We are selling half of our positions in Samba Financial Group (SAMBA AB) and Al Hokair Group (AATD AB). Both share prices have had a strong run over the past few weeks, therefore we feel it is prudent to take some profits on our positions.
In addition, we are concerned about Samba’s exposure to Oger Group, and whether the bank will have to take an additional provision for this exposure. However, Samba remains one of the best run banks in Saudi Arabia, with the most liquid balance sheet in the sector, hence our retention of half of our current position.
As for Al Hokair Group, the shares have had a very strong run, they are up c78% since we initiated our position. We have some concerns about the resilience of leisure-related consumer spending in Saudi Arabia, however we still view the Group as well positioned for growth, hence our retention of half of our current position.