JEDDAH/AMMAN, 24 February 2007 — The Saudi stock market kept its unabated upward trend for the last three weeks after a series of historical plunges.

The Tadawul All-Share Index (TASI) gained 4.6 percent last week, closing at 8,245.05 points up from 7,881.55 points in the previous week. TASI is currently 3.9 percent higher than the year’s start.

It is the first time the Saudi benchmark price surmounts the level recorded at the beginning of the year.

The Saudi market’s turnover grew by 49 percent last week to SR73.1 billion compared with SR49.1 billion in the previous week.

The Riyadh-based Bakheet Financial Advisors (BFA) said that the market was propelled mainly by the banking sector, which gained 5 percent and the Saudi Basic Industries Corp. (SABIC) that went up 3.67 percent. SABIC shares closed last week at SR120.

“Meanwhile, speculative trading continued to hit many small stocks while some investors appeared willing to have fast gains to compensate their losses resulting from previous market retreats,” the report said. The BFA expected speculative stocks to witness downward corrections that could “impact the market trend in general”.

Analyst Rashid Alfowzan said the continuous rise of the stock market index for three weeks would serve as a big boost to the market. He said the banking and industrial sectors had played a big role in pushing up the index.

In the banking sector, shares of Bank Albilad jumped 12.50 percent last week to SR38.25, Arab National Bank by 8.08 percent to SR107, Al-Rajhi Bank by 6.96 percent to SR203.50 and Banque Saudi Fransi by 6.21 percent to SR124.

However, shares of Saudi Hollandi Bank declined 1.36 percent last week to SR72.50.

Al-Babtain Power and Telecommunication Co. shares dropped 6.54 percent to SR71.50 last week and Etihad Etisalat’s shares fell 2.38 percent to SR51.25.

Tourism Enterprise Co. was the top gainer last week as its shares surged 44.06 percent to SR51.50. Tabuk Agriculture shares edged higher by 35.76 percent to SR56.

Sahara Petrochemical shares rose 22.88 percent to SR36.25 last week.

Arab stock markets are expected to remain steady for the coming few weeks, buoyed mainly by dividend distributions of leading firms, financial analysts said yesterday.

They pointed out that blue chip businesses with prospects of good dividend distribution were attracting fresh liquidity, making benefit from the low price levels of shares.

“I believe investors are swayed by dividend distributions at this juncture, particularly of leading firms,” Wajdi Makhamreh, deputy CEO of Osoul Brokerage Co., told Arab News. “We expect the rebound at regional markets to continue in March, with selective trading that focuses on blue chips which recorded distinguished performance in 2006,” he said.

Makhamreh said he did not rule out downward profit-taking corrections at certain times.

Jordanian shares remained steady last week, with the heavyweight Arab Bank clinching the lion’s share of the trade volume on the backdrop of plans to sell 10 percent of its shares to a strategic partner — the Emaar conglomerate of the United Arab Emirates.

The All-Share price index of the Amman Stock Exchange gained 0.83 percent last week, closing at 6,387.29 points compared with previous week’s close at 6.334.62 points, according to the ASE weekly report. “I believe the ASE rebound will continue for the coming few weeks as fresh liquidity, particularly from the Gulf region, has reportedly entered the Jordanian bourse,” Makhamreh said.

Kuwait’s KSE all-share price index rose 0.86 percent last week, closing at 9,726.40 points from 9,643 points previous week.

The all-share price index of the UAE stock exchanges of Dubai and Abu Dhabi also gained last week.

The GulfBase GCC index closed 2.97 percent higher last week at 5,077.48.