JEDDAH, 17 April 2006 — The Saudi stock market recovered slightly yesterday after a record 8.4 percent plunge on Saturday. The Tadawul All-Share Index (TASI) edged higher by 2.84 percent or 408.27 points to close at 14,784.28.

The major Industrial and Banking indexes rose 1,408.08 points to 34,265.11 and 1,230.16 points to 41,252.39, respectively. The market turnover also increased yesterday to aSR11.60 billion compared to SR8 billion on Saturday.

Despite Saudi Hollandi Bank’s record profit, its shares declined 4.37 percent to SR109.50, while shares of all other banks rose yesterday. SHB reported a net profit of SR313.8 million for the quarter ended March 31, 2006, a 55 percent increase over the same period last year.

In the industrial sector, shares of major companies such as Saudi Basic Industries Corp. (SABIC) jumped 7.84 percent to SR289, the National Company for Glass Industries by 9.89 percent to SR122.25, Arabian Pipes Co. by 9.95 percent to SR105 and Zamil Industrial Investment Co. by 9.89 percent to SR102.75.

The telecom and insurance indexes were higher as shares of Saudi Telecom Co. (STC), Etihad Etisalat and the National Company for Cooperative Insurance (NCCI) increased yesterday.

In the agriculture sector, the lone gainer was Tabuk Agriculture.

Meanwhile, Saudi Arabia and Kuwait stock indexes suffered double-digit losses in March.

In January this year it was UAE, in February Qatar nose-dived and in March, it was the turn of Saudi Arabia to be gripped by the bearish sentiments, according to a report by the Kuwait-based Global Investment House (Global).

The Bahrain stock market also lost around 6.6 percent followed by UAE which recorded a monthly decline of 2 percent in March. In terms of YTD gains, only Oman (+9.8 percent) and Saudi Arabia (+2.1 percent) managed to stay in the black.

However, the market was expecting some kind of correction as the valuations in the market looked stretched, the Global report said.

In the last two years, the liquidity in the GCC economies has improved substantially and the capital markets witnessed increased growth, both in terms of the number of listed companies as well as market capitalization. The companies are witnessing good earnings momentum, which is likely to be sustained on the back of buoyant economy and tremendous business opportunities in the region. The Global report added, “The year 2005 in particular was good for the GCC region as the countries witnessed strong fiscal positions due to high oil prices. The capital markets observed improved primary market activity, which increased the number of companies listed on the GCC stock exchanges from 492 at the end of 2004 to 579 in 2005.”

The primary markets evoked special investors’ attention as the private businesses and the governments of the region tapped the primary market to unlock the value of their investments.

Out of all GCC markets, the UAE bourses witnessed the most oversubscriptions, led by Aabar Petroleum which was oversubscribed by a massive 800 times. Aldar Properties was also oversubscribed by 448 times and generated $103 billion in terms of funds committed. Among others, Arab International Logistics was oversubscribed 80 times and Finance House witnessed a 75 times oversubscription. According to the reports, the public share sale of Emirates Integrated Telecommunications Company (EITC), the Emirates’ second telecoms operator, was oversubscribed by 167 times. The GCC markets saw 8.6 billion shares being traded in March as compared to 8.5 billion shares being traded in February.

The GCC market depth was heavily tilted toward the decliners as 334 stocks reported monthly declines as compared to 117 advancers. The strong sell-off was seen in the Saudi market as only 2 stocks out of 79 listed stocks on the exchange reported monthly gain in March, the Global report said.