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MENAFN - Arab News - 17/08/2009

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(MENAFN - Arab News) The Saudi stock market edged higher slightly on Sunday. The Tadawul All-Share Index (TASI) increased by 16.98 points to close at 5,855.25.

With the market closing slightly positive, the sector movement was also positive on Sunday with only 5 sectors closing negatively, with losses ranging from 0.05 percent in the Real Estate Development sector to 0.50 percent in the Transport sector.

Sector gains on the other hand ranged from 0.02 percent in Building & Construction to 2.02 percent in Cement across 10 sectors. Overall market breadth was however negative, with 52 advancers and 60 decliners giving an AD ratio of 0.87, the Jeddah-based Financial Transaction House (FTH) has said.

Liquidity has stabilized, again coming in at SR3.7 billion on Sunday. "The stagnant market continues, and we look for external news to push the market out of the tight range bound," the FTH said in its daily market commentary on Sunday.

SABB Takaful was the top gainer on Sunday as its shares jumped 9.87 percent to SR61.25 as its rights issue started on Saturday. A number of 24 million new shares are offered through rights issue representing a 240 percent increase in SABB Takaful's shares to 34 million. Shares are being offered at SR12.5 per share. The rights issue offering period will continue for ten working days until Aug. 26.

The offering is open to all SABB Takaful registered shareholders as of the close of trading on Aug.8, 2009. Twelve shares are allocated for every 5 shares held by shareholders on the eligibility date.

Receiving banks for the SABB Takaful rights issue are The Saudi British Bank (SABB), Al-Rajhi Bank, the National Commercial Bank (NCB), Bank AlJazira, and Samba Financial Group.

The insurance sector was mostly in the red on Sunday. Alahli Takaful Company shares plunged 9.90 percent to close at SR186.50. Shares in Saudi IAIC Cooperative Insurance Co. fell by 6.02 percent, Saudi Indian Company for Cooperative Insurance by 3.17 percent, Al-Sagr Cooperative Insurance Co. by 3.08 percent and Al-Ahlia Insurance Company by 2.78 percent.

The Capital Market Authority's (CMA's) board of commissioners on Sunday announced its decision to revoke the license granted to Portfolio Brokerage and Financial Services Company for not fulfilling the requirements and conditions prior to commencing the business.

The CMA had authorized Portfolio Brokerage and Financial Services Company

based on the Capital Market Law to conduct dealing as underwriter, managing, arranging, advising and custody in the securities business on Jan. 31, 2007. However, the CMA said in a statement on Tadawul website on Sunday that despite extending licensing period to commence business, Portfolio Brokerage and Financial Services Company has not fulfilled the requirements and conditions and thus is not in a position to commence the business.

The CMA, in continuance with its efforts to develop and support investors in the capital markets, on Sunday authorized Ewaan Capital to conduct managing, arranging, advising, and custody in the securities business.

It also allowed Barclays Saudi Arabia to conduct dealing as an agent & underwriter, managing, arranging, advising and custody.

Societe Generale Saudi Arabia also received CMA approval to conduct dealing as an agent, managing, arranging, advising and custody in the securities business.

The CMA approved on Sunday the amendment to the business profile of Rasmala Investment Saudi to include dealing as principal, agent, and underwriter, managing, arranging, advising and custody in the securities business.

By Khalil Hanware


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