Petrochemical stocks lead gainers as TASI jumps 15% in H1

Saudi Arabia’s Tadawul All Share Index (TASI) jumped 15 percent, or 1,088 points, to close at 8,314 in H1 2018, compared to 7,226 points at the end of last year, data compiled by Argaam showed.

The benchmark rose 9 percent, or 645 points in Q1 2018, maintaining its strong performance with a 6 percent (443 points) gain in the second quarter– its highest quarterly close since Q2 2015.

Last month, Tadawul won MSCI emerging market (EM) status, the global index compiler said in its annual review for 2018.

TASI's performance in the second quarter was impacted by several local and global events, mainly the implementation of closing price auction mechanism instead of a volume weighted average price (VWAP).

Saudi Arabia started listing and trading of SAR 231.2 billion in local-currency government debt instruments on Tadawul during the quarter. 

Other key factors influencing performance included Saudi Arabia’s hike of repo rate and reverse repo rate by 25 basis points to 2.5 percent and 2 percent, respectively.

The Kingdom posted a budget deficit of SAR 34.3 billion in Q1 2018 and approved to offer a 30 percent stake and a 30.2 percent stake in Leejam Sports and National Company for Learning & Education, respectively.

On monthly performance level, the Saudi index jumped 6 percent in January and March each, (4 percent) in April and (2 percent) in June.

However, TASI closed 3 percent and 1 percent lower in February and May, respectively.

Twelve market sectors ended H1 in the green, led by the Media which surged 55 percent. Banks came second, rising 29 percent, followed by Telecommunication and Materials with gains of 27 percent and 17 percent, respectively. 

Real Estate Management and Development was the worst-performing sector, diving 21 percent. It was followed by REITs, which dropped 15 percent and Insurance (9 percent).

The market turnover increased 9 percent year-on-year (YoY) to SAR 475.7 billion during the first half.

On Jun. 6, TASI hit its highest level in H1 at 8,461 points, but fell to the lowest level on Jan. 3 at 7,149.

The biggest rally was recorded at 168 points on Jun. 3, while the steepest decline came in at 149 pts on Apr. 11.

Meanwhile, the daily turnover rose to the highest level at SAR 6.1 billion on Apr. 24, but slumped to the lowest level in six months at SAR 1.9 billion on Jun. 20.

Stocks saw mixed performance in H1 2018, as decliners outnumbered advances by 96 to 74.

The Top 10 gainers list included six petrochemical firms during the first half, led by Petro Rabigh, which surged 72 percent. National Petrochemical Co. (Petrochem) and Nama Chemicals followed, climbing 61 percent each. Saudi Industrial Investment Group, Saudi Kayan and Alujain Corp saw their shares rising between 46 percent and 53 percent.

Saudi Research Marketing Group (SRMG) soared 66 percent in H1. Saudi Industrial Export Co. also closed 58 percent higher.

Etihad Atheeb Telecommunication Co. (GO) and Wafa Insurance were the biggest losers for the same period, dipping 45 percent. Saudi Enaya Cooperative Insurance followed, shedding 35 percent. 

*Capital cut during the period.

** lifting stock suspension on April 3, 2018

Market heavyweights Al Rajhi Bank and Saudi Basic Industries Corporation (SABIC), added 34 percent and 24 percent, respectively.

National Commercial Bank (NCB) gained 32 percent. Saudi Telecom Co. (STC) rose 31 percent.

Meanwhile, Jabal Omar Development dropped the most by 31 percent, followed by Dar Al-Arkan Real Estate Development (27 percent) and Savola Group. (6 percent).

As many as 15 stocks closed H1 2018 below their par value - SAR 10 - dragged by GO at SAR 5.35, and Zain Saudi at SAR 6.68.

 * Capital cut during the period.

** lifting stock suspension on April 3, 2018

All REITs ended the first half in the negative territory. Aljazira REIT dropped 21 percent. It was followed by Al Ma'athar REIT and Jadwa Al Haramain REIT (17 percent each).