National Petrochemical Co. (Yansab) and National Petrochemical Co. (Petrochem) jumped over 1.60 percent to hit SAR 53.25 and SAR 27.70, respectively.

Shares of Saudi Arabian Cooperative Insurance Co. (SAICO) helped lift the insurance index as its shares soared by 9.6 percent to reach SAR 26.20, its highest level since listing.

The increase came a day after the company’s extraordinary general assembly approved a capital raise from SAR 100 million to SAR 250 million through a rights issue.

The transport sector accounted for the session’s biggest collective gains, partly led by Saudi Transport & Investment Co. (Mubarrad), which saw its stock rise by 1.52 percent to reach SAR 73.50.

Energy and utility stocks, however, saw declines as Saudi Electricity Co. (SEC) posted a loss of more than one percent. Its shares fell to SAR 19.70.

Saudi Industrial Services Co. (SISCO) saw its stock price fall .60 percent to SAR 19.75 despite comments from its chief executive stating that the company would continue issuing dividends as it puts together a new strategy in the coming months. 

Jabal Omar, Yamama Cement Co., Banque Saudi Fransi (BSF), and Dar Al Arkan Real Estate Development Co. also saw their shares lose between one and three percent.