Tadawul breaks 6.900 benchmark for the first time in 15 months

The financial report issued by General Establishments of Retirement which revealed a SR50bn investment in the Saudi market failed to stop the decline in the market which totalled 3.4% last week.

Shares traded below IPO price

Many shares have been traded below their original IPO price; Budget fell by 7.3% to SR49.10 while its IPO price was SR52, Gulf for Training fell by 2.4% to SR50.75 then fell further to SR48.50 while its IPO price stood at SR50, and Inmaa bank fell 1.7% to SR13.55.

SABB Takaful rose by the maximum limit to SR47.40 after the company announced that it will raise its capital by 300% to SR400m.

The move was seen by analysts as a method to evade more losses, which have reached SR100m, while SABB Takaful rose by maximum limit during trading it closed down by 0.25% at SR43.

Sabic below SR100

Most leading shares fell yesterday while Sabic was trading below SR100 at SR99.25 before closing at SR100 down by 2%.
Sabic has announced that its affiliates like Kayan and Yansab are committed to repaying loans despite world financial crisis.

The prices of 98 firms fell yesterday against only 21 which rose. Total trading value was SR3.4bn and 131.7m shares, while the petrochemical sector saw a sharp declines including Petrorabigh which went down 6.8%, Yansab 6.3% and Kayan 4.1%.

Except, Saudi Hollandi bank and AlBilad which rose by 1% and 0.25% respectively, all banks saw a sharp decline including Samba which fell by 7.7% but closed unchanged and Al Rajhi which went down 3%.
The telecom sector saw collective decline led by Mobily down 3.4%, Zain 2.4% and STC 1.2%.

Rumours dominate the market

According to a report by Kasab Financial Group, the Saudi market has become subject to a crisis of confidence which has been used by traders to spread rumours aimed at personal gains.

Kasab expects that Sabic will post SR21.1bn profits in the first nine months of the year compared to SR20.1bn last year, while Al Rajhi will post SR5.1bn profits compared to SR4.8bn last year and Samba SR3.6bn compared to SR3.8bn last year.