JEDDAH – Saudi stock benchmark Tadawul All Share Index (TASI) eased 0.07 percent to end at 6,855.12 points Sunday, trimming year-to-date gains to 6.8 percent. Zain Saudi slumped to an all-time low as investors extend selling after the date to qualify for its $1.6 billion rights issue passed, while the bourse edged lower in stock-picking trade. Shares in the company fell 10 percent. Zain cut its capital to SR4.8 billion from SR14 billion effective Saturday, while the rights issue will start Tuesday and close eight days later. The capital cut reduced one share for each owned 1.5219 shares. However, a capital increase through a rights issue was approved. The capital cut will help eliminate some of its accumulated losses, which stood at SR10.1 billion at the end of the first quarter. Dar Al Arkan ticked up 0.5 percent, accounting for nearly two-thirds of all shares traded on the index. The stock saw a special trade, with 98.4 million shares traded at SR11. The developer posted an 11 percent rise in net profit, but missed analyst forecasts. Some mid-small cap stocks hit limit up ahead of earnings. Food processing firm Halwani Brother and Wafa Insurance surge 10 percent each. “People are buying on rumors of earnings-that's why you will see sudden jumps near the end of the session,” said Tarek Al Mady, an independent Riyadh-based analyst. – SG
