Advanced Petrochemicals set for lowest close in two months

Riyadh: Advanced Petrochemicals Co was set for the lowest close in two months after the Saudi manufacturer of polypropylene products said third-quarter estimated profit dropped 26 per cent on lower prices. “As polypropylene prices, on average, continue to remain soft in 2012, we are revising downwards our 2012 and 2013 net income estimates to 321 million riyals (Dh314 million or $86 million) and 494 million riyals respectively,” Riyad Capital analysts including Mohammad Faisal Potrik said in an emailed note on Sunday. Potrik cut the share-price estimate 3.1 per cent to 31 riyals. Advanced Petrochemicals’ net income for the three months ended September 30 declined to 100 million riyals from 136 million riyals in the year-earlier period, the company said on Saturday. Full-year profit may drop 41 per cent to 304 million riyals this year, according to the mean estimate of eight analysts on Bloomberg. Seven analysts, including Potrik, recommend investors buy the shares, while five have a hold rating on the stock, according to data compiled by Bloomberg. The company has a 12- month dividend yield of 7.4 per cent, compared with 5.5 per cent for Saudi Basic Industries Corp, the world’s largest petrochemicals maker.

Jarir Marketing Co

Riyadh: Saudi-based Jarir Marketing Co, the bookstore chain and computer distributer, said Sunday its third-quarter net profit rose 5.1 per cent to 160.7 million riyals (Dh157.5 million or $42.9 million), compared with 152.9 million riyals a year ago. Earnings per share for the nine-month period came in at 7.20 riyals versus 6.47 riyals a year ago, it said in a statement posted on the Saudi bourse website. Jarir’s nine-month net profit came in at 431.9 million riyals, up 11.3 per cent on year. Turnover for the third quarter amounted to 1.2 billion riyals, a decrease of 1.6 per cent compared with the same period last year, due to the drop in sales of smart phones as customers anticipate newer models, while the sales of all other sections rose, the company said.

Saudi Hollandi Bank

Riyadh: Saudi Hollandi Bank shareholders have agreed to issue an Islamic bond, or sukuk, worth 1.4 billion riyals (Dh1.3 billion or $373 million) to support the bank’s capital base, it said in a bourse statement on Sunday.

The bank did not say in its statement when the sukuk would be issued or give any other details.

Saudi Hollandi said early last month its board of directors had approved the sukuk pending shareholder agreement.

Abdullah Al Othaim Markets Co

Beirut: Abdullah Al Othaim Markets Co, a Saudi owner and operator of supermarket chains, Saturday said its new board has re-elected Abdullah Al Othaim as chairman. The new board, which was elected by the company’s shareholders Wednesday, will have a three-year term, Othaim Markets said in a statement posted on the Saudi bourse website. The company said in a separate statement that its shareholders have approved a cash dividend payout of 22.5 million riyals (Dh22.05 million or $6 million) for 2011 at the rate of 1 riyals a share.

Saudi bourse

The Saudi bourse said Thursday that it will close between October 25 and November 2 for Eid Al Adha holidays. Trading will resume November 3, the bourse said in a statement posted on its website.

Kuwait Stock Exchange

Beirut: The Kuwait Stock Exchange said Thursday that it will reduce the interest rate on futures and forward contracts to 6.5 per cent from 7 per cent starting from Sunday. The resolution comes in light of the central bank’s decision to cut the discount rate by 50 basis points to 2 per cent, the bourse said in a statement posted on its website. Mohammad Al Hashel, governor of the country’s central bank said, in a statement carried by the Kuwait News Agency, or KUNA late Wednesday, that “the decision aims to reduce the cost of crediting while maintaining the resilience of the banking institutions and enhancing the competitive edge of the national currency.”