RIYADH, 30 April 2004 — Saudi stocks fell 1.4 percent in the week yesterday, their first weekly drop in nearly four months, as investors paused after a record-setting rally. The all-share index of the largest Arab bourse closed at 5,485.46 points, down from 5,562.68 a week earlier. It is up 23.6 percent this year after rising 76 percent in 2003.
“The market was due for a correction. There was a little bit of instability with the bombing last week too, but I think it was basically some investors taking profits,” said Joe Kawkabani, an analyst at Dubai-based Shuaa Capital.
The market, buoyed by optimism over strong oil prices and robust company earnings, gained last week. The 15-week continuous rally repeatedly set all-time index highs and volume records. Weekly turnover fell to SR40.4 billion ($10.8 billion) from a record SR49.3 billion last week.
Among declining blue chips, Saudi Telecom dropped 4.8 percent to SR513, while Saudi Basic Industries Corp. lost 2.4 percent to close at SR455.
Despite the market’s overall fall, advancers outnumbered decliners 44-27, as small-cap shares gained in a buying spree which was based more on speculation than fundamentals. sStrong oil revenues have been a boon for the economy of the world’s biggest crude exporter, helping corporate earnings and boosting investor liquidity in a year-long rally.
Elsewhere in the region, the Lebanese bourse surged for the second week running in trading that ended yesterday.
Beirut’s BSI index ended the week up 7.4 percent at 564.19 points after surging 8.9 percent the previous week.
In Kuwait, the KSE index fell 3.9 percent to 5,050.00 points from 5,255.30 last week, after having edged 0.2 percent higher the previous week.
The MSM index in Muscat was virtually unchanged, dipping to 306.27 points from 306.70, while the DSM in Qatar rose 2.6 percent to 6,016.10 from 5,862.21. The BSE in Bahrain edged up 0.3 percent to 2,397.17 from 2,387.64
In Cairo, the HFI index edged up 0.6 percent to 15,503.48 points from 15,401.50, while the ASE in Jordan put on 0.7 percent to 2,666.10 from 2,645.90.
The Al-Qods index on the Palestinian bourse was little changed, ending at 183.14 points from 183.43. Tehran’s TEPIX edged up to 11,775.01 from 11.733.39.