JEDDAH, 31 October 2005 — The Saudi stock market continued its upward march and reached a fresh record high yesterday on euphoria that Saudi Arabia will join the World Trade Organization this year after getting a nod from major trading partners over the weekend.
The Tadawul All Shares Index (TASI) inching toward 15,500 mark as it closed at 15,473.44, an increase of 167.85 points from Saturday’s closing. Observers said the news of the Kingdom’s accession to the WTO would strengthen the market, attracting more investors. They said Saudi companies were expected to improve their financial position to face competition from foreign firms.
They said many major Saudi companies, especially Saudi Basic Industries Corp., would benefit by the WTO entry, which will enable the Saudi petrochemical giant to enter world markets with greater force.
Following the WTO news, the price of SABIC shares rose by 2.46 percent to SR1,561.75 and Sahara Petrochemical by 2.20 percent to SR488.
Shares of Tourism Enterprise Co. (Shams) rose by 10 percent to close at SR316.25, followed by the National Company for Cooperative Insurance (NCCI) by 5.23 percent at SR719.25 and Saudi Industrial Investment Group by 4.92 percent at SR720.
Bisha Agriculture and Food Products Co. shares dropped by 5.33 percent at SR435 and 3.93 percent at SR219.75, respectively.
The Industrial index was higher by 889.65 points higher at 39,416.28, while Banking index rose by 165.02 points at 36,451.32. Shares of Bank Aljazira, the Saudi Investment Bank and Samba Financial Group fell while shares of other banks rose yesterday.
Shares of Saudi Telecom Co. (STC) and Etihad Etisalat rose slightly to SR915.25 and SR694, respectively.
Meanwhile, RAK Properties, the premier real estate development company of Ras Al-Khaimah, has announced that trading of its company shares commenced yesterday on the Abu Dhabi Securities Market.
Listing of RAK Properties shares at the ADSM required the company to complete all regulations set by the authorities and the concerned governmental bodies. RAK Properties was successful in completing all the formal procedures and in reimbursing oversubscribed amount in record time for all the shares that were traded during the IPO in April 2005.
Mohammed Al-Qadi, managing director, RAK Properties, said “We are pleased to offer our investors the opportunity to trade RAK Properties shares on the ADSM. Our commitment will continue toward maintaining transparency in all our methods for the benefit of our shareholders and investors”.
“The IPO was an overwhelming success in attracting investors from the UAE and neighboring GCC countries. This reflects the great support and the wise vision of Saud ibn Saqr Al-Qasimi, crown prince and deputy ruler of Ras Al-Khaimah. We take this opportunity to thank him for his constant support toward RAK Properties”, added Al-Qadi.
From yesterday, investors can trade the shares of RAK Properties through the broker companies registered with ADSM.
The esteemed investors should undertake the necessary arrangements to obtain an investment license in the Abu Dhabi Securities Market and then deposit the ownership certificates of the shares and the allocation notification at the offices of the Abu Dhabi Securities Market prior to any dealings.