RIYADH, 28 February 2004 — Saudi stocks rose 1.6 percent to reach their highest ever levels in the week to yesterday on high oil prices and gains by industrial and telecoms bluechips which offset drops due to dividend payments.
Traders said the positive trend on the Saudi Arabian bourse, the Arab world’s largest, was expected to continue after an expected drop next week on more dividend distributions.
The all-share index ended the week at a life high of 4,759.76 points, up from 4,685.34 a week ago. It is up 7.3 percent so far this year after climbing 76.5 percent in 2003. Turnover fell to SR20.1 billion ($5.36 billion) from SR24.1 billion in the previous week.
Higher oil prices and gains by industrial giant Saudi Basic Industries Corp. (SABIC) and sole telecoms provider Saudi Telecommunications Co. (STC) were the main drivers this week, Bakheet Financial Advisors (BFA) said in a report. SABIC, the most active share with 15.2 percent of turnover, climbed 5.3 percent to SR379 while STC, the second most active stock with 10.2 percent, gained 3.4 percent to SR457. The two account for 39.3 of total capitalization.
But the rally was tempered by a drop in Al-Rajhi Banking and Investment Corp. after the Gulf Arab state’s largest listed bank distributed dividends of SR35 per share. Rajhi ended 4.5 percent lower at SR938.
Decliners outnumbered gainers 39 to 30 during the week while two stocks were not traded.
Meanwhile, stock markets across the Middle East were mixed in the week ending Thursday.
In Kuwait City, the Kuwait Stock Exchange (KSE) index finished the week down at 5,296.3 compared to 5,308.40 last week. The index set a record high of 5,330.80 at the close on Feb. 16.
In Egypt, the HFI index also closed up Thursday at 13,321.50 points compared to last week’s 8.6 percent drop to 12,739.75.
In Qatar, the CBQ index also consolidated gains made last week, closing at 847.26 compared to 787.28 last Thursday. The NBAD index in the United Arab Emirates dipped slightly, ending the week at 4,790.91 compared to 4,818.11 a week earlier.
In Bahrain, the BSE index stayed almost unchanged, closing at 2,327.38, compared to 2,327.69 last week.
In Jordan, the Amman Stock Exchange closed up slightly at 2,778.8 on last week’s 2,725.6.
In Beirut, the BSI (Blom Stock Index) ended Thursday barely changed at 450.98 compared to 449.26 a week ago.
In Muscat, Oman’s MSM index finished at 294.76 down slightly from 295.55 points last week.
