Shares rise for a second day, but not as much as did on Wednesday
Dubai: Shares of Saudi Aramco surged for a second day, overtaking the kingdom’s long-sought $2 trillion valuation mark.
The oil colossus had a record-setting market debut on Wednesday, opening and ending up at the maximum permitted 10 per cent at 35.2 Saudi riyals ($9.39) on the local Tadawul stock exchange. This was above the set price of 32 riyals, which gave it a valuation of $1.88 trillion.
Shares opened at 38.7 riyals on Thursday, which implies the same valuation of $2 trillion mooted by Saudi Crown Prince Mohammed bin Salman when he first proposed the idea of offering up a stake in 2016.
Shares pared gains and touched a low of 36 riyals in the first half hour of trade, before rebounding and trading near the 38 riyals after the first hour.
Arqaam Capital initiated coverage on the Aramco stock with a recommendation to ‘buy’ and a price target of 39.2 riyals, forecasting better dividends in the short-term. But analysts at Bernstein started coverage with a sell-equivalent rating and a target price of 25.5 riyals after flagging corporate governance as a key risk for investors.
