| 26 Apr 2008 |
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Rising Oil Prices, 1st Quarter Results Boost Stocks
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JEDDAH/AMMAN, 26 April 2008 -- Rising oil prices and quarterly corporate results, particularly of blue chip firms, were apparently behind a sustained recovery at the Saudi stock exchange last week.
The Tadawul All-Share Index (TASI) gained 1.28 percent last week, closing at 9,754.10 points from 9,630.37 points in the previous week.
TASI is currently 11.6 percent lower than the year's start.
The weekly report by Riyadh-based Bakheet Investment Group (BIG) attributed last week's gains mainly to a 10-percent growth in quarterly profits of the petrochemical conglomerate, the Saudi Basic Industries Corp. (SABIC), as well as to first quarter profits announced by the Saudi Telecom Co. (STC) and Mobily (Etihad Etisalat), which grew by 11 percent and 30 percent, respectively.
"We expect the market will react positively once investors digest the financial statements" released by listed firms about their performance in the first quarter, the BIG said.
The stock market turnover increased to SR59.66 billion last week compared to SR39.55 billion in the previous week.
Shares in Red Sea HousingRed Sea Housing
surged 32.83 percent to SR88, while National Agriculture Development Co. (Nadec) was the top loser last week as its shares plunged 26.98 percent to SR46. Meanwhile, the extraordinary general assembly of Nadec shareholders approved on Tuesday the capital increase through bonus shares.Last week, the Capital Market Authority (CMA) turned down Saudi Industrial CompanySaudi Industrial Company's (SIDC's) request to increase its capital from SR400 million to SR784.300 million for the purpose of acquisition of all assets and properties of Etab International Company, against the issue of 38.43 million new shares at SR11.25 each.
Arab stocks stand to gain from the twin factors of surging oil prices and company results in the coming few weeks, financial analysts said yesterday. "We believe regional markets will find support from soaring oil prices and the first quarter results particularly of blue chip companies," an Amman-based portfolio manager told Arab News.
"Our analysis depends in the first place on the existence of huge amounts of liquidity mainly surplus petrodollars which seek investment outlets," he said.
The all-share price index of the Amman Stock Exchange went up 1.0 percent last week, closing at 8,739 points compared with the previous week's close at 8,652 points, according to the ASE weekly report.
Kuwait's KSE all-share price index shed 1.2 percent, closing week at 14,600 points from 14,774 points previous week.
The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi gained 1.0 percent, closing at 6,210 points from 6,054 points previous week.
Egypt's CASE 30 index, which measures the performance of the market's 30 most active stocks, edged higher closing week on Thursday at 11,741 points.
The GulfBase GCC Index also increased by 0.54 percent to 6,931.39 points. The value of GCC traded shares jumped by 38.45 percent to $25.02 billion and volume rose 33.56 percent to 6.85 billion of shares.
By Khalil Hanware & Abdul Jalil Mustafa
© Arab News 2008
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