JEDDAH, 11 February 2006 — The Saudi stock market continued its record upward march last week. The Tadawul All-Share Index (TASI) gained 2.6 percent, closing on Thursday at a historic level of 19,540.12 points up from 19,047.97 points the previous week.
TASI is currently 16.92 percent higher than the year’s start.
The index was pushed up mainly by Al-Rajhi Banking & Investment Corp., which surged 7.95 percent in a week on the approval by the market’s authorities of a request by the firm to raise its capital by 50 percent.
Moreover, most cement stocks rose last week following the decision by the Saudi Council of Ministers exempting imported cement from import duties.
The move was interpreted by investors as indicative of a high demand for cement.
Southern Cement Co. shares jumped by 17.86 percent to SR1,155 and Eastern Cement Co. by 15.92 percent to SR1,092.
The value of Saudi stocks traded fell to SR212.36 billion last week compared to SR219.02 billion in the previous week.
The top gainers for the week were Arab Industrial Development Co. (34.68 percent), Saudi Industrial Services Co. (27.62 percent), Tihama Advertising & Public Relations Co. (25 percent), Saudi Industrial Development Co. (24.05 percent and Alujain Corp. 22.82 percent.
However, shares of Al-Baha Investment & Development Co. fell 9.29 percent last week and Saudia Dairy & Foodstuff Co. by 2.83 percent.
Kuwait’s KSE all-share price index surged into an all-time high of 12,054 points at the start of the week due to good results and dividends announced by listed firms.
However, the Kuwaiti benchmark price retreated on the last two days under pressure of profit-taking moves to close week at 11,999.8 points, up from previous week’s close at 11,923 points, analysts said.
The United Arab Emirates stocks plummeted further last week despite declarations of good profits achieved key businesses.
The unified all-share price indices of the UAE stocks exchanges of Dubai and Abu Dhabi shed 6.13 percent last week, closing at 5,297 points.
Egyptian stocks were also the target of a strong downward correction pressure last week due to sell-off involving the Hermes Financial Group and other key firms, dealers said.
The Hermes all-share price index fell 4.8 percent, closing on Thursday at 64,381 points compared with last week’s close at 67,625 points.
Arab bourses appeared heading to new all-time highs, deriving momentum mainly from high liquidity and surplus revenues accruing from the surging crude prices, financial analysts said on Thursday.
“We believe Arab bourses, particularly in the Gulf area are sill on a bullish course in view of the extensive liquidity seeking investment outlets,” an Amman-based portfolio manager told Arab News.
“We think that as long as oil prices continue to move above $60 a barrel, unprecedented surplus petrodollar levels are expected to accrue to the Gulf producers with financial offshoots affecting neighboring markets,” he said.
Jordan’s stocks rebounded last week, but still under the pressure of liquidity pressures resulting from the decision of the heavyweight Arab Bank to double its capital to about $500 million, dealers said.
The all-share price index of the Amman Stock Exchange gained 1.62 percent last week amid thin trading, to close on Thursday at 8,730 points up from 8,591 points last week, according to the ASE weekly report.
