Tadawul simmers despite falls in building stocks

Building and cement are still down overall on the Tadawul

RELATED ARTICLES: Construction dips as Dubai and KSA indices fall | Arabtec-Aabar US $1.7bn deal called off | Dubai World offers to repay 30% over five years

Saudi Basic Industries Corp and air conditioning manufacturer Al Hassan Ghazi Ibrahim Shaker were the biggest gainers in Saudi Arabia yesterday as the country’s stock exchange continued its gradual rise to close just under 5,990 to remain near the 6,000 mark witnessed earlier in the month.

The manufacturing giant, which produces steel and aluminium for the construction industry along with its core business of petrochemicals, also known as Sabic, closed up 3.75% to reach SR85.75. Al Hassan Ghazi Ibrahim Shaker came a close second, rising to 3.25% to finish the day worth SR58 per share. The Tadawul overall gained 63 points to finish at 5,988, a rise of 1.07%.

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

But the building and construction index continued its uneven start to the month, alternately rising and falling each day, closing down 0.3% yesterday after losses of 1.31% and 2.42% by close of trading on the 5th and the 1st June respectively. The index is down just over 12% for the year, despite the mega projects announced by the Kingdom.

In Dubai the DFM index made a five-point gain to close at 1518.1, though it has still shed just over 11% in four weeks from the 1,712.9 reached on 9th May. Arabtec Holdings PJSC closed up 2% as it tries to claw back losses in stock value that has seen almost 20% (19.9%) knocked off its share value since this time last month after ultimately fruitless discussions about a potential takeover by Aabar Investments. Emaar Properties closed up 1.29% to finish at AED3.14 per share.

The Abu Dhabi index saw a second say of declines, closing at 2,530 after rising to 2,571 two days ago, still substantially down from the 2,752 witnessed this time last month. Among the fallers, Aldar Properties PJSC lost 0.6%, and Union Cement Company declined by 9.4% yesterday after five days without trading. Gulf Cement Company closed down 2.91% to continue a volatile last three months.