The last week of August saw Saudi Arabia's Tadawul all-shares index hit a new all-time high to close at 4,245.08 points, up by 4.8% for the week.
Bakheet Financial advisers noted that there was an increasing emphasis on speculative companies, particularly in the services and industrial sectors. The leading broker argued that this was pushing stocks to unsustainable levels.
It cited Al Mawashi Al Mawairish United Company as an example which had a very high turnover equivalent to 10 per cent of the entire market turnover value last week. This was almost equal to Saudi Telecom although its market capitalization is less than 0.2% of the total bourse.
Bakheet commented that such rises indicated 'an unhealthy status that could push the market into a corrective move due to these random speculations'.
But blue chips also continued to gain last week. SABIC and SEC both added 8% while STC jumped by 7%. High oil prices continue to underpin investor sentiment.
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Is the Saudi bourse close to the top?
- Saudi Arabia: Saturday, August 30 - 2003 at 11:24
One of Saudi Arabia's top broking houses warned clients that a switch to smaller, speculative stocks my be an indicator that the market is due for a correction.
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Peter J. CooperSaturday, August 30 - 2003 at 11:24 UAE local time (GMT+4)
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