JEDDAH, 6 February 2006 — The upward movement of Saudi stocks seems to be unchecked as the Tadawul All-Share Index (TASI) jumped 193.38 points or 1.01 percent to close yesterday’s trading session at an all-time high of 19,384.73.
The index increased by 15.99 percent so far this year.
Yesterday, the stock market turnover crossed the SR40.9 billion mark.
Many Saudis who have invested in Dubai bourse are now thinking of shifting to Saudi stocks after the home market made record gains last year and in the first month of this year. Fayez Al-Asmary, an investor, said he had actually transferred his investments to Saudi bourse.
Al-Asmary said he took the decision when Dubai stock market failed to deliver good profits last year. “Many Saudis, who have substantial investment in UAE’s bourses are now seriously thinking of shifting their funds to the Saudi market,” he pointed out.
The Banking Index rose 689.76 points to 46,593.35 as shares of major banks increased yesterday. However, shares of only two banks — Banque Saudi Fransi and Saudi Hollandi bank — declined. Bank AlJazira shares soared 7 percent to SR1,926 after it reported 366 percent jump in its 2005 net profit to record SR874.4 million.
Riyad Bank’s shares edged higher by 2.87 percent to SR895. In addition, the bank launched yesterday an investment fund that is set to invest mainly in the shares of Gulf stock markets.
Samba Financial Group and Al-Rajhi Banking & Investment Corp.’s shares dropped by 1.63 percent to SR995 and 1.58 percent to SR3,739, respectively.
The Saudi British Bank’s (SABB) shares edged higher by 1.36 percent to SR1,560. SABB has announced its plans to come out with a new logo, which reflects the bank’s future vision to enhance its role in the Saudi banking sector.
In the industrial sector, shares of major companies such as Saudi Arabia Refineries Co., Food Products Co., Saudi Industrial Development Co. and Saudi Industrial Services Co. made hefty gains yesterday. On the other hand, shares of the petrochemical giant Saudi Basic Industries Corp. (SABIC) rose slightly to SR1,828.
National Agriculture Marketing Co.’s shares jumped 9.87 percent to SR701 in the services sector.
Saudi Electricity Co. (SEC) shares climbed 6 percent to SR159.
In the telecommunication sector, the shares of the main two companies, Saudi Telecom Co. (STC) and Etihad Etisalat, rose to SR1,193 and SR785, respectively after they announced high profits in 2005.
The agriculture sector was in the red in yesterday’s trading. Shares of Eastern Agriculture Co. rose whiles shares of all other companies fell.
Meanwhile, United Industries Company (UIC), a Kuwait-based holding company and one of the founders of Saudia Dairy and Foodstuff Company (SADAFCO), announced that it is going to sell its one percent stake in SADAFCO. After the selling of its one percent stake in SADAFCO, the new share of UIC, which is part of Kuwait Projects Company Holding (KIPCO) group, will be reduced to 33 percent.
SADAFCO shares dropped 1.17 percent yesterday to close at SR592.
In another development, the Saudi Capital Market Authority (CMA) is filing a lawsuit before the Committee for the Resolution of Securities Disputes against the owner of Golden Bourse consultancy firm.
The authority filed the lawsuit after it discovered that the owner of the firm is providing his service to the public without acquiring a proper license from CMA. The owner consulted many investors on securities trading through sending short text messages (SMS) to them in return for an agreed upon fee.
As a first step, the committee issued a decision to cease the Golden Bourse owner’s bank accounts, and other steps are expected to follow. It is worth noting that under the provisions of the Capital Market Law, CMA prohibits any entity or individual from engaging in securities trading without obtaining a proper license from the market authority.