" /> " /> " />

KSA market reverses trading day successfully

14 June 2010

The Riyadh-based Tadawul exchange started weakly, but gained momentum and closed 1.24% higher at 6,340.03 points. The reverse occurred mainly due to strong buying interest in utility bellwether Saudi Electricity Company (SEC), gaining 2.30% at SR13.35. SEC was the most active stock in relation to trading volumes. EFG Hermes Research upgraded the firm's discounted cash flow fair value (FV) to SR13.5 per share (up from SR12.5 per share), "with the significant upgrades to our EBITDA estimates largely mitigated by the considerable increases in our capex assumptions, following new guidance in the company's recent Sukuk prospectus", as the investment bank writes in a statement. SEC broke through a key resistance level which was at SR12.6. The stock is on the way to close a gap to the level of SR16.75 and to accomplish a chart-technical rounding or saucer bottom which started in January 2008.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications