JEDDAH, 3 October 2005 — After a relentless surge, the Saudi stock market looks like heading for a correction as the Tadawul All Share Index (TASI) plunged 228.47 points or 1.52 percent to close at 14,819.91 yesterday.
The Industrial index dropped 791.58 points at 39,225.42 as Saudi Basic Industries Corp. shares fell by 2.36 percent at SR1,602.75. The Banking index also declined by 183.03 points at 32,999.78 as shares of most of the banks dropped except Saudi Hollandi Bank, Arab National Bank and Al-Rajhi Banking & Investment Corp. whose shares closed higher at SR905, SR923 and SR1,845 respectively.
Samba Financial Group, Bank AlJazira and the Saudi British Bank shares fell by 1.73 percent at SR882, 1.55 percent at SR1,078 and 1.47 percent at SR1,275, respectively. Food Products Co. shares gained 10 percent yesterday at SR269.50, followed by Saudi Land Transport Co. by 9.95 percent at SR397.75, Al Mawashi Al Mukairish United Co. by 5.17 percent at SR117, Saudi Chemical Co. by 4.98 percent at SR374 and Taiba Investment & Real Estate Co. by 4.80 percent at SR409.
However, share of Jouff Agriculture fell by 4.38 percent to close yesterday at SR262 as Agriculture index dropped by 69.77 points at 5,159.69. The Telecom index dropped 143.14 points at 5,401.92 as shares of Saudi Telecom Co. plunged 3.23 percent to close at SR900. However, shares of Etihad Etisalat rose slightly at SR621.
Saudi Electricity Co. shares also fell by 1.39 percent yesterday at SR142.25.
Meanwhile, the Capital Market Authority (CMA) has prevented two investors from dealing in stocks for 30 days. The CMA did not name the two investors whom it accused of swindling and deception. The authority will investigate the case against the two investors who will be fined in accordance with the law. In June, the CMA stopped 44 investors, mostly company board members, from stock exchange.
On Saturday, Abdul Rahman Al-Rashid, chairman of the Council of Saudi Chambers of Commerce and Industry, urged the government and the CMA to take quick steps to prevent the flight of Saudi funds to foreign countries, by encouraging Saudi investors and providing them with new incentives. Al-Rashid’s comment came after more than 30,000 Saudis applied for shares of Dubai’s Dana Gas.
