Saudi Printing & Packaging Co. slid the most in more than two years after the newspaper and magazine printing company’s chief executive officer resigned.
The shares of the Riyadh-based company tumbled 10 percent, the most since March 2011, to 34.3 riyals, at the close in Riyadh. The stock was the biggest decliner in percentage terms on the benchmark Tadawul All Share Index, which rose 1 percent. Saudi Arabia is home to the Arab world’s biggest bourse.
Saad Al Azwari resigned yesterday and is leaving as of Aug. 1 when his contract ends, the company said in a statement to the Saudi stock market. Saudi Printing surged 9.8 percent yesterday, bringing the gain for the second-quarter to 5.8 percent, outpacing the 5.2 percent advance for the benchmark.
“The CEO’s resignation gave incentive for traders to sell the shares, especially after” yesterday’s gain, Turki Fadaak, head of research and consultancy at Albilad Investment Co. in Riyadh, said by phone. “When a company’s CEO resigns suddenly without announcing a replacement right away, that gives negative signals.”
Yesterday’s surge took the stock’s 14-day relative strength index to 79, above the 70 level which signals to some analysts that a security is overbought and poised to decline. It closed at 51 today.