JEDDAH, 20 November 2007 — The Saudi stock market rebounded yesterday after the news that the Cabinet had appointed a new nine-member board of directors for Tadawul, the joint stock firm which is responsible for stock transactions, registration of ownership and publication of information about listed companies. According to the Saudi Press Agency (SPA), the nine directors of Tadawul will serve for a three-year a term.
The Tadawul All-Share Index (TASI) jumped 126.15 points or 1.38 percent to 9,261.25 yesterday after falling for the last three days. However, the index is higher by 16.74 points so far this year.
Out of 105 companies, shares of five companies declined while, 94 companies were in positive territory yesterday.
All sectors moved upward yesterday.
In the banking sector, shares of Bank AlJazira surged by 4.58 percent, The Saudi Investment Bank by 2.85 percent, Bank Albilad by 2.08 percent and Al-Rajhi Bank by 1.95 percent.
Shares of Saudi Basic Industries Corp. (SABIC) increased by 0.93 percent to SR161.75 yesterday after falling 4.25 percent on Sunday and 3.50 percent on Saturday. In the industrial sector, shares of Saudi Arabia Amiantit Co. dropped 1.33 percent to SR37 while shares of all other companies increased yesterday.
Saudi Cable Company shares gained 1.58 percent to SR48 after Dr. Waheeb A. Linjawi, group president and managing director of the company, announced that the company’s budget for 2008 and the five-year strategic plan were reviewed by the board of directors during the last meeting of the board held on Nov. 3.
According to the information available on Tadawul website, Linjawi said that the board had directed the company’s management to lay down a policy for distribution of dividends of not less than 7.5 percent of the company’s paid up capital to the shareholders for the coming five years.
Shares of Saudi Telecom Co. (STC) and Etihad Etisalat increased by 1.04 percent to SR72.50 and 0.68 percent to SR73, respectively.
The insurance index rose 2.69 percent to 2,404.56 points as shares made hefty gains yesterday. The only loser in the sector was Allied Cooperative Insurance Group as its shares fell slightly to SR114.
The stock market turnover crossed the SR10.62 billion mark yesterday.
BMG Index Turnover Reaches SR4.3bn
The BMG Saudi Index went back into positive territory yesterday, advancing by a nearly 2 percent to reach a closing level of 514.6 points. In addition, the market turnover grew significantly and reached SR4.3 billion ($1.2 billion), increasing by a hefty rise in volumes of 44 percent in yesterday’s trading session, with the retail investor seems to turning around and buy the market — perhaps in preparation for a possible revaluation of the Saudi riyal (if that happens) following widespread discussion of the US dollar across all the GCC (Gulf Cooperation Council) states.
All sectors in the BMG Saudi Index ended yesterday’s session in positive territory. The services sector recorded the highest gain with an increase of 4.6 percent, adding 39.2 extra points. The insurance sector came in second with a 3.4 percent jump, while the industrial and agricultural sectors followed with minor differences in their percentages, moving ahead by 1.8 percent and 1.6 percent, respectively.
All stocks rose yesterday, with only one stock standing still, Al-Jouf Agriculture Development Company, whose shares closed at SR45.50. The best performing stock was Saudi Kayan Petrochemical Co., with its shares rising by 5.8 percent to SR18.25.