Saudi cement shares solid

Markets Wrap: Saudi Arabia's cement companies have seen an uptick in demand in the second half of the fourth quarter, which should benefit those with spare capacity, said NCB Capital.

Saudi Arabian cement companies have been enjoying increased demand. AFP

Saudi Arabia's cement companies have enjoyed an increase in demand in the second half of the fourth quarter, which should benefit those with spare capacity, said NCB Capital.

The Riyadh-based investment bank highlighted Yanbu Cement as a "top pick", with "its utilisation rate at 86 per cent, three idle lines and a possibility of an increase in dividends."

Yanbu advanced 2.56 per cent to trade at 80 riyals, while the broader Tadawul All-Share Index added 0.31 per cent to 6,763.12 points.

"Spare capacity will enable Yanbu Cement to take advantage of any incremental increase in demand," said Abdulelah Babgi, an analyst in a report to clients. "The company's location in the Western Region where demand is strong is a key advantage," said the report.

Trading activity was muted on Arabian Gulf bourses.

Kuwait's measure added 0.1 per cent to 5,923.07. Bahrain's index was little changed at 1,044.53. Oman's MSM 30 Index slipped 0.3 per cent to 5,624.58. Qatar's QE Index was little changed at 8,333.99.

In the UAE, the Abu Dhabi Securities Exchange General Index dropped 2.55 per cent to 2,617.22 points, led by Etisalat, which hit a floor of 10 per cent after higher royalty fees at the telecoms operator cut investor appetite for the stock. The Dubai Financial Market General Index lost 1.5 per cent to 1,588.87.

Elsewhere, shares in Kingfisher Airlines jumped 5 per cent as the carrier said it was in early talks with Abu Dhabi's Etihad Airways about the sale of a 48 per cent stake in the Indian carrier. The shares closed 4.7 per cent higher at 15.60 rupees.