JEDDAH, 22 March 2007 — The Saudi stock market tumbled 2.53 percent yesterday, the biggest one-day drop in 10 weeks, despite the announcement by the Council of Ministers on Monday of the establishment of the Saudi Capital Market Company with a capital of SR1.2 billion.
The Tadawul All-Share Index fell 222.61 points to 8,560.82. Out of 86 companies traded, only shares of five companies rose while shares of all other companies declined yesterday.
All indices were in the red.
The banking index was down 278.57 points at 23,279.96 as shares of Saudi Hollandi Bank and Bank Albilad were in positive territory, while shares of all other banks dropped yesterday.
In the industrial sector, shares of Almarai Company rose 3.43 percent to SR98, while all other companies suffered a fall in prices. Shares of Saudi Basic Industries Corp. (SABIC) edged lower by 2.72 percent to SR125.
The top gainer yesterday was Hail Agriculture. Its shares jumped 4.04 percent to SR58, follower by Saudi Real Estate Co. by 3.50 percent to SR51.75.
Al-Babtain Power & Telecommunication Co. plunged 10 percent yesterday to SR126 and 4.95 percent on Monday. Its shares rose 7.13 percent on Sunday.
In the Telecom sector, shares of Saudi Telecom Co. fell 2.65 percent to SR73.50 and Etihad Etisalat by 3.12 percent to SR62.
Over SR22.76 billion worth of shares changed hands yesterday.
Meanwhile, the consultative Shoura Council is expected to discuss addition of a new article to the Capital Market Authority Law to regularize premiums charged by some companies during the initial public offerings (IPOs). The measure aims at protecting the interests of shareholders and preventing duplication while fixing premiums. Shoura member Muhammad Al-Quwaihes made the proposal, which will be discussed by the 150-member body on Monday.
Dr. Abdul Rahman Al-Tuwaijri, acting chairman of the Capital Market Authority, will open a forum on April 17 on regularizing financial and banking companies. The seminar is organized by the Saudi Legal Center for Training in cooperation with the CMA. Dr. Majed M. Garoub, regional secretary-general of the International Federation of Lawyers for the Middle East and chairman of the organizing committee, said the forum would discuss the effect of regulations of banks, insurance firms and financial intermediaries on the economy.
