JEDDAH, 6 December 2005 — The Saudi stock market surged to a record high yesterday. The Tadawul All-Share Index (TASI) closed at an all-time high of 16,580.82, up 56.82 points from Sunday’s closing. The index gained 113.11 points on Sunday.
The Banking index was down 167.74 points at 41,533.89 as shares of seven major banks declined and only three banks were in a positive territory. Banque Saudi Fransi shares jumped two percent to close at SR1,500, Saudi Hollandi Bank by 0.87 percent at SR1,069 and Arab National Bank by 0.77 percent at SR1,040.
Rise in shares of the petrochemical giant Saudi Basic Industries Corp. and Arabian Pipe Co. sent the Industrial index higher by 643.96 points at 42,248.10 yesterday. SABIC shares rose 2.38 percent at SR1,679 and Arabian Pipe by 2.39 percent at SR738.
Cement companies were also in the red yesterday. The Cement index dropped 66.23 points at 8,805.89.
The Telecom index fell 21.15 points to close at 5,468.62 as shares of Saudi Telecom Co. and Etihad Etisalat declined to SR890 and SR692, respectively. Saudi Electricity Co. shares closed slightly down at SR138.50.
In the agriculture sector, shares of National Agriculture Development Co. jumped 8.77 percent at SR579.75.
Out of 77 shares traded, only 17 were up while 59 were down. Over SR26.97 billion worth of shares changed hands yesterday.
Meanwhile, Injazat Capital, the leading investment bank, announced in Dubai on Sunday the launch of a Shariah-compliant Shefa Healthcare Fund to create a regional network of healthcare services and to meet the growing demand for affordable, specialized and high-quality healthcare services.
A $100 million venture, Shefa Healthcare Fund, will invest in healthcare providers and ancillary services in the Middle East and North Africa (MENA) region, with the objective of creating industry-dominant health groups with regional reach. Shefa Healthcare Fund is a unique investment vehicle, providing investors access to diverse markets in the MENA countries and offering them an opportunity to reduce risk by investing in a diversified portfolio of healthcare providers.
“The launch of Shefa Healthcare Fund is in keeping with Injazat’s commitment to provide high-quality yet affordable healthcare services in the Middle East,” said Hussein Rifai, chief executive officer, Injazat Capital. “The global healthcare sector is in the midst of an important phase, with breakthrough technologies and innovations radically altering conventional methods of medical services provision. In this regard, it is vital that the healthcare sector in the Middle East too reflects these changes by adopting best practices. Shefa Healthcare Fund will make judicious investments in the Middle East medical sector, with the aim of transforming the region into a high-standard healthcare services hub.”
“The $35 billion Middle East healthcare industry is rapidly changing as a result of several factors such as the implementation of mandatory medical insurance in some countries, government initiatives to privatize the healthcare sector, increased participation of the private sector and insurance companies in financing healthcare activities, movement from general hospitals to more specialized units, and the growth in demand as a result of population growth,” said Mohammed Al-Salman, vice president, head of Investment Placement, Injazat Capital. “Shefa Healthcare Fund has already generated tremendous response from many leading investors in the region, whose names will be announced in the near future.”
