Sep 02 2007
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Saudi Arabia: Budget Shares Gain 223.08% on Debut
Shares in Budget, described as the largest car rental company in Saudi Arabia, jumped 223.08 percent to SR168. The SR52 share opened at SR250 and reached as high as SR255 before falling to SR162.25 during yesterday's trading. Budget Saudi Arabia began operations in 1978. Since then, it has grown to be the largest car rental company in the Kingdom, with operations in all major cities and towns as well as all major airports.
Supported by a fleet of over 13,000 vehicles and 11 service centers and with over 76 locations, Budget became the market leader in the car rental industry in the Kingdom, the Middle East and Southeast Asia.
The insurance and agriculture sector also suffered heavily yesterday. The insurance index was down 5.50 percent and the Agriculture index was down 5.84 percent. The only gainer in the insurance sector was Allied Cooperative Insurance Group (ACIG). Its shares increased by 10 percent to SR145.75.
Shares of Saudi Electricity Co. (SEC) gained 2.17 percent to SR11.75 yesterday.
In the telecom sector, shares of Saudi Telecom Co. (STC) declined 2.79 percent to SR69.75 and Etihad Etisalat by 2.85 percent to SR68.25.
Saudi Basic Industries Corp. (SABIC) shares fell 0.75 percent to SR131.50 yesterday despite its announcement on Friday about the completion of purchase of GE Plastics from General Electric for a price of $11.6 billion.
Out of 102 stocks traded, only 6 companies were in positive territory while shares of all other companies were in the red. The stock market turnover reached SR12.21 billion yesterday.
Meanwhile, the Ministry of Commerce and Industry stated yesterday that the general assembly meeting of Jabal Omar Development Company, which was scheduled for Aug. 19, was canceled due to the lack of quorum required by the law. It said the meeting should have attended subscribers who hold at least 50 percent of the company's capital.
"All the measures taken with regard to the general assembly meeting were in accordance with the Company Law," the ministry said in a statement carried by the Saudi Press Agency. Jabal Omar won the license showing 873 founder members owning 470 million shares. But on the day of the meeting the company presented a list of 1,023 founding members citing different reasons including sale of shares. But the ministry said it was not allowed to sell shares of the company before publishing its budget, profit and losses for the next two fiscal years.
BMG Index Declines 10.17 Points
BMG Saudi Index started this week by losing 10.17 points on its very first trading day. Compared to Wednesday's trading session, it declined by nearly 2.33 percent to a closing level of 425.58 points. The index turnover also went down to reach SR5 billion (about $1.34 billion) decreasing by 8.5 percent from previous value.
Al-Rajhi bank, which weighs 48.37 percent in the index, contributed to its fall as its price declined by 2.5 percent to SR87.75.
The industrial sector was not only able to save the index from falling but also contributed to its loss of points. Saudi Basic Industries Corp. (SABIC), the maker of this sector, also went down. Nevertheless, it was one of the best performers in the Saudi market on Saturday's session regarding the percentage change of stock's price.
The only positive mover in the industrial sector and in the index as a whole was the Advanced Polypropylene Company which increased by 0.78 percent to reach SR32.25.
The services and agricultural sectors were the main contributors to the downward trend of the index as both of them decreased by 5.69 percent and 7.52 percent, respectively. Both sectors had all their stocks marked with red by the end of yesterday's session.
By Khalil Hanware
© Arab News 2007
© Copyright Zawya. All Rights Reserved.
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