RIYADH, 29 May 2005 — Saudi Arabian stocks eased yesterday. The all-share index of the largest Arab bourse fell 0.94 percent in morning trading, but trimmed some losses to end the first day of the trading week down 0.57 percent at 12,406 points.
The index ended the previous week to Thursday up 0.9 percent at 12,477. It had hit a record closing high of 12,729 points, but fell 4.7 percent on Wednesday.
Fawad Rizvi, equity economist at the Consulting Center for Finance and Investment, said the market would continue its impressive run in the long term.
Shailesh Dash, head of research at Global Investment House, said the Saudi stock market fall was “mainly sentiment-driven”.
“Some people sold, and that is healthy for the market,” he said.
The index, which has quadrupled since early 2003, is up around 50 percent since the start of the year on the back of high oil prices pumping cash into government coffers.
“The market is high anyway and it might be just a sign of nerves,” said a financial analyst who asked not to be named.
Telecoms firm Etihad Etisalat closed yesterday down 1.5 percent at SR687 ($183.2) while Saudi Telecom retreated 2 percent to SR872.
“Volatility can happen in any market. I think this drop will be temporary because the fundamentals in the Saudi market are still very good,” said National Commercial Bank Senior Economist Muhammad Malick.
