JEDDAH: The Saudi stock market rebounded yesterday and bucked the regional downward trend, recouping some of the losses incurred from the last three days after investors pulled out in part to new transparency rules which will come into effect on Saturday. Other Gulf stock markets dropped sharply as the dollar’s rally and a rebound in Western stocks lured global investors out of the region.
After falling 3.28 percent on Saturday and 3.55 percent on Sunday, the Tadawul All-Share Index (TASI) surged 2.33 percent or 183.48 points to close at 8,067.62.
The TASI is the worst-performing Gulf benchmark, down 26.91 percent so far this year.
In the banks and financial services sector, shares in Bank Albilad declined 1.84 percent to SR40, while shares in all other companies increased yesterday. Arab National Bank shares jumped by 6.66 percent, Saudi Hollandi Bank by 5.45 percent, Banque Saudi Fransi by 3.30 percent, Riyad Bank by 2.45 percent and Al-Rajhi Bank by 1.60 percent. Saudi Basic Industries Corp. (SABIC) shares surged 3.71 percent to close at SR118.50.
Saudi Cable Co. (SCC) shares also increased 4.48 percent to SR64 after the company bagged two orders. Waheeb A. Linjawi, group president & managing director of SCC has announced that the company has received two purchase orders for supply of cables from two local companies during the last two weeks. One order worth SR85 million and the other SR75 million, reflecting the local companies’ trust in the products of the company besides that the influx of purchase orders to the company bodes a promising future for the benefit of its shareholders.
Alujain Corporation shares fell 1.52 percent to SR32.25 yesterday. Marwan N. Nusair, president of Alujain Corporation, announced yesterday that NATPET PP (a subsidiary of Alujain) Complex in Yanbu has encountered a mechanical failure.
During testing of the complex for start-up, two rotors in the propane dehydrogenation (PDH) plant have been damaged, forcing the plant to postpone the start-up temporarily.
This incident has happened at a time when the plant was ready to start up and achieve production in the first week of August, while the PP plant was ready to receive propylene and begin producing polypropylene. The rotors have been sent out to US and Dammam for necessary repairs.
In the telecom sector, shares in Saudi Telecom Co. (STC) edged higher by 4.31 percent to SR60.50, Etihad Etisalat by 1.24 percent to SR40.75 and Zain KSA by 2.29 percent to SR22.25.
The stock market turnover increased slightly to SR4.71 billion yesterday compared to SR4.51 billion on Sunday.
Meanwhile, the Capital Market Authority (CMA) announced yesterday its approval for Morgan Stanley Saudi Arabia to offer “The Morgan Stanley Saudi Equity Fund” to invest in Saudi equities.
BMG index up 2.1%
The BMG Saudi Index broke the successive decline which has been seen in the previous three trading sessions, with the index rising by 2.1 percent to reach a closing level of 440.39 points. The total turnover, however, fell, by 15.9 percent to reach SR1.8 billion ($473 million) versus SR2.1 billion ($563 million) registered in Sunday’s trading session.
All of the index’s sectors ended the session gaining more ground. The industrial sector was the best performer, rising by 2.7 percent, whereas the following sectors appreciated: Telecommunication and electricity by 2.3 percent, banking by 1.6 percent, agriculture by 1.3 percent, insurance by 0.6 percent, and services by 0.5 percent. Twenty-four shares went up, while only two shares stood still and four depreciated. Saudi Fransi Cooperative Insurance Company was the best performer, rising by a strong 9.7 percent to SR73.25. The worst performer was Malath Cooperative Insurance & Reinsurance Company.
