RIYADH, 16 July 2004 — Saudi shares edged higher in the week to Thursday as investors awaited second-quarter results from major companies to bolster recent market gains.
The all-share index, which had climbed for the previous three weeks, closed at 5,958.74, up 0.6 percent from last week’s close of 5921.27 points.
The index, which hit a record 6,455 points in May, is up more than 34 percent this year after rising 76 percent in 2003.
Bakheet Financial Advisors said shares maintained high levels after second-quarter results from Saudi Telecommunications Co. (STC), though its own stock slipped 0.3 percent to close at SR544.25 ($145.13).
STC said on Wednesday its net profit rose to SR5.14 billion ($1.37 billion) in the first half of 2004, up from SR4.15 billion in the same period last year. STC, the largest firm on the Saudi bourse with a market capitalization of SR159.6 billion, hit a year high in May of SR601.50 after a January year-low of SR415.25. Turnover on the biggest Arab bourse fell to SR27.8 billion ($7.41 billion) from SR35.9 billion a week earlier. “The Q2 2004 financial results of the remaining blue-chip companies ... will determine the next market trend,” Bakheet said, adding that strong oil prices had kept the bourse buoyant. This week, blue-chip Saudi Electricity Co. rose 0.7 percent to close at SR136.50. Saudi Basic Industries Corp. (SABIC) fell 0.4 percent to close at SR497.25 riyals. Both are yet to release their results.