RIYADH, 20 February 2006 — The Saudi Stock Market is among the world’s leading stock exchanges ranking as the 10th largest market in terms of value traded, the 14th in terms of number of trades and the 16th in terms of market capitalization.
According to statistics provided by World Federation of Exchanges for December 2005, on a scale comprising members of the World Federation of Exchanges, Saudi Stock Market in term of total number of trades came in 10th place with 6,967,500 trades slightly behind the German Deutsche Boerse ranked in 9th place with 7,459,600 trades, and well ahead the Canadian TSX Group ranked in 12th place with 5,940,600 trades and the world leading London Stock Exchange ranked in 13th place with 5,401,600 trades.
The Saudi market was ranked in 16th place in market domestic capitalization of $650.18 billion, just slightly behind Korea Stock Exchange and substantially ahead Bombay, BSE, India, Taiwan, Sao Paulo, Shanghai, Singapore and many other historically world leading stock exchanges. The Saudi Tadawul All-Share Index (TASI) for the year 2005 Recorded (103.66 percent) growth and over SR4.14 trillion traded in the same year.
The TASI by the end of 2005 closed at 16,712.64 points compared with 8,206.23 for the year 2004 with an increase of 103.66 percent recording its highest point in its history at 16,988.08 on Dec.15, 2005.
The capitalization of the market reached SR2.44 trillion posting an increase of 112.28 percent compared to 2004. The total value of shares traded during the year 2005 reached SR4.14 trillion ($1.104 trillion) compared with SR1.774 trillion ($473.1 billion) for 2004 with an increase of 133.32 percent.
The total shares traded reached (12.28) billion compared with (10.3) billion for the last year with an increase of 19.26 percent. The total number of transactions executed during 2005 reached 46.61 million compared to 13.32 million for the year 2004 with an increase of 250 percent.
The average daily value for 2005 was SR13.84 billion compared to SR5.91 billion in 2004, an increase of 134 percent. The average daily volume of shares for 2005 was 41.1 million shares compared to 34.3 million in 2004, an increase of 20 percent. The daily average number of transactions during 2005 was 156, 000, compared to 44.4 thousands transactions in 2004, an increase of 251 percent.
The most active sector during 2005 was the industry sector in terms of volume traded as it reached 4.2 billion shares, a 33.9 percent the total volume traded during 2005. The value and the transactions was led by the industrial sector with SR1.9 trillion, a 44.8 percent of the total value traded during 2005 and 18.5 million transactions, a 39.7 percent of the total executed transaction during 2004.
In the year 2005 a total of 5 new listings added to the growth of the Saudi Stock Market and even a new sector was introduced to the market when National Cooperative Insurance Company (NCCI) was listed in January 2005 under the new insurance sector with paid up capital of SR500 million and 10 million shares. The company offered 7 million shares to public at SR205 per share. It started trading effective Jan. 17, 2005.
Among the five new listings was also Bank Albilad listed in April 2005, under banking sector with a paid up capital of SR3 billion and 60 million shares. Bank Albilad offered 30 million shares to public at SR50 per share. The bank started trading effective April 30, 2005.
The industrial sector in 2005 counts for the largest share of new listings as Saudia Dairy & Foodstuff Co. (SADAFCO) was listed in May 2005, with a paid up capital of SR325 million and 6.5 million shares. The company offered 1.95 million shares to public at SR260 per share. It started trading effective 23 May 2005. Later in August 2005, Almarai started trading with a paid up capital of SR750 million with 15 million shares. The company offered 4.5 million shares at SR 512 per share effective Aug. 17, 2005. By the end of the year Yanbu National Petrochemical’s Co. (YANSAB), a new chemical giant started trading with a paid up capital of SR5.6 billion and 112.5 million shares. The company offered 39.375 million shares at SR50 per share effective Dec. 17, 2005.
Driven by political stability and economic growth total exports reached SR472.734 billion for the first time since 1980, non oil exports have substantially increased exceeding SR58 billion and contributed to economic growth, the Saudi Stock Market is by far the largest by capitalization in the Middle East.
With its value as at the end of 2005 of SR2.44 trillion, the Saudi Stock Exchange market capital equates to two thirds of the total capitalization of all Arab markets and is particularly amazing as the Saudi Stock Market is only 20 years old and comprises just 77 listed companies.