Saudi Arabia shares rise as STC profit climbs, Ramadan begins
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Sat July 21, 2012 2:20 pm

SAUDI ARABIA. Saudi Arabian shares gained for a second day after Saudi Telecom Co. (STC) and food producer Savola Group (SAVOLA) reported an increase in profit and as Ramadan, the month when Muslims fast from sunrise to sunset, began.

Saudi Telecom Co., the kingdom’s largest phone company, advanced 3.3% after profit beat analysts’ estimates. Savola headed for the biggest jump since April 17 after profit surged 48%. Saudi Basic (SABIC) Industries Corp., the world’s biggest petrochemical maker, advanced to the highest intraday level since July 10.

The Tadawul All Share Index (SASEIDX) gained 0.3% to 6,645.6 at 1:25 p.m. in Riyadh, bringing the gain for the year to 3.6%.

“Volumes are expected to be light as Ramadan gets under way,” Asim Bukhtiar, head of research at Riyad Capital, told Bloomberg in response to e-mailed questions.

 “With the earnings season winding up, investors will take time to absorb the results and take positions accordingly. Saturday trading does tend to respond to Friday closing on the international markets.”

U.S. stocks rose for the week, giving the Standard & Poor’s 500 Index its first back-to-back gain since June, as results from International Business Machines Corp. to Baker Hughes Inc. beat estimates and Federal Reserve Chairman Ben S. Bernanke said he’s prepared to add stimulus.

About 99 million shares have traded on the Tadawul today, compared with a 12-month daily average of 335 million.

Saudi Telecom advanced to 37.3 riyals after net income rose 7% to 2.4 billion riyals (US$640 million). The mean estimate of eight analysts was for a profit of 2.24 billion riyals, according to data compiled by Bloomberg.

Savola gained 3% to 34.50 riyals after the company reported second-quarter net income of 341.3 million riyals as sales increased and it added market share in the retail industry. Saudi Basic gained 1.7% to 88.25 riyals.

Saudi Arabia’s stock exchange is the only Gulf bourse operating on Saturdays.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 29, 2014
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
date:Posted: October 29, 2014
UAE. Significant increase in inflows of private capital into UAE in 2014; UAE seen as hub between Africa and Asia; Political stability remains a major factor driving flows; UAE clear winner in the region, as other GCC countries see net outflows of private capital.
date:Posted: October 28, 2014
INTERNATIONAL. Foreign policy is what a president wishes would happen; foreign affairs are what actually happen; the problem that Obama has, which has crippled his foreign policy, is that his principles have not been defined with enough rigor to provide definitive guidance in a crisis.
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
dhgate