JEDDAH, 3 March 2008 — The Saudi stock index plunged below 10,000 points for the first time in almost two weeks as shares in 98 companies dropped yesterday. The Tadawul All-Share Index (TASI) closed 306.77 points or 3.01 percent lower at 9,871.14. Out of 114 shares traded, only 12 companies were in positive territory yesterday.
At the end of February TASI closed at 10,291.47 points. The index gained 616.45 points at a growth rate of 6.37 percent over the close of January. On an YTD basis TASI lost 884.49 points or 7.91 percent.
According to the Tadawul report, total equity market capitalization at the end of February increased by 5.96 percent to SR1.85 trillion ($492.44 billion).
The total value of shares traded in February dropped by 34.17 percent over January to SR216.87 billion ($57.83 billion). The total number of shares traded fell by 34.36 percent to 5.30 billion in February compared to 8.08 billion shares traded in January.
The total number of transactions executed during February declined by 21.55 percent to reach 4.94 million compared to 6.30 million trades for the month of January.
There were three new listings in February. On Feb. 4, Arabia Insurance Cooperative Co. was listed (with a paid up capital of SR200 million divided into 20 million shares). The company offered 8 million shares at a nominal value of SR10 per share.
Gulf United Insurance Co. was listed on Feb. 9 with a paid up capital of SR220 million divided into 22 million shares. The company offered 8.8 million shares at a nominal value of SR10 per share.
Al-Sagr Company for Cooperative Insurance was listed on Feb. 10 (with a paid up capital of SR200 million divided into 20 million shares). The company offered 8.4 million shares at a nominal value of SR10 per share.
Mobile Telecommunication Company Saudi Arabia (Zain), Saudi Arabia’s third GSM operator, launched an initial public offering of 700 million shares (50 percent of its issued shares) at a price of SR10 per share from Feb. 9 to Feb. 18.
There were some new inclusions in the Saudi stock index last month. Jabal Omar Development Company, Middle East Specialized Cables Co. (MESC) and Alkhaleej Training and Education Co. were included in the index.
In February, Saudi Industrial Investment Group increased its paid up capital by issuing 225 million new shares (rights issue) at a price of SR10 per share (nominal value), raising its total number of issued shares to 450 million. Al-Rajhi Bank increased its paid up capital by issuing one bonus share for every nine shares held, raising its total number of issued shares to 1.5 billion.
Saudi Hotels & Resort Areas Co. increased its paid up capital from SR500 million to SR690,060,970 by issuing 19,006,097 new shares, raising its total number of issued shares to 69,006,097.
Yesterday, in the banking sector, shares in Bank Albilad dropped 4.72 percent, Al-Rajhi Bank by 4.27 percent and Riyad Bank by 3.52 percent.
Saudi Basic Industries Corp. (SABIC) shares declined by 4.19 percent to SR117.
Rabigh Refining and Petrochemical Co. (Petro Rabigh) shares fell by 5.76 percent to SR49, Yanbu National Petrochemical Company by 4.80 percent to SR49.50 and Saudi Kayan Petrochemical Co. by 2.83 percent to SR25.75.
Saudi Electricity Co. (SEC) shares plummeted 6.55 percent to SR14.25 yesterday. The Cairo-based EFG-Hermes cut its short recommendation on SEC to “neutral” from “accumulate”, and its long-term recommendation to “accumulate” from “buy”.
In the telecom sector, Saudi Telecom Co. (STC) and Etihad Etisalat shares dropped by 1.73 percent and 2.62 percent respectively.
The insurance sector also suffered yesterday. All insurance shares were in the red.
The stock market turnover was over SR9.74 billion yesterday.
Meanwhile, the Capital Market Authority (CMA) said yesterday that it would conduct qualifying tests for employees working at licensed stock brokers and other stock-related service firms.
The first test will cover technical aspects and professional standard of such employees, the CMA said, adding that the tests would be conducted by the Banking Institute. However, it pointed out that executive directors and board members of companies would be excluded from the tests.
The CMA urged licensed stock service firms to register their employees in coordination with the institute, adding that the employees should undergo the tests.
BMG Index Continues to Fall
The BMG Saudi Index continued its negative performance for the second trading day yesterday. The index closed at 538.8 points, down by 3.9 percent. The market turnover followed the index’s downtrend, witnessing a decline of 14.7 percent and ending yesterday’s session at SR4.6 billion ($1.2 billion), compared to SR5.4 billion ($1.4 billion) registered in Saturday’s session.
All of the BMG Saudi Index’s sectors depreciated. The telecommunications sector went down by 1.7 percent, whilst the agricultural, services, industrial, banking, and insurance sectors followed with 2.1 percent, 3.5 percent, 3.9 percent, 4.3 percent, and 4.6 percent respectively.
The best performer in yesterday’s session was Kingdom Holding Co. The Gulf Union Cooperative Insurance Company shares fell by 7.5 percent to SR43.25.
