JEDDAH, 15 October 2005 — The Saudi stock market rebounded last week after over 3 percent fall in previous week. The Tadawul All Shares Index (TASI) climbed 3.5 percent, closing at 15,051.09 points on Thursday from 14,543.02 points previous week, propelled mainly by gains of the Saudi Basic Industries Corp. (SABIC), which scored a 6.1 percent rise during the week. The index hit an all-time high on Wednesday at 15,073.09 points.

TASI is currently 83.4 percent higher than the year’s start, according to the weekly report of the Riyadh-based Bakheet Financial Advisors (BFA).

The BFA predicted that the performance of the two largest firms in the market — SABIC and the Saudi Telecom Co. (STC) — “will have a major effect on the market’s future trend”. SABIC’s shares closed on Thursday at SR1,651 while STC shares were higher by 4.45 percent at SR945.

Zamil Industrial shares soared 30.49 percent in week to close at SR719, followed by Bishah Agriculture by 27.43 percent at SR379.75, Saudi Hotels and Resort Areas Co. by over 13 percent at SR481.50, Al Ahsa for Development Co. by 12.80 percent at SR381.25 and Saudi Arabia Fertilizers Co. by over 12 percent at SR1,103.75. However, shares of Ahmed H. Fitaihi Co. fell by 23.65 percent in a week at SR255 and Saudi Land Transport Co. by over 14 percent at SR278.50. Shares of Riyad Bank, the Saudi Investment Bank, the Saudi British Bank and Arab National Bank dropped while shares of Bank AlJazira, Banque Saudi Fransi, Samba Financial Group, Al-Rajhi Banking & Investment Corp. and Bank Albilad were higher last week.

Saudi Electricity Co. shares were up 3.27 percent lat week to close at SR142.

Fluctuations characterized other Gulf stock markets last week, as investors monitored third quarter results.

Kuwait’s KSE all-share price index gained 0.8 percent, closing at 10,599 points, up from 10,515 previous week.

In the United Arab Emirates, the all-share price index of Abu Dhabi and Dubai bourses gained 1.8 percent and 0.6 percent, closing at 5,444 points and 1,141 points, respectively.

Egypt’ Hermes all-share price index hit a new record high of 49,254 points on Thursday.

Arab stock markets are expected to score fresh gains in the coming couple of weeks, buoyed by the performance of blue chip firms in the third quarter of the year, analysts said yesterday.

They pointed out that the latest interest rate hikes by regional central banks would not have a significant effect on stock markets.

“I believe markets are heading to strong gains toward the end of October, when all third quarter results are due to be published,” Jawad Kharouf, manager of Al-Amal Financial Investment Co. of Amman told Arab News.

“Dealers are encouraged by the performance of listed firms which revealed their third quarter balance sheets so far,” he said.

Kharouf said that the interest rate hikes announced recently in Jordan and other countries in the region “will not have a significant effect on stocks, because the return from share trading is still much higher than interest paid on bank deposits”.

The all-share price index of the Amman Stock Exchange gained 0.68 percent in the week ending on Thursday to close at 7,712 points up from last week’s close at 7,660 points, according to the ASE weekly report.

However, the market’s weekly turnover shrank by 32 percent this week, to 290 million dinars ($410 million) from 425 million dinars ($545 million) as many investors kept on the sidelines due to Ramadan fasting, while others preferred to refrain from taking new positions until Q3 results were out, a portfolio manager said.

— With input from Abdul Jalil Mustafa