JEDDAH, 1 October 2005 — The Saudi stock market fell slightly last week. The Tadawul All Share Index (TASI) shed 0.10 percent, closing week at 15,029.96 points compared to previous week’s close at 15,050.43 points.
TASI is currently 83.2 percent higher than the year’s start, the Bakheet Financial Advisors (BFA) said in their weekly report.
Prices of 37 firms advanced, 38 retreated while two companies closed week unchanged, the report said.
Dr. Tarek Kaushek, a financial analyst, said the index crossed 15,000 as a result of speculative trading.
On Thursday, the Banking index gained 421.29 points to close at 33,265.59. However, the indices of Services, Telecom and Agriculture sectors dropped while, the Industrial index rose slightly at 39,988.75.
The BFA expected investors “to focus attention this week on the third quarter results of blue chips, particularly petrochemical firms”. “We also expect investors to get rid of speculative shares before the publication of results of the concerned firms, following the unjustified surge in their prices,” the report said.
Saudi Land Transport Co. shares gained 44.77 percent in week to close at SR329, followed by Al Mawashi Al Mukairish Co. by 11.54 percent at SR101.50, Bank AlJajira by 10.91 percent at SR1,042.25, Saudi Industrial Development Co. by 10.75 percent at SR293.50 and Arriyadh Development Co. by 7.51 percent at SR222.
However, Ahmed H. Fitaihi Company shares dropped 10.98 percent in a week to SR318.25, followed by Saudi Pharmaceutical Industries & Medical Appliances Corp. by 6.20 percent at SR631.25, Saudi Hotels & Resort Areas Co. by 4.40 percent at SR473, Saudi Automotive Services Co. by 3.79 percent at SR596.50 and Yamamah Cement by 3.66 percent at SR1,291.
Kuwaiti shares edged higher last week, with the KSE all-share price index closing at 10,233 points, up from 10,205 points previous week. The investment and real estate sectors dominated this week’s transactions, dealers said.
The benchmark prices of the United Arab Emirates stock markets slipped an average of 2.6 percent last week under pressure of profit-taking moves sparked by investors’ caution regarding third quarter results, analysts said.
The all-share price indexes of Abu Dhabi and Dubai stock exchanges fell 3.6 percent and 1.1 percent, closing week respectively at 5,471 points and 1,161.8 points.
Arab stock markets are expected to continue a “cautious approach” this week as investors await the third quarter results, financial analysts said yesterday.
But, they told Arab News that regional markets still drew support from the adamant surge of oil prices and the presence of huge liquidity seeking investment.
“I believe regional markets will continue their cautious approach in the coming couple of weeks ahead of the release of third quarter results,” said Wajdi Makhamreh, investment manager and head of brokerage at the Jordan Finance & Investment Bank.
“However, the soaring oil prices and the existence of huge liquidity will render backing to stock markets, despite this week’s hike of interest rates in most of Middle East countries to match the US dollar rates,” he added.
Makhamreh and other portfolio managers said that the interest rate rise appeared to have a “short-lived” effect on stock markets, but pointed out that in the longer term investors would “ignore this factor because regional interest rates are still low and form no detriment to investment in shares”.
The all-share price index of the Amman Stock Exchange dropped by 3.33 percent last week, to close on Thursday at 7,845 points from 8,115 points in the previous week, according to the ASE weekly report.
Makhamreh attributed the retreat mainly to a sell-off in the first two days of the week that was sparked by the Central Bank of Jordan’s decision to raise interest rates on the dinar to 5.5 percent from 5 percent.
He expected Jordanian shares to benefit from the Q3 results, but cautioned that a scramble by several listed firms to raise their capital “could have adverse effects on the market”.
— With input from Abdul Jalil Mustafa