RIYADH, 15 March 2005 — Saudi shares came tantalizingly close to the 10,000-point mark yesterday, hitting a new record high on a buoyant banking sector, analysts said.
The official share index of the largest Arab bourse closed at 9,917 points, up 1.83 percent on Sunday’s close.
An analyst with a leading Saudi bank said banks were leading the way in a market already boosted by high oil prices.
“Al-Rajhi split its stock,” he said, referring to Saudi Arabia’s largest listed bank, Al-Rajhi Banking and Investment Corp., which closed up almost 10 percent at SR1,236 ($329.6).
He said the banking sector was also enjoying a natural lift after a lull. “It’s a cycle rotation in the market.”
Fawad Ali, equity economist at Consulting Center for Finance and Investment, said strong interest in a new Islamic bank was partly behind the market rise.
Last week, half the population of Saudi Arabia applied for the 30 million shares on offer in Bank Albilad.