Mobile Telecommunications Co. (ZAIN) Saudi Arabia (SABIC) rose, snapping a five-day drop, after the phone company known as Zain Saudi said a meeting to vote on a capital reduction plan didn’t take place due to lack of quorum.
The company, whose shares tumbled 17 percent in the five trading days through yesterday, advanced 1.9 percent to 8.05 riyals at 2:57 p.m. in Riydah. Zain Saudi, which has surged 45 percent this year, was the most traded stock by volume on Saudi Arabia’s Tadawul All Share Index today. The benchmark gained 0.1 percent.
“The shares were being sold in anticipation of the meeting on capital reduction” and rebounded today after the announcement of a delay, said Turki Fadaak, head of research at Riyadh-based Albilad Investment Co. “The company will still need to make an announcement, particularly before second-quarter results are released.”
Zain Saudi has posted full-year losses since at least 2008, according to data compiled by Bloomberg. The company plans to lower its capital to 4.8 billion riyals ($1.3 billion) from 14 billion riyals, the Saudi Capital Market Authority said in May. Zain Saudi will then increase its capital through a rights-share sale with a total value of 6 billion riyals.
Six analysts recommend investors sell the shares, while four have a hold rating and one says buy.
To contact the reporter on this story: Zahra Hankir in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Maedler at email@example.com