JEDDAH/AMMAN, 1 March 2008 — The Saudi stock was highly volatile last week following previous week’s jump of more than 10 percent.

The Tadawul All-Share Index (TASI) gained further 1.62 percent last week, closing at 10,291.47 points from 10,127.10 points previous week.

TASI is currently 7.9 percent lower than the year’s start.

The Riyadh-based Bakheet Investment Group (BIG) said in its weekly report that with oil prices breaking the $100 per barrel barrier, investors of the world’s largest crude exporter restored confidence they seemed to have lost a month ago as a result of turmoil at global markets.

“We expect the Saudi stock market to witness a steady increase during the coming days with the retreat of negative external factors,” it added.

Saudi United Cooperative Insurance Co. was the top gainer last week as its shares surged 19.32 percent to SR52.50, while Anaam International Holding Co. was the top loser as its shares plunged 18.93 percent to SR132.75.

Over SR57 billion worth of shares changed hands last week.

Al-Rajhi Bank shares increased by 3.32 percent last week to close at SR101.25. Riyad Bank shares dropped 4.46 percent to SR85.75.

Shares in Saudi Basic Industries Corp. (SABIC) increased by 2.19 percent to SR187 as over SR4.34 billion worth of shares traded last week.

Arab stock markets are expected to extend gains in the coming weeks deriving support from soaring oil prices and high inflation rates, financial analysts said yesterday.

“I believe regional markets will be one of the beneficiaries from the skyrocketing crude prices and the sharp rise in inflation rates,” Wajdi Makhamreh, CEO of the Amman-based Sanabel International Brokerage, told Arab News.

“Stock markets will provide one of the best investment outlets for the huge surplus petrodollars due to accrue to Arab oil-producing countries this year,” he said.

Makhamreh believed that the unprecedented inflation rates recently recorded by regional economies would force investors to resort to hedging tools, including stocks.

He said that the receding Middle East fears over US economic slowdown were partly helpful in the gains achieved by Middle East stock markets over the past couple of weeks.

According to a report published yesterday by the Kuwait-based Bayan Investment Company, the capitalization value of stock markets in the six countries of the Gulf Cooperation Council gained 1.89 percent last week, reaching about $1.1 trillion.

Jordanian shares also recorded strong gains last week, propelled by strategic blue chip stocks, notably the Arab Potash Co., the Jordan Phosphates Mines Co. and the Jordan Petroleum Refinery Co.

The all-share price index of the Amman Stock Exchange climbed 9.30 percent last week, closing at 8,463 points from 8,086 points last week, according to the ASE weekly report.

Kuwait’s KSE All-Share Price Index gained 0.7 percent last week, closing at 14,010 points compared with previous week’s close at 13,915 points.

The benchmark price of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi increased 0.6 percent last week, to close at 6,163 points up from 6,128 points previous week.

The GulfBase GCC Index increased by 1.84 percent to 6,992.75 points. The value of GCC traded shares, however, fell by 7.18 percent to $21.82 billion and volume of traded shares plunged 23.71 percent to 5.59 billion of shares.

Bakheet IPO Fund

The Riyadh-based Bakheet Investment Group (BIG), a Capital Market Authority (CMA) licensed financial institution, has launched a unique investment fund called “Bakheet IPO Fund.” Beshr Bakheet, CEO and chairman of the group, said “it is a distinctive type of investment program, as the fund invests in initial public offerings and aims to benefit unit holders from the ‘book building’ process,” adding that “the fund may also invest in stocks of publicly traded companies during their first year of listing only.” The unit price will be set at SR1 during the offering period which will begin today and will end on March 15. Subscription will be open to all investors. Minimum subscription is set to SR10,000, in an effort to offer BIG clients the chance to participate in the promising IPO market.

BMG Index Turnover Surges to SR28.2 Billion

The BMG Saudi Index witnessed a week-on-week increase by 3 percent or 16.51 points to 566.6 points. The total turnover surged by 20.5 percent to SR28.2 billion ($7.5 billion). The average P/E ratio for 2006 earnings was 24.81 times, while the price-to-book ratio was 4.72 times.

Five sectors performed well last week, with only the insurance and the telecommunications sectors witnessing a decline. The insurance sector maintained its downtrend for the second consecutive week, going down by 1.7 percent with a turnover of SR1.85 billion, almost 6.6 percent of the total market turnover. The telecommunications sector also went down by 0.7 percent. The electricity sector registered the best performance, rising by 6.9 percent, at a turnover of SR2.3 billion and representing 8.2 percent of the total turnover. The services sector also went up by 4.5 percent. The Banking sector rose by 3.1 percent and its turnover of SR1.8 billion comprised 6.3 percent of the total turnover. The agricultural sector gained more ground, climbing up by 2.7 percent, and achieving 3.3 percent of the total market turnover. The industrial sector witnessed only 2.3 percent increase.

Twenty-two shares saw their closing prices appreciate week-on-week, whereas seven shares descended, and one share stood still. Saudi Kayan Petrochemicals Co. maintained its record of the highest turnover and quantity of shares traded throughout the week, attaining SR8.4 billion traded over 306.3 million shares, with its share price ascending by 3.85 percent to SR27 per share.