Shares of the company known as Yansab decreased 2.2 percent, poised for the largest retreat since June 22, to 56.50 riyals at 1:31 p.m. in Riyadh. The stock was the third-biggest decliner on the Tadawul All Share Index, which slid 0.6 percent. Sabic, the world’s largest petrochemicals company by market value, fell 1 percent, the most since June 24.
Yansab’s quarterly net income of 670.5 million riyals ($179 million) came below the 737 million-riyal average estimate of 10 analysts compiled by Bloomberg. Sabic affiliate Saudi Arabian Fertilizer Co. (SAFCO), or Safco, lost 0.5 percent after the company also reported profit that missed estimates. The Tadawul petrochemicals index declined 0.8 percent, set for the biggest drop in three weeks.
“We consider that the weakness in the petrochemical sector is primarily a reflection of reported earnings missing the market expectations,” Ankit Gupta, a Dubai-based equity analyst and assistant vice-president of research at NBK Capital, said by e-mail. “Yansab’s second-quarter results underscore the company’s operational resilience, however, it is mostly priced in the stock.”
Seven analysts recommend investors buy Yansab shares, while nine have a hold rating on the stock and one advises selling it, data compiled by Bloomberg show. Today’s drop trimmed the stock’s advance this year to almost 20 percent, compared with 13 percent for Tadawul.
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org