JEDDAH/AMMAN, 5 April 2008 — Saudi shares were in a consolidating phase last week as traders awaited clues to the performance of listed firms during the first quarter of the year and the application of the market’s new frame and indexes due to start this week.
The Tadawul All-Share Index (TASI) shed 0.54 percent last week to close at 9,367.52 points, down 50.80 points from the previous week.
The TASI is currently 16.2 percent lower than the year’s start.
The Riyadh-based Bakheet Investment Group (BIG) expected the Saudi stock market to be “cautious” in the coming days with investors awaiting the release of first quarter results “which will be the main moving engine for the market in the coming period.”
The stock market turnover dropped sharply to SR27 billion last week compared to SR38 billion in the previous week.
Zain KSA was the most active by value as SR2.68 billion worth of shares changed hands last week.
The Saudi Stock Exchange set to reorganize the constituents of its sectors and increase the number to 15 from eight at present from today.
The CMA, in continuance with its efforts to develop and support investors in the capital markets, authorized four more firms last week to do business in various capacities. The CMA gave licenses to Prudential Jazira Asset Management, Emaar Saudi Financial Services, Addax Securities Saudi Arabia and The National Investor Company.
Last week, the CMA approved amendments to the authorization licenses granted to two firms. Amalgamation of the licensed activities for Al-Bilad Brokerage and Asset Management Company and Al-Bilad Investment Company to be now part of a new single entity, Al-Bilad Investment Company. The CMA also approved the name change of Saudi Swiss Securities to Credit Swiss Saudi Arabia and authorized it to conduct dealing as agent, as principal, and underwriter, managing, arranging, advising, and custody in the securities business.
Volatility and speculation are expected to reign at Arab stock markets in the coming couple of weeks, as investors monitor first quarter results and other moving factors, financial analysts said yesterday.
“We expect regional markets to remain volatile in the coming few weeks pending the release of first quarter results,” Wajdi Makhamreh, deputy CEO of the Amman-based Sanabel International Brokerage, told Arab News.
“I believe the improving performance at international markets and the adamantly soaring oil prices will reflect positively on Arab bourses, particularly in the oil-rich Gulf region,” he said.
Makhamreh expected investors to stick to the “hit-and-run approach” as speculation dominates most of regional markets.
The Amman Stock Exchange was the scene for strong fluctuations last week with strategic stocks — mainly the Arab Bank, the Arab Potash Co., the Jordan Phosphates Mines Co. and the Jordan Petroleum Refinery — leading the movement in both directions.
The ASE all-share price index gained 1.89 percent last week, closing at 8,328 points up from previous week’s close at 8,173 points, according to the market’s weekly report.
The all-share price index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi went up by 1.5 percent, closing week at 5,884 points from 5,796 points previous week. Kuwait’s KSE all-share price index gained 1.2 percent last week, closing at 14,502 points compared with 14,333 points previous week.
Egypt’s CASE 30 benchmark, which measures performance of the market’s 30 most active firms, rose by 2.3 percent last week, to close at 11,372 points from 11,117 points previous week.
The GulfBase GCC Index fell slightly last week to 6,620.96 points. The value of GCC traded shares declined by 11.63 percent to $14.24 billion but volume increased by 9.98 percent to 5.36 billion of shares.
