JEDDAH, 9 April 2005 — Saudi stock market hit an all-time high as the Tadawul All Share Index (TASI) climbed 11.49 percent, the largest weekly increase in the market’s history, to close on Thursday at 11,694.84 points. At the same time, the total value of shares exchanged on the bourse reached more than SR83 billion ($22 billion) compared to $21 billion last week.

The hike in stock prices came following the Saudi Cabinet announcement that GCC citizens would be given equal treatment in purchasing and exchanging shares of companies listed on the Saudi bourse and establishing companies. Previously, investment in stock market was restricted to Saudis. Another important factor, according to analysts, was the steep rise in oil prices, which crossed $58 per barrel.

Saudi shares also surged vigorously this week, driven mainly by Saudi Basic Industries Corp. (SABIC) and the Saudi Telecom Co. (STC).

The Riyadh-based Bakheet Financial Advisors (BFA) advised investors to assume “caution” toward any movement in prices that follow failure of certain listed firms to fulfill expectations of first quarter results.

Kuwait’s KSE all-share price index also gained 3.1 percent this week, propelled by high demand from local and Gulf funds. The benchmark price closed at a new record high of 8,114.5 points, up from 7,869.1 points last week.

The index is now 26.6 percent above the end-2004 close of 6,409.50 points. It ended March up 16.7 percent, with the value of average daily trading rising sharply.

Average daily trading this week rose 18.5 percent to 163.6 million dinars ($555 million) from 138.1 million dinars ($468 million) last week. Last year’s daily average was $208.8 million. The market ended 2004 up 33.8 percent on the back of a positive economy and high oil revenues that resulted in a budget surplus.

However, Qatari shares tumbled 12.5 percent in the week to Thursday, hit by a probe into suspected market irregularities and lukewarm interest in the bourse’s recent opening to foreign investors.

The benchmark Doha Securities Market closed at 9,749.95 points on Thursday, from 11,148 the previous week. The index, which has hit record highs on strong oil and gas prices, is still up 50 percent since the beginning of 2005.

Arab stock markets are expected to extend gains in the coming two weeks, buoyed by optimistic expectations of the first quarter results and fledging political stability in Iraq and Palestinian territories, analysts said yesterday.

The all-share price index of the Amman Stock Exchange gained 1.94 percent in the week ending Thursday, closing at 5,621 points from 5,514 points last week, according to the ASE weekly report.

The market’s turnover also grew by 40 percent, to 276 million dinars ($390 million) from 196 million dinars ($277 million), the report said.

Dealers reported a marked increase in foreign capital, particularly from Gulf countries, seeking investment in Jordanian stocks. — With input from Abdul Jalil Mustafa