Uncertainty hanging over the Saudi stock market
The Saudi stocks took another dip at Tadawul on Tuesday. Uncertainty prevailed throughout the day and Saudi Stock Market logged a largest intra-day decrease of 2012. The index went down 4.8 percent in five days.
The Tadawul All-Share Index (TASI) started a sideways walk along the break even line earlier yesterday, abruptly changed its direction toward south during mid of the session and finally closed in the red territory at 7551.88 points, down 145.83 points or 1.89 percent over the previous close.
Overall performance of sectoral indices remained negative as all closed in the red, except the Media and Publishing, which gained nominal 9.47 points or 0.36 percent to close at 2,668.66. Remaining 14 sectors lost an aggregate of 1641.12 points for the day.
Multi-Investment sector recorded the biggest losses, down by 3.13 percent. Banks & Financial Services trimmed 392.18 points or 2.24 percent for the day.
Most of heavy weights closed in red; where SABIC (Saudi Basic Industries Corp.) dipped by 2.62 percent, Al-Rajhi Bank 2.25 percent and SABB 2.2 percent. Only Etihad Etisalat Co. (Mobily) among large cap companies bucked the trend and achieved 0.37 percent daily growth.
Share trading activity remained low as investors lacked buying interest, about 556 million shares worth SR12.2 billion exchanged hands on the Saudi Stock Market. The 50-day average for trading volume is closer to 583.5 million shares.
Insurance companies were the significant winners among all Saudi stocks, with ACE Arabia Cooperative Insurance and Saudi Indian Insurance, rising by 9.9 percent and 4.9 percent respectively.
- Twist of fate: Middle East fund managers shy away from Turkey, warm up to Egypt
- 'Let them eat cake'...or in the case of Egyptians, shall we say 'pasta'?
- In flux: What's up with Dubai's stock market?!
- GCC banks could face capital and liquidity shortfall
- It's time for an interest rate war in emerging markets, and here's why Middle Eastern economies should take part