Recovery on Saudi stock market still strong

Riyadh: The Saudi stock market continued its recovery that started in the middle of the previous week.

The Tadawul All Share Index (Tasi) gained around 580 points, or around seven per cent, after it reached the lowest point during this year, taking the index to the level of October 2007.

Trading value in the week ending on Wednesday increased by 11 per cent compared with the previous week.

Investors appear to be hunting for deals because of attractive price levels supported by good financial ratios of most blue chips.

The Tadawul index registered 8,463.7 points on Wednesday, closing up by 3.4 per cent from last week.

But the index is 23.3 per cent lower since the beginning of 2008.

Trading value reached 23.7 billion riyals (about Dh23.7 billion), down against last week's 21.3 billion riyal. Astra Industrial Group and Saudi Basic Industries Corporation dominated trading value.

Shares of Astra started trading on August 18. The stock increased by 15 per cent on its first trading day compared with its IPO price, and held 28 per cent of the total market trading volume.