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CMA fines 3 firms for violating terms

JEDDAH: The Capital Market Authority (CMA) has fined Tabuk Cement Company SR100,000 for violating CMA regulations as the company delayed the announcement of the decision taken by its board of directors to distribute dividends for first half profits.

According to news reports carried by Tadawul website on Monday, the CMA also fined Al-Ahsa Development Co. SR100,000 for failing to inform the CMA and the public about a legal case against the company demanding SR24.5 million.

The CMA also fined an insurance company SR50,000 for delaying the announcement of the appointment of its new executive director general after receiving approval from Saudi Arabian Monetary Agency (SAMA). It announced the appointment only after the closure of market on July 26, 2010, the CMA said.

Meanwhile, Saudi Basic Industries Corp. (SABIC) hit a five-month high on Monday after an affiliate revealed plans to issue a five-year benchmark bond.

Most Middle East market extended gains on Monday.

The Tadawul All-Share Index (TASI) rose 0.47 percent to 6,329.89 points on Monday. The sector activity for the day was mostly positive with 9 out of 15 sectors closing with gains ranging from 0.17 percent by the hotel and tourism sector to 0.97 percent by the telecommunication and IT sector. On the other hand, the losing sectors for the day ranged from 0.09 percent by the building and construction sector to 0.76 percent by the retail sector. The overall market breadth for the day was positive with 72 advancers against 43 decliners giving it an AD ratio of 1.67, the Financial Transaction House (FTH) said in its daily market commentary.

The stock market turnover for the day reached SR2.57 billion.

SABIC shares climbed 1.9 percent to SR95, its highest finish since May 18. Petrochemical stocks tend to track oil prices, with crude seen by retail investors as a proxy for both likely petrochemical product prices and demand.

Meanwhile, most of the Saudi listed companies have announced their corporate profitability for the third quarter of this year. According to the National Commercial Bank's (NCB) weekly report released on Monday, as of last Saturday, 137 out 145 listed companies announced their results.

Although some companies have posted disappointing earnings, the combined net income of the 137 companies was better than expected with a growth of 19.5 percent at SR21.1 billion compared to SR17.7 billion in the same period of last year.

The 14 petrochemical companies recorded the highest growth among the sectors with a staggering 79.8 percent Y/Y amounting to SR6.7 billion due to surging oil prices, the NCB report said.

The telecom sector also achieved good results with an amount of SR3.76 billion, posting an astounding 68.9 percent increase. In addition, a few more sectors posted gains namely tourism, transportation, insurance, and multi-investment with 138 percent, 56.4 percent, 62.6 percent and 32.8 percent increases respectively.

On the other hand, the banking sector did not perform as expected in the third quarter. The 11 listed banks posted profits of SR5.1 billion, a loss of 18.3 percent compared to the third quarter of 2009. The banks' losses are mainly attributed to higher provisions as the cautionary approach is still the main attitude in the Saudi industry, the report added.

Along with the banks, a few more sectors posted losses namely cement (4.1 percent), media and publishing (11.6 percent), industrial investment (22.3 percent), construction (67.2 percent), and real estate (78.5 percent).

By KHALIL HANWARE

© Arab News 2010