JEDDAH, 21 December 2005 — The Saudi stock market plunged yesterday. The market seems to be heading for a correction after surging to a record high last week.
The Saudi Basic Industries Corp. (SABIC) dividend factor still dominated stock trading yesterday. The big fall in the Industrial index sent the Tadawul All-Share Index (TASI) crashing 287.12 points or 1.72 percent to close at 16,448.56 yesterday.
Out of 77 stocks traded, only 12 were higher while 65 stocks declined yesterday. The value of shares traded reached SR33.76 billion. Due to a 3.79 percent drop in SABIC shares, the Industrial index plunged by 1,242.20 points to 40,542.40. SABIC shares closed at SR1,579.75.
Analysts say investors are adopting a wait-and-see approach as quarterly results are approaching.
Saudi Advanced Industries Co. shares dived 6.04 percent to SR653 and Arabian Pipes Company shares fell by 4.33 percent to SR740.
In the industrial sectors, only shares in Saudi Arabia Refineries Co., Savola Group, National Gypsum Co. and Filling & Packing Materials Manufacturing Co. rose yesterday.
The Banking index also suffered 561.14 points fall to close at 40,159.61 as shares of major banks declined yesterday. Shares of Saudi Holland Bank and Banque Saudi Fransi rose to SR1,115 and SR1,452.25, respectively.
Bank AlJazira’s shares plunged by 3.41 percent to SR1,563.75 despite Fitch’s decision to upgrade its individual rating to ‘C/D’ from ‘D’.
The cement sector was in the red. Shares of all cement companies fell sharply yesterday. Eastern Cement shares dropped 5.05 percent to SR790, followed by Qassim Cement, which fell 5 percent to SR1,140, and Arab Cement by 4.54 percent to SR878. The Cement index was down to 9,987.55.
The Electricity index gained 127.55 points to close at 2,959.25 as shares of Saudi Electricity Co. rose 4.50 percent to SR145 yesterday.
Shares of Saudi Telecom Co. and Etihad Etisalat fell to SR936.50 and SR688.50, respectively yesterday.
In the agriculture sector, shares of National Agriculture Development Co. rose while all other companies suffered decline in prices. Hail Agriculture was biggest loser yesterday as its shares edged lower by 5.31 percent to SR396.75.
