JEDDAH, 9 September 2006 — The Saudi stock market made hefty gains last week. The Tadawul All-Share Index (TASI) made weekly increase of 3.09 percent, or 343.04 points, to close on Wednesday at 11,454.94.
The index is down 31.46 percent or 5,257.70 points so far this year.
The stock market turnover was SR142.50 billion last week and SR28.47 billion on Wednesday. Saudi Livestock was most active by value last week at SR6.44 billion, followed by Qassim Agriculture at SR4.50 billion, Jazan Development at SR2.48 billion, Food Products Co. at SR4.27 billion and Nama Chemicals at SR4.22 billion.
Stocks of Saudi Fisheries surged 41.71 percent to SR186 last week while Bishah Agriculture stocks plunged 16.89 percent to SR230. Shares of Saudi Public Transport Co. (SAPTCO) and Tihama Advertising & Public Relations Co. also drooped last week.
Out of 10 listed banks, shares of seven banks declined last week. Shares of Al-Rajhi Bank, Bank Albilad and Riyad Bank rose. Samba Financial Group shares fell 3.53 percent while Al-Rajhi Bank shares jumped 4.13 percent.
However, according to a report published in Paris on Thursday by Standard & Poor’s Ratings Services titled “Higher Business Volumes Are Key Driver Of Saudi Banks’ Soaring Profitability,” Saudi Arabian banks have registered record financial performance over the past three years, amid strong economic growth.
Standard & Poor’s report said that high volumes of credits and brokerage transactions have been the key drivers boosting Saudi banks’ profits over the past two years.
In the industrial sector, shares of petrochemical giant Saudi Basic Industries Corp. (SABIC) edged higher by 2.25 percent to close at SR136.50.
Shares of Saudi Telecom Co. (STC) and Etihad Etisalat closed at SR103 and SR85, respectively.
Meanwhile, analysts expect a huge response for the initial public offering (IPO) of the Saudi International Petrochemical Company (Sipchem), one of the largest private petrochemical companies in the Middle East, which set to begin today. The IPO will remain open for 10 days and closes on Sept. 18. Sipchem officials expect to raise SR2.47 billion by making available 30 percent of the company’s capital to the public by issuing 45 million shares at SR55 per share.
The IPO was organized by the National Commercial Bank, which is also acting as the financial adviser, lead manager and lead underwriter. Sipchem’s IPO is said to be the second largest offering in the Saudi market in the past three years.