JEDDAH, 7 February 2006 — Saudi stocks edged slightly higher yesterday. The Tadawul All-Share Index (TASI) rose 12.23 points to 19,396.96 with only Banking and Cement Indexes showing an increase.
The stock market turnover was over SR38.40 billion yesterday.
The Banking Index gained 378.71 points at 46,972.06.
Shares of Banque Saudi Fransi (BSF), which got the Saudi Capital Market Authority’s (CMA’s) approval to increase its capital by issuing one bonus share for every two outstanding shares, rose slightly yesterday to SR1,379 as it announced that it is not going to issue new certificates for the bonus shares. The bonus shares will be deposited directly into shareholders’ stock portfolios. Hence, the bank requires its shareholders to deposit their existing stock certificates in their portfolios by March 5, 2006. For those who do not posses investment portfolios, the bank urged them to open new portfolios prior to March 5.
BSF also announced that all the bank’s future profits are to be distributed among its shareholders only through their deposit in bank accounts that are linked to investment portfolios. BSF got CMA approval this month to increase its capital from SR2.25 billion to SR3.375 billion. The number of the bank’s shares will increase after issuing the bonus shares from 45 million to 67.5 million shares.
Al-Rajhi Banking and Investment Corp. shares jumped 2.11 percent to SR3,818 as it received CMA’s approval yesterday to increase its capital from SR4.5 billion to SR6.75 billion. To increase its capital, Al-Rajhi Bank will issue one bonus share for every two outstanding shares. Al-Rajhi Bank will pay the capital difference of SR2.25 billion from its profits. As a result, the bank’s shares will increase from 90 million to 135 million. The bonus is limited to registered shareholders who owned Al-Rajhi Bank’s shares at the end of the trading session on the day when the bank’s general assembly held its meeting.
However, shares of The Saudi British Bank, Saudi Hollandi Bank, Bank AlJazira and Bank Albilad fell yesterday.
The Industrial Index dropped 90.37 points to 47,150.36 as shares of major companies such as Saudi Basic Industries Corp. (SABIC), Saudi Arabia Fertilizers Co., Savola Group, Saudia Dairy & Foodstuff Co. (SADAFCO), Saudi Industrial Investment Group, Saudi Ceramic Co. and Almarai Co. declined yesterday.
The trading in the shares of the Saudi Industrial Services Co. (SISCO) stopped yesterday in order to inform the investors about the company’s latest announcement. SISCO announced that it got the approval of the Ministry of Finance and the Saudi Ports Authority to construct a fully equipped pier in the free-zone area in Jeddah Islamic Port. SISCO also announced that it will sign the SR1.6 billion contract with the Saudi Ports Authority on Feb. 16. SISCO’s board of directors decided last week that it is going to double its SR400 million capital after it gets the approval of Saudi authority. SISCO shares were trading 5.67 percent higher to SR634 before trading was halted.
In the agriculture sector, shares of National Agriculture Development Co. (NADEC) and Eastern Agriculture surged whiles shares of other companies declined.
The shares of Bishah Agriculture halted in yesterday’s trading after the company announced a capital increase of SR150 million. The shares trading will resume this morning after a halt yesterday. Bisha Agriculture is increasing its capital from SR50 million to SR200 million through a closed initial public offering (IPO) limited to the company’s current shareholders.