Saudi stocks: Total market cap exceeds SR2 trillion

Saudi Arabia’s benchmark stock index sustained its upward trend for the second consecutive week, adding more than 300 points further.
Oil price stability is the main reason of market surge.
Another sound reason may be the coming direct foreign investment, which will enable the market to be more liquid. Perhaps, investors react positively the reduction of liquidity risk.
Saudi Arabia is going to open its $532 billion stock market to direct foreign investment during mid June, allowing qualified foreign institutions to buy shares, the Capital Market Authority said on Thursday.
However, except one dip during the week, the Tadawul index continued pacing its way higher throughout the session to close in the green at 9,251.19 points, up 3.36 percent, from its previous weekend close at 8,950.11 points.
The index touched an intra-week high of 9,289.92 and low of 8,940.88 levels, showing a trading range of 349 points last week.
TASI’s year-to-date return crossed 11 percent.
Total market capitalization of Saudi stock exchange reached over SR2 trillion as compared to previous week’s SR1.94 trillion, an increase of 3.23 percent.
All sectors extended weekly gains except Real Estate, which pared 0.63 percent to close at 7,835.88 levels.
Jabal Omar Development Co. with 4.47 percent losses was the single heavyweight in red.
Energy & Utilities made the biggest jump among sectoral indices, soaring up 10.2 percent in a week.
Industrial Investment was another significant advancing sector, which gained 6.87 percent to 8,647.75.
Agriculture, Transport and Banks witnessed between 4-to-5 percent positive change.
Banking sector also contributed 18 percent to the overall market liquidity.
Most of heavyweights marched higher from previous week’s level, with Saudi Electricity Co. surging 11.5 percent, Samba Financial Group 8.53 percent and National Commercial Bank (the kingdom’s biggest lender) 5.59 percent.
There were 124 net advancing issues for the week, a largely strong market breadth.
Share price of Al-Alamiya for Cooperative Insurance rallied to a weekly growth of 17.72 percent to SR77.32, clinching the spot as top gainer among Saudi stocks.
Alamiya has advanced more than eighty percent in one year.
Advanced Petrochemical Company followed it, soaring up 14.7 percent for the week.
Petrochemicals flagship Saudi Basic Industries (SABIC) rose 1.34 percent, closing the week at SR87.2.
Alujain Corporation added 13.35 percent to SR 22.76.
BUPA Arabia for Cooperative Insurance hit a fresh all-time high SR204.75, up 12.55 percent to SR199.76.
General perception of the market participants remained positive; total equity turnover at Tadawul increased to 1.5 billion shares worth SR 39.6 billion.
This turnover reflects a weekly growth of 7.9 percent on volume basis and 17.5 percent in terms of liquidity.
Furthermore, upside-downside volume ratio of 10.7:1 remained largely positive.
Dar Al-Arkan Real Estate with a volume of 259.1 million shares secured its most active status, reflecting a relative market share of 16.9 percent.
While, Alinma Bank with a liquidity of SR 4.9 billion topped the value chart, closing at SR22.86.
The bank advanced over five percent last week.
Most of the major benchmark indices at GCC stock markets ended the week in green, with Dubai Financial Market rose 8.68 percent.