Saudi Arabian stock alert

SAARAB

CLOSING UPDATE: United Cooperative Assurance increases further 1.0%, led Insurance sector higher 12 June 2018 16:51 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).

United Cooperative Assurance, Saudi Arabia's 17th largest insurance company by market capitalisation, has soared 17.2% to trade at SAR12.12 vs. the Insurance sector which strengthened 26.5 points (or 0.4%) to 6,892.8. Representing a weighting of about 1.6% of the sector, the stock accounted for 71.3% of today's gain. The shares have outperformed 99% of the market in the past week. Trading volume was 62% of average at the end of the day. Compared with the All Share Index (TASI) which rose 43.3 points (or 0.5%) in the day, this represented a relative price increase of 16.7%.

Technical indicators complementing today's significant uptrend:

+ The price soared 21.0% in the last week and 10.2% in the last month.

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

Undervaluation:

+ Price to Book of 1.4 [2.4]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.4. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

Note

United Cooperative Assurance today is at a discount of 24.1% to the 12-month high of SAR15.96 on 22 Aug, 2017. It is at a premium of 23.3% to the 12-month low of SAR9.83 on 04 Jun, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low nine times, pointing to a significant downtrend.

Net profit margin has averaged 6.3% in the last 3 years. This is lower than the sector average of 7.5% and suggests a low margin of safety.

As per the Du Pont analysis, Return on Equity is less than stellar at 7.4%. Also, this has deteriorated from 25.6% last year.

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

Overvaluation:

Return on Equity 7.4% [10.1%]

Return on Assets 2% [2.5%]

TODAY'S ALERTS

Afternoon Alert: United Cooperative Assurance soars 16.1%, leads Insurance sector higher

12 June 2018 14:38 AST

United Cooperative Assurance Co (TASI:8190) has soared 16.1% to trade at SAR12.0 vs. the Insurance sector which strengthened 42.2 points (or 0.6%) to 6,908.5. Representing a weighting of about 1.6% of the sector, the stock accounted for 42.0% of today's gain. The shares have outperformed 99% of the market in the past week. Trading volume was 2.7 times average so far today.

Morning Alert: United Cooperative Assurance soars 16.1%, leads Insurance index higher

12 June 2018 11:27 AST

United Cooperative Assurance Co (TASI:8190) has soared 16.1% to trade at SAR12.0 vs. the Insurance index which strengthened 9.4 points (or 0.2%) to 4,161.8. Representing a weighting of about 1.6% of the index, the stock accounted for the gain. The shares have outperformed 99% of the market in the past week. Trading volume was 3.2 times average so far today.

United Cooperative Assurance Co (SA:8190; SAU:8190; AB:8190)

ISIN: SA121053VV10

PermID: 4298026587

Source: www.BuySellSignals.com