RIYADH, 19 March 2004 — Saudi stocks rose to an all-time high in record volumes in the week to yesterday, buoyed by gains by the two largest listed banks and optimism over first-quarter results.

Samba Financial Group climbed 8.4 percent to SR444.50 ($118.50) while Al-Rajhi Banking and Investment Corp. gained four percent to SR998.00.

Traders said the largest Arab bourse was expected to hold steady, except for a technical drop next week after Saudi Telecom, which accounts for 21 percent of market capitalization, distributes dividends of SR14 per share.

The rise was tempered by a 3.2 percent drop by blue-chip Saudi Electricity Co. over lower-than-expected dividends of SR3.50 per share. It fell to SR105.00.

The all-share index ended at 4,954.67 points, up 0.8 percent from 4,916.06 a week ago. It is up 11.7 percent this year after surging 76.5 percent in 2003 on healthy earnings and firm oil prices, a boon for the economy of the world’s biggest crude exporter.

Turnover climbed to an all-time weekly high of SR28.4 billion from SR26.4 billion the previous week. “The market was driven by banking stocks... (as) investors are expecting a boost in their Q1 2004 profits,” Bakheet Financial Advisors (BFA) said in a report. Traders said investor sentiment was also lifted by world oil prices at near 13-year highs. “We expect the market to witness a rather steady status while investors are waiting for Q1 2004 corporate financial results,” BFA said.

Advancers outnumbered decliners 35 to 33 while three stocks were unchanged. Blue-chip gainers included Saudi Arabian Fertilizer Co., the most active share with 10.1 percent of total turnover, which closed 10.3 percent higher at SR306.00.

Among blue-chip decliners, industrial giant Saudi Basic Industries Corp., the second most active stock with 9.6 percent of turnover, shed 0.4 percent to SR397.75.

Meanwhile, the Kuwait bourse closed the week sharply lower on Wednesday, pulled down by the crisis surrounding allegations the country’s finance minister squandered public funds.

The KSE index dropped 3.7 percent to 4,950.00 points from 5,138.00 last week, prompted by fears that a March 22 parliamentary vote over the allegations surrounding Finance Minister Mahmud Al-Nuri could lead to a political crisis, analysts said.

This is the first time that the market, which has been on the rise all year, has closed below the psychological floor of 5,000 points since January.

The Kuwaiti market is the second most capitalized bourse in the region.

In Qatar, the CBQ index surged 6 percent to 889.29 points, also driven by banks and by insurers. Oman’s MSM index edged up to 298.43 points from 294.42 points, while Bahrain’s BSE advanced to 2,312.45 points from 2,297.55.

In contrast, the NBAD index in the United Arab Emirates slipped to 4,746.27 points from 4,800.66.

In Jordan, the ASE index fell 2.6 percent. The Palestinian Al-Quds index ended almost unchanged at 186.01, compared with 185.83. Egypt’s HFI slipped to 13,.464.04 points from 13.610.00. The Lebanese bourse rose slightly, with the BSI index ending at 468.44 points from 460.89.

And in Tehran, the TEPIX rose 1.7 percent to 11,379.37 points from 11,185.16.