Zain Saudi shares slump to all-time low

Telco cuts its capital to SR4.8bn while company's rights issue will start on Tuesday
Zain Saudi shares slump to all-time low
GCC telecoms
By Reuters
Sun 08 Jul 2012 05:37 PM

Zain Saudi slumped to an all-time low as investors extend selling after the date to qualify for its $1.6bn rights issue passed, while the bourse edged lower in stock-picking trade.

Zain cut its capital to SR4.8bn from SR14bn effective Saturday, while the rights issue will start on Tuesday and close eight days later.

Shares in the telco fell 10 percent.

The capital cut will help eliminate some of its accumulated losses, which stood at SR10.1bn at the end of the first quarter.

Dar Al Arkan ticked up 0.5 percent, accounting for nearly two-thirds of all shares traded on the index.

The stock saw a special trade, with 98.4 million shares traded at 11 riyals.

The developer posted an 11 percent rise in net profit, but missed analyst forecasts.

Some mid-small cap stocks hit limit up ahead of earnings. Food processing firm Halwani Brother and Wafa Insurance surge 10 percent each.

"People are buying on rumors of earnings-that's why you will see sudden jumps near the end of the session," said Tarek Al Mady, an independent Riyadh-based analyst.

The kingdom's index eased 0.07 percent to end at 6,855 points, trimming year-to-date gains to 6.8 percent.

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