Al Jouf rises to highest level as Tadawul gains
Newly listed company sees gains amid four-month highs for markets
Al Jouf Cement Company, the Saudi cement manufacturer, has seen its shares rise to its highest level since they began trading in August, closing up more than 3% yesterday.
The Riyadh-based company issued the equivalent of half its total outstanding shares in an initial public offering in July at an offer price of SR10 per share. They began trading 11th August – the first day of Ramadan – at SR12.45 and yesterday closed at SR13.6.
The company produces ordinary Portland and sulphate-resistant cement and has a market capitalisation of SR1.3 billion.
Despite a saturated market for cement due to financial disincentives to export, Nishit Lakhotia, an analyst at Securities & Investments Company in Manama, said the western region of the Kingdom would see demand for cement increasing by around 20% year-on-year based due to the construction plans for economic cities and renovations to infrastructure.
The Saudi stock market’s cement index fell 0.36%, with Saudi Cement Company, Yamamah Cement, Southern Cement and Qassim Cement losing between 0.22% and 0.47%.
One economic city – Knowledge Economic City in Madinah – has seen its SR2.98 billion investment vehicle fall sharply in Tadawul trading since listing at the same time as Al Jouf Cement. Yesterday it closed up 1.14% though it has declined 14% since near the start of trading on 9th August.
The Tadawul closed up 0.1% to 6,453, smashing its next highest level from three months ago. The indices of Dubai and Oman gained 1.62% and 0.8% respectively to reach their highest levels since mid-May. The Qatar Exchange added 0.32% to close at 7,686, climbing 13.5% since 4th July and reaching its highest level for five months.