JEDDAH, 17 January 2006 — The Saudi stock market retreated yesterday after a record surge before Eid Al-Adha holidays.
It was a first day of trading as banks opened for business yesterday after a seven-day holiday break. The Tadawul All-Share Index (TASI) declined 35.14 points to 17,640.77. The index closed to an all-time high of 17,675.91 on Jan. 8.
A number of Saudi investors and stock market experts have said that the index would continue its upward march after the holiday. They said factors, such as growing oil prices, announcement of company results, new initial public offerings and plans of some companies to transform into joint stock firms would strengthen the market.
Yasin Al-Jafry, professor of economics at King Abdul Aziz University in Jeddah, said he expected the Saudi stock market index to rise further as a result of new IPOs planned by some companies. Anas Al-Marhoumi, director of Saudi stocks at the National Commercial Bank, said the index would grow as a result of the repatriation of Saudi funds invested abroad.
In the banking sector, shares of newly established Bank Albilad rose 4.14 percent to SR893 yesterday. However, other banks were trading in negative territory. Riyad Bank and Arab National Bank shares dropped 1.10 percent to SR880 and 1.27 percent to SR1,011, respectively. The Banking Index was down 150.83 points to 42,509.81.
Fall in shares of major companies such as Saudi Basic Industries Corp. (SABIC), Saudi Arabia Fertilizers Co., Saudia Dairy & Foodstuff Co., Almarai Co. and Sahara Petrochemical sent the Industrial Index down 285.23 points to 42,790.46 yesterday.
Shares of Filling & Packing Materials Manufacturing Co. and Arabian Pipes Co. jumped 9.98 percent each to close at SR782.75 and SR826.75, respectively. Al-Ahsa for Development Co. shares rose 5.80 percent to SR456 followed by National Metal Manufacturing and Casting Co. by 4.20 percent to SR565.
The cement sector was also in the red. Shares of only three companies - Saudi Cement, Yanbu Cement and Tabuk Cement - edged higher while shares of other companies declined yesterday.
In the services sector, shares of Ahmed H. Fitaihi Company rose by 4.45 percent to SR305 and National Agriculture Marketing Co. by 4.44 percent to SR447.
Tihama Advertising & Public Relations Co. shares dropped 2.43 percent to SR442 yesterday.
Saudi Electricity Co. share fell slightly to close at SR149.75.
The Telecom index was higher by 81.74 points to 6,413.69 as shares of Saudi Telecom Co. rose by 1.59 percent to SR1,072.
Shares of National Company for Cooperative Insurance (NCCI) dropped 2.30 percent to SR765 despite the company said its net profit reached SR313 million in 2005, an increase of 66 percent from the previous year.
The Agriculture Index closed yesterday at 8,951.84, up 299.17 points. Eastern Agriculture and Jouff Agriculture shares jumped 9.97 points each to close at SR609.25 and SR432.75, respectively. Hail Agriculture shares edged higher by 7.81 percent to SR452 and Tabuk Agriculture by 4.89 percent to SR439.50.
The value of traded shares reached SR22.71 billion yesterday as out of 77 shares traded 40 were higher while 35 were down.