JEDDAH, 21 October 2007 — The Saudi stock market jumped 2.55 percent as the Tadawul successfully launched the new trading platform yesterday. The Tadawul All-Share Index (TASI) made its biggest one-day gain in more than 15 weeks to close above 8,000 points. The index rose 202.16 points to 8,114.61.
According to the information available on the Tadawul website, the transition to the new system was very smooth and active trading took place on the first day of its operation. Links with the banks/brokerage firms and data vendors were functioning normally without any disruptions.
The new system makes it possible to introduce trading in products such as bonds and sukuk and to offer entirely new products such as exchange-traded funds.
On the first day of trading on the new system, a total of 148,697 trades were executed with a volume of 152.74 million shares and value of SR6.17 billion.
Tadawul completed all preparations for the launch during the Eid Al-Fitr holidays and the launch plans were extensively rehearsed.
Out of 105 companies traded, shares of only five companies were down yesterday.
In the banking sector, shares of Banque Saudi Fransi, Samba Financial Group and Arab National Bank fell. The other two losers yesterday were Saab Takaful and Ahmed H. Fitaihi Company as shares were down by 4.70 percent and 3.58 percent, respectively.
Riyad Bank shares jumped by 4.66 percent to SR61.75 and Al-Rajhi Bank by 2.66 percent to SR86.75.
The top gainers yesterday were Saudi Industrial Development Co., Gulf Union Cooperative Insurance Co., Saudi Indian Company for Cooperative Insurance, Arabian Shield Cooperative Insurance Co. and Saudi Arabia Refineries Co.
Saudi Telecom Co. shares gained 1.14 percent to SR65.75 and Etihad Etisalat 2.55 percent to 70.50.
The shares of the Saudi Basic Industries Corp. (SABIC) jumped to new high as it expected to post fifth consecutive record profit in the third quarter.
SABIC shares closed 3.70 percent higher at SR140.
Economists have predicted that SABIC would make a record profit of SR9 billion in the third quarter of this year. They attributed the rise in profits to growing oil prices and increasing demand for petrochemical products in world markets.
“SABIC’s third quarter profits will be more than expected as it will reach close to SR9 billion,” said Muhammad Al-Dhahiyan, a financial analyst.
In another development, Bank AlJazira has started negotiations with National Installment Company (NIC) to purchase 51 percent of the SR100 million company. Taha ibn Abdullah Al-Quwaiz, chairman of AlJazira’s board of directors, said the move was in line with the bank’s strategy to expand its personal financing sector. Yousuf Al-Hamdan, chairman of NIC, said his company was looking forward to strengthen its partnership with Bank AlJazira.
Bank AlJazira shares increased 1.65 percent to SR46 yesterday after the announcement.
BMG Index Turnover Soars 77.6%
The BMG Saudi Index advanced by 3.6 percent yesterday compared to the last trading session on Oct. 10 before the Eid holidays. The index closed at 441.4 points, a level it has not reached since March 26 earlier this year. The total market turnover also increased enormously, by 77.6 percent, to reach SR2.9 billion ($780 million).
All the index sectors witnessed major jumps in their number of points. Adding 49.7 points, the agricultural sector outperformed all the other sectors. The services sector came in second place with a 4.6 percent move ahead, and added 34.6 points. The industrial and insurance sectors followed with 33.9 and 30.5 points increases, respectively.
Only two stocks in the index registered losses in their share prices, whilst the rest moved strongly ahead, with Saudi Fisheries Company on top to advance by 9.9 percent and close at a share price of SR72.5 per share.