TASI: Short due to uncertainty and liquidity

Dec 18, 2022

With the recent cash grab of Al Rajhi Bank Sukuk completed the issuance of SR10 billion ($2.6 billion) Tier 1 SR-denominated sukuk, with coverage of over 300%. Saudi Arabia’s main index TASI is suffering liquidity in the market.

TASI

• 
  DATE VALUE TRADED (SAR)
  2022/12/15 6,702,114,194.93
  2022/12/14 5,198,452,452.29
  2022/12/13 5,641,471,939.41
  2022/12/12 5,944,166,488.26
  2022/12/11 3,054,604,600.67
  2022/12/08 4,207,197,978.96
  2022/12/07 3,681,126,174.09
  2022/12/06 4,967,970,943.47
  2022/12/05 4,146,969,817.51
  2022/12/04 2,909,780,131.80
  

TASI which is heavily weighted by the Banking and Petrochemicals;
$2222 is currently below its IPO price of 32 – Lately facing pressure of uncertainty of Oil Prices and demand.
$7010 With the recent buybacks it appears that the company is signalling a slight uptrend in the telecommunication sector.
$2010 The company’s recent financials have been hit with net profits margin sank to 3.92% compared to its previous quarter of 14.1%. Additionally, SABIC’s profits deteriorated over 67 percent from SR5.6 billion in the same quarter a year earlier, recording a bigger fall than analysts had earlier estimated, despite a revenue jump of 7 percent to SR47 billion.
$1120 $1180 Both SNB and Al Rajhi are showing robust fundamentals due to the recent macroeconomics although if a recession were to happen in the upcoming months loan demand declines and investors seek safety.


References: Aljazira Capital, Argaam

Dec 25, 2022

Note

TASI records lowest volume 1.9 billion SAR since Decemeber 2019.