JEDDAH: The Saudi stock market recovered slightly yesterday after falling over 2 percent on Saturday. The Tadawul All-Share Index (TASI) edged higher by 37.70 points after rising 38.09 points on Sunday but the index is still down over one percent so far this year.

Saudi Industrial Export Co. was the top gainer as its shares jumped the maximum 10 percent to SR30.80 yesterday.

Shares in Saudi Arabian Cooperative Insurance Co. (SAICO) plunged 9.95 percent to SR38 yesterday.

Saudi financial analysts said the current fluctuation in the Saudi stock market was the result of the announcement of the fourth quarter results of companies listed on the bourse.

Turki Fidaak, who is deputy chairman of the financial papers committee at Jeddah Chamber of Commerce and Industry, said he expected the fluctuations would continue until the announcement of the first quarter results of 2009. “Lack of clarity in the financial plan of the new US President Barack Obama is another indirect reason for the fluctuations,” he pointed out. He said the government’s decision to reduce lending would drive many speculators out of the market.

According to Khaled Al-Harithy, director of the Center for Financial and Administrative Studies and Consultancy, the fourth quarter results of 2008 have injected confidence among stock dealers as most companies did not suffer big losses contrary to expectations.

Over SR4.64 billion worth of shares changed hands yesterday.

Meanwhile, the Capital Market Authority (CMA) has approved The Saudi British Bank (SABB) and Saudi Hollandi Bank’s (SHB’s) requests to increase their capital through the issuance of bonus shares.

According to information available of Tadawul website, SABB will increase its capital from SR6 billion to SR7.5 billion through issuing one bonus share for every four shares owned by shareholders who are registered in the shareholders’ register at the closing of trading on the extraordinary general assembly day. The increase will be paid by transferring an amount of SR1.5 billion from the retained earnings to the bank’s capital. Consequently, increasing the bank’s outstanding shares from 600 million to 750 million shares, by an increase of 150 million shares. The bonus shares eligibility is limited to shareholders who are registered in the shareholders’ register at the close of trading on the extraordinary general assembly day, the CMA said in a statement.

Saudi Hollandi Bank received an approval to increase its capital from SR2.65 billion to SR3.31 billion through issuing 1 bonus share for every existing 4 shares owned by the shareholders.

The increase will be paid by transferring an amount of SR661.50 million from the retained earnings to the company’s capital. Consequently, increasing company’s outstanding shares from 264.60 million shares to 330.75 million shares, an increase of 66.15 million shares.

The CMA has also approved National Metal Manufacturing and Casting Company request to increase its capital from SR204.45 million to SR255.56 million through issuing one bonus share for every four shares owned by the shareholders.

The increase will be paid by transferring an amount of SR38.33 million from the share premium and SR12.79 million from retained earnings to the company’s capital. Consequently, increasing the company’s outstanding shares from 20.45 million to 25.56 million shares, by an increase of 5.11 million shares.

In another development, Rasmala Investments Saudi Arabia Company has received an approval from CMA to offer Rasmala Saudi Equity Fund and Rasmala Shariah Compliant Saudi Equity Fund.