JEDDAH, 13 April 2006 — The Saudi stock market recovered yesterday after plunging over 14 percent in two days. The Tadawul All-Share Index (TASI) rose 564.08 points or 3.73 percent to 15,694.84 after losing 2,426.26 points on Monday and Tuesday.

Over SR18 billion worth of shares changed hands yesterday.

A dealer in stocks described the current market situation as “tense” and said many people had lost confidence in the market as a result of recurrent falls in stock prices. He emphasized the need for taking effective steps to bring confidence into the market. He also called upon leading investors to take encouraging decisions.

A spokesman of the Capital Market Authority (CMA) attributed the decline to psychological factors, adding that CMA’s recent decisions were aimed at strengthening the market. But some dealers said the suspension of two brokers was one of the reasons for the market debacle.

At the same time, analysts emphasized that the market would soon recover as a result of the good performance of most listed companies in the first quarter of this year and growing oil prices.

The Banking and Industrial indexes made hefty gains. The Banking Index edged higher by 2,831.07 to 42,559.19 as shares of all banks increased yesterday. Shares of Al-Rajhi Bank jumped 9.67 percent to SR465, Bank AlJazira shares by 9.98 to SR344.25 and Saudi Hollandi Bank by 9.48 percent to SR127.

In the banking sector, shares of only six companies rose while shares of all other companies declined yesterday. The gainers were Saudi Basic Industries Corp., Saudi Arabia Fertilizers Co., Saudi Arabia Refineries Co., Savola Group, The National Company for Glass Industries and Arabian Pipes Co.

The Industrial Index rose 1,477.14 to 36,337.89 yesterday.

The cement sector also showed mixed performance. Shares of Qassim Cement rose 9.99 percent to SR1,439 and Eastern Cement by 8.11 percent to SR600. Shares of Yanbu Cement dropped 5.91 percent to SR525 and Tabuk Cement by 4.43 percent to SR480.

The services sector was in the red yesterday as shares of only Jarir Marketing Co. increased by 6.70 percent to SR171.25, while shares of all other companies declined.

Shares of Saudi Electricity Co. fell 4.73 percent to SR126.

In the telecom sector, shares of Saudi Telecom Co. edged higher 1.32 percent to SR153.50 and Etihad Etisalat by 8.11 percent to SR120 yesterday.

Shares of the National Company for Cooperative Insurance rose 4.65 percent to SR163.

In the agriculture sector, shares of Saudi Fisheries rose 9.78 percent to SR50.50, while shares of all other companies were in a negative territory.