[2008-03-19]  Saudi Stocks Take a Nose-Dive
The Saudi stock index suffered its biggest one-day drop in two weeks as it plunged by over two percent yesterday. The Tadawul All-Share Index (TASI) fell by 202.80 points to 9,455.13. The index dropped 4.47 percent in three days of trading this week.

In the banking sector, shares in Saudi Hollandi bank increased, while all other shares declined yesterday. Samba Financial Group shares dropped by 5.73 percent to SR82.25. Arab National Bank (ANB) shares also fell 5.09 percent to SR65.25 yesterday as the extraordinary general assembly approved on Sunday the capital increase through stock bonus.

ANB consortium with Arab Bank PLC qualified for submitting a binding offer to acquire from 51 to 67 percent of the share capital of Banque du Caire, one of the largest commercial banks in Egypt. Other four financial institutions were also successful in qualifying for bidding to acquire equity stake in Banque du Caire. Final binding offers by the five qualified financial institutions is expected to be submitted during May 2008.

Almarai Company shares fell slightly to close at SR136 yesterday. The board of directors of Almarai has invited its shareholders to an extraordinary General Assembly meeting to be held in Riyadh on March 24. The General Assembly is expected to approve the appointment of Dr. Sami Mohsin Baroom as a board member and representative of the Savola Group to replace Dr. Abdul Raouf Manaa who resigned recently. The recommendation of the board to pay a dividend of SR2.5 per share totaling SR272.5 million for the fiscal year ending Dec. 31, 2007 is likely to get approval during the Riyadh meeting.

In the insurance sector, shares in three companies were in the black while most of the companies were in the red. The three gainers yesterday were — Al-Ahlia Insurance Company, Sagr Cooperative Insurance Co. and Saudi IAIC Cooperative Insurance Co. The stock market turnover was over SR5.64 billion yesterday as shares in 80 companies declined yesterday. Out of 113 companies traded, shares in 18 companies were in positive territory yesterday.

Meanwhile, the Saudi Capital Market Authority (CMA) yesterday amended the license of Ithraa Capital allowing it to conduct dealings as agent, as principal, and underwriter, managing, arranging, advising, and custody in the securities business.



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