Bloomberg News

Al-Mojil Posts Biggest Two-Day Drop as Loss Widens: Riyadh Mover

February 26, 2012

Mohammad Al-Mojil Group Co. (MMG), a Saudi Arabian construction services provider, had its biggest two-day drop on record after its full-year loss widened.

The shares slumped 10 percent to 17.2 riyals at the 3:30 p.m. close in Riyadh today, bringing its drop in the past two days to 19 percent, the biggest such slump since the shares listed in May 2008. The stock was the biggest decliner by percentage points on Saudi Arabia’s benchmark Tadawul All Share Index (SASEIDX), which advanced 0.2 percent to 7,088.48.

“Investors are reacting to the company’s unexpected big loss,” said Turki Fadaak, head of research at Riyadh-based Albilad Investment Co.

The company said Feb. 22 its net loss for the year was 959.4 million riyals ($256 million) compared with a loss of 179.5 million riyals a year earlier. The losses were “due to additional costs of materials, equipment and manpower of some of the ongoing projects in excess of the approved budgets,” the Dammam, Saudi Arabia-based company said Jan. 18.

Al-Mojil has dropped 29 percent this year after a 29 percent surge in 2011. One analyst recommends investors buy the stock, while three have a “hold” rating, according to data compiled by Bloomberg.

To contact the reporter on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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