03/07/2011
Value of Saudi traded shares surges to SR583.32bn
TASI closig at 6,576.00 points at the end of the first half of 2011
The Saudi stock market showed a positive performance in the first half of this year despite uncertainties due to regional unrest.
The Tadawul All-Share Index (TASI), which closed at 6,576.00 points at the end of the first half of 2011, gained 482.24 points (7.91 percent) over the close of the same period of the previous year, according to a Tadawul statistical report released on Saturday on its website.
The index closed at 6,620.75 points at the end of last year. On a year-to-date basis TASI lost 44.75 points or 0.68 percent. Highest close level for the index during the period was 6,788.42 points as on Jan. 16, 2011, the report said.
Total equity market capitalization at the end of the first half of 2011 reached SR1.31 trillion ($348.66 billion), increasing by 9.1 percent over the end of the same period of the previous year.
The total value of shares traded reached SR583.32 billion ($155.55 billion), increasing by 28 percent over the same period of the previous year.
The report said total number of shares traded reached 27.27 billion shares during the first half of this year compared to 19.74 billion shares traded during the same period of the previous year, increasing by 38.15 percent.
The total number of transactions executed during the first half reached 12.94 million compared to 11.66 million trades during the first half of the previous year, increasing by 10.97 percent.
Number of trading days during first half of 2011 were 128, against 130 trading days during the first half of 2010, the report added.
Commenting on the report, John Sfakianakis, chief economist at Banque Saudi Fransi, said Tadawul’s performance has been volatile recently, but based on the past year the gains have been better than expected. The banking sector is showing stronger profits and it's lending more than last year, he added.
The first-half performance of Tadawul reflects the number of conflicting forces at play in the global and regional economy. The basic indicators as compared to the first half of 2010 are encouraging, both in terms of the index and especially in terms of the volumes which have been under considerable pressure for a long time, Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said.
“Clearly in terms of economic fundamentals, Saudi Arabia is in a stronger position now than it was a year ago. The oil price has recovered and expectations are mounting of increasing demand pressures going forward even if the near-term uncertainties have checked the positive momentum somewhat. At the same time, the new measures unveiled by the government in the spring have underscored the role of government spending as the backbone of Saudi aggregate demand growth even if the global backdrop remains unusually uncertain,” Kotilaine said.
“But the performance of the index during the first half of this year offers a more mixed picture. The fact that the index has rebounded sharply from the lows recorded during the period of regional turmoil earlier in the spring is a good sign.
“But the lack of positive momentum beyond that highlights both growing investor anxiety about the prospects for the global economy as well as some concern about inflation and the potential impact of the new government labor market regulations,” he added.
The commodity boom of the recent years has been dented by worries about Europe, the direction of US economic policy, and the potential impact of monetary tightening in emerging markets, Kotilaine said, adding that this is renewing short-term worries about oil demand and is likely to pave the way for a period of market volatility.
The Saudi stock market showed a positive performance in the first half of this year despite uncertainties due to regional unrest.
The Tadawul All-Share Index (TASI), which closed at 6,576.00 points at the end of the first half of 2011, gained 482.24 points (7.91 percent) over the close of the same period of the previous year, according to a Tadawul statistical report released on Saturday on its website.
The index closed at 6,620.75 points at the end of last year. On a year-to-date basis TASI lost 44.75 points or 0.68 percent. Highest close level for the index during the period was 6,788.42 points as on Jan. 16, 2011, the report said.
Total equity market capitalization at the end of the first half of 2011 reached SR1.31 trillion ($348.66 billion), increasing by 9.1 percent over the end of the same period of the previous year.
The total value of shares traded reached SR583.32 billion ($155.55 billion), increasing by 28 percent over the same period of the previous year.
The report said total number of shares traded reached 27.27 billion shares during the first half of this year compared to 19.74 billion shares traded during the same period of the previous year, increasing by 38.15 percent.
The total number of transactions executed during the first half reached 12.94 million compared to 11.66 million trades during the first half of the previous year, increasing by 10.97 percent.
Number of trading days during first half of 2011 were 128, against 130 trading days during the first half of 2010, the report added.
Commenting on the report, John Sfakianakis, chief economist at Banque Saudi Fransi, said Tadawul’s performance has been volatile recently, but based on the past year the gains have been better than expected. The banking sector is showing stronger profits and it's lending more than last year, he added.
The first-half performance of Tadawul reflects the number of conflicting forces at play in the global and regional economy. The basic indicators as compared to the first half of 2010 are encouraging, both in terms of the index and especially in terms of the volumes which have been under considerable pressure for a long time, Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said.
The commodity boom of the recent years has been dented by worries about Europe, the direction of US economic policy, and the potential impact of monetary tightening in emerging markets, Kotilaine said, adding that this is renewing short-term worries about oil demand and is likely to pave the way for a period of market volatility.
