JEDDAH, 30 October 2007 — The Saudi stock index broke the 8,500 barrier yesterday as the market continued its upward march. The Tadawul All-Share Index (TASI) closed 153.10 points or 1.82 percent higher at 8,551.07.
Saleh Al-Sudairy, Saudi economic analyst, attributed the surge in the market to the strong entry of more traders. While the market index crossing 8,300 points was tempting to the traders, it brought the domestic market to the stage of profit taking, said Sudairy.
On the other hand, Khaled Al-Olayan, another market expert, said the robust performance of several companies plus the inclination of investment funds for direct investments in the local share markets have been instrumental in attracting more institutional financing and the consequent positive image of the market.
Shares of Saudi Electricity Co. (SEC) jumped 8.33 percent to SR13. The insurance sector continued to suffer badly yesterday as shares of 13 companies dropped while only two companies were in positive territory.
Shares of Tawuniya, formerly known as the National Company for Cooperative Insurance, which launched its new logo with a mew identity on Sunday, rose slightly to SR126.75. Alahli Takaful Company shares surged 1.98 percent to SR167.
The stock market turnover reached SR8.97 billion yesterday.
Meanwhile, Dar Al-Arkan real estate company, which has a capital of SR5.4 billion, will sell 30 percent of its shares in an initial public offering (IPO) shortly, informed sources said.
They said the Capital Market Authority (CMA) would soon announce the time for the IPO, which is expected to be at the end of this year.
Samba Financial Group has been appointed lead manager and financial consultant for the IPO.
