JEDDAH, 6 April 2008 — The Saudi Stock Exchange (Tadawul) reacted positively to the new market structure and indexes which were successfully launched yesterday. In this new structure, the market will have 15 sectors and calculation of the main and sector indexes is based on free-float shares. “The change comes in line with international practices in calculation of market indexes. Only free-float shares are included in the calculation of the main market index (TASI) and the sector indexes. This is a major milestone in the history of the Saudi market,” the CEO of Tadawul Abdullah Al-Suweilmy said in his message.
The Tadawul All-Share Index (TASI) jumped 227.60 points or 2.48 percent to close at 9,408.81. The stock market turnover was SR8.64 billion yesterday as shares in 81 companies increased while 17 firms were in the red.
In the banks and financial services sector, shares in Banque Saudi Fransi, SABB and Arab National Bank dropped, while shares in all other banks increased yesterday. Riyad Bank shares surged by 4.77 percent, Al-Rajhi Bank by 3.89 percent and The Saudi Investment Bank by 2.94 percent.
The petrochemical industries index edged higher by 4.23 percent as major companies made hefty gains.
Saudi Basic Industries Corp. (SABIC) shares soared by 6.61 percent to SR157.25, Alujain Corp. by 5.15 percent to SR51, Saudi Kayan Petrochemical Co. by 4 percent to SR26 and Rabigh Refining and Petrochemical Co. by 3.41 percent to SR53.
Shares in Zain KSA and Saudi Telecom Co. (STC) increased by 8.97 percent and 1.97 percent respectively.
Tadawul also announced yesterday that Kingdom Holding Company has been added into the TASI at the closing price of the shares on April 2.