RIYADH, 12 November 2004 — Saudi Arabian shares rose to yet another high, as still-high oil prices pump cash into the world’s top crude exporter, boosting earnings and increasing liquidity on the stock exchange, traders said yesterday.
The all-share index of the largest Arab bourse ended at 7,733.99 points on Wednesday at 1900 GMT, up 3.6 percent in a shortened trading week. The bourse will be closed from Nov. 11-Nov. 19 for the holiday of Eid Al-Fitr.
The index is up 74.3 percent so far this year. “Investors are still reacting to the companies’ strong financial results for Q3 and are optimistic about Q4 results,” Bakheet Financial Advisors (BFA) said in a report, adding that gains by banking and cement shares also buoyed the market.
“The market will continue its gradual rise amid positive attitudes on available liquidity,” BFA said.
It said investors were also eyeing any sharp fluctuations in world oil prices. Turnover rose to SR37.2 ($9.92 billion) from SR28.5 billion a week earlier.
Saudi Telecommunications Co., the most active share with 14.6 percent of turnover, gained 3.6 percent to SR596.75 while industrial giant Saudi Basic Industries Corp., the second most active stock with 11.3 percent of turnover, climbed 4.2 percent to SR834.
Together the two firms account for 41 percent of total market capitalization. Gainers outnumbered decliners 53-17 during the week while one share was unchanged and one stock was not traded.
Other advancers included Arabian Cement Co. which surged 15 percent to SR431.75 and Saudi Investment Bank which added 4.7 percent to SR502.5.