JEDDAH, 20 September 2005 — The Saudi stocks hit all-time high as the Tadawul All Share Index (TASI) closed yesterday at 15,001.44, up 82.04 points.
The Industrial sector index closed 370.14 points higher at 40,207.61. Other indices were also up slightly except the Electricity and Insurance indices which fell yesterday.
Aseer Trading, Tourism and Manufacturing Co. shares soared 9.69 percent to close yesterday at SR755.75, followed by Saudi Hotels and Resort Areas Co. by 6.12 percent at SR520, Al Ahsa for Development Co. by 5.41 percent at SR360.50, Saudi Arabia Fertilizers Co. (SAFCO) by 4.10 percent at SR 1,041 and Saudi Real Estate Co. by 3.25 percent at SR436.50.
However, some investors said prices of most companies are inflated and are likely to decline sharply bringing the index back to 14,000 points.
Shares of Saudi Advanced Industries Co. dropped by 2.60 percent at SR750, followed by Saudi Electricity Co. (SEC) by 0.89 percent at SR139.75 and Eastern Agriculture by 0.85 percent at SR233.00.
The shares of petrochemical giant Saudi Basic Industries Corp. rose slightly yesterday to close at SR1,657.25.
The Capital Market Authority (CMA) on Sunday added stocks of Almarai dairy company to the Tadawul index with its price reaching SR849.
Meanwhile, the initial public offering (IPO) for Dana Gas, the largest IPO in the UAE and the first for a natural gas resource company, opens today seeking 2.06 billion dirhams, or 34.33 percent of the company’s capital.
Ten banks have been appointed as receiving banks: Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Union National Bank, First Gulf Bank, Mashreq Bank, Dubai Islamic Bank, Emirates Bank International, HSBC Middle East, Bank of Sharjah, and United Arab Bank. The receiving banks have designated a combined total of 105 branches to receive applications, so as to make the application process as convenient as possible for subscribers. HSBC is the financial adviser and Lead Manager for the IPO.
A spokesperson for the Founders Committee said: “Since the announcement of the offering, we have received many inquiries from individual as well as institutional investors in the UAE and from across the region. Dana Gas is a promising regional investment opportunity in a rapidly growing energy sector that will deliver a steady return on investment over the long term.”
The shares are being offered at a par value of 1 dirham each with an additional one fils toward the issue costs. All investors are required to settle the full amount as one payment upon subscription. All surplus funds will be refunded upon the final allocation of shares.