National Industrialization Co. advanced the most since March after the Saudi Arabian holding company known as Tasnee recommended a full-year dividend that exceeded expectations.
Shares of Tasnee jumped 4.9 percent, the biggest gain since March 21, to 27.7 riyals at the close in Riyadh. About 7.8 million shares were traded today, more than seven times the three-month daily average, according to data compiled by Bloomberg. Tasnee was the third most-traded stock by volume on the benchmark Tadawul All Share Index, which declined 0.2 percent. 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.
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. Tasnee’s shares have decreased 18 percent in 2012, compared with a gain of 7 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.