RIYADH, 26 December 2003 — The Saudi stock market closed the week down 2.5 percent following low trading levels brought on by “selling pressure” from private companies, Bakheet Financial Advisers (BFA) said yesterday.
The decline came “amid a marked decrease in trading levels on most stocks due to selling pressure by the privately owned companies owed to the nearby closing of their fiscal year that requires them to realize the gained profits to be able to distribute them to their shareholders,” it said. “This selling pressure comes after more than 70 percent good gains that the Saudi stock market witnessed this year.”
The Tadawul All-Shares Index (TASI) finished the week at 4,365.83 down 2.5 percent from last week’s 4,478.72. Saudi Basic Industries Corp., STC and SEC had varied results falling 1.2 percent, 3.5 percent and 4.3 percent respectively.
STC dominated 13 percent of the trading value followed by SEC at 12 percent and SABIC at 10 percent, BFA said.
Stock prices of six companies increased, whereas 60 companies decreased, three remained unchanged and one did not trade.
The TASI, which crossed the psychological 4,000-point barrier in mid-August, is now 73.4 percent up since the start of 2003.
Trading value this week reached about SR10.7 billion ($2.85 billion), down on last week’s SR14.1 billion ($3.73 billion).
Meanwhile, Egypt shares ended higher yesterday with banks buoyed by the amendment of an accounting rule that exposed them to foreign exchange losses, and telecoms rebounding after some earlier profit-taking, traders said.
The benchmark Hermes index rose 142.19 points, or 1.3 percent, to 11,394.85 points. The broader CIBC index rose 0.49 points, or 0.6 percent, to 79.89 points.
Traders said the central bank board decision on Tuesday to amend an accountancy rule related to financial investments available for sale on bank balance sheets was perceived as positive for Egypt’s banking sector by investors.
