JEDDAH, 12 September 2005 — The Saudi stock market kept its upward march yesterday after over 400 points jump in index on Saturday. The Tadawul All Shares Index (TASI) closed 73.51 points higher at 14,748.80.
The Saudi index went up on Saturday as dealers responded positively to the news of Saudi Arabia’s World Trade Organization (WTO) agreement with the United States. The news increased investor confidence, encouraging more dealers to put their money in stocks. The news of the reshuffling of the Supreme Economic Council’s economic consultative body was also received well by investors in the stock market.
The Banking index surged 237.26 points at 32,520.92. However, the Saudi Investment Bank (SAIB) shares recovered by 2.19 percent at SR885 while Arab National Bank (ANB) and Banque Saudi Fransi (BSF) shares jumped by 2.44 percent and 2.39 percent at SR922 and SR1,240, respectively.
The Industrial index closed yesterday at 38,847.61, up slightly by 194.06 points. However, Saudi Basic Industries Corp. (SABIC) shares closed slightly lower at SR1,617. Saudi Industrial Export Co. shares skyrocketed by 10 percent to close at SR690.25 followed by National Industrialization Co. shares which were higher by 8.81 percent at SR775.
Al-Baha Investment & Development Co. shares were trading 8.16 percent higher at SR202.25 and Saudi Advanced shares closed at SR686, up 6.12 percent. Makkah Construction and Development Co. shares closed at SR717, up 5.44 percent.
Saudi Arabia Refineries Co. shares were lower by 1.45 percent at SR1,630. Saudi Electricity Co. (SEC) shares closed yesterday at SR139.75, down 0.71 percent.
Sixty-seven stocks were higher, while 10 were down out of 77 symbols traded yesterday.
A report issued by Riyad Bank said companies listed on the Saudi bourse had lost SR85 billion ($22.6 billion) last week from their market value. The report said the price index grew by 441 percent during the past three years and 218 percent during the past two years.
Also yesterday, a Saudi investor downplayed the effect of the Capital Market Authority’s plan to close down unauthorized share brokers on the market. He said the decision would have positive impact on smaller companies.
Meanwhile, the Kuwait-based Global Investment House “Global” announced on Saturday the launch of new Bahrain Stock Exchange indices, part of Global’s series of indices, leveraging the need to track the performance of Bahraini stocks.
Omar M. El-Quqa, CFA, executive vice president at Global, said, “these new indices leverage the need for tracking the performance of Bahraini stocks in-line with the great interest the investors are showing in this market, considering the amount of foreign, GCC and Middle East banks and financial institution that the kingdom attracts.”
On the reasons behind Global’s issuing of these indices, he explained “Global has already highlighted the flourishing economy and financial situation that the Bahraini market is currently witnessing. Also the strategic location of Bahrain along with it being the financial center of the GCC which is currently flourishing as the oil prices goes higher, has given it special importance.”