JEDDAH, 20 August 2005 — The Saudi stock market continued its upward march, compensating the losses the market suffered in two days during the past week but the Tadawul All Share Index (TASI) closed Thursday at 14,313.83 points compared to 14,347.17 points, the record it achieved last Sunday. The TASI was higher 84.85 points from Wednesday’s closing of 14,228.98 points. The index of the Arab world’s largest bourse gained further 2.8 percent last week.

The upward trend was supported by influential stocks, especially Saudi Basic Industries Corp. (SABIC), with prices of its shares closing at SR1,541.25 compared to SR1,447.00 on Aug. 11. Some 238,077 SABIC shares changed hands on Thursday.

Prices of Saudi Electricity Company (SEC) also went up to reach SR127 with dealers exchanging 1.3 million shares. Saudi Telecom Co. (STC) also performed well with its prices going up by 1.8 percent to reach SR922.50 and exchanging 599,690 shares.

According to the Bakheet Financial Advisors (BFA), the TASI is currently 74.4 percent higher than the year’s start.

The BFA expected the market to show “volatility” in the coming weeks, reflecting fluctuations of oil prices on the world market “which remain the major factor determining the market trend”. Saudi Arabia is the world’s largest oil exporter.

Financial analysts expected continued growth of Saudi stock market through the third quarter of the year, banking on reports of growing state revenues and positive economic policies.

Almarai, the newest member of the market, made a gain of 2.81 percent on the second day of trading to close at SR804 on Thursday when its 433,995 shares were exchanged. Saudi Livestock company dominated the market exchanging 2.2 million shares. Thimar made the largest gain of 10 percent with prices shooting up to SR211.75 during an exchange of over a million shares. National Agriculture Development Co. (NADEC), on the other hand, made a loss of 2.44 percent with its prices going down to SR530.50.

Out of 77 symbols traded on Thursday, 58 were up while 17 were down.

In Kuwait, the KSE all-share price index edged lower this week after a series of gains, closing at 9,333 points.

The United Arab Emirates stock exchanges gained 5.3 percent in average this week as holiday makers started to return to the country.

The all-share price indexes of Abu Dhabi and Dubai exchanges gained 4.4 percent and 5 percent, closing at 5,115.4 points and 1,030.6 points respectively.

Zuhair Kiswani from Al-Sharhan consultancy house expected UAE shares to score “gradual gains” in the coming weeks.

Meanwhile, Arab bourses are set to score fresh gains in the coming weeks against optimistic expectations of third quarter results and surging oil prices, analysts said yesterday. “I believe regional stocks stand to gain from expectations of good third quarter results and soaring oil prices that give rise to huge surplus petrodollars that seek investment outlets in the region,” Wajdi Makhamreh, investment manager and head of brokerage at the Jordan Investment & Finance Bank, told Arab News.

“Also I think Israel’s pullout from the Gaza strip enhances political stability and peace chances in the region and encourages investors to channel part of their funds to the Palestinian territories,” he said.

The all-share price index of the Amman Stock Exchange shed 1.15 percent in the week ending on Thursday, closing at 8,009.81 points, according to the ASE weekly report.

“Transactions focused on firms with good half yearly results, while investors awaited new factors to build up fresh positions in the run-up for the Q3 results that are expected to start leaking at the end of August,” Makhamreh said.