Riyadh – Mubasher: Saudi cement companies are expected to reduce their dividends distributions soon owing to the current market's situation, Al Rajhi Capital said.

Sales of cement firms were down in July and came lower than the estimates of a slight increase in sales after the month of Ramadan, the investment company reported.

The cement sector index is trading beneath its average of 13.3 times for five years, and beneath the price earning ration (P/R Ration) of Tadawul index of 13.1 times in the last twelve months.

Al Rajhi Capital pointed that Yanbu Cement Co. is its favorable stock, adding that City Cement was the only gainer in July, while Yamama Cement Co. fell 16%.