JEDDAH, 2 January 2006 — The first trading day of 2006 brought cheer to Saudi investors. After surging by 103.66 percent last year, the Tadawul All-Share Index (TASI) began the new year with a bang. The index jumped 260.67 points or 1.56 percent to close at 16,973.31 yesterday. All indices increased yesterday. The Banking index soared 1,173.93 points to 41,939.99 as shares of major banks made hefty gains. Bank AlJazira shares rose 7.75 percent to SR1,710, followed by Al-Rajhi Banking and Investment Corp. by 7.20 percent to SR2,905, Banque Saudi Fransi shares by 4.67 percent to SR1,413, The Saudi Investment Bank by 4.59 percent to SR1,019.75 and Saudi Hollandi Bank by 4.04 percent to SR1.082.
However, shares of The Saudi British Bank dropped 3.03 percent to SR1,600 and Samba Financial Group’s shares fell 1.10 percent to SR964.25, despite reporting yesterday that it has proposed a SR14 dividend for 2005.
The Industrial Index rose slightly to 41,152.41 despite fall in share prices of bellwether Saudi Basic Industries Corp. (SABIC). Its shares closed lower at SR1,580 yesterday. Sahara Petrochemical shares also edged lower to SR640.25.
Saudi Arabia Refineries Co. was up 10 percent to SR3,713.50, Saudia Dairy and Foodstuff Co. (SADAFCO) was up by 6.79 percent to SR720 and Arabian Industrial Development Co. edged upward by 4.33 percent to SR529.75.
SADAFCO was most active by value as its shares worth SR1.64 billion changed hands yesterday. Saudi Cable Company shares dropped 3.78 percent to SR375.25 yesterday.
The cement sector made handsome gains yesterday. Eastern Cement shares jumped 10 percent to SR896.50 and Yamamah Cement by 9.99 percent to SR2,573.25.
The services sector showed mixed performance yesterday. Shares of Saudi Industrial Export Co., the National Shipping Company of Saudi Arabia and Jarir Marketing Co. rose while shares of Saudi Real Estate Co., Al-Mawashi Al-Mukairish United Co. and Al-Baha Investment & Developmenht Co. declined.
Saudi Electricity Co. shares rose slightly to SR146 yesterday.
In the telecom sector, shares of Saudi Telecom Co. (STC) rose 1.40 percent to SR941 and Etihad Etisalat by 3.43 percent to SR724. The National Company for Cooperative Insurance (NCCI) shares gained 2.71 percent to SR721. Shares of Bishah Agriculture edged higher by 7.52 percent to SR1,130 and National Agriculture Development Co. by 4.36 percent to SR670, whiles shares of Gizan Agriculture dropped by 2.56 percent to SR380 and Tabuk Agriculture by 1.81 percent to SR433 yesterday. The value of traded shares crossed SR26.63 billion yesterday.
Meanwhile, the Yanbu National Petrochemicals Company (Yansab) initial public offering (IPO), which closed on Thursday, saw the largest number of subscribers, reflecting the strength of the economy and attraction of Saudi stock market.
According to Dr. Abdul Aziz Al-Zoum, spokesman of the Capital Market Authority (CMA), 48 percent of Yansab share subscribers used electronic facilities such as the Internet and ATMs to buy shares of the Yanbu-based petrochemical company. He said the IPO was a big success.
