Saudi Stock Exchange falls sharply
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Saudi Stock Exchange falls sharply

Saudi Stock Exchange falls sharply

The Tadawul fell sharply yesterday taking away one third of its profits from last week, which reached 5.1%, after its general index fell by 2%.

    Analysts believe that the decline is justified after its strong performance in the last two weeks in which the market gained around 1000 points or 8%.

    The decision taken by the market to let foreigners trade in local shares gave strong support, but not strong enough to push the index above 9,000 points.

    All 15 listed sectors witnessed a decline excepting slight rises for retail and energy.

    Most deals were focused on the three main sectors; Banking, Petrochemicals and Telecoms which have been traditional supporters for the index.

    The prices of 83 companies fell against only 19 rising shares, amid noticeable decline is trading value to SR4.5bn on a volume of 111.6m shares, compared to SR5bn last week.

    The banking sector decline was led by Riyadh Bank which fell by 3.4%, Saudi French Bank by 3.1% and Samba by 1.9% despite a Shuaa Capital report recommending buying the share and setting its fair price at SR85.30.

    The Petrochemical sector witnessed a collective decline with Yansab down 4.6% with an aggregate loses of 9%, while Sabic fell by 4%, losing all its last two week gains.

    Telecom shares also saw a collective decline including Mobily by 3.7%, STC by 2.6% and Zain by 2% despite the launch of its commercial operations last week.

    Meanwhile, Al Hukair continued its upward trend including moving up 0.50%, while electricity, fourth heavyweight share rose up by 2.2%.

    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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