[2008-05-09]  Marketwatch Tasi drops 3 per cent in a week as Saudi woes mount
Saudi Arabia's Tasi index of the largest companies listed on the Tadawul plunged 3per cent this week to pile on the agony for investors.
The Tasi has lost 11.5 per cent of its value since the beginning of the year making it by far the worst performing market in the region.

Heavy selling of banking shares spilled over into other companies in other industries. On Wednesday 7 May, every sector on the Tasi fell.

"Panic selling was seen in banking shares as investors were concerned that Al-Inma Bank's proposed listing would draw liquidity from other banks. Banque Saudi Fransi, Etihad Etisalat, and Arab Nat Bank registered major losses leading the decliners in the market by 5.3 per cent, 5.1 per cent and 5 per cent respectively," said Sico, a Bahraini investment bank.

Saudi British Bank provided the only positive performance in the banking sector gaining 2.7 per cent after it received a buy rating from a local analyst firm.

Telecoms, industrial investment and the hotels sector suffered the worst of the side effects from the panic over banking shares.

Samba, the Saudi bank that gained 19 per cent over the week ending on Wednesday 30 April, lost 4.6 per cent after its shares dropped to SR95 ($25).

The sell off in Saudi Arabia meant that all but one of the region's 10 largest stocks fell over the week.

The only gainer was Zain, the Kuwaiti mobile phone company.

Zain's share price rose 3.5 per cent to finish the week at KD2.98.

The Kuwait Stock Exchange was the region's best performer growing by 2 per cent taking it to 15,056 points.

Elsewhere in the Gulf, the Abu Dhabi market's main activity came when it changed its name.

The Abu Dhabi Securities Market is now called the Abu Dhabi Securities Exchange (ADX).

The ADX finished the week up 0.2 per cent as did the neighbouring Dubai Financial Market.


Source: Copyright 2008 Emap