JEDDAH, 18 February 2007 — After rising 7.55 percent last week, the Saudi stock market continued its upward march yesterday. The Tadawul All-Share Index (TASI) broke through the 8,000 points barrier for the first time since mid-December to close 139.64 points higher at 8,021.19. The index is up 1.11 percent so far this year after closing at 7,933.29 points on Dec. 31, 2006.
Banking stocks led the rally. The Banking Index closed yesterday at 23,308.64, up 638.06 points or 2.81 percent. Shares of only Saudi Hollandi Bank declined, while shares of all other banks surged. Bank Albilad shares soared 9.56 percent to SR37.25 and Al-Rajhi Bank by 4.60 percent to SR199.
Khaled Al-Manie, a technical analyst, said the general market indicators showed that the days of corrections are over as the index now follows an upward trend. “This again shows the confidence of dealers in the market,” he said.
Zayed Al-Harbi, another analyst, said he was optimistic about the Saudi stock market. “The latest transactions have showed positive indicators that were absent in the past. These include large-scale liquidity that pushed the index upward,” he said, adding that many of the dealers who invested through banks have proved their investment prudence.
“It seems investor confidence is slowly returning after a series of measures taken by the Capital Market Authority to halt stock market slide,” said one small time investor.
The index dropped 52.53 percent last year.
Out of 86 stocks traded, 77 were in positive territory while six stocks declined yesterday. The stocks which fell were Al-Babtain Power and Telecommunication Co., Saudi International Petrochemical Co., Saudi Hollandi Bank, Saudi Telecom Co., Etihad Etisalat and the National Company for Cooperative Insurance. Shares of Fawaz Abdulaziz Alhokair Co. jumped 9.88 percent to SR89 and Saudi Fisheries by 9.87 percent to SR105.75.
Over SR13.87 billion worth of shares changed hands yesterday.