TASI slips as cement stocks weigh; Almarai at new high

The Saudi Tadawul All Share Index (TASI) trimmed mid-session gains and closed 0.4 percent lower at 7,036 on Tuesday. 

Cement companies weighed on concerns that the sector’s profitability is under pressure as inventories continue to mount due to weak sales.

“Looking ahead, we see limited catalysts in the sector in the near-to-medium term, with sector facing significant structural issues--inventory build-up, potential increase in fuel oil price, and declining demand,” said Shuaa Capital in an earnings preview.  

Eastern Province Cement was the top decliner; down 7 percent to SAR 28 on being ex-divided. Saudi Cement (-3.3 percent) and Yanbu Cement (-3.4 percent) were also among the top decliners.

Elsewhere, capital goods and materials closed lower.

Blue chips SABIC and National Commercial Bank declined. Bank Aljazira was a top decliner, down 4 percent to SAR 11.90 as it was ex-dividend.

However, Al Rajhi Bank gained 0.7 percent to SAR 65. The bank, one of the world’s largest Islamic lenders, is expected to see a 6 percent rise in Q1 net profit.

Meanwhile, Almarai added over 1 percent to SAR 73.50, notching its highest level since listing. Its competitor, Nadec, was top performer, up 8 percent to SAR 34.80.   

Write to Brinda Darasha at brinda.d@argaamplus.com