JEDDAH, 5 October 2005 — The 683.85 points drop in the Industrial index pulled the Saudi stock index down by 167.75 points just before the day’s closing. The Tadawul All Share Index (TASI) was at 14,717.82 points.
Saudi Basic Industries Corporation (SABIC) shares plunged 2.31 percent at SR1,557 despite winning 11th position in a list of top 500 world companies published by the Financial Times. The British newspaper said SABIC’s market value had reached $175 billion. The Saudi petrochemical giant jumped six positions to become 11th from last year’s 17th position on the list. ExxonMobil was placed first on the list. The American company made big gains riding on skyrocketing oil prices during the past year. The Banking index also fell 123.87 points at pre close figure of 32,886.24 as shares of most of the banks fell except Bank Aljazira and Al-Rajhi Banking & Investment Corp. whose shares were trading higher at SR1,070 and SR1,860, respectively.
All other indices were down yesterday but the Agriculture index was slightly higher at 5,277.65 as Gizan Agriculture shares jumped 9.99 percent at SR349.50.
Saudi Industrial Services Co. shares were higher by 9.98 percent at SR336.25, followed by Saudi Chemical Co. by 9.97 percent at SR452.25, Eastern Agriculture by 9.97 percent at SR322.75, Food Products Co. by 9.96 percent at SR325.75 and Saudi Cable Co. by 9.96 percent at SR317.50.
However, Saudi Land Transport Co. shares dropped by 8.57 percent at SR400, followed by Ahmed H. Fitaihi Co. shares by 4.50 percent at SR361. Out of 77 shares traded yesterday, 512 were down while 26 were up.
Meanwhile, BankMuscat’s maiden GDR issue is to debut on the London Stock Exchange this morning. AbdulMalik ibn Abdullah Al-Khalili, chairman, BankMuscat is to mark the listing of the bank’s GDR’s on the LSE by formally opening the day’s trading on the exchange. With this the bank will become the first company from Oman and the first bank from across the Gulf region to be listed on the London Stock Exchange. The bank’s maiden Global Depositary Receipts (“GDR”) issue, which closed last week, received an overwhelming response from the global financial community with the $149 million GDR offering being multiple times oversubscribed.
Citigroup, global coordinator and sole bookrunner of the issue that comprised 6,253,423 newly issued ordinary shares in the form of GDRs, priced the GDRs at $23.75 (9.144 Omani rials) per share. BankMuscat, it may be recalled, has granted the managers an option to purchase up to 625,342 additional shares to cover over-allotments. Each GDR represents one ordinary share of BankMuscat, which trade on the Muscat Securities Market.
Speaking on the eve on the listing ceremony, AbdulMalik said: “This indeed is a historic moment both for the bank and Oman as a whole. We are indeed proud to be the first Omani organization to represent the Sultanate on the London Stock Exchange. Our decision to list on the LSE reflects our desire to attract a broad institutional investor base. BankMuscat will use this new capital to finance domestic growth and consolidation of our international expansion.”