JEDDAH, 3 December 2007 — The Saudi stock market kept its upward momentum for the second day running yesterday. The Tadawul All-Share Index (TASI) closed 47.31 points higher at 9,530.84.
Shares of Jabal Omar Development Co., which started trading on Saturday, jumped 8.82 percent on the second day of trading to SR18.50.
The debut of Jabal Omar on Saturday saw a large number of investors queuing at banks, ATMs and other facilities to purchase its shares but the price did not cross SR20 per share. Analysts said investors who had bought the shares were disappointed as they were planning to sell their shares at a higher price. Despite the disappointment of shareholders, the market witnessed exchange of shares worth SR1.3 billion as many small investors wanted to sell their shares at a nominal profit.
Saudi Kayan Petrochemical Co. shares increased by 8.10 percent to SR20 and the National Shipping Company of Saudi Arabia by 7.59 percent to SR21.25.
In the insurance sector, shares of Saudi Arabian Cooperative Insurance Company edged higher by 5.61 percent to SR164.50 and Saudi IAIC Cooperative Insurance Co. by 3.70 percent to SR119.
According to a monthly report for November released by the Saudi Stock Exchange (Tadawul) on its website on Saturday, TASI closed at a level of 9,464.40 points at the end of November, an increase of 842.95 points at a growth rate of 9.78 percent over October.
On an YTD basis, TASI registered a positive return of 19.30 percent. Highest close level for the index during the month was 9,649.93 as on Nov. 25.
The report said total equity market capitalization at the end of November reached SR1.60 trillion ($426.64 billion), increasing by 9.47 percent over the month of October.
The total value of shares traded in November increased by 74.53 percent over the previous month to reach SR189.35 billion ($50.49 billion).
The total number of shares traded increased by 80.71 percent in November to reach 4.91 billion compared to 2.71 billion shares traded in October.
The total number of transactions executed during November surged by 38.90 percent to 3.80 million compared to 2.73 million trades for the month of October.
There were two initial public offerings (IPOs) last month.
According to the Tadawul report, Alkhaleej Training & Education Co. offered 2.4 million shares, 30 percent of its issued shares, at a price of SR65 per share. The offer period was from Nov. 5 to Nov. 11.
Middle East Specialized Cable Co. (MESC) offered 9.6 million shares, 30 percent of its issued shares, at a price of SR46 per share from Nov. 5 to Nov. 12.
There were few new inclusions in the TASI index last month. Allied Cooperative Insurance Group (ACIG), in the insurance sector, was included in the index as the stock close price on Nov. 10. United International Transportation Co. (Budget) and Saudi Arabian Cooperative Insurance Co. (SAICO) were included in the index as the stocks close price on Nov. 17.
Gulf Union Cooperative Insurance Co. was included in TASI as the stock close price on Nov. 25.
The report also said Audi Saudi Arabia joined the Saudi stock exchange to provide financial brokerage services, effective Nov. 27.
In a major move to streamline the Saudi stock market operations, the Cabinet last month approved the board of directors of the Tadawul for a three-year term.
Yesterday, the shares of the Saudi Basic Industries Corp. (SABIC) jumped 2.35 percent to close at SR163.25 after its affiliate Arabian Industrial Fibers Company (Ibn Rushd) announced its decision on Saturday to increase its capital from SR3.55 billion to SR8.51 billion to pay off debts to SABIC and Public Investment Fund (PIF).
In the banking sector, shares of Saudi Hollandi Bank and Al-Rajhi Bank increased by 1.80 percent to SR56.50 and 0.23 percent to SR105, respectively.
Banque Saudi Fransi shares plunged 3.52 percent to SR89 and Riyad Bank by 3.48 percent to SR76.25.
Saudi Telecom Co. (STC) shares fell by 0.66 percent to SR75 and Etihad Etisalat by 0.70 percent to SR70.50.
The stock market turnover also increased to SR9.91 billion yesterday compared to SR8.61 billion on Saturday.
BMG Index Adds 12.7 Points
The BMG Saudi Index added 12.7 points or 2.5 percent yesterday to close at 522.8. In addition, the market turnover experienced an enormous jump by 71.9 percent from Saturday’s turnover to reach SR3.6 billion ($960 million).
All the sectors of the BMG Index collected additional points. The top gainer was the industrial sector with an increase of 2.7 percent. The insurance sector followed with a 2.1 percent increment. The services sector came in third as it moved ahead by 1.5 percent, and finally the agricultural sector with no percentage change witnessed, yet adding 0.03 points.
In yesterday’s session, half of the index’s shares witnessed gains, while 5 stood still and 10 went down.
Food Products Company and Al-Baha Investment and Development Company both recorded a loss of 1.2 percent of their share prices to end the trading session as the worst performing shares.
