JEDDAH/AMMAN, 27 October 2007 — The Saudi market showed strong performance last week after reaching low ebb during the fasting month of Ramadan. The financial results of some of the major listed companies also weighed heavily on the stock prices.
The Tadawul also successfully launched the new trading platform last Saturday.
The Tadawul All-Share Index (TASI) edged higher 3.75 percent last week, closing at 8,209.23 points compared to previous week’s closing at 7,912.45. TASI is currently 3.4 percent higher than the year’s start.
The Riyadh-based Bakheet Investment Group (BIG) said in its weekly report, the market apparently drew momentum from the announcement by the Saudi Basic Industries Corp. (SABIC) that it had attained solid profits for the fifth quarter in a row.
The BIG expected solid financial ratios of blue chips to provide an “incentive” to the Saudi market to move forward.
SABIC has reported a net profit of SR20.2 billion for the first nine months of this year, an increase of 42 percent compared to the same period last year. For the third quarter of 2007, SABIC’s profit increased 37 percent to SR7.4 billion from SR5.4 billion in the same period last year. SABIC’s shares gained 3.33 percent last week to SR139.50.
Shares of Saudi Telecom Co. (STC) shares also increased 3.83 percent to SR67.75 last week despite the firm posted its fifth consecutive fall in profit in the third quarter. STC’s net income in the three months to Sept. 30 fell 2 percent to SR3.14 billion, compared with SR3.21 billion in the year-earlier period.
Etihad Etisalat (Mobily) shares jumped 9.49 percent to SR75 last week it announced 43.3 percent increase in its third quarter profit to SR311 million.
The insurance sector also dominated trading last week. Shares in Saudi United Cooperative Insurance Co. jumped by 35.71 percent to SR66.50, the Mediterranean & Gulf Insurance & Reinsurance Co. by 28.38 percent to SR47.50, Gulf Union Cooperative Insurance Co. by 19.44 percent to SR53.75 and Arabian Shield Cooperative Insurance Co. by 18.85 percent to SR56.75.
However, SAAB Takaful shares plunged 18.24 percent last week to SR139.
The Saudi stock market turnover crossed SR32 billion last week.
Arab stock markets are expected to score fresh gains in the coming couple of weeks, buoyed by abundant liquidity and strong oil prices, financial analysts said yesterday.“We believe that regional stocks are moving toward new highs as investors restore confidence in markets in the light of good third quarter results, abundant liquidity and adamantly soaring crude prices on world markets,” Nizar Taher, head of brokerage at the Jordan Ahli Bank, told Arab News.
“I think the bullish sentiment that dominates Arab bourses these days can be attributed mainly to the advent of foreign funds and the huge surplus petrodollars which are expected to accrue to oil-rich Arab countries this year,” he added.
Jordanian shares also scored fresh gains last week for the second week in a row, with foreign funds entering the market, Taher said. “Foreign liquidity, particularly from the Gulf region, is targeting blue chip stocks mainly the Arab Bank,” he added.
The all-share price index of the Amman Stock Exchange climbed 3.25 percent last week, closing at 6,713 points from 6,485 points previous week, according to the ASE weekly report.
Kuwait’s KSE all-share price index fell marginally to close at 13,096 points mainly due to profit-taking moves fueled by local politics, analysts said.
The United Arab Emirates stocks rallied strongly last week for the sixth consecutive week, propelled by foreign demand and third quarter results.
The UAE all-share price index of the Dubai and Abu Dhabi exchanges gained 1 percent last week, closing at 5,380 points compared with previous week’s close at 5,076 points.
The Gulfbase GCC Index also increased by 2.15 percent to 5,959.09 points last week. The value of GCC traded shares soared 53.71 percent to $20.21 billion and volume jumped by 22.95 percent to 9.93 billion shares.
