JEDDAH, 30 September 2007 — Investors are taking very cautious approach in view of the imminent corporate earnings period, which is around the corner. After rising slightly last week, the Saudi stock market fell yesterday. The Tadawul All-Share Index (TASI) dropped 60.79 points to close at 7,868.92. Only the banking index bucked a downward trend yesterday and surged 1.45 percent to 21,277.46.
Banque Saudi Fransi shares increased by 6.85 percent to SR78, Samba Financial Group by 4.04 percent to SR128.75 and Al-Rajhi Bank by 2.03 percent to SR88.
The agriculture sector was worst hit as shares of its companies suffered badly yesterday. The agriculture index plunged 8 percent to 3,894.60.
In the insurance sector, shares of SAAB Takaful soared by 3.29 percent to SR196 and Malath Cooperative Insurance and Reinsurance Co. by 0.76 percent to SR131.75 while all other companies were in the red yesterday. The insurance index fell 3.64 percent to 2,207.60.
Shares of the services sector companies also suffered losses yesterday.
The Saudi Basic Industries Corp. (SABIC) shares dropped 1.38 percent to SR125.50. Alujain Corporation shares edged lower by 5.22 percent to SR31.75.
Dr. Ahmed Bukhari, president of National Petrochemical Industrial Company (NATPET), a subsidiary of Alujain Corporation, announced yesterday that NATPET’s 400,000 tons a year polypropylene complex in Yanbu Industrial City will start production in January. He also informed the shareholders about the availability of trained, qualified manpower ready to operate the complex. “It is worth mentioning that the project has successfully completed twelve million man-hours without any lost time incident,” Bukhari said in a statement put on Tadawul website yesterday.
He added that NATPET board of directors in its meeting held on Sept. 19 approved that NATPET becomes the project company for propylene and polypropylene complex in Yanbu Industrial City.
Out of 104 companies traded shares of only 9 companies increased while 89 companies were in the red. The stock market turnover was SR5.62 billion yesterday.
