JEDDAH/AMMAN: The Saudi stock market was marked by fluctuations last week, apparently motivated by speculation moves.
The Tadawul All-Share Index (TASI) gained 0.46 percent last week, closing at 6,281.60 points.
TASI is currently 2.6 percent higher than the year’s start.
The Riyadh-based Bakheet Investment Group (BIG) expected investors to keep a close eye on global markets and oil prices in the coming weeks.
“However, there are some concerns emanating from the speculative trading in small shares which might adversely affect the market,” the BIG weekly report said. The group advised investors to “rely on companies’ financial results and expected profit growth and to avoid listening to rumors” in deciding their future positions.
Saudi Arabian Cooperative Insurance Company was the top gainer last week as its shares jumped 24.89 percent to SR71.50, followed by United Cooperative Assurance Co. Its shares surged 23.40 percent to SR38.50.
Shares in Herfy Foods, which started trading on Tuesday under Agriculture & Food Industries sector, increased by 13.73 percent to SR58. Herfy Foods is the first company to join the Saudi stock market in 2010 which now consists of 136 companies.
Al-Baha Investment & Development Co. shares dropped 5.28 percent to SR17.95.
Trading value reached SR12.91 billion last week, down against previous week’s SR15.09 billion.
Arab stock markets closed last week higher, apparently buoyed by annual results, dividend distributions and oil prices, financial analysts said Friday.
However, they pointed out that regional bourses could come under pressure in the coming weeks from geopolitical factors and the growing tension over the Iranian nuclear file.
“I believe stock markets in the region will be affected by geopolitics and the escalating tension over the Iranian nuclear program, given the reported US deployment of missiles in Gulf states,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, said.
He expected the announcement last week about the discovery of a new oil field in Dubai would have a “positive impact” on the Gulf stock markets, particularly the United Arab Emirates shares.
Makhamreh said that crude oil prices, dividend distributions by listed firms and developments at global markets would also continue to represent key driving factors for regional markets.
Jordanian shares fluctuated violently last week due to drastic shrinkage of liquidity and receding confidence that sparked “panic selling” at times, Makhamreh said.
The all-share index of the Amman Stock Exchange shed 0.91 percent last week, closing at 2,508 points, according to the ASE weekly report.
Kuwait’s KSE all-share index gained 0.4 percent on weekly basis, closing at 7,065 points. Kuwaiti shares found support from demand on banking and services stocks, analysts said.
The United Arab shares also kept up their upward trend last week led by Emaar Real Estate Holding, analysts said.
The benchmark prices of the Dubai and Abu Dhabi stock exchanges climbed by 4 percent and 2.9 percent, to close respectively at 1,663 points and 2,705 points.
Egypt’s AGX30 index, measuring the performance of the market’s 30 most active stocks, went up 4.2 percent closing week at 6,979 points.
Meanwhile, according to Kuwait Financial Center’s (Markaz’s) equity research statistics for the GCC (Gulf Cooperation Council) region, of the total 45 companies covered during December, UAE accounted for 43 percent of the total followed by Saudi Arabia (33 percent), and Qatar (9 percent).
UAE had the maximum proportion of listed companies covered in December (14 percent) followed by that in Saudi Arabia (11 percent).
Companies with research coverage accounted for 46 percent of the total market capitalization of GCC key benchmark indices. Further, companies with research coverage in UAE accounted for 70 percent of the emirates’ total market capitalization. Companies with research coverage in Oman declined to 5 percent of the market capitalization in December from 29 percent in November.
The Markaz report, issued last week, said out of the total 70 research notes published in December, 63 percent were rated as “buy”, 24 percent as “hold”, and 13 percent as “sell”. Of all the “buy” rated stocks in GCC, UAE and Saudi Arabia accounted for 55 percent and 27 percent stocks with “buy” rating, respectively.
Qatar had the maximum proportion (80 percent) of research notes rated as “buy” followed by Saudi Arabia (67 percent) and UAE (62 percent). Oman reported maximum proportion (50 percent) of research notes rated as “sell” followed by Kuwait (25 percent) and Saudi Arabia (17 percent). Bahrain had 50 percent of research notes as “hold”, followed by UAE (28 percent) and Kuwait (25 percent).
The GulfBase Index increased by 1.11 percent to 3,704.44 last week. The value of GCC traded shares, however, fell by 14.21 percent to $5.40 billion, and volume declined by 21.87 percent to 4.03 billion of shares.
