JEDDAH, 3 June 2007 — After falling 2.81 percent last week, the Saudi stock market continued to drop sharply yesterday. The Tadawul All-Share Index (TASI) fell over 2 percent or 150.48 points to 7,342.18, its lowest close in almost a month.
Out of 89 stocks traded, shares of 84 companies declined while only three companies — The Saudi Investment Bank, Savola Group and Makkah Construction & Development Co. — were in positive territory yesterday.
The value of traded shares was over SR5.70 billion yesterday compared to SR42.35 billion last week.
All indices declined yesterday with Industrial index falling by 2.54 percent, Services 3.76 percent and Agriculture 4.11 percent.
Shares of Saudi Vitrified Clay Pipes Co. (SVCP), which made debut on Tadawul last Saturday, dropped 2.32 percent yesterday to close at SR158. Its shares jumped to SR200 on debut. SVCP offered 4.5 million shares (30 percent) of its issued shares at SR45 per share. Saudi Basic Industries Corp. (SABIC) shares edged lower by 2.42 percent yesterday to SR120.75.
Meanwhile, according to the monthly report of Saudi stock market, which was released by Tadawul on its website yesterday, at the end of May 2007, the TASI closed at 7,492.66 points, up 0.93 percent over the previous month, and declined by 6.35 percent on an YTD basis. Highest close level for the index during the month was 7,784.63 on May 21.
The market capitalization in May increased by 1.43 percent from April to SR1.17 trillion ($313.02 billion).
The report said, total value of shares traded for the month of May reached SR242.5 billion ($64.67 billion), decreasing by 7.97 percent over the previous month.
The total number of shares traded in May fell 15.55 percent to 5 billion compared to 5.92 billion shares for April.
The total number of transactions executed during May 2007 reached 6.41 million compared to 6.77 million trades for the month of April, decreasing by 5.29 percent.
Malath Cooperative Insurance and Reinsurance Co. was listed on May 5 (with a paid-up capital of SR300 million divided into 30 million shares). The company offered 14,244,465 shares at a nominal value of SR10 per share. Malath shares were trading 5.80 percent down at SR32.50 yesterday. The Mediterranean and Gulf Insurance and Reinsurance Co. (MedGulf) was listed on May 7 (with a paid-up capital of SR800 million divided into 80 million shares). The company offered 20 million shares at a nominal value of SR10 per share. Yesterday MedGulf shares dropped 5.31 percent to SR26.75.
The Tadawul report said Taibah Investment & Real Estate Co. increased its paid-up capital by issuing 7 bonus shares for every 32 shares held, raising its total number of issued shares to 150 million effective May 2.
Another company Saudi International Petrochemical Co. (Sipchem) increased its paid-up capital by issuing one bonus share for every three shares held, raising its total number of issued shares to 200 million from May 12, 2007.