UAE | General
Saudi Arabia's stock market records best nine-month results
Saudi Arabia's stock market recorded its best ever performance during the first nine months of this year as strong oil prices are expected to lift the economy by more than six per cent and earn the kingdom its highest income in two decades.
- By Nadim Kawach, Bureau Chief
- Published: 00:00 October 15, 2003
Saudi Arabia's stock market recorded its best ever performance during the first nine months of this year as strong oil prices are expected to lift the economy by more than six per cent and earn the kingdom its highest income in two decades.
Turnover in the Middle East's biggest stock market skyrocketed nearly 297 per cent during the first three quarters of this year over the same period last year and market capitalisation gained a staggering $62 billion because of a surge in share prices.
Figures by the Saudi Arabian Monetary Agency showed the electricity and industrial sector were the star performers in the market, with their turnover shooting up by 815 and 336 per cent respectively.
"A combination of strong macro economic fundamentals as well as the remarkable profitability growth of Saudi listed firms during the first half of this year propelled the Saudi equity market during the first nine months, outperforming major world stock markets," the National Commercial Bank (NCB) said in a report sent to Gulf News.
"In addition, Opec's decision in late September to lower output by 900,000 barrels per day and the resulting surge in crude oil prices, as well as the expectation of positive third quarter corporate results helped renew buying interests."
At an average crude price of around $28.6 and production of 8.7 million bpd during the first nine months, Saudi Arabia is expected to earn close to $80 billion through the year, its highest income since the end of the oil boom more than 20 years ago.
The report said such a surge would allow the Kingdom, the world's oil superpower, to record a fiscal surplus of between five and six per cent of the gross domestic product. The Kingdom's economy is also forecast to jump by six per cent in 2003.
"Along with the ongoing reform initiatives, there is some reason for an optimism the equity market has demonstrated during the first three quarters of this year," NCB said.
"In addition, given the total foreign reserves of around 377 billion Saudi riyals ($101 billion) at the end of last August, the Kingdom's balance of payment is on course to record another year of current account surplus of around $12 billion this year, thus elevating the country's status as a net provider of capital to the rest of the world… in all, economic fundamentals and corporate finances are pointing towards the ability of the market to sustain the gains it has made so far this year."
SAMA's figures showed turnover during the first nine months of this year soared to around 450 riyals billion ($120 billion) from 113.6 billion riyals ($30.3 billion) in the same period of last year.
The market capitalisation of the 68 listed companies jumped to a record 565 billion riyals ($150.6 billion) at the end of September from nearly 332 billion riyals ($88.5 billion) at the end of December last year.
Market reports for the previous years showed turnover during the first three quarters of this year exceeded the combined turnover for eight years since 1995.
Share this article
Popular in UAE
-
Your pictures
Readers' pictures
A Selection of the best Gulf News reader pictures this week
Latest news
- Teacher jailed for indecent behaviour
- Forum seeks more reforms to human trafficking law
- Crackdown urged on drink driving
- Disability is no handicap for this Emirati
- Shaikh Khalifa revamps security council
- Exhibition to showcase UAE art in New York
- Police officer injured during raid on brothels
- Waiters tamper with orders, cheat customers
- Queen praises UAE's role
- Noise pollution must be regulated
- Don't slaughter at home — municipality
- Sharjah intensifies food inspections for Eid
- UAE maintains economic status on global stage
- Gulf News wins international design awards
- Building the blocks of education, step by step
Community Reports
-
Noise pollution must be regulated
Residents are finding it difficult to sleep well at night owing to ongoing construction work
-
Protect our children's health
Dust and dirt from a nearby road are causing problems to those frequenting Al Nasseriya park, Sharjah.
-
Keeping out curious cats in Abu Dhabi
Felines trapped in electrical substations create a nuisance
-
Construction site turned into dump
Sharjah residents using abandoned spot to dispose of waste
