JEDDAH, 17 September 2007 — The Saudi stock market dropped yesterday as investors kept an eye on the third quarter results of the listed companies. The Tadawul All-Share Index (TASI) fell 44.01 points to close at 7,773.03.
The insurance sector performed very well yesterday though shares of two companies — the National Company for Cooperative Insurance (NCCI) and Saudi IAIC Cooperative Insurance Co. — declined while shares of other companies increased.
The banking stocks suffered badly yesterday. Saudi Hollandi Bank shares dropped by 2.44 percent to SR50, Al-Rajhi Bank by 1.20 percent to SR82, Bank AlJazira by 1.37 percent to SR54 and Arab National Bank by 1.25 percent to SR79.
In the industrial sector, shares of Saudi Basic Industries Corp. (SABIC) edged lower by 0.59 percent to close at SR125.50 after Saudi Arabian Mining Co. (Maaden) announced yesterday that a phosphate venture it is developing with SABIC will cost SR21 billion, 62 percent more than announced in March.
Saudi Arabian Amiantit Co. shares jumped 9.57 percent to SR31.50. Emaar Economic City shares plunged 2.90 percent to SR16.75 yesterday.
Dr. Yaseen Al-Jifri, a financial analyst, said the industrial sector, was doing well in the market making profits continuously for 15.5 times. The industrial sector is one of the largest with many companies specialized in different activities. Cement companies have been separated from the sector considering the large number of such firms listed on the market.
“The current year is considered a turning point in Saudi economy in terms of growth and trend,” Al-Jifri said. The country’s industrial sector has reported considerable growth in production and profits. “Companies in the sector are capable of increasing production compared to other sectors in order to meet development requirements,” he added.
The cement companies also suffered badly yesterday. Shares of Saudi Cement fell by 2.28 percent to SR85.75, Eastern Cement by 1.60 percent to SR76.75 and Southern Cement by 1.00 percent to SR74. Out of 104 stocks traded, shares of 26 companies were in positive territory, while 61 companies were in the red yesterday. Over SR5.39 billion worth of shares changed hands yesterday.