JEDDAH, 30 March 2008 — Saudi Basic Industries Corp.’s (SABIC) general assembly meeting yesterday decided to increase the company’s capital from SR25 billion to SR30 billion in the light of a proposal made by its board of directors. The capital will be increased by giving a free share for each five shares to the company’s present stakeholders. This will increase SABIC shares from 2.5 billion to three billion.

The general assembly, which was presided over by Prince Saud ibn Abdullah ibn Thenayan, chairman of the board, also approved another proposal to distribute SR3 per share as dividend for profits in 2007. SABIC has already distributed SR1 per share for first half profits of 2007. Prince Saud said the company would start distributing dividend for second half on April 12.

SABIC shares, however, decreased by 3.54 percent to SR170.25 yesterday.

The Saudi stock market tumbled yesterday as investors wait for third quarter results due out in early April.

The Tadawul All-Share Index (TASI) plunged 247.56 points or 2.63 percent to 9,170.76 yesterday. The index is down 17.94 percent so far this year after it had gained about 41 percent in 2007.

As per the Capital Market Authority’s (CMA’s) decision, the Tadawul will reorganize the constituents of its sectors and increase the number from eight at present to 15 from April 5. The new sector classifications better reflect the main activities of the listed companies that make up the new sectors.

Out of 114 companies traded, shares of 102 companies were in the red, while only 10 companies were in positive territory. The stock market turnover was also meager at SR4.44 billion yesterday.

Al-Rajhi Bank shares declined by 3.97 percent to SR84.50; Samba Financial group went down by 3.79 percent to SR76; and Bank Albilad plunged 2.29 percent. The only gainer in the sector was Saudi Hollandi Bank as its shares rose slightly to SR53 yesterday.

In the industrial sector, shares of Saudi Arabian Amiantit Co. and Almarai Co. increased, while all other shares fell yesterday.

Jarir Market Co. shares jumped over 6 percent to SR163 and Saudi Hotels & Resort Areas Co. by 3.25 percent to SR31.75.

Saudi Electricity Co. (SEC) shares edged higher by 1.85 percent to SR13.75.

Meanwhile, the Saudi Stock Exchange announced that the IPO (initial public offering) shares for United Cooperative Assurance Company, Bupa Arabia for Cooperative Insurance Company, Saudi Re for Cooperative Reinsurance Company, have been deposited into applicable investor’s portfolios as on Saturday.

BMG Index Turnover Declines

The BMG Saudi Index dropped by 3.4 percent to 499.2 points yesterday. The market turnover also decreased to SR2 billion ($542 million), versus SR2.2 billion ($573 million) registered in Wednesday’s session, down by 5.5 percent. All sectors moved backward with the exception of the electricity sector that moved ahead by 1.8 percent. The worst performing sector was the telecommunications sector declining by 4.2 percent and being followed by the banking sector that went down by 3.9 percent. The industrial, services, agricultural, and insurance sectors followed depreciating by 3.5 percent, 3.5 percent, 3.2 percent, and 1.6 percent, respectively. As for the performance of the shares, only 2 shares appreciated, with the Allied Cooperative Insurance Group emerging as the best performer, moving up by 3.12 percent to SR74.25 per share.