23/10/2010
Corporate results fail to lift TASI
The Tadawul All-Share Index (TASI) shed 1.15 percent last week, closing at 6,230.15 points.
Saudi stocks ended their second week in the red, responding to the slide of the world's major markets, despite the announcement by the Middle East's top petrochemical conglomerate, the Saudi Basic Industries Corp. (SABIC), that it managed to increase its profits by 252 percent in the first nine months of the year.
"I believe that global markets have left a negative, but unjustified, impact on the Saudi market," the Jeddah-based Saudi analyst Khalid Harethi said.
"Apparently, after the release of quarterly earnings, regional markets started to link up again with world bourses," he added.
On a week-to-week basis, the sector activity was negatively biased with 12 out of 15 sectors closing with losses ranging from 0.49 percent by the Banks & Financial Services sector to 7.86 percent by Building & Construction sector. On the other hand the gaining sectors for the week ranged from 0.64 percent by Telecommunication & Information Technology sector to 1.10 percent by Insurance sector, the Financial Transaction House (FTH) said in its weekly market commentary.
The insurance companies were top gainers last week. Shares in BUPA Arabia for Cooperative Insurance Co. and The Saudi Arabian Cooperative Insurance Co. gained 11.30 percent to SR22.65 and 4.63 percent to SR31.60 respectfully. The top losers for the week on the other hand were Zamil Industrial Investment Co. with a loss of 15.27 percent to close at SR38.30 and The National Metal Manufacturing & Casting Co. losing 13.07 percent to close at SR18.30.
SABIC shares surged 1.11 percent last week to SR90.75 as it announced a 46 percent increase in third quarter net profits to SR5.35 billion over SR3.65 billion in 2009.
Saudi Telecom Co. (STC) shares edged higher by 3.40 percent to SR39.50 as it announced a 38 percent rise in third quarter net profit last week.
The Saudi stock market turnover fell to SR13.28 billion last week compared to SR14.36 billion in the previous week.
The retreat of oil prices in response to receding expectations of world recovery also helped to put downward pressure on regional stocks, they added.
