Riyadh – Mubasher: The Saudi Stock Exchange’s (Tadawul) inclusion in the MSCI Emerging Markets (EM) Index has contributed to raising foreign inflows and supporting stock market valuations, Al Rajhi Capital said in a recent report. 

However, the market saw corrections “as the euphoria subsided and global growth concerns came to the fore,” the report added.

The Saudi petrochemical sector is projected to see slightly improved profits in the second quarter of 2019 on the back of higher sales volume, the research firm noted. 

However, Al Rajhi Capital expected Saudi Basic Industries Corp. (SABIC) to report a 48.6% drop in its profits to SAR 3.444 billion in Q2-19, compared to SAR 6.695 billion in the year-ago period. 

On the other hand, Saudi Telecom Co’s (STC) profit is likely to increase by SAR 252 million, or 10.3%, year-on-year to SAR 2.696 billion in Q2-19 from SAR 2.444 billion.

Moreover, Saudi Arabian Mining Company (Ma’aden) is forecast to turn into losses of SAR 29 million in the three-month period ended 31 March, versus profits of SAR 518 million in the year-ago period.