JEDDAH, 10 November 2005 — Saudi stocks continued to record new highs as the World Trade Organization’s general council is all set to give its final approval to Saudi Arabia’s accession to the WTO as its 149th member in Geneva tomorrow.

Investors are optimistic that accession to the WTO will improve investment climate in the Kingdom and further boost liquidity which will propel the stock market into orbit by the end of the year.

The Tadawul All Share Index (TASI), after briefly crossing the 16,000 barrier, closed yesterday at a record high of 15,999.99, 151.05 points up from Tuesday’s closing. The index is up nearly 95 percent so far this year as the index closed at 8,206.23 as of Dec. 31, 2004.

Saudi financial analyst Dr. Abdul Rahman Al-Humaid said the stock index was expected to shoot up following Eid Al-Fitr holidays as investors come back with a refreshed mind after weeks of disappointing deals. He said the psychological factor was playing a crucial role in the post-Eid trading, rather than the performance of companies listed on the market.

Speaking to Asharq Al-Awsat, a sister publication of Arab News, Al-Humaid also said that the situation of some stocks was not secure, adding that their prices were exaggerated and “unreasonable.” He advised investors to be cautious while investing in the stocks of certain companies in order to avoid losses.

He also attributed the growth of Saudi index in recent weeks to the imminent announcement of the Kingdom’s accession to the WTO.

The Banking index was higher by over 936 points at 38,974.22 despite fall in share prices of Bank AlJazira, the Saudi Investment Bank, Arab National Bank and Bank Albilad.

However, shares of Al-Rajhi Banking & Investment Corp. jumped by over 6 percent to close at SR2,358, Banque Saudi Fransi by 2.57 percent at SR1,405.25 and Samba Financial Group by 2.36 percent at SR1,007.25.

The Industrial index gained over 200 points at 40,603.92.

Arabian Pipes Company shares edged higher by 9.97 percent at SR598.25, followed by Tourism Enterprise Co. by 9.95 percent at SR370.25 and National Metal Manufacturing and Casting Co. by 6.57 percent at SR503.

Saudi Basic Industries Corp. (SABIC) shares were slightly higher yesterday at SR1,608.

Shares of Arriyadh Construction and Saudi Livestock fell by 2.65 percent at SR257 and 2.47 percent at SR89, respectively.

The Cement sector index was down at 8,736.29 as shares of Arab Cement, Saudi Cement, Southern Cement, Yanbu Cement and Eastern Cement dropped yesterday.

Saudi Electricity Co. (SEC) shares were higher at SR139.25.

In the telecom sector, shares of Saudi Telecom Co. (STC) were higher at SR913.25, whiles shares of Etihad Etisalat dropped to SR716.

Out of 77 symbols traded, 41 were higher while 33 were down yesterday.

The value of the traded shares continued to rise and touched SR20.6 billion yesterday.