JEDDAH, 17 October 2005 — The Saudi stock market closed yesterday with a slight fall after major fluctuations during the trading. The Tadawul All Share Index (TASI) fell 3.1 points at 14,917.34 after touching a high of 14,956.89 and a low of 14,773.92 points in trading.

The Banking index dropped 121.07 points at 32,693.49 as shares of banks declined yesterday.

Shares of Bank AlJazira, the Saudi Investment Bank and Saudi Hollandi Bank fell by 1.55 percent, 1.75 percent and 1.49 percent, respectively.

Despite an increase of 19.19 points in the Industrial index at 39,598.21, shares of the bellwether Saudi Basic Industries Corp. (SABIC) dropped slightly at SR1,620.25 yesterday.

The Cement, Services and Insurance indices were also lower yesterday.

The Telecom index was higher by 42.29 points at 5,567.83 as shares of Saudi Telecom Co. and Etihad Etisalat rose by 0.73 percent at SR937 and by 0.95 percent at SR612, respectively.

Almarai shares gained 9.99 percent at SR936 and Saudi Fisheries rose by 9.94 percent at SR359.50.

However, shares of Saudi Livestock and Jouff Agriculture plunged by 9.86 percent at SR96 and by 5.71 percent at SR231.25, respectively.

Meanwhile, the Kuwait-based Global Investment House (Global) yesterday upgraded its predictions for Kuwait Stock Market (KSE) to 13,000 points in medium term, keeping in mind substantial growth in the profits, and expectation of market P/E 12 times the current range.

Omar M. El-Quqa, executive vice president at Global, said, “In March we had predicted that the KSE will reach beyond the psychological market of 8,000-points and would reach the 10,000-point mark, a far flung conclusion when it was hovering at around 7,000-levels, which some were skeptic about.”

“We now upgrade our call for KSE to reach 13,000-points in medium term keeping in mind substantial growth in the profits, and expectation of the market P/E to be in the current range of around 12 times,” he added.

El-Quqa said that Kuwait stock market has been on a positive upswing lately moving on the back of the strong fundamentals of the economy. Most importantly, oil prices have been ranging at higher levels, placing the economy on a sound footing. The government’s attitude has become more pro-privatization, which promises well for the longer-term growth of the economy.

Other factors boosting the market include; increase in liquidity, improved per capita income and the propensity to invest in capital markets.