JEDDAH, 31 December 2007 -- As the year 2007 is drawing to a close, the Saudi stock market fell 1.83 percent yesterday but is still higher by 41.77 percent so far this year after falling over 52 percent in 2006. The Tadawul All-Share Index (TASI) was down 210.03 points at 11,246.85 yesterday after rising slightly on Saturday.

On recent TASI's surge, technical analyst Bassam Al-Obaid said this is the third time the index was trying to cross the 11,700 barrier, adding that last year it had failed to cross it twice in August and September. "If the market crosses this barrier before the beginning of 2008, the next target will be 13,500," he said. Obaid expressed his optimism about the market. "All indicators support the market's upward trend," he said and expected that the index would cross 20,800 before the end of 2008 if there was no major political changes affecting the market."

Saudi Basic Industries Corporation (SABIC) and its affiliate Saudi Arabia Fertilizers Co. (SAFCO) weighed heavily on the market as SABIC's shares dropped 3.15 percent to SR199.50 when its board of directors yesterday decided to recommend an increase in the company's capital from SR25 billion to SR30 billion by granting one bonus share for every five shares held.

SAFCO shares also plunged 4.95 percent to SR196.75 as the company plans to offer 1-for-4 bonus share issue to shareholders and SR2 in dividend for the second half of 2007.

Aldrees Petroleum & Transport Services Co. shares declined by 5.92 percent to SR67.50, Saudi Arabia Refineries Co. by 5.83 percent to SR238.25, Alkhaleej Training and Education Co. by 5.41 percent to SR170.25, Saudi Kayan Petrochemical Co. by 5.40 percent to SR26.25 and Jabal Omar Development Co. by 5.30 percent to SR26.75.

Shares of the newly listed Dar Al-Arkan Real Estate Development Co. increased 1.32 percent to SR76.50 yesterday after closing at SR75.50 on the first day of trading on Tadawul on Saturday. Dar Al-Arkan, which is trading in the services sector, was most active by value as over SR2.47 billion worth of shares changed hands yesterday.

In the banking sector, shares of Banque Saudi Fransi increased by 3.28 percent to SR110 and The Saudi Investment Bank by 0.41 percent to SR60.25 while shares of all other banks fell yesterday.

Saudi Electricity Co. (SEC) shares edged lower by 3.17 percent to SR15.25.

In the telecom sector, shares of Saudi Telecom Co. (STC) dropped 1.44 percent to SR85.50 yesterday.

Saudi Arabian Cooperative Insurance Company (SAICO) shares jumped 6.22 percent to SR145 and The Mediterranean & Gulf Insurance & Reinsurance Co. by 2.70 percent to SR57.

The stock market turnover was over SR12.99 billion as shares of 19 companies were in positive territory while 87 companies were in the red out of 109 companies traded yesterday.

BMG Index Turnover Up 7.4%

The BMG Saudi Index could not maintain its positive performance in yesterday's trading session, declining 3.1 percent, losing 20.03 points and closing at 616.79. The total market turnover also switched performance, although turnover increased, reaching SR3.6 billion ($951 million), up by 7.4 percent from SR3.3 billion ($885 million) registered in Saturday's trading session.

Following their performance on the last session, three out of four sectors ended the day on a negative note. The insurance sector was only gainer, adding 4.27 points to rise marginally by 0.4 percent. All the other sectors moved backward, and the worst performer of all was the industrial sector, which fell by 3.3 percent after being the best performer on Saturday's session. The services and the agricultural sectors incurred losses of 2.5 percent and 2.3 percent, respectively, on the back of a share slump recorded by all of their constituent shares.

Yesterday's session saw a fall in the prices of 27 shares, whereas only 2 gained more ground and one share remained static. The best performer was MedGulf, whilst the worst was Saudi Kayan.

By Khalil Hanware

© Arab News 2007