JEDDAH/AMMAN, 15 September 2007 — Saudi shares were volatile last week following previous week’s plunge of 4.54 percent, as the telecommunications sector put pressure on the market with widespread expectations that the third mobile operator, MTC, could stir fierce competition in the country.

The Tadawul All-Share Index (TASI) shed 0.58 percent last week, closing at 7,807.87 points down from 7,853.66 points in the previous week. TASI is currently 1.6 percent lower than the year’s start.

The Riyadh-based Bakheet Investment Group (BIG) said in its weekly report that Saudi stocks would be steady in the coming days as investors monitored the third quarter results, particularly of blue chip firms, which usually decide the market’s direction.

The stock market turnover also declined last week to SR43.33 billion as compared to SR47.59 billion in the previous week.

Shares of Gulf Union Cooperative Insurance Company, which started trading on the Saudi stock market on Tuesday, jumped 587.50 percent to SR68.75. The other top gainers last week were Alujain Corporation, Saudi Arabian Amiantit Co., Jazan Development and Al-Baha Investment & Development Co.

The insurance sector was worst hit last week. Shares of Saudi Arabian Cooperative Insurance Company (SAICO) plunged 24.53 percent to SR100, Saudi Indian Company for Cooperative Insurance by 19.13 percent to SR97.25, Allied Cooperative Insurance Co. by 16.24 percent to SR98, Saudi United Cooperative Insurance Company by 13.38 percent to SR61.50 and the Mediterranean & Gulf Insurance & Reinsurance Co. by 8.41 percent to SR51.75.

In the telecom sector, shares of Saudi Telecom Co. fell 3.73 percent to SR64.50 and Etihad Etisalat by 4.96 percent to SR62.25.

Arab stock markets are expected to be volatile during the fasting month of Ramadan which started on Thursday, financial analysts said yesterday.

“I believe regional markets will be sluggish during the fasting month of Ramadan, as many investors and dealers prefer to stay on the sidelines during the holy month,” an Amman-based portfolio manager told Arab News. “The approaching publication of third quarter results is expected to put additional downward pressure on Arab bourses in the coming weeks,” he said.

Jordanian shares appeared steady on Thursday despite the mood of caution that dominated the market with the start of the fasting month, analysts said.

The all-share price index of the Amman Stock Exchange closed week marginally higher at 5,580 points from 5,574 points last week, according to the ASE weekly report.

Kuwait’s KSE all-share price index fell 0.7 percent last week, closing at 12,784 points down from 12,875 points previous week. The decline was attributed by analysts to profit taking and liquidity squeeze.

The all-share price index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi also shed 0.8 percent last week, closing at 4,329 points compared with previous week’s close at 4,366 points.

The GulfBase GCC Index also declined 0.60 percent to 5,482.64 points. The value of GCC traded shares fell 16.69 percent to $16.02 billion and volume decreased by 36.18 percent to 4.54 billion shares.