Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi Stocks Shun Global Markets Slump   Join our daily free Newsletter

MENAFN - Arab News - 12/08/2007

No. of Ratings : 0
Add to Mixx!


(MENAFN - Arab News) JEDDAH, 12 August 2007 — The Saudi stock market fell only slightly yesterday despite the heavy losses in the global stock markets on Thursday and Friday amid fears of widening economic crisis. The local market was closed on Thursday and Friday for regular holidays.

After rising 2.34 percent last week, the Tadawul All-Share Index (TASI) declined slightly 4.65 points to 7,710.97 yesterday. TASI is still down 2.80 percent so far this year.

Experts, however, wonder whether the global meltdown will have a ripple effect on the Saudi economy and an extension on the stock market.

Out of 98 stocks traded, 44 were in positive territory while shares of 30 companies dropped. Over SR6.39 billion worth of shares changed hands yesterday.

The banking index was down 7.34 points as shares of major banks fell yesterday, with the exception of Banque Saudi Fransi and SABB which edged higher by 1.45 percent and 2.67 percent, respectively.

Malath Cooperative Insurance and Reinsurance Co. was the top gainer as its shares jumped 10 percent to close at SR71.50 yesterday. The Mediterranean & Gulf Insurance & Reinsurance Co. (MedGulf) shares gained 5.39 percent to SR44.

According to a report in a local newspaper, when there is an unjustifiable rise in the stock prices, the Capital Market Authority (CMA), the stock market regulator, demands an explanation from the companies. The stereotype reply from the companies is that "the company has no important development or information or any thing that concerns the shareholders currently. Last month about seven companies replied in the above stated manner though the shares of these companies were showing a tendency to rise steeply. Six of such companies were in the insurance sector in July. All the companies are new and they could not have generated any important developments.

This also makes one wonder if such inquiries for the CMA has any use. The only loser in the insurance sector yesterday was Saudi United Cooperative Insurance Co. (Walaa Insurance) as shares dropped 1.43 percent to SR69.

Shares in Saudi Telecom Co. (STC) fell 0.36 percent to SR68.75 and Etihad Etisalat by 1.15 percent to SR64.50.

Shares in Saudi Real Estate Co. dropped 5.81 percent to SR40.50. Shares in the newly listed Kingdom Holding Co. also fell 2.08 percent to SR11.75.

Saudi Basic Industries Corp. (SABIC) shares declined slightly to SR124.75.

Meanwhile, the board of directors of Anaam International Holding Group Co. has submitted an application to the Ministry of Commerce and Industry to assign a date in holding an extraordinary meeting of the general body as the first step toward a reentry to the bourse. The company's trading in the Saudi stock market was suspended eight months ago. The company has also expressed willingness to reduce capital from SR1.2 billion to SR109 million and its shares from 120 million to 10.9 million.


  MENA News Headlines

Click to Apply



Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help