RIYADH, 23 July 2004 — Saudi stocks continued surging in the week to Thursday, driven by strong first-half results from blue-chip Saudi Basic Industries Corp. (SABIC).
The all-share index, climbing for the fifth week, closed at 6,041.70, up 1.4 percent from last week’s 5,958.74 and breaking the 6,000 barrier for the first time in two months.
“(The market was) driven by the positive financial results of SABIC, representing 19 percent of the total Saudi stock market capitalization,” Bakheet Financial Advisors said.
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.
SABIC, the Middle East’s biggest petrochemicals producer, said on Tuesday half-year net profits rose to SR5.34 billion ($1.42 billion), up 67 percent on the same period last year. SABIC climbed 3.8 percent to close at SR516.00.
Blue-chip Saudi Electricity Co. slipped 1.5 percent to close at SR134.50. On Monday it announced first-half net profit of SR56.7 million ($15 million), after losses of SR334.9 million in the same period last year.
One broker, who did not want to be named, said the stock may have slipped because many investors already traded on word of the results circulating before the official announcement.
STC, the largest firm on the Saudi bourse with a market capitalization of SR159.6 billion, gained 0.6 percent to close at SR547.25.
“After the blue chips completed announcing their financial results...we expect the market to be quiet,” Bakheet said.
Turnover on the biggest Arab bourse fell to SR25.6 billion, from SR27.8 billion a week earlier.
Firm oil revenue has been a boon to the economy of the world’s biggest crude exporter, boosting corporate earnings and investor liquidity.