JEDDAH, 17 December 2005 — The Saudi stock market failed to break the 17,000 barrier last week. The bourse witnessed severe fluctuations, but the Tadawul All-Share Index (TASI) closed on Thursday at an all-time high of 16,988.08 points, an increase of 167.18 points or 0.99 percent over previous week’s close.
The index was higher by 185.32 points from Wednesday’s closing. The major contributor to this surge was the increase of 1,238.62 points in the Industrial index, which closed at 43,296.40 on Thursday.
TASI is currently 107.01 percent higher than at the year’s start.
The market’s index fell at the beginning of the week on profit-taking of investment stocks, especially petrochemical-related shares. However, the market’s index bounced back on Thursday.
The value of stocks traded reached SR155.67 billion last week compared to over SR139 billion trading in the previous week. On Thursday, SR14 billion worth of shares changed hands.
Share prices of the bellwether Saudi Basic Industries Corp. (SABIC) surged 3.37 percent on Thursday to close at SR1,734.75. However, SABIC stocks declined by 1 percent over the last week.
Saudi Arabia Refineries Co. shares gained 39.96 percent in week to close at SR2,830, followed by Yamamah Cement by 39.60 percent to SR2,094, Hail Agriculture by 38.92 percent to SR439 and Bishah Agriculture by 31.84 percent to SR675.
Shares of Saudi Fisheries plunged by 34.85 percent in a week to SR319.25.
Saudi Public Transport Co. (SAPTCO) was the most active by value last week as shares worth SR9.54 billion changed hands, followed by Qassim Agriculture at SR9.53 billion, Saudi Telecom Co. at SR7.98 billion and SABIC at SR7.38 billion.
In Kuwait, the KSE all-share price index shed 3.0 percent last week, closing at 11,429 points down from previous week’s close at 11,782 points.
Kuwaiti stocks suffered for the second week in a row under the pressure of capital increases of listed firms that prompted small investors and margin traders to quit their positions ahead of the new year, an Amman-based financial analyst said.
The UAE stocks also extended losses last week, shedding 2.2 percent on average. The Dubai and Abu Dhabi all-share price indices fell 2.3 percent and 2.2 percent respectively to close the week at 1,135 points and 6,938 points. “The indexes have reached a key resistance point, from which stocks could rebound receiving support from the publication of 2005 results,” UAE financial analyst Mohammad Ali Yassin said.
However, Arab bourses were squeezed last week by liquidity shortage emanating from increases in capitals of listed firms and the launching of new companies, but financial analysts said yesterday that regional stocks were set to rebound toward the end of December and the first week of January, receiving fresh support from “very good” 2005 results.
“I believe all Arab stock markets, except for the Saudi bourse, continued last week to behave under pressure of the increases in capital of a number of listed firms that withdrew tangible liquidity from the market,” Amer Muasher, head of brokerage at the Amman-based Jordan National Bank, told Arab News.
“However, stocks in Jordan and other neighboring countries have become undervalued as a result of a series of declines over the past few weeks and there is legitimate reasons to believe that regional stocks will rebound toward the end of December and the first week of January as investors will step in to benefit from this situation,” he added.
Muasher and other portfolio managers contended that investors resorted to sell-offs over the past few weeks in order to get money to meet their obligations emanating from capital increases of the listed companies as well as their subscription to newly established firms.
The ASE all-share price index plummeted 5.46 percent last week closing on Thursday at 8,276 points from 8,754 points previous week, according to the market’s weekly report.
