RIYADH: Saudi petrochemicals, cement and health care companies are expected to be the stand out performers as second-quarter earning season gets underway, according to Al Rajhi Capital.
The Riyadh-based financial services company said the positive outlook was “driven by improving macro-economic conditions with a gradual uptick in local spending across most segments, and further supported by increased oil prices.”
The petrochemical sector is expected to be buoyed by higher product prices and sales volume.
Saudi petrochemical producers listed on the Tadawul stock exchange reported net profits of SR8.5 billion ($2.27 billion) in the first quarter, a 368.1 percent rebound from the SR3.2 billion losses over the same period in 2020, according to data from the financial information website Argaam.
Jubail-based Advanced Petrochemical helped second-quarter earnings start on a positive note when it reported record profits on Wednesday, driven by polypropylene sales.
With oil prices rising for the fourth consecutive quarter, Al Rajhi Capital expects the industry’s positive growth trajectory to continue.
The health sector is also predicted to witness strong growth over the period.
“Overall, we expect revenue of health care companies under our coverage to grow by 41 percent year-on-year, while net profit is expected to grow by 66 percent year-on-year, reflecting growth in revenue and improvement in operating efficiency,” the report said.
Cement companies will enjoy a positive period as construction increases on the back of the Kingdom’s bid to boost home ownership levels among Saudi citizens. Argaam reported that total sales of 17 Saudi cement producers rose by 65 percent year-on-year in May.
On the flip side, the retail sector is likely to still experience a tough quarter, as the economic impact of the pandemic, coupled with expats leaving the country, continue to dent sales, especially in the grocery sector.
Al Rajhi expects growth in the telecoms sector to be tepid. While travel restarted on May 17, companies have not yet benefited from any major rise in revenue from roaming. “Overall we expect moderate growth in top line for all three telecom companies,” the report predicted.
The insurance sector picture is likely to be more mixed, with the report predicting a rise in travel claims, while the motor insurance segment is expected to remain stagnant due to high competition.
Saudi petchems, cement and health set to outperform as Q2 earnings season kicks off
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Saudi petchems, cement and health set to outperform as Q2 earnings season kicks off
Closing Bell: Saudi main index closes in red at 11,183
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Monday, losing 44.79 points, or 0.4 percent, to close at 11,183.85.
The total trading turnover of the benchmark index was SR4.05 billion ($1.08 billion), as 69 of the listed stocks advanced, while 191 retreated.
The MSCI Tadawul Index decreased, down 6.63 points or 0.44 percent, to close at 1,504.73.
The Kingdom’s parallel market Nomu lost 328.20 points, or 1.36 percent, to close at 23,764.92. This comes as 22 of the listed stocks advanced, while 49 retreated.
The best-performing stock was Maharah Human Resources Co., with its share price surging by 7.26 percent to SR6.50.
Other top performers included Arabian Cement Co., which saw its share price rise by 6.27 percent to SR22.71, and Saudi Research and Media Group, which saw a 4.3 percent increase to SR104.30.
On the downside, the worst performer of the day was Arabian Internet and Communications Services Co., whose share price fell by 8.01 percent to SR207.80.
Jahez International Co. for Information System Technology and Al-Rajhi Co. for Cooperative Insurance also saw declines, with their shares dropping by 5.61 percent and 4.46 percent to SR12.79 and SR75, respectively.
On the announcement front, Etihad Etisalat Co. announced its financial results for 2025 with a 7.9 percent year-on-year growth in its revenues, to reach SR19.6 billion.
In a Tadawul statement, Mobily said that this growth is attributed to “the expansion of all revenue streams, with a healthy growth in the overall subscriber base.”
Mobily delivered an 11.6 percent increase in net profit, reaching SR3.4 billion in 2025 compared to SR3.1 billion in 2024.
The company’s share price reached SR67.85, marking a 0.37 percent increase on the main market.
