JEDDAH/AMMAN, 3 February 2007 — The Saudi stock market was relatively calm last week despite announcements by some listed companies of their fourth quarter results. The Tadawul All-Share Index (TASI) broke through the 7,000 points barrier. The index closed the week at 7,041.22 points, up 0.76 percent from the previous week’s close of 6,987.86 points. The TASI is currently 11.24 percent lower than the year’s start.
The Riyadh-based Bakeet Financial Advisors (BFA) said in its weekly report that it expects the market to be “rather steady with a cautious mood” in the coming weeks. However, BFA warned that the “unjustified rise of speculative grade stocks” could enhance risk on the market.
The stock market received a boost from the announcement in Riyadh last week from Prince Alwaleed bin Talal, chairman of Kingdom Holding Company, that he would invest more than SR10 billion in the Saudi stock market and the real estate sector. Of the total amount, SR5 billion will be invested in local companies.
The index gained over 100 points on Wednesday and 53.36 points in a week.
The stock market turnover, however, rose slightly to SR42.69 billion last week from SR41.39 billion in the previous week.
Jouff Agriculture was most active by value last week at SR2.42 billion, followed by Aldrees Petroleum & Transport Services Co. at SR1.98 billion, Saudi Fisheries at SR1.66 billion and Hail Agriculture at SR1.65 billion.
Saudi Fisheries was top gainer last week as its shares jumped 59.61 percent to SR81 and Al-Babtain Power & Telecommunication Co. shares rose 31.48 percent to SR71.
Shares in Saudi Basic Industries Corp. (SABIC) edged higher by 3.55 percent to SR102.
The Saudi bourse was the major loser among GCC stock markets in January, according to a report by the Jeddah-based GulfBase.com. “Six of the Gulf’s seven stock exchanges suffered losses in January,” GulfBase.com said.
GulfBase.com GCC index was also down 6.40 percent in January. The only gainer last month was Oman stock market. The Omani stock index gained 3.38 percent.
Arab stock markets retained their cautious note last week despite good profits achieved by most of listed firms in 2006, and portfolio managers said yesterday they expected investors to turn to blue chip companies with proven earnings.
They attributed the failure of Arab bourses to rebound particularly in the Gulf region, mainly to “disappointment” on the part of investors as to the delay in announcing dividends and to “psychological impact” due to the security situation in the area in the light of the ongoing standoff between the West and Iran over Teheran’s nuclear program.
“I believe the performance of Gulf stock markets reflects several factors — the 2006 results, declining oil prices on the world market and security developments in the region,” Wajdi Makhamreh, deputy CEO of the Amman-based Osoul Brokerage Co., told Deutsche Presse-Agentur (DPA).
“We also cannot exclude the movement of funds across the area as many investors are trading at several bourses at the same time,” he said.
Jordanian shares continued their rebound for the third week in a row, buoyed by “strong demand particularly from Gulf and other foreign funds”, Makhamreh said.
“The market was led by the Arab Bank amid rumors that foreign strategic partners planned to step in to buy a stake in Jordan’s top banking establishment,” he added.
The all-share price index of the Amman Stock Exchange gained 2.03 percent last week, closing at 6,254 points, its highest level in five months, from 6,129 points in the previous week, according to the ASE weekly report.
Qatar and Kuwait stock exchanges came in terms of losses after the Saudi bourse with declines of 9.8 percent and 3.5 percent respectively, it added.
In Kuwait, the KSE all-share price index closed marginally higher last week at 9,712 points, compared with 9,704 points previous week. “Trading reflected caution on the part of investors, who came under pressure of dividend distributions as well as political and security changes in the region,” the Joman Center for Economic Consultations said in its weekly report.
The all-share price index of the United Arab Emirates bourses of Dubai and Abu Dhabi shed 2.9 percent last week, closing at 4,010 points, down from 4,128 points in the previous week.
