JEDDAH, 12 December 2007 — The Saudi stock index is heading for the 11,000-point mark after breaking the 10,000-point barrier earlier this week. The Tadawul All-Share Index (TASI) closed 518.10 points higher at 10,799.40, its biggest one-day gain since April 7.

Banking stocks led gains yesterday as its index surged 7.88 percent to 29,790.77 points.

The stock market gained 2.49 percent on Monday before the announcement of Kingdom’s 2008 budget. The index is higher by over 36 percent so far this year.

Muhammad Al-Anqari, investment expert, said the movement of the index above the 10,000 mark this week signified the stability and the high purchasing power of the Saudi market engendered by various factors that encourage investments. Anqari hoped that the situation would continue for quite a long time in view of the anticipated future profit levels and economic growth particularly in the petrochemical and banking sectors.

Anqari noted that the commendable surge in points was achieved even though blue chip sectors such as the electricity and telecommunications remained in the neutral zone. This phenomenon also underlies the reserve force of the market. He believed that the index would remain at the current levels over coming days so that other companies would also receive a boost to gradually go up and reach a satisfactory level of stock price. He also attributed the strength of the market to the recent reform move by the Capital Market Authority.

On the other hand, Ali Al-Fadli, technical analyst, said the index would go to higher levels, which he believed to be most likely under the given circumstances.

In the banking sector, shares of Saudi Hollandi Bank jumped by 9.67 percent to SR68, Riyad Bank by 9.24 percent to SR97.50, Banque Saudi Fransi by 8.87 percent to SR104.25 and Samba Financial Group by 8.64 percent to SR176.

Shares of Saudi Basic Industries Corp. (SABIC) surged 6.38 percent to SR191.75 and are likely to touch the SR200 mark soon.

The insurance and agriculture sectors were in the red yesterday. Shares of Saudi United Cooperative Insurance Company fell 5.26 percent to SR63 and Saudi Arabian Cooperative Insurance Company by 5 percent to SR147.25. Shares of Al-Ahlia Insurance Co. remained unchanged at SR125, while shares of all other companies declined yesterday.

Eastern Agriculture shares fell 5.82 percent to SR68.75 while all other companies were in the red yesterday.

Shares of Alkhaleej Training and Education Company, which started trading on Tadawul on Monday, dropped 6.07 percent to SR170. Shares of the other newly listed company Middle East Specialized Cables Co. also fell 5.95 percent to SR75.

Over SR17 billion worth of shares changed hands yesterday compared to SR11.65 billion on Monday.