JEDDAH, 19 February 2006 — Saudi stocks touched a record high yesterday despite the relentless efforts of the Saudi Capital Market Authority (CMA) to curb market speculation.
The over 1,000 points increase in the Industrial Index and the 921 points increase in the Banking Index sent the Tadawul All-Share Index (TASI) to an all-time high of 19,916.59 points yesterday. The index gained 485.27 points or 2.5 percent from Thursday’s closing and 3,203.95 points or 19.17 percent so far this year. The market turnover crossed SR41 billion yesterday. Out of the 77 stocks traded, only five were down. All the indexes climbed yesterday. The Banking Index rose 921.13 points to 47,750.98 as shares of all banks rose except that of Saudi Hollandi Bank and SABB.
In the industrial sector shares of Arabian Pipes Co. fell while all other shares edged higher yesterday. The index closed 1,025.73 points higher at 48,501,74. In the services sector shares of all listed companies rose yesterday while that of the National Shipping Company of Saudi Arabia and Jarir Marketing Co. declined.
Dr. Nahed M. Taher, CEO of Gulf One Investment Bank, commenting on the relentless surge in Saudi stock prices, said, “I am afraid there will be a market fall similar to that of Black Monday or Souk Al-Manakh.”
She was apparently referring to Monday, Oct. 19, 1987, when the Dow Jones Industrial Average (DJIA) fell 22.6 percent and the 1982 collapse of Kuwait’s “unofficial” stock market, the Souk Al-Manakh. “I am not worried about big investors, what really worries me are the small investors whose fingers should not get burned,” added Nahed.