Southern Cement Hits 52-Week Low; Construction Sector Weighs

Southern Cement Co. shares fell to a 52-week low on June 23, according to data compiled by Argaam. The TASI-listed stock traded at its lowest point in a year.

The decline extends a months-long slide. Southern Cement operates plants in the southern region of Saudi Arabia, producing ordinary Portland cement and other construction materials. The company has faced headwinds as the kingdom's construction sector slows.

Government project awards have tapered, and private development activity has dipped, squeezing cement demand across the industry. Southern Cement has not been immune. The stock's descent brings it to levels not seen since mid-2023.

The company's market value has shrunk by billions of riyals over the past year. With the stock at a 52-week low, attention turns to the company's next quarterly report and any signs of a turnaround in construction activity.