Despite higher income by listed firms on Saudi bourse, deteriorating global sentiment depressed the local stock market by nearly 10 percent over the past six weeks, Jadwa Investment said. The stock benchmark Tadawul All Share Index lost 0.06 percent Wednesday to close at 7,099.90 points on global macro-worries, retreating from Tuesday's gains. Net income of all listed companies in the first quarter was SR25 billion, an increase of 14.9 percent year-on-year. All, except one of the 15 sectors, recorded higher profits than in the first quarter of 2011. Quarterly growth in net income at 22.6 percent was the fastest since the first quarter of 2010, it said. "Nonetheless, the bourse is down by 10 percent since the end of March, mirroring falls on global markets, which have been unnerved by weaker economic data and a heightening political backlash against austerity in the eurozone," Jadwa said. A fall in oil prices and receding prospects for an imminent opening of the bourse to foreign investors also contributed to the decline after a strong start in 2012, it added. "Despite these healthy corporate results, it has been a tough six weeks for Tadawul. The euphoria that lifted the index by 22 percent over the first quarter of the year and pushed the volume of shares traded to over SR21 billion per day has faded," the report said. "There are three factors that have deteriorated global stock markets and oil prices have fallen and prospects for an imminent further opening of the stock market to foreign investors have faded. In addition, a tougher clampdown on speculation may have contributed to the decline."
