[2007-10-08]  Saudi stocks drop for 3rd day on share sales to raise cash for IPOs
Saudi Arabian stocks fell for a third day as investors sold shares to raise cash for five initial public offerings. Al-Rajhi Bank, the largest listed bank in the kingdom, led the decline.
The Tadawul All Share Index dropped 0.9% to 7,697.24 in Riyadh as 70 stocks declined, 17 rose and 19 were unchanged.
The measure has dropped 3% this year.
“The market has been weak over the past few days over expected IPOs,” said Ramana Kumar, a senior fund manager at Banque Saudi Fransi in Riyadh.
Saudi Arabia’s Capital Market Authority on Wednesday approved share sales for five companies, including three insurers, as the kingdom seeks to expand the number of publicly traded companies.
The insurers will be sold between October 27 and November 3.
Al-Rajhi sank 2% to 84.25 Saudi riyals. Saudi Basic Industries Corp, the biggest publicly traded maker of chemicals in the world, dropped 1% to 126.25 riyals.
Jazan Development Co, the Saudi Arabian farm developer and fish processor, declined 5.3% to 22.25 riyals. The company said third-quarter net income tumbled 79% to 4.4mn riyals ($1.2mn).
Riyad Bank, a Saudi Arabian bank, added 1.3% to 59.25 riyals. The company said third-quarter net income jumped 10% to 716mn riyals on growth in its main business.
Tabuk Cement Co, the Saudi Arabian cement maker slipped 0.8% to 30.75 riyals. The company said third-quarter net income fell 8.3% to 55mn riyals as sales declined.

Source: © Gulf Times Newspaper, 2007