The Saudi stock market yesterday ended the week near an all-time high, helped by a 1.7% gain in the blue chip shares of Saudi Telecom Co. (STC), Bakheet Financial Advisers (BFA) said.
Tadawul All-Shares Index (TASI) ended at 4,601.11 points, up from its closing at 4,584.26 points on 28 January, its last trading day before closing for a nine-day holiday, according to BFA.
TASI closed at 4,613.56 points on Wednesday, at its highest ever value, driven by a 1.7% increase in STC, amid expectation of the announcement of high profits and dividends to shareholders.
BFA said that STC was expected to announce financial results and the payment of dividends to investors imminently, which would be “the major engine” driving the market next week. The TASI is now up 3.7% since the beginning of January. Trading value during the week reached SR16.7 billion ($4.5 billion), STC being the most actively traded, up from the pre-holiday level of SR13.6 billion ($3.6 billion).
The stock prices of 42 companies rose, the shares of 25 companies declined and three were unchanged. Other blue chip gainers besides STC included the Saudi British Bank, which rose 0.9% for the week. Saudi Basic Industries Corp. and Saudi Arabian Fertilizer Co. suffered the greatest losses, falling by 1.1% and 1% respectively.
With over $142 billion, Saudi Arabia has the largest capital of any Arab stock market, but operates only on an inter-bank basis. The Saudi bourse has been gaining strength since March 2003, driven by strong oil prices that have boosted public revenues and cash flow, which have combined to boost investor confidence.
Source: SPA
