Tadawul index edges up; STC outperforms other blue chips

DUBAI: The Tadawul All Share Index (TASI) added 0.1 percent in low turnover as 104 shares advanced and 45 declined on Monday.
Medical provider Mouwasat rose 2.8 percent after it reported first-quarter net income of SR85.1 million, up 24.2 percent from a year ago and above analysts’ forecast of SR79.42 million.
The largest telecom provider, Saudi Telecom Co. (STC) rose 0.7 percent, taking its gains over two sessions to 1.6 percent, outperforming most other blue chips.
STC’s shares have reacted positively to its first-quarter net profit coming in ahead of expectations and on the board’s recommendation to distribute SR1 per share for the period.
Also, investors have taken the recent announcement made by STC that it has signed onto a project with the government to fit 1.3 million homes with fiber optic broadband services in both urban and rural areas by 2020. The total cost of the upgrade will be SR7.3 billion.
The shares of three other telecom operators rose; Mobily added 1 percent.
Elsewhere in the region, markets recovered some of the previous session’s losses on Monday. Shares of Dubai’s Drake & Scull (DSI) rose in the final hour of trade as retail investors reacted to some potentially positive news from the company.
DSI, which fell by a little more than 5 percent earlier in the session, closed 0.8 percent higher. The retail arm of Emaar Properties, Emaar Malls rose 0.3 percent after it reported a 1.9 percent rise in first-quarter net profit to 539 million dirhams.
The Dubai index rose 0.2 percent on Monday.
In neighboring Abu Dhabi, a rebound in some of the previous session’s top losers helped lift the index 0.2 percent. Dana Gas climbed 2.4 percent and Abu Dhabi Commercial Bank gained 3.5 percent.
Qatar’s index added 0.2 percent, staying near a 5 month low. Petrochemicals giant Industries Qatar rebounded 1.3 percent, recovering from the 0.9 percent made on Sunday.