According to Energy Information Administration (EIA), US Oil production has increased from 11.7 million bpd (start of 2019) to 12.6 million bpd by end of October, 2019. Similarly, Natural gas production has also risen. Oil price was up by 1.36% on WoW basis.
Aramco has published the prospectus for coming IPO but important details are still missing like Total Capital, Total No. of shares, total No. of shares to be floated thru IPO and most importantly price per share to be offered. As indicated in prospectus the subscription of shares should start from 17th Nov and will end on 4th Dec. According to Balance Sheet and income statements published in prospectus the Capital of Aramco as on 31.12.2018 is SR 60 billion or US$ 16 billion. The same was as of end of 2017. New valuation will be revealed soon.
The Saudi Stock Market remained positive which fluctuated within the range of 222 points and at the end closed at 7924.19 with an increase of 125.94 points. All the indicators were up. TASI was up by 1.61%, while Volumes and Number of trades amplified by 21.22% and 10.07% respectively. Total trading value augmented by 29.22% and reached SR 15.5 billon. Due to increase of prices the investors earned SR 35.6 billion in form of market capitalization.
All the blue chips companies performed positively. Al-Rajhi as usual was the most active scrip in which shares worth of SR 1.98 billion changed hands. The price amplified by 1.64% and closed at SR 62.00. Saudi British Bank and Alinma Banks were also favorite in which SR 1.86 billion and SR 1.49 billion were invested and their pries improved by 7.70% and 4.55% and ended at SR 34.25 and SR 22.06 respectively. The price of SABIC also increased by 2.43% and finished at SR 92.70.
The top gainer of the week was again Al-Kathiri Holding Company. Previous week they were up by 68.58%. This week the price jumped by another 29.78% on w/w basis and ended at SR 143.80. The shareholders are happy that this scrip will be transferred to main market.
The banks are showing positive stance as they have been selected in ARAMCO IPO as “Receiving Entities”. All the transactions of ARAMCO IPO and latter all trading will be done thru them. Their profit is going to rise as they will get brokerage for each transaction which is expected to be a lot. Arab National Bank got the highest increase of 8.33% on WoW basis and closed at SR 24.70. Saudi British was up by 7.70%, Al-Bilad Bank up by 6.13%, Saudi American Bank up by 5.44%, Alinma Bank up by 4.55%, SAIB up by 4.37%, Bank Al-Jazeera up by 2.77%, Al-Rajhi Bank up 1.64%, NCB up by 1.33%, RIBL up by 1.21%, SAIC up by 0.47%. However Saudi Fransi bank was down by 1.28%. Huge business is expected and those all banks will be profited by ARAMCO listing. It will be new side of income though fluctuating but will continue forever!
In negative list; Al-Ahlia Insurance was the top loser of the week net profit of SR 15.4 Thousand (1-9, 2018) has turned to loss of SR 24.75 Thousand. Accumulated losses became 21.6% of its capital. Financial results display LPS of SR 2.15 till 30.9.2019. The price plunged by 11.40% and closed at SR 10.72. Al-Hokair plunged by 7.96% and closed at SR 23.70.
L’azurde Company for Jewelry earned net profit SR 24.35 million (1-9, 2019) vs SR 17.57 million (1-9, 2018) increase of 38.5%, EPS 0.57 vs 0.41. However, its value plunged by 5.71% and concluded at SR 14.52
In material sector Basic Chemical Industries was up by 2.75% and closed at SR 21.68. In the same sector Nama Chemicals was down by 4.07% and ended at SR 23.12.
There are some more companies who announced Nine months financial results for 2019.
Saudi Aramco Total Services Company announced financial results for their parent company called Saudi Aramco Total Refining and Petrochemical Co. (SATORP) for period ended 30.9.2019. Their paid-up capital is SR 8250 million and their Total sales revenue has reduced to SR 28.4 billion (1-9, 2019) as compared to SR 32.9 billion (1-9,2018); 13.7% down. Net profit of SR 604.7 million (1-9, 2018) has turned to net loss of SR 916.3 million, depicting loss of SR 1.11/ share till 30.9.2019. The loss is due to decreasing in refining and petrochemical margins driven by market conditions in addition to unplanned maintenance Activities.
Net profit of SR 1.1 million (1-9, 2018) of Tihama Advertising has turned to loss of SR 7.3 million (during 1-9. 2019) Tihama Adverting declared that their accumulated losses have reached to 24.6% of its capital. They intend to increase their capital by SR 100 million thru Right shares, Application being submitted to CMA for approval. Present capital is SR 75 million. The price of Right share will be declared later. The share price reduced by 2.12% and finished at 34.70
There are 3 companies who declared dividends with their financial results.
Al-Othaim Market announced to distribute 15% dividend to their shareholders, the price increased by 5.01% and ended at SR 79.70. Dallah Health declared 5% dividend and price improved by 2.44% and closed at SR 44.10. Al-Babtain publicized to distribute 5% cash to their shareholders. However, the price tumbled by 4.17% and concluded at SR 24.34.
CMA has approved Al-Ahsa Development Co to increase the its Capital from SR 490,000,000 to SR 737,320,690 by issuing 24,732,069 ordinary shares to acquire all the shares of l-Salam Medical Services Company. They have not yet declared whether it will be thru Right Shares or Bonus shares.
CMA imposed fine for SR 40,000 on National Agriculture Marketing Co as they did not disclose the financial results for period 30.6.2019 during prescribed time period.
If ARAMCO IPO price is declared the subscription of shares will start next week. It will be an
important event in the history of Tadawul. It will be more exciting when the actual trading of ARAMCO shares will start on Tadawul’s ready board perhaps by mid-December.
SOURCE : ALBILAD
