Business | Markets

Samba and Al Rajhi lead decline in Saudi stock exchange

Trading low in value terms due to hesitation among investors and worries that oil's march will not stop soon.

  • Bloomberg
  • Published: 00:11 May 25, 2008
  • Gulf News

Riyadh: Saudi Arabian shares fell, led by Samba Financial Group and Al Rajhi Bank, even as oil prices continued to rise.

The Tadawul All Share Index fell 0.2 per cent to 9,651.54 at 11.35am in Riyadh. The index has lost 10 per cent this year.

"The Saudi stock market continues its cautious performance," Bakheet Investment Group said in a weekly report posted on its website after the close of trading on May 21.

Trading is low in value terms ""due to hesitation among investors".

Oil prices have doubled in the past year on surging demand, supply disruptions in places such as Nigeria and commodity purchases by investors as a hedge against a weakening US dollar. Crude-oil futures for July delivery rose to $135.09 a barrel on the New York Mercantile Exchange yesterday, the highest since trading began in 1983.

Samba, the second-biggest bank in the kingdom by market value, fell 1.6 per cent to 91.75 riyals, while Al Rajhi, the largest, declined 0.3 per cent to 97.25 riyals.

The Tadawul is the only Arab exchange monitored by Bloomberg that's open on Saturdays.

UAE

Foreigners raise stakes

Dubai Financial Market said foreign investors bought more shares than they sold last week, helping to send the index 0.9 per cent higher.

Purchasers from abroad bought Dh1.42 billion ($390 million) of stocks and sold shares worth Dh1.4 billion, the stock exchange said. Institutions bought Dh1.38 billion of stock and sold Dh1.18 billion worth.

UAE citizens bought Dh2.38 billion of shares, compared with sales of Dh2.4 billion, the exchange said. The DFM General Index has declined four per cent this year after gaining 44 per cent in 2007.

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