JEDDAH, 8 September 2005 — The Saudi stock market recovered slightly yesterday after a drop of over 300 points on Tuesday.
The Tadawul All Share Index (TASI) closed 90.57 points higher at 14,308.68. The Industrial, Banking and Agricultural indices rose by 420.77, 231.52 and 111.14 points, respectively.
A number of investors and stock experts attributed Tuesday’s 300 points fall of the index to hectic trading based on speculations. Dr. Abdullatif Basheikh, professor of accountancy at King Abdul Aziz University, said the index fell because most investors were waiting for the third quarter results of companies to come. “Another important reason is the fall in oil prices by more than $2 per barrel,” Basheikh said.
Iyad Abdullah Al-Jefry, director of customer services at a main stock exchange center, said the fall was expected. He said many investors opted for Saudi Electricity Co. (SEC) shares after the company made good profits in the summer. They also acted after studying Saudi Electricity’s future projects, which increased their confidence in the company. For Muhammad Al-Ghamdi, an investor, the 300-point fall of the index was unexpected.
SEC shares, however, dropped at SR140.50. STC shares fell to SR931.25 and Etihad Etisalat shares were slightly higher at SR614.
The Electricity, Telecom and Insurance indices fell slightly yesterday.
Saudi Export shares jumped 9.99 percent to close at SR624.75 followed by Jouff Agriculture shares which closed at SR221, up by 5.44 percent. Filing and Packing Materials Manufacturing Co. (FIPCO) and National Agriculture Development Co. (NADEC) shares also closed higher by 4.67 and 3.61 percent at SR370 and SR502, respectively.
Aminatit shares closed 2.88 percent lower at SR304 followed by Shams shares, which closed at SR248.25, down 1.49 percent.
Saudi Basic Industries Corp. shares recovered by 1.25 percent to close at SR1,545.
Banque Saudi Fransi shares jumped 2.13 percent to close at SR1,200 and Al-Rajhi Banking & Investment Corp. shares were higher by 2.26 percent at SR1,765.
Saudi Cement, Qassim Cement, Yanbu Cement and Eastern Cement shares dropped slightly yesterday.
