Saudi stocks still heading higher

Investors seem to have started eyeing the corporate financial results for Q1 2004 expected to be publish during the next few weeks, and these results will be the main driving engine for the market trend, according to Bakheet Financial Advisors.

Last week the Saudi stock market continued to gain steadily and the Tadawul All Shares Index crossed the 5,000 point psychological barrier closing at 5,089.64 points on Thursday March 25, a new all-time high.

BFA reports that the index was pushed by the strong surge in the large blue chip stocks Sabic, Samba and Al-Rajhi. These three stocks represent 32% of the total Saudi stock market capitalisation, and rose by 10.4%, 6.2% and 5% respectively with investors optimistic about high profits for Q1 2004.

Moreover, although STC closed the week down by 1.1%, this is rather considered an 'increase' due to the 3% technical fall of the stock for dividends distribution earlier in the week. On the oil front, prices witnessed a moderate retreat this week on rising stock of US crude products, noted BFA.

The TASI was up 2.7% from the previous week and is 14.7% higher than on January 1 2004. Stock Prices of 46 companies were up, while 22 companies were down, and three unchanged.

This is a notable contrast to the Kuwait Stock Exchange which is down around 3% on the year to date. How long Saudi Arabia can decouple market performance from its nearest rival remains to be seen.