Saudi stocks lost their glitter on Saturday, putting a break on the longest winning streak since February 2007 amid concerns over earnings growth, compounded by US higher unemployment. The market benchmark Tadawul All Share Index (TASI) slipped 0.9 percent to close at 6.265.2 on Saturday, following a 10-day gain that was the longest in more than two years. Samba Financial Group, Saudi Arabia's second largest bank, fell the most in three months and Saudi Basic Industries Corp (Sabic) dropped to its lowest since Sept. 27. Samba, fell 3.4 percent to SR57.50, its biggest loss since June 28. Sabic lost 1.6 percent, its steepest decline in almost a month, to SR78.75. “Saudi's market is reacting to what's happening in globally,” said Raj Sinha, an analyst with HSBC Holdings Plc in Riyadh. “But it is following what is happening in the emerging markets especially.” A steep decline in oil prices from a July 2008 peak of $147.27 a barrel has heightened the impact of the global economic crisis on countries in the Gulf. Many companies have been forced to cut jobs and halt or cancel plans as credit tightened and investors pulled out of the region. Moreover, in the first nine months of 2009, TASI lost 1,136.46 points or 15.24 percent at 6,322.04 points over the close of the same period in the previous year, Tadawul said in a statement on its website. On an YTD basis TASI registered a positive return of 31.63 percent. Total equity market capitalization at the end of the 1st nine months 2009 reached SR1,230.48 billion ($328.13 billion), decreasing by 15.22 percent over the end of the 1st nine months of the previous year. The total value of shares traded for the first nine months of 2009 reached SR1,019.76 billion ($271.93 billion), a fall of 37.69 percent over the same period of the preceding year. However, the total number of shares traded increased 6.97 percent at 47.27 billion shares compared to 44.19 billion shares in the period under review. The total number of transactions executed dropped 29.77 percent at 30.24 million compared to 43.05 million in the same period last year the previous year. For the month of September 2009 alone, the total amount of traded shares in the Saudi Stock Exchange reached fell 25.04 percent at SR59.69 billion from the previous month where the value of traded shares was SR79.63 billion. The percentage share of Saudi nationals from the market trades was 90.9 percent for selling at SR54.27 billion and 86.8 percent for buying at SR 51.83 billion. Saudi companies which engaged in selling reached 2.76 percent at SR1.65 billion and 5.21 percent for buying at SR3.11 billion. The percentage share of investment funds from the market trades was 2.1 percent for selling which is SR1.28 billion and 2.2 percent for buying which is SR1.33 billion. The percentage share of GCC nationals from the market trades was 1.8 percent for selling which is SR1.06 billion and 2.4 percent for buying which is SR1.44 billion. The percentage share of foreigners residing in Saudi Arabia from the market trades was 0.2 percent for selling which at SR147.56 million and 0.2 percent for buying at SR118.40 million. The percentage share of foreigners via swap agreement from the market trades was 0.5 percent for selling at SR 268.69 million and 1.5 percent for buying at SR920.91 million. Meanwhile, Tadawul announced that Saudi Steel Pipe Company, National Petrochemical Company, Weqaya Takaful Insurance and Reinsurance Company, Al-Rajhi Company for Cooperative Insurance, ACE Arabia Cooperative Insurance Company and AXA Cooperative Insurance Company have been included to its indices.
