JEDDAH/AMMAN, 3 June 2006 — The Saudi stock market’s Tadawul All-Share Index (TASI) climbed last week 1,225.45 points or 11.80 percent to close on Thursday at 11,610.93 points, up from 10,385.48 points in the previous week.

The stock market turnover also jumped to SR102.89 billion compared to SR93.71 billion in the previous week.

Saudi Basic Industries Corp. (SABIC) shares were most active by value last week at SR4.85 billion as its shares closed at SR161.50, up over 23 percent from previous week.

TASI is currently 30.5 percent lower than the year’s start.

The Saudi Capital Market Authority (CMA) has decided to trim trading commission by 20 percent and to cancel trading on Thursdays as of June 15.

The Riyadh-based Bakheet Financial Advisors (BFA) said latest decisions adopted by the CMA will “enhance investors’ confidence” in the stock exchange.

The BFA also expected Saudi shares to draw momentum from the country’s macroeconomic advantages, particularly the surging oil prices.

Saudi Electricity Co. (SEC) shares closed 8.96 percent higher last week at SR18.25 and were active by volume at 160,379,280. The value of SEC traded shares reached SR2.79 billion last week.

In the banking sector, shares of Al-Rajhi Bank soared 20.88 percent in a week to close at SR282.25 as value of traded shares crossed SR2.81 billion.

The performance of Arab bourses improved dramatically last week, prompting financial analysts to believe that regional stocks were “bottoming out” after a series of declines that razed most of the gains scored over the past couple of years.

The rebound was led by the Saudi and United Arab Emirates stock exchanges, which gained about 12 percent each last week.

“I believe Arab stocks are bottoming out after a series of plunges pushed down prices to levels that provided buy opportunities,” said Raed Hajahjeh, deputy head of brokerage at the Atlas Investment Group, the Arab Bank’s investment arm. Hajahjeh told Arab News that the second quarter results of listed firms were expected to give a “boost” to the upward trend in the coming weeks.

Hamad Tuwaijri, professor of economics at the Riyadh-based King Saud Univeristy, expressed the belief that the Saudi market was in a “consolidation phase” prior to fresh gains in the coming weeks.

“I believe the market now needs more internal liquidity to sustain its recovery after the latest collapse has gone away with a major part of liquidity,” he said.

The all-share price index of the Amman Stock Exchange shed 2.93 percent last week, closing on Thursday at 6,777 points, down from previous week’s close at 6,982 points, according to the ASE weekly report.

Hajahjeh attributed the decline to a “persistent profit-taking move” that started in the previous week.

Kuwait’s KSE all-share price index climbed 6.3 percent last week, closing at 10.239 points up from 9,631 percent in the previous week.

The unified all-share price index of the UAE stock exchanges of Dubai and Abu Dhabi gained 12 percent last week to close at 5,035 points up from 4,489 points.

Egypt’s Hermes all-share price index increased 0.8 percent last week to close at 48,364 points compared with previous week’s close at 44,893 points.