JEDDAH: The Saudi stock market surged 1.22 percent yesterday as investors tried to book profits ahead of the Eid Al-Adha holiday break next week. The Tadawul All-Share Index (TASI), the second worst-performing index in the Gulf Arab region this year, increased 57.63 points to close at 4,795.76. The index is still down 56.55 percent so far this year.
The stock market turnover was SR6 billion yesterday as 62 companies were in positive territory while 50 firms were in the red.
The energy and utilities, cement, real estate development, transport and hotel & tourism sectors showed negative performance yesterday.
The petrochemical industries sector gained 2.79 percent as shares in Saudi Basic Industries Corp. (SABIC) and Saudi Arabia Fertilizer Co. (SAFCO) surged 4 percent and 6.39 percent respectively.
The insurance sector edged higher by 2.53 percent as shares in Malath Cooperative Insurance and Reinsurance Co. increased by 7.52 percent to SR50 and United Cooperative Assurance Co. by 8.71 percent to 21.20.
At the end of November, TASI closed at a level of 4,738.14 points, lost 799.68 points (14.44 percent) over the close of the previous month. Highest close level for the index during the month was 6,083.87 as on Nov. 5. On Nov. 15 the TASI sank below the 5,000-mark for the first time since March 2004. The index shed 26 percent of its value in October.
According to Tadawul’s statistical report for November, total equity market capitalization dropped 15.98 percent over October to reach at SR913.95 billion ($243.72 billion).
The total value of shares traded in November reached SR129.71 billion ($34.59 billion), increasing by 7.91 percent over the previous month.
The percentage share of Saudi nationals from the market trades was 90.8 percent (SR117.72 billion) for selling and 90.6 percent (SR117.50 billion) for buying. The percentage share of Saudi companies from the market trades was 3.3 percent (SR4.30 billion) for selling and 4.6 percent (SR6.02 billion) for buying. The percentage share of investment funds from the market trades was 1.7 percent (SR2.27 billion) for selling and 1.4 percent (SR1.80 billion) for buying. The Tadawul report said the percentage share of GCC (Gulf Cooperation Council) nationals from the market trades was 1.8 percent (SR2.29 billion) for selling and 1.3 percent (SR1.70 billion) for buying.
The percentage share of Arab residents in Saudi Arabia from the market trades was 2.3 percent (SR2.94 billion) for selling and 1.9 percent (SR2.52 billion) for buying. The percentage share of foreigners resident in Saudi Arabia from the market trades was 0.1 percent (SR193.98 million) for selling and 0.1 percent (SR176.49 million) for buying.
The Tadawul report said total number of shares traded reached 6.81 billion shares for the month of November compared to 5.03 billion shares traded in October, increasing by 35.27 percent.
The total number of transactions executed in November jumped 17.74 percent to 3.60 million compared to 3.06 million trades for the month of October.
The total number of trading days during November were 22 compared to 18 in October.
The number of brokerage firms active in the market reached 30 as Aloula Geojit Brokerage Company joined the Saudi stock market to provide financial brokerage services from Nov. 10.
Samba Financial Group said in its latest Monthly Monitor the Saudi Arabian Monetary Agency (SAMA) has taken a number of measures in November to boost liquidity in the local banking system in a bid to stimulate lending to the corporate sector, where investment demand remains strong.
On Nov. 23, SAMA cut its repurchase rate by 100 basis points to 3 percent. This followed a 100 bps cut on Oct. 30.
Also on Nov. 23 SAMA reduced commercial bank reserve requirements by 3 percentage points to 7 percent. This matched an earlier cut from 13 percent to 10 percent. The two reductions are expected to add about SR19 billion to commercial bank liquidity.
In early November, SAMA reduced the yield on treasury bills, and capped the aggregate amount available at auction. This has made T-bills less attractive to local banks, who had been heavy purchasers over the past year or so. In the months ahead significant quantities of T-bills will be redeemed that will not be rolled over. This could potentially free up around SR80 billion in additional liquidity, the Samba report said.
SAMA also introduced unlimited swap arrangements for local banks, allowing them to exchange riyals for equivalent amounts of US dollars.