JEDDAH, 12 September 2007 — Gulf Union Cooperative Insurance Company began the Saudi stock market trading with 662.50 percent jump in its share prices yesterday. Gulf Union became the 14th company to be traded in the insurance sector that has seen debuts of various companies in the last few months. Shares of other insurance companies also soared on the first day of trading.
The SR10 share of Gulf Union opened at SR109.75 and fell to SR70 during the trading before closing at SR76.25 yesterday.
The insurance sector was worst hit yesterday as shares of companies dropped sharply yesterday.
Shares of Saudi United Cooperative Insurance Company (Walaa Insurance) fell by 10 percent to SR67.50, Saudi Indian Company for Cooperative Insurance by 9.81 percent to SR108, Saudi Arabian Cooperative Insurance Company by 9.76 percent to SR111, Allied Cooperative Insurance Group by 9.55 percent to SR106.50 and Arabian Shield Cooperative Insurance Company by 9.54 percent to SR68.75.
The Saudi stock market tumbled more than two percent yesterday on profit-taking after Monday’s 37.52 points increase. The Tadawul All-Share Index (TASI) plunged 166.61 points or 2.09 percent to close at 7,799.54 points.
Out of 104 stocks traded, shares of 82 companies fell while only 13 firms were in positive territory.
The banking sector was also in the red. Shares of Al-Rajhi Bank declined by 3.21 percent to SR83 and Riyad Bank’s by 3.85 percent to SR62.50.
The telecom index dropped 4.08 percent to 2,627.20 points as Saudi Telecom Co. (STC) shares dipped 4.06 percent to SR65 and Etihad Etisalat by 4.18 percent to SR63.