RIYADH, 8 October 2004 — Gains in Saudi blue-chip stocks, buoyed by expected strong quarterly results, offset losses in speculative shares sold off in the week to Thursday as investors prepared for a new offering of telecoms stock, traders said.
The all-share index closed fractionally higher at 6,596.14 points against 6,593.76 a week ago. It is up 48.6 percent this year after rising 76 percent in 2003.
Turnover was unchanged at SR40.7 billion ($10.9 billion).
In a volatile trading week, shares initially surged to a record close of 6,670.24 points on Monday as a sustained rally in oil prices boosted sentiment in the world’s biggest crude exporter.
But the announcement of a planned initial public offering of 20 million shares at SR50 each in the Ettihad Etisalat mobile telephone consortium pushed the index sharply down as investors looked for cash to invest.
That fall was later cushioned by a Trade Ministry statement which cast doubt on the planned Oct. 16 IPO by saying the telecoms consortium has yet to be formally established.
Traders said next week’s direction will depend on results of blue chip banking, electricity and petrochemical stocks. “Speculative stock will start to lose ground when any IPO date is finally decided on,” Bakheet Financial Advisors said.
Saudi Basic Industries Corp., the biggest firm on the bourse in terms of capitalization, rose strongly for a second consecutive week, gaining 4.2 percent to SR620 . Al-Rajhi Banking and Investment Corp. rose 6.6 percent to SR1,535.
Falling shares outnumbered gainers by 64 to seven. Shares in one company closed unchanged.
