JEDDAH, 27 November 2005 — Saudi stocks continued to surge and hit a new record high yesterday. The Tadawul All-Share Index (TASI) rose 36.98 points to close at an all-time high of 16,374.29.
Rise in shares of major banks such as Al-Rajhi Banking & Investment Corp., Bank AlJazira and Saudi Hollandi Bank sent the Banking index shooting by over 870 points at 42,516.01. Al-Rajhi Bank shares jumped 6.40 percent to SR2,830 and Bank AlJazira by 3.48 percent to SR1,449.
However, shares of Riyad Bank, Banque Saudi Fransi, The Saudi British Bank and Samba Financial Group declined.
The Cement index also edged higher by 205.52 points to close at 8,865.38 as shares of Yamamah Cement leaped by 7.06 percent to SR1,532 and Arab Cement by 4.17 percent to SR843.25.
Fall in shares of major industrial companies such as Saudi Basic Industries Corp., National Industrialization Co., Saudi Cable Co., the National Company for Glass Industries, Saudi Chemical Co., National Metal Manufacturing and Casting Co., Saudia Dairy and Foodstuff Co. and Almarai Co., pulled the Industrial index down by 345.57 points at 39,921.78 yesterday.
The Agriculture index was down as shares of all companies fell except those of Eastern Agriculture.
The Telecom and Electricity indices were also in the red as shares of Saudi Telecom Co., Etihad Etisalat and the National Company for Cooperative Insurance edged lower.
Out of 77 stocks traded, 25 were up and 52 down. The value of the shares crossed SR26 billion yesterday.
Meanwhile in Bahrain, Venture Capital Bank (VCBank) announced the launch of a $250 million venture capital fund, the first of its kind, focusing on investment in small and medium-sized enterprises (SMEs) in the GCC and MENA regions.
The fund, which will be jointly established and co-managed by Global Emerging Markets (GEM) Group, a leading US-based private investment firm, will target fundamentally sound and undervalued finance-seeking companies across a diverse range of industry sectors.
The fund will be launched and marketed during the first quarter of 2006, and VCBank and GEM Group will together seek to raise capital from high-net-worth individuals and institutions from across the GCC states and the world at large.
Abdul-Latif Janahi, chief executive officer of VCBank, said: “We are delighted to announce the upcoming launch of this fund. It will enable us to identify and invest in promising small and medium-sized enterprises throughout the GCC and MENA regions. With a well-seasoned management team in place and in conjunction with GEM, a worldwide leader with considerable expertise in emerging markets, we stand poised to take a leadership role in the growth of the regional venture capital industry.”
Chris Brown, executive director of GEM Group said: “Together with VCBank, we see a tremendous opportunity in the GCC and MENA regions for venture capital and are confident that this pioneering fund will enable us to provide investors with a unique investment product and strong performance through the provision of funding and support for well managed, entrepreneurial companies that lack the necessary financial resources for further expansion and growth.”