Big Saudi investors trigger large scale selling

Analysts described the reaction of traders in the Saudi market as an overreaction.

Tadawul had announced its intention to reveal names two months ago to boost transparency.

'Big' investors started large scale selling operations to decrease their ownership figures, while some of them started to transfer shares into the names of their relatives, which put substantial pressure on the index.
All listed shares fell as a result, causing the market to lose 2.5% at one stage.

Some external factors then intervened and started buying, which left the index to close at 1.2%.

In total, 93 listed firms declined, against only 19 firms which rose amid low trading of SR5.8bn.

Of this, SR1.8bn was for Maaden, which closed up 1%.

All banks declined except Investment bank, Saudi French bank, and Saudi Hollandi bank which rose by 2.4%, 1.5% and 1.2% respectively.
Samba fell sharply by 3%, ending at at SR64.75, after a Global recommendation setting its fair price at SR77.

Petrochemical shares declined too except Sahra Petrochemicals which rose by 1.1%. Sabic fell by 0.38% after the company announced limited impact for the blackout in the Jubail industrial plant.

Saudi Telecom Company registered its highest decline in one session, falling by 4.5%. Mobily lost 1.5%, while Zain rose by 1% after the mother company announced that its profits will reach $3bn for 2008.