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Saudi petrochem firms expect mixed Q2 results

Saudi-based Al Rajhi Capital has said companies in the kingdom are expected to register mixed results in the second quarter of this year, Arab News has reported. Cement, food and agriculture, and retail sectors are seen to post a robust set of numbers, while petrochemical companies' bottom-line growth could come under pressure due to slowing demand and declining product prices, the firm said. Saudi petrochemical companies are likely to face near-term headwinds from low petrochemical prices in the second quarter of the year due to the prevailing weak demand. "We continue to prefer diversified companies like Sabic over pure play companies like APC and SPC in the long run. We continue to like NIC, though the Q2 results may be depressed due to the recent decline in product prices of both TiO2 and petrochemicals," the report noted.