Dec. 3 (Bloomberg) -- Sahara Petrochemicals Co. advanced the most in more than a year after the board recommended its first cash dividend.
The shares rose 4.4 percent, the biggest increase since November 2011, to 13.10 riyals at the 3:30 p.m. close in Riyadh. The stock was the second-biggest gainer on the benchmark Tadawul All Share Index, which increased 0.4 percent. The board of the Saudi Arabian manufacturer of chemicals recommended a dividend of 0.5 riyal a share for the fiscal year.
“Sahara announced an inaugural dividend ahead of market expectations, which is a positive signal for the investors,” said Muhammad Faisal Potrik, an analyst at Riyad Capital. “The market had been under pressure and petrochemical stocks had taken a bit of a plunge.”
Sahara’s shares declined 2.8 percent in November, compared with a drop of 3.8 percent for the benchmark and a fall of 3.6 percent for the Tadawul All Share Petrochemical Industries Index. The company has an indicated dividend yield of 3.8 percent, compared with a dividend yield of 3.7 percent for the Tadawul.
Sahara’s third-quarter profit fell 55 percent to 44 million riyals ($12 million). The company may post a 34 percent decline in full-year profit to 273 million riyals, according to the mean estimate of six analysts on Bloomberg.
Two analysts recommend investors buy the shares, while five, including Potrik, say hold and one says sell, according to data compiled by Bloomberg.
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