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Saudi shares record serious losses for the 12th day and the index is the lowest in 20 months 165 billion riyal was vanished from its market value in 30 days
Saudi shares suffer fast losses which control the traders in the stock market for the 12th day consecutively as a result for disorders in Arab countries. At the closure, the index lost more than 400 points (6.7%) to reach 5538 points which is the lowest in 20 months. The market value loss is almost 84 billion riyal for yesterday only, while the losses reach 165 billion riyal since January 2011. Saudi market records continuous losses by 1070 points for 12 days (17%). This is less than the start of the current year 2011 percent 16.3%. The market experiences similar conditions that occurred in 2006 with many sale orders without purchase orders for many companies. The strong and collective sale operations controlled all the companies as an attempt to get rid of shares to reduce their loss as possible. Also, the tension increases because no officials attempted to calm down the traders nor the governmental funds tried to interfere to avoid the collapse and invest its monetary surplus especially Sanibel fund which aims at investing in any good capital assets including Saudi shares. The officials were supposed to calm down the traders whose spirits were collapsed because of losing their money which forced them to leave their positions in many leading companies because their prices are the lowest. Yesterday, Jadwa report showed that Saudi stock market lost more than 82 billion riyal in the last February of its market value. The gap expanded between the PE for Tasi and S&B indexes. This gap reflects the disorder in the Middle East, but it may represent a chance to purchase. The statistics issued yesterday by Tadawul showed that shares index closed at 5,941.63 points last February which was down by 416.4 points (6.55%) compared to the last month. At the end of February 2011, the market value of the shares was 1,194.09 billion riyal (318.42 billion USD) which showed decline by 6.44% compared to the last month. The total traded shares for February 2011 were 3.06 billion shares compared to 3.53 billion shares traded the last month which showed decline by 13.12%.
