JEDDAH, 12 December 2005 — The Saudi stock market continued its downward march yesterday. The fall in the banking and industrial stocks dragged the Tadawul All-Share Index (TASI) down 117.17 points to close at 16,605.27. The value of the shares traded also declined to SR24.85 billion.
The banking index was lower by 228.47 points, closing at 41,072.64, and the Industrial index was down 562.54 points to 42,613.21.
Shares of major banks declined. Only Saudi Hollandi Bank and Arab National Bank shares were in the black. Bank Albilad shares suffered a massive 2.36 percent drop to SR911 yesterday.
Shares of Saudi Basic Industries Corporation (SABIC), the largest public company in the Middle East, ranked by market capitalization of more than $150 billion, and one of the world’s 10 largest petrochemicals manufacturers, fell by 1.10 percent yesterday to close at SR1,712.
Saudi Arabian Fertilizer Company (SAFCO) shares suffered 3.12 percent fall to SR1,274 despite the board of directors on Saturday recommending dividends amounting to SR840 million ($224 million) to shareholders at SR21 ($5.6) per share.
“The board reviewed corporate performance and various other business activities. It also reviewed work in progress, particularly the construction of SAFCO’s fourth plant, which is expected to go online during the second quarter of next year. This plant will have an annual capacity of 1.1 million metric tons of ammonia and 1.1 million metric tons of urea,” said Mohamed Al-Mady, SABIC vice chairman and CEO, and SAFCO chairman and managing director. “I congratulate the board, executive management and all employees for contributing toward the unprecedented profits and the increased levels of Saudization, now standing at 93 percent. I value your sustained contribution in anticipation of increased efforts toward further accomplishments.”
Saudi Arabia Refineries Co. shares climbed 9.99 percent to SR2,363.75 yesterday.
National Industrialization Co. shares dropped 6.25 percent to SR918.75 and Saudi Industrial Investment Group shares fell 3.05 percent to SR858 yesterday.
The cement index gained as shares of all companies rose yesterday. Yamamah Cement and Eastern Cement shares jumped 3.41 percent and 2.29 percent, respectively.
In the services sector, the performance was mixed as shares of major companies such as Saudi Real Estate Co., Saudi Public Transport Co., Makkah Construction & Development Co. declined, while shares of the National Shipping Company of Saudi Arabia, Al-Mawashi Al-Mukairish United Co. and Jarir Marketing Co. rose yesterday.
Saudi Electricity Co. shares edged lower by 1.42 percent to SR138.75.
In the telecom sector, shares of Saudi Telecom Co. and Etihad Etisalat dropped to SR895 and SR690.25, respectively.
The agriculture index was higher by 277.60 points yesterday to 7,207.90 as shares of all companies rose except National Agriculture Development Co. (NADEC). Its shares fell to SR574.25 yesterday.