Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: National Petrochemical keeps rising: up 7.6% in 4 days 20 September 2018 16:49 AST

NEWS BITES - MIDDLE EAST & NORTH AFRICA

This is an end of day Alert, produced after today's Saudi Arabian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

National Petrochemical, Saudi Arabia's 6th largest petrochemical industries company by market capitalisation, extended its gains on Thursday, rising an additional 85.0 hallalah (or 3.2%) to trade at SAR27.50. Trading volume was 21% of average at the end of the day. The shares have risen SAR1.95 (or 7.6%) over the past four trading days vs. the All Share Index (TASI) which has risen 4.0% in the same period.

Technical indicators complementing today's significant uptrend:

+ The stock has outperformed 86% of the Saudi Arabian market over the past 6 months.

+ In the last three months the stock has hit a new 52-week high thrice.

+ The price climbed 5.2% in the last week and increased 0.4% in the last month.

+ The present value of SAR1,000 invested one year ago is SAR1,547 [vs SAR1,061 for the All Share Index (TASI)].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Sales of 1.8 [3.7]

+ Return on Equity 13.1% [6.8%]

+ Return on Assets 4.1% [3.6%]

+ Return on Capital Employed 5.7% [4.7%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

+ As per the Du Pont analysis, Return on Equity of 13.1% is better than sector average of 6.8%.

Note

National Petrochemical today is at a discount of 10.7% to the 12-month high of SAR30.80 on 12 Jul, 2018. It is at a premium of 69.8% to the 12-month low of SAR16.20 on 21 Nov, 2017.

Bearish Signals:

The negative 0.42 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Net profit margin has averaged 10.4% in the last 3 years. This is lower than the sector average of 21.1% and suggests a low margin of safety.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price to Book of 1.9 [1.5]

TODAY'S ALERT

Morning Alert: National Petrochemical keeps rising: up 5.5% in 4 days

20 September 2018 11:26 AST

National Petrochemical Company (TASI:2002) extended its gains on Thursday, rising an additional 30.0 hallalah (or 1.1%) to trade at SAR26.95. Trading volume was 1.5 times average so far today.

RECENT ALERT

Morning Alert: National Petrochemical keeps sliding: down 5.3% in 3 days

17 September 2018 11:26 AST

National Petrochemical Company (TASI:2002) extended its slide on Monday, shedding an additional 35.0 hallalah (or 1.4%) to trade at SAR25.20. Trading volume was 1.7 times average so far today. The shares have fallen SAR1.40 (or 5.3%) over the past three trading days vs. the All Share Index (TASI) which has fallen 2.3% in the same period.

National Petrochemical Company (SA:2002; SAU:2002; AB:2002)

ISIN: SA12BG50V917

PermID: 4298544146

Source: www.BuySellSignals.com