The two new IPOs for Abdullah Al Othaim and Halwani Brothers which launched yesterday have also contributed to the fluctuations in the market.
Abdullah Al Othaim Co has launched 6.75 million shares priced at SR40 per share, while Halwani Brothers launched 8.5 million shares priced at SR20 per share.
The total value of the two IPOs is estimated at SR500m which will be withdrawn from the market and is expected to put pressure on the index.
United Insurance Company also listed yesterday in the market and registered SR38.50 before closing at SR29.50. It opened at SR37 compared to its nominal value of SR10.
United Insurance Company traded 13.5 million shares valued at SR426.2m out of total trading of SR9.5bn.
According to financial analysts, the continuous IPOs are putting huge pressure on the index, preventing it from moving upward or breaking the 10.000 points barrier, which the market already broke last month but failed to stay above.
The market kept fluctuating today after pressure from the banking and telecom sectors, which later shifted to the petrochemical sector led by Sabic.
The index fell 1% after the decline of all major industry sectors, especially banking, which saw the decline of all 10 listed shares including Riyadh Bank by 1.4%, Inmaa by 1.3% and SABB by 1%.
The telecom sector fell too; including Zain which continue to fall, apparently affected by Hermes recommendation which set its fair price at between SR12 and SR17.
Zain slumped by 3.8% hitting SR25.25 despite trading 33.6 million shares out of total traded shares of 234 million shares.
The petrochemical sector benefited from the Energy Summit, after all major shares rose, led by Sabic which rose by 0.33%.
Petrorabigh registered a record rise by 3.6% dominating 10.5% of the total market trading with a value of SR1bn. Al Mutaqademeh and Yansab rose by 4.3% and 2% respectively.
Despite a falling start, Al Bakheet Financial Group is expecting the market to witness a positive week following expectations for the H1 profit, which will start soon. The 2008 H1 profits will be the guiding factor for the market according to Al Bakheet Financial Group.