JEDDAH, 2 October 2007 — The Saudi stock market rose slightly yesterday after falling 35.50 points on Sunday. The Tadawul All-Share Index (TASI) edged higher by 14.22 points to 7,847.64. Shares of 70 companies surged while 19 companies were in the red yesterday. The market activity was low as investors awaited third quarter results of the listed firms and as Eid Al-Fitr holidays drew closer.

The stock market turnover was SR4.64 billion yesterday.

In the banking sector, shares of Banque Saudi Fransi, SABB and Samba Financial Group declined yesterday.

The Alujain Corporation shares dropped 3.73 percent to SR32.25. The Alujain board of directors confirmed Marwan Nusair Nusair as the corporation’s president effective Sept. 25. Nusair had been the acting president of the corporation since February 2005.

Tabuk Agriculture was the top gainer as its shares jumped 8.66 percent to SR69 and Hail Agriculture shares increased by 3.91 percent to SR33.25 yesterday.

In the insurance sector, shares of the Saudi IAIC Cooperative Insurance Co. gained 8.14 percent to SR119.50. SABB Takaful shares, however, dropped 10 percent to SR171 and the Saudi Arabian Cooperative Insurance Co. (SAICO) by 2.86 percent to SR102.

Emaar The Economic City shares rose 1.59 percent to SR16. The Tadawul-listed company is developing King Abdullah Economic City (KAEC) as it signed a construction contract worth SR129 million with Saudi Binladen Group for executing road works.

In the telecom sector, shares of the Saudi Telecom Co. (STC) and Etihad Etisalat rose slightly to SR65 and SR66.75, respectively.

Meanwhile, the Jeddah-based BMG Financial Advisors has issued a “buy” recommendation for Mobily. BMG has estimated a target value per share of SR83.77, implying an upside potential of 26 percent compared to the current market price of over SR66 per share.

According to the BMG study, Mobily should reach 8.5 million subscribers by the end of 2007 and its revenues should reach SR8.55 billion ($2.28 billion), implying a growth of 38.2 percent at the end of FY07. The net income is projected at SR1.26 billion ($336 million) at the end of FY07, reflecting an annual growth of 80.0 percent.

Basil M. Al-Ghalayini, CEO of BMG, said: “We at BMG are committed to helping investors make more educated decisions when they trade in the Saudi stock market. We were the first investment bank to start publishing world class in-depth reports on selected Saudi-listed companies several years ago with our focus on the telecom, insurance and retail sectors.”

The BMG report said the Saudi market’s mobile penetration rate is expected to cross 100 percent before the end of 2008 so the future growth for all mobile operators, thereafter, should be derived from operational cost efficiencies and data revenue streams, as opposed to net subscriber acquisitions only.