The Tadawul in Saudi Arabia registered a strong rebound yesterday, regaining 2.7% of its total weekly losses, which had reached 9.1% or SR136bn of its market value. The biggest stock market in the region, it is trying to get back to previous highs, following a series of sharp declines after the world financial crisis left a negative impact on the region's markets.
Prices rose for 106 companies during trading â€" accounting for most of the market - while trading value improved to SR6bn, with 208 million shares traded. Among the big gainers was Sabic, which traded SR750m and rose 2.3%.
Kingdom Holding, owned by billionaire prince AlWaleed Bin Talal, rose by the maximum limit of 10% after its sharp declines in previous sessions following the world's financial crisis. Its slide was in part because Kingdom owns a considerable stake in Citibank.
During last weekâ€™s trading, its share fell below the nominal value of SR10 and closed yesterday at SR7.70.
Three other shares rose by the maximum limit of 10%, including Cable, Mobily and Food manufacturing company, while insurance firm Saudi Indian Insurance fell by 10%.
The rise of the banking, petrochemical and telecoms sectors pushed the index above the 7,500 benchmark, after falling below 8,000 points last week.
Attractive prices to buy
Share prices among banks rose today, including Arab National Bank by 4.1%, Samba by 0.72% and Al Rajhi 3%.
Elsewhere, Sabic and Safco rose by 2.3% and 5.5% respectively.
The rise in the telecom sector was led by Mobily, following the approval of the general assembly to raise its capital by SR2bn. Mobily rose by the maximum limit of 10% to SR44.90, followed by Zain up 2.2% and Saudi Telecom Company by 2%.
According to Kasb's weekly report, the sharp market decline last week was linked to the turmoil in internationals market and the Lehman Brothers collapse. Kasb expects the Tadawul to rise to around 8,000 points before the start of the Eid vacation.