RIYADH, 3 January 2005 — A friend rushed to me last week carrying the good news. The opportunity to buy shares in the National Company for Cooperative Insurance is now available in all local banks. He even advised me to print out the subscription form from the Internet instead of waiting to get one from the bank. No one wants to go through the same hassle of the Etisalat shares when the banks ran out of forms during the first few hours of the morning. Eventually, this led to selling the forms in the black market at high prices. He was so keen on convincing me to try my luck this time. There is nothing to lose since the minimum amount an investor could apply for would not really harm my budget. This still was not really great news for me. My story with stocks is not a very pleasant one.
I have never thought I had a business-oriented mind. My interests have never come close to investment and trading strategies. Perhaps the only markets I know too well are the beloved shopping malls. Yet, trading in stocks and making a fast profit is one dazzling thought I must have had quite sometimes. That is exactly what pushed me to try my luck with the Etisalat shares, which turned out to be a unique experience. I am able to count my first stocks ever using the fingers of one hand only.
I know I am still missing a lot. What is it that pushes hundreds and hundreds of Saudis to flock to banks across the Kingdom since early mornings to buy shares in these new stocks. As far as I could tell, two recent opportunities, one being Etisalat, failed to offer people what they really hoped for. I know that a large number of Saudis are keen on dealing with shares and so seize every opportunity to do so but has everyone gone expert on this matter but myself?
Well, obviously stocks are the talk of the town. It is the social mood now with the decisions of major local firms to go public recently. It happened at a gathering of some ladies where the subject of stocks was brought up. A friend who heads a ladies branch of one of the major banks stirred up the issue. She was so happy seeing more ladies entering the stock market and brilliantly succeeding. She was also hoping that some of the examples she was giving would motivate me. “Many of the female clients I have knew very little about the stock market when they started. But anyone can learn to invest” she said.
I must admit I was not feeling very good about myself. I never pretended to be the lady who knew it all but I must have seemed like Alice in Wonderland. With some efforts to patch up my foolishness by quoting newspapers, that night, I went back home with a decision to educate myself more in this field. But then came the reality with the absence of proper seminars and training courses offered to women to broaden their minds on this subject. I was distressed by the lack of information available for beginners, let alone women. So I searched the Internet but again all I read made me discover how confusing it all may be. It’s either I enter the market depending on good advice, and women never hesitate to ask for directions, or just risk my chances.
One of the first advice that gave me a kick for a start was to watch the market. Follow the stocks prices and ratios and try to read the annual reports of companies. As suggested, this would give me a better insight on what to buy. My boss passed by my office one day and noticed the Tadawul website on my PC’s screen. Then he started talking to me about the market and the recent sharp falls. When he left I realized that all I did was nodding my head with a look of astonishment on my face I was not able to erase.
While following the news the points and the high figures came and all traders panicked. Well, there is certainly more to learn about the stocks than meets the eye. One thing I know though, I know I can’t risk my chances. With five stocks I only own and way much to learn I believe that buying myself a new pair of shoes would be better investment for me.
(Safinaz Zakariya Murshid is a Saudi writer. She is based in Riyadh.)
