[2008-02-08]  Volatile trend continues in Saudi Arabia
The Saudi stock market continued its volatile trend for the second consecutive week as trading value dropped by more than 20 per cent compared with last week.

Insurance sector stocks witnessed gains this week following its weak performance in the past five weeks. On the other hand, prices of blue chips are still relatively low with price earning ratio varying between 12 to 17 times.

Meanwhile, the Saudi Capital Market Authority (CMA) announced that the initial public offer (IPO) of three insurance companies - BUPA Arabia for Cooperative Insurance, United Company for Cooperative Insurance and Saudi Reinsurance Company - will be floated between March 8 and 15.

CMA also announced that trading on Anaam company stocks will resume from Feb. 20 within some controls and procedures established by the authority. It added that the price per share will be adjusted to 181.75 Saudi riyals.

Within the framework of its efforts to offer new investment opportunities to the investors, CMA announced the approval of several mutual funds, including, Bakheet IPO Fund, a unique fund that aims at offering its stocks first to investment funds or to invest in the stocks of publicly traded companies in their first year of listing.

Tadawul All Share Index (TASI) registered 9484.41 points on Wednesday, 15.1 per cent lower than the start of the year. As for trading value, it reached 63.7 billion riyals compared to last week's 78.5 billion.

The shares of Rabigh Refining and Petrochemical Company dominated the trading value at 29 per cent, followed by Saudi Kayan Petrochemical Company at 10 per cent and Arabian insurance Company at four per cent.

The trading values of sectors were as follows: industry (57 per cent), services (18 per cent), insurance (16 per cent), agriculture (3 per cent), banks (2 per cent), communications (2 per cent), electricity (1 per cent) and cement (1 per cent).

The top five gainers were: Arabia Insurance Cooperative Company (555 per cent), Saudi IAIC Cooperative Insurance Co. (58.7 per cent), Malath Cooperative Insurance and Reinsurance Company (28.6 per cent), United International Transportation Company (27.9 per cent) and Saudi Arabian Cooperative Insurance Company (19.9 per cent).

The top five losing firms were: Saudi International Petrochemical Company(-15.2 per cent), Saudi Kayan Petrochemical Company (-13 per cent), Al Ahlia Insurance Company for Cooperative Insurance (-11.7 per cent), Rabigh Refining and Petrochemical Co. (-9.2 per cent) and Aseer Trading, Tourism and Manufacturing Company (-8.5 per cent).


Source: © Al Nisr Publishing LLC 2007.