• 13.26 billion riyals of trading in shares of companies with accumulated losses in the second quarter


    ​Majed Al-Khaldi from Riyadh​

    The value of trading on shares of companies with accumulated losses in the Saudi stock market during the second quarter of this year, about 13.26 billion riyals.
    According to the monitoring unit of the reports in the "Al-Iqtisadiya" newspaper, based on "Tadawul" data, the number of companies with accumulated losses that were traded during the second quarter is 16 out of 18 companies, where there are two companies suspended from trading​.
    The monitoring included the trading of losing companies, which ended the first quarter period and did not finish reducing their accumulated losses below 20 percent, while the new companies that entered the list of accumulated losses after this date did not include.
    And the value of trading of shares of companies with accumulated losses amounted to about 2.4 percent of the total market trading values ​​during the same period of 552.28 billion riyals, while trading volumes accounted for 6.7 percent of the total shares traded in the market.
    And trades on some of these shares recorded a historical increase, compared to previous years, while those companies are still working to amend their financial position, and among the most prominent solutions is to reduce or raise their capital.
    According to the monitoring, about three-quarters of the trading took place on companies, whose losses ranged between 20 and 35 percent, which are 12 companies, while they accounted for 21 percent of trading on shares of companies, whose accumulated losses ranged between 35 and 50 percent, and we find that 5.7 In the percent of trades equivalent to about 752 million riyals, the companies' shares have losses exceeding 50% of the capital.
    The trading centered on three companies with 45.5 percent of the turnover of 13.26 billion riyals, which are the shares of Zain Saudi Arabia and "Saudi Fish" as well as "Amana Insurance", as all its trading amounted to 6.03 billion riyals.

    The shares of Zain Saudi Arabia’s shares during the second quarter amounted to about 3.6 billion riyals, which constitutes 17.6 percent of the total trading, which took place on shares with accumulated losses. Likewise, trading on shares of “Saudi Fish” amounted to 1.41 billion riyals, which represents 10.6 percent, while trading The shares of "Amana Insurance" have about 989 million riyals, accounting for 7.5 percent of the total.​
    ​​The shares of "Pharmaceutical" and "Alinma Tokio Marine" companies, as well as the shares of "Shaker" company, recorded intense trading during the second quarter, as "Pharmaceutical" recorded the highest quarterly trading since the second quarter of 2015, while the shares of the remaining companies recorded quarterly trading is the highest since 2016.
    In addition, trading on companies with accumulated losses during the first quarter of this year amounted to about 14.4 billion riyals, which was made on the shares of 19 companies at that time.

    *Economic Reports Uni​

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