JEDDAH, 4 November 2007 -- The Saudi stock market made solid gains yesterday as investors slowly regained confidence. The Tadawul All-Share Index (TASI) is heading toward 9,000 points as it closed 189.95 points, or 2.2 percent, higher at 8,811.40 yesterday.

The banking index surged 4.08 percent as shares of major banks increased sharply yesterday. SABB shares gained by 5.55 percent to SR114, Bank Albilad by 4.86 percent to SR37.75, Banque Saudi Fransi by 4.34 percent to SR78 and Al-Rajhi Bank by 3.96 percent to SR98.25. Arab National Bank shares soared by 8.47 percent to SR96, Bank Aljazira by 6.40 percent to SR54 and Riyad Bank by 3.25 percent to SR63.50.

The insurance sector suffered badly yesterday. Shares of AlAhli Takaful Company fell 3.83 percent to SR156.75, Saudi United Cooperative Insurance Company by 3.39 percent to SR64, Arabian Shield Cooperative Insurance Company by 2.96 percent to SR57.25 and Saudi Arabian Cooperative Insurance Company by 2.47 percent to SR78.75.

Shares of only four insurance companies -- Tawuniya (formerly the National Company for Cooperative Insurance), Malath Cooperative Insurance and Reinsurance Company, Saudi IAIC Cooperative Insurance Co. and Allied Cooperative Insurance Group -- were in positive territory.

Saudi Basic Industries Corp. (SABIC) shares edged higher by 1.51 percent to close at SR150.75 yesterday. The company announced yesterday that it had decided against taking part in a $1.5 billion Mauritania iron project where it had agreed earlier to invest $266 million for a 35 percent stake.

Saudi Kayan Petrochemical Co. was the top gainer yesterday as its shares jumped 9.83 percent to close at SR16.75. Kingdom Holding Co. shares also surged 9.09 percent to SR12.

Out of 105 companies traded yesterday, shares of 68 companies increased while 24 companies were in the red.

The stock market turnover was over SR9.88 billion yesterday.

Muhammad Al-Anqari, an investment expert, said important sectors in the Saudi share market exhibited healthy growth rate with the publication of the third quarter results. The reports also showed stability and increasing profits in sectors such as telecommunications and increased sales in the cements and petrochemical sectors.

The banks could also increase gains from the commission from financial brokerages. All the indications are that most sectors would offer profits ranging between 10 percent and 15 percent compared to last year.

He also believed that the proposed restructuring of the share market regulations by the Capital Market Authority (CMA) would also boost the market.

Muhammad Al-Khalidi, a financial analyst, said an overall view of the general index showed that the downward trend has stopped with the market becoming stable and revived after the fall in 2006.

The stock market also performed well in October. The TASI closed at 8,621.45 points (highest close level during the month) after rising 788.03 points at the end of October at a growth rate of 10.06 percent over the close of the previous month. On an YTD basis TASI registered a positive return of 8.67 percent.

According to a monthly report for October released by the Saudi Stock Exchange (Tadawul) on its website yesterday, total equity market capitalization at the end of October 2007 reached SR1.46 trillion ($389.72 billion), increasing by 9.90 percent over the previous month.

The total value of shares traded in October dropped by 26.95 percent compared to the previous month to reach at SR108.49 billion ($28.93 billion).

The Tadawul report said the total number of shares traded reached 2.71 billion in October compared to 3.12 billion shares for the previous month, decreasing by 13.08 percent.

The total number of transactions executed during October declined 38.22 percent to reach at 2.73 million compared to 4.42 million trades for the month of September.

In October, Al-Ahlia Insurance Co. was listed with a paid up capital of SR100 million divided into 10 million shares. The company offered 4 million shares at SR10 per share.

There were three new initial public offerings (IPOs) last month:

• Arabia Insurance Cooperative Co. offered 8 million shares (40 percent of its issued shares) at a price of SR10 per share.

• Al Sagr Company for Cooperative Insurance offered 8.4 million shares (42 percent of its issued shares) at a price of SR10 per share.

• Trade Union Cooperative Insurance Co. offered 10.5 million shares (42 percent of its issued shares) at a price of SR10 per share.

Khalil Hanware

© Arab News 2007