JEDDAH/AMMAN, 22 September 2007 — Volatile trading and low volume continued to characterize the Saudi stock exchange last week, and the Tadawul All-Share Index (TASI) gained 0.99 percent, closing at 7,885.52 points up from 7,807.87 points in the previous week.
According to the weekly report of the Riyadh-based Bakheet Investment Group (BIG), “The market’s performance was relatively stable as investors awaited the third quarter corporate results.” The report further said: “Most blue chips showed a fairly sound performance while the telecommunications sector gained 4 percent, retrieving some of its losses suffered during the last two weeks,” it added.
The BIG expected Saudi stocks to show “solid performance” until the publication of third quarter results, which the group said would “decide the direction of the market.”
The stock market turnover, however, dropped sharply last week. The value of traded shares declined to SR27.79 billion as compared to SR43.33 billion in the previous week.
The top gainer last week was Saudi Arabian Amiantit Co. Its shares jumped 18.10 percent to SR34.25. Shares of the National Metal Manufacturing and Casting Co. increased by 7.30 percent to SR73.50 and Saudi United Cooperative Insurance Co. by 5.69 percent to SR65.
Malath Cooperative Insurance and Reinsurance Co. shares plunged 10.32 percent to SR132.50, Gulf Union Cooperative Insurance Co. by 9.09 percent to SR62.50 and SABB Takaful by 3.95 percent to SR158.25.
In the banking sector, shares of Saudi Hollandi Bank fell 8.57 percent to SR48.
Arab stock markets are expected to retain their steady performance in the coming weeks as investors monitor the third quarter results of listed firms, analysts said yesterday.
Regional shares stand to derive momentum from soaring oil prices and the decision by respective central banks to cut interest rates to match similar cuts on the dollar rates by the US Federal Reserve, they added.
“I believe rising oil prices and third quarter results will affect the direction of regional bourses in the coming weeks,” Amman-based analyst Wajdi Makhamreh told Arab News.
“However, I think a state of caution will continue to dominate markets in the coming period due to the political tension emanating from the showdown over Iran’s nuclear program,” he said.
Makhamreh said that “the huge surplus petrodollars, which will accrue to Arab producing countries this year, are expected to seek investment outlets particularly at regional bourses”.
Jordanian shares were volatile most of the week, but the Amman Stock Exchange (ASE) was the scene of a strong rebound on Thursday following the Central Bank of Jordan’s decision to cut dinar interest rates by 50 basis points following a similar cut in the dollar rates.
The ASE all-share price index gained 1.7 percent on Thursday led by the heavyweight Arab Bank and other blue chips.
On weekly basis, the market’s benchmark price rose 1.8 percent, closing week on Thursday at 5,681 points from 5,580 points previous week, according to the ASE weekly report.
Kuwait’s KSE all-share price index gained 1.2 percent last week, closing at 12,925 points compared with previous week’s close at 12,784 points.
The all-share price index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi closed marginally higher last week at 4,375 points from 4,366 points previous week.
The GulfBase GCC Index also increased 0.88 percent to 5,531.13 points last week. The value of GCC traded shares, however, declined by 25.52 percent to $11.93 billion and volume fell by 14.69 percent to 3.87 billion shares.
