JEDDAH, 2 October 2005 — The Saudi stock market posted marginal gains yesterday as the Tadawul All Share Index (TASI) closed 18.42 points higher at 15,048.38.
The Banking Index dropped 82.78 points at 33,182.81 as shares of most of the banks fell except Bank AlJajira and Bank Albilad, whose shares rose slightly to SR1,095 and SR728.25, respectively.
Banque Saudi Fransi shares dropped 1.97 percent to close at SR1,245, followed by the Saudi Investment Bank by 0.87 percent at SR907.
However, shares of Ahmed H. Fitaihi Co. jumped by 9.98 percent yesterday to end the trading at SR350, followed by Saudi Land Transport Co. by 9.95 percent at SR361.75, Al Mawashi Al Mukairish United Co. by 9.88 percent at SR111.25, Food Products Co. by 8.17 percent at SR245 and National Gas & Industrialization Co. by 8.16 percent at SR590.
Shares of Saudi Telecom Co. (STC) and Etihad Etisalat fell by 0.43 percent and 0.28 percent at SR930 and SR619, respectively, which sent the Telecom index down by 22.37 points at 5,545.06.
Saudi Basic Industries Corp. shares declined by 0.15 percent at SR1,641.50, while Saudi Electricity Co. (SEC) shares gained by 2.67 percent at SR144.25.
Dr. Said Al-Shaikh, chief economist at National Commercial Bank, estimated the repetition of profits in Saudi stock market at more than 30 percent, adding that it is highest in the world. In other international stock markets, the rate of profit ranges between 15 and 18 percent, he added. “The money paid by an investor for a share does not represent its actual value,” he told Al-Riyadh Arabic daily, adding that stock prices are often exaggerated.
Al-Shaikh attributed the repeated profitability of shares to speculative trading. He said stock market has become the talk of the town for all sections of Saudi society as everybody wants to make quick profit and money. “The information received by investors will not be correct and this will affect the market,” he pointed out. He considered speculative trading on the stocks of losing companies as an unhealthy trend, adding that it would have negative effect on the investor.
Meanwhile, according to the Kuwait-based Global Investment House Kuwait stock market continued its upward rally in September as investors’ confidence remained sky high.
The benchmark “Global” General index increased by 5.49 percent and closed the month at 286.72 points, extending the positive streak to four consecutive months.
During the last four months, the Global General index has registered a handsome gain of 23.33 percent. Overall, the index has reported YTD gain of 50.04 percent at the end of September.
The market capitalization of the stock exchange reached KD36.15 billion, a growth of 5.98 percent compared to the previous month. As expected, Kuwait Stock Exchange price index breached the 10,000-point mark during the month of September and reached its highest level of 10,255.9 points since its inception. The KSE closed the month at 10,233.3 points, recording an increase of 6.10 percent over the previous month.
The volume of shares traded in September saw a substantial increase of 14.76 percent amounting to 5.86 billion shares as compared to August. On the other hand, the value of shares traded also followed the upbeat trend and it increased by 12.54 percent aggregating to KD2.83 billion over the previous month.