JEDDAH, 29 November 2005 — Despite fall in the Banking and Cement indices, Saudi stocks surged to a record high yesterday. The Tadawul All-Share Index inched closer to the 16,500-mark at 16,430.56, up 50.33 points from Sunday’s closing.

The index is already up by over 100 percent so far this year after closing at 8,206.23 as of Dec. 31, 2004. The index gained 8,224.33 points this year alone.

The Banking index closed 80.99 points down at 42,204.98 and the Cement index was lower by 99.72 points at 8,968.40.

Banking shares showed mixed performance as shares of major banks such as Al-Rajhi Banking & Investment Corp., The Saudi Investment Bank, The Saudi British Bank and Bank Albilad fell, while shares of Saudi Hollandi Bank, Banque Saudi Fransi, Arab National Bank and Samba Financial group edged higher yesterday.

In the cement sector, only Eastern Cement shares rose 6.50 percent to close at SR748.50. Shares of all other companies declined.

Rise in shares of big companies such as Saudi Basic Industries Corp., Saudi Pharmaceutical Industries & Medical Appliances Corp., National Industrialization Co., Almarai Co. and Zamil Industrial sent the Industrial index higher by 98.71 points at 39,986.78 yesterday.

The Telecom index was up over 100 points. Shares of Saudi Telecom Co. and Etihad Etisalat closed at SR915 and SR729.25, respectively. Saudi Electricity Co. shares were higher at SR141.50.

Over SR24 billion worth of shares changed hands yesterday.

Meanwhile, Riyad Bank has set up a new fund named “Balanced Income Fund” as part of its efforts to provide Shariah-compliant investment channels to its clients. According to the bank, the fund will provide regular revenue to the investor, ensuring a balance between risk and revenue.

The fund will invest 50 percent of its assets in Saudi stocks and the remaining 50 percent in low-risk Shariah-compliant projects. The rate may vary in accordance with new market studies and expectations but will not exceed 75 percent. Riyad Bank currently offers 27 investment funds and portfolios in five major categories: Saudi and international stocks; bonds; trading by cash and goods; balanced funds and Riyad investment portfolio.

The bank has won prizes for the best management of investment funds.