Tasnee Rises Most Since April on Dividend Surprise: Riyadh Mover

National Industrialization Co. (NIC) advanced the most since April after the Saudi Arabian holding company known as Tasnee recommended a full-year dividend that exceeded expectations.

Shares of Tasnee jumped 6.1 percent, the biggest intraday gain since April 17, to 28 riyals at 12:56 p.m. in Riyadh. About 5.3 million shares were traded so far today, more than five times the three-month daily average, according to data compiled by Bloomberg. Tasnee helped push the Tadawul All Share Index up less than 0.1 percent and was the second-most traded stock by volume. The company recommended a full-year dividend of 2 riyals a share and appointed Saleh al-Nuzha as managing director after Moayyed al-Qurtas’ resigned.

Tasnee “announced a dividend which was a positive surprise for investors, who were expecting 1.3 to 1.5 riyals only,” said Samer Darwiche, Dubai-based analyst at Gulfmena Investments Ltd. The company’s results so far in 2012 have been weak, “which explains the under-performance of the stock.”

Tasnee said last year it would give a dividend of 1.5 riyals a share for 2011. The company has a 12-month dividend yield of 4.5 percent, compared with a dividend yield of 3.6 times for the Tadawul All Share Index. (SASEIDX)

The company posted declines in profit for each quarter this year, with a drop of 42 percent to 417.3 million riyals ($111 million) for the three months ended Sept. 30. The company’s shares have decreased 18 percent in 2012, compared with a gain of 7.2 percent for the Tadawul.

Nine analysts recommend investors buy the shares of Tasnee while three have a hold rating on the stock, according to data compiled by Bloomberg.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Alaa Shahine at asalha@bloomberg.net