RIYADH, 9 July 2004 — Saudi shares rose 3.1 percent in the week to Thursday, buoyed by a surge in newly listed Sahara Petrochemical Co., strong oil prices and a market reform move.
The all-share index climbed for a third week to close at 5,921.27 points, up from 5,745.75 last week. The index, although down from a record 6,455 points in May, is still up by more than 33 percent this year after rising 76 percent in 2003.
Bakheet Financial Advisors said investors reacted positively to the establishment of a capital market authority board, seen as a major step towards long-awaited reforms.
Turnover on the biggest Arab bourse rose to SR35.9 billion ($9.8 billion) from SR30.3 billion a week earlier.
Sahara, which started trading on Wednesday, rose 230 percent surge from its offer price to close the week at SR165. The company was recently established by Al-Zamil, one of the Kingdom’s large private trading groups, to set up an olefins complex and a polypropylene plant.
Blue-chip Saudi Electricity Co., which dominated trading with 21.5 percent of total turnover, gained 9.9 percent to SR135.50.
Food group Savola climbed 8.9 percent to SR489 after reporting a 27-percent gain in half-year net profits to SR156 million.
Gainers outnumbered decliners in the week by 61 to 10.
The market was also supported by stronger oil prices on fears of supply disruptions. Firm oil revenues have been a boon to the economy of the world’s biggest crude exporter, boosting corporate earnings and investor liquidity.