26/03/2011
TASI climbed 4.8 percent closing hight at 6,362.40 points
$130bn Saudi package to spur regional markets
Arab stocks rallied strongly last week deriving momentum from the massive spending package unveiled last week by the Custodian of the Two Holy Mosques, King Abdullah, financial analysts said on Friday.
The Tadawul All Share Index (TASI) of the Arab world’s largest bourse climbed 4.8 percent on weekly basis, to close at a four-week high of 6,362.40 points.
On a week-to-week basis, the sector activity was all positive.
The gaining sectors ranged from 3.53 percent by the telecommunication and information technology sector to 7.41 percent by the building and construction sector, the Financial Transaction House (FTH) — licensed by the Capital Market Authority — said in its weekly market commentary.
The stock market turnover for the week dropped to SR17.98 billion as compared to SR29.43 billion in the previous week.
The top gainers for the week were the Al-Ahlia Insurance, which closed 20.44 percent higher at SR27.10 and the Saudi Cable Company surged by 17.69 percent to SR13.30.
The top losers for the week, on the other hand, were the Anaam International Holding Group and the Etihad Atheeb Telecom losing 6.39 percent and 2.23 percent respectively, the FTH report said.
Anqariexpected the stability of the stock exchange to continue until the release of the first quarter results, ”when everything will change and the market will decide its new direction”.
They believed that the $130-billion Saudi plan would continue to have a positive impact on regional markets, particularly in the Gulf region.
”I believe investors do now take into consideration these huge investments that will last for several years as a result of the marathon Saudi public spending,” Riyadh-based Saudi analyst Mohammad Anqari said.
”This will positively affect regional markets and convince people with money invested abroad to return home,” he added.
Anqari expected the sectors of contracting, construction, real estate and banking to be the key beneficiaries from the huge Saudi spending package.
Saudi shares responded positively to the Saudi plan, led by the cement and retail sectors.
