RIYADH, 19 December 2003 — Saudi Arabian stocks rallied this week on the back of the announcement that the Kingdom posted a healthy surplus in fiscal 2003, Bakheet Financial Advisers (BFA) said yesterday.
The Tadawul All-Shares Index (TASI) finished the week at 4,478.72 points, up 2.2 percent on last week’s close. Saudi Basic Industries Corp. (SABIC) dominated trading value at 10 percent followed by STC (Saudi Telecommunications) at nine percent and SAPTCO (Saudi Arabian Public Transport Company) at seven percent, BFA said.
The Finance Ministry announced this week that the Kingdom posted a SR45 billion ($12 billion) surplus in the 2003 fiscal year, the first non-deficit budget in Saudi Arabia since 2000.
The TASI, which crossed the psychological 4,000-point barrier in mid-August, is now 77.9 percent up since the start of 2003. “The market was also driven by a surge in SABIC and the banks sector where the release date of the annual 2003 corporate financial results is nearing and it is expected to show high level of profits,” said BFA.
The banking sector, which accounts for one third of the market’s total capitalization, has increased by 9.4 percent since the beginning of December.
The sector’s performance “was mediocre during the first 11 months of 2003 rising just 20 percent and making it the worst performing sector when compared to other sectors,” said BFA.
Trading value this week reached about SR14.1 billion ($3.73 billion), down on last week’s SR12.6 billion ($3.3 billion).
The Saudi bourse has been on the rise since March, driven by strong oil prices that have boosted public revenues, and abundant cashflow, which combined to lift investor confidence.