The BMG Index for the Saudi Arabian stock market had a pretty downward trend for the week. On Wednesday’s close, the index reached 411.09 points compared to 435.8 points close of previous Wednesday, a fall of nearly 5.7 percent or 24.71 points. Simultaneously, with the falling index, and a lack of general positive sentiment in the market, volumes were hit. Total market turnover for all of last week was SR30.9 billion ($8.2 billion). The average P/E ratio on 2006 earnings was 15.6 times, while the price to book ratio was 4.56 times. On a global basis, this is not too expensive, although much depends on the full year 2007 results and the level and quality of corporate earnings growth.
The sectors’ performances followed a parallel downward pattern last week. Compared to the close of the previous Wednesday, the agricultural sector was the biggest loser since it lost 105.8 points to reach a closing level of 837.2 points, with a total trading value over the week of $1.84 billion. The services sector followed with a net loss of 81.1 points to witness a decline of 7.8 percent and trading over the week of $1.82 billion. The industrial sector came in last in terms of highest percentage change with a fall of 5.04 percent, with a total traded value over the week of $2 billion, compared to the previous week of $3.2 billion.
The Advanced Polypropylene Company’s stock, within the industrial sector, was the best performer for last week, with its share price advancing by 13.28 percent to SR36.25. Emaar the Economic City, listed in the Services sector, came in second when even though its share price did not move over the week and closed unchanged at SR15.75. All other stocks witnessed falls.
