JEDDAH, 18 October 2005 - The Saudi stock market continued to fall yesterday despite top listed companies such as Saudi Basic Industries Corp. (SABIC), Saudi Telecom Co. (STC) and Saudi Electricity Co. (SEC) announcing an increase in their nine-month net profits. The Tadawul All Share Index (TASI) closed down 239.57 points at 14,677.77.
The 4.10 percent fall in SABIC share prices pulled the Industrial index lower by 1,286.95 points at 38,311.26 yesterday. SABIC shares closed at SR1,553.75.
The Banking, Cement, Services and Insurance indices were higher while Electricity, Telecom and Agricultural indices were lower yesterday.
Shares of Bishah Agriculture gained 8.92 percent at SR387.75, followed by SISCO 6.49 percent at SR319.75, Assir 5.40 percent at SR820, Taiba 5.39 percent at SR430, Alujain 3.64 percent at SR377.25 and NCCI 2.42 percent at SR645.25.
However, shares of Saudi Livestock plunged by 9.90 percent at SR86.50, followed by Shams 4.42 percent at SR238 and Al-Baha by 4.11 percent at SR180.75.
The Capital Market Authority said it was studying requests by 15 firms to become joint stock companies and float their shares for public subscription, according to its spokesman Dr. Abdul Aziz Al-Zoum. He said only one of the 15 companies had completed 80 percent of conditions set by the authority. He urged other firms to fulfill the conditions as quickly as possible.
Meanwhile, the GCC markets also reported steady gains in the month of September. The Kuwait-based Global Investment House (Global) said that barring Oman, all the GCC markets ended the month in black led by UAE, which reported monthly gain of 7.42 percent followed by Kuwait which surged 5.49 percent.
UAE and Qatar markets have maintained YTD growth rate in three digits. The aggregate market capitalization of the GCC bourses has vacillated around the psychological $1 trillion-mark indicating the presence of strong investors' interest in these markets.
The aggregate trading activity on the GCC bourses witnessed substantial growth as the total volume of shares traded on the GCC exchanges increased to 11.7 billion shares. This is mainly due to the increased investor activity on Kuwait and UAE stock exchanges. The volume of shares traded on UAE exchanges increased to 4.4 billion shares in September as compared to 2.9 billion shares traded in August, Global said.
In August, the aggregate market depth was heavily tilted toward the advancers as 293 stocks reported monthly gains as compared to 116 decliners.
Saudi market's strong growth is evident from the fact that out 77 listed stock only 2 stocks reported a monthly decline. Qatar and UAE markets also witnessed broad-based rally as investors flocked the markets, taking new positions.
