JEDDAH, 23 August 2005 — Despite 47.87 points fall in Industrial sector index, the Saudi stock market edged slightly higher yesterday. However, the Banking index posted hefty gains of 277.65 points to close yesterday at 32,874.85.
The Tadawul All Share Index (TASI) surged 83.83 points to end yesterday’s trading at 14,743.70. The Industrial index closed at 39,037.31 points.
Out of 77 stocks traded yesterday, 50 were higher while 24 were down.
The Cement index closed yesterday at 9,194.05, up 124.00 points.
The Electrical index was down 5.10 points at 2,586.81 as Telecom index rose 76.88 points at 5,569.88.
Jamal Aba Hussein, chairman of Marfa Investment Company, cautioned investors against running after certain moving stocks without studying the market. He said the movement of index does not indicate the strength of a company. He described soaring oil prices as the moving spirit behind the unprecedented growth of Saudi stock index.
Optimism about increase in oil prices leading the stock market to surge and he expects oil prices to reach $100 a barrel in the near future. The results of most of the companies are also very positive which is boosting investor confidence.