JEDDAH, 24 January 2006 — The Saudi stock market continued to surge to a record high yesterday. The big jump in banking stocks sent the Tadawul All-Share Index (TASI) higher by 380.22 points to 18,384.30 points. The index has already gained 710.07 points or 3.98 percent in two days and 10 percent so far this year. The market turnover was over SR40 billion yesterday and for the two days it crossed SR78 billion.
Shares of Al-Rajhi Banking & Investment Corp. continued the upward march and reached SR3,722.75, up 9.99 percent as it plans to offer shareholders one bonus share for every two shares they hold. At the start of the year the share price was SR2,905 and a year ago it was trading at SR1,984.75.
Shares of Bank AlJazira, Saudi Hollandi Bank and SAIB also made hefty gains yesterday. The Banking Index jumped over 2,000 points to close at 46,558.95.
Riyad Bank Chief Economist and Vice President Khan H. Zahid said, “Last September, we forecast that the Saudi stock index will reach the 18,000 mark by the end of 2005. I was off by less than a month. We expect the stock market to continue to grow this year albeit at a slower pace than last year, as long as oil prices remain firm.”
Shares of the bellwether Saudi Basic Industries Corp. (SABIC) rose to SR1,662.75. Savola Group shares edged higher by 5.93 percent to SR1,753.75.