Stock investors use profit-taking tactics for gains

10/07/2010 00:00 AST

Saudi shares moved up and down last week in what analysts described as profit-taking tactics to make benefit from temporary rallies.

The market then witnessed a very short-lived rally on Monday and Tuesday which could not sustain for long and ended the week with a loss.

The Tadawul All-Share Index (TASI) shed 0.61 percent to 6,056.41 points last week.

The decline was led by the petrochemical sector, particularly the Saudi Basic Industries Corp. (SABIC), which went down by 0.87 percent to SR85.

On a week-to-week basis, the sector activity was widely split with 8 out 15 sectors closing with losses ranging from 0.61 percent by the Industrial Investment sector to 2.56 percent by the Hotel and Tourism sector. On the other hand, the gains ranged from 0.02 percent by the Transport sector to 1.79 percent by the Building and Construction sector, the Financial Transaction House (FTH) said in its weekly market commentary.

Saudi Ceramic Company was the top gainer for the week as its shares jumped 17.23 percent to SR139.50. Gulf General Cooperative Insurance Co. shares surged 11.29 percent to SR34.50.

The top losers for the week were Red Sea Housing Services Co. (12.34 percent) and Tourism Enterprises Co. (7.12 percent).

The value of Saudi traded shares dropped to SR12.90 billion last week compared to SR14.58 billion in the previous week.

Meanwhile, Saudi investment bank Falcom Financial Services is set to launch an exchange-traded fund (ETF) for Saudi petrochemical shares on Tadawul on Saturday with an initial value of SR25 million.

Other Arab stock markets were also volatile last week in response to fluctuations on world markets, conflicting recovery signals and expectations of second quarter earnings, financial analysts said Friday.

Almost all Arab bourses picked up on Wednesday and Thursday reflecting improving performance on the worlds main stock exchanges and positive indicators released about US and European economies, they added.

"I believe Arab stock markets are still captives of what happens on world bourses," Nizar Taher, head of brokerage at the Jordan Ahli Bank, said.

"Regional markets rallied on the last couple of days of the week, but I think the rebound could be short-lived as regional investors keep a close eye on developments at global markets," he said.

Taher expected semi-annual results and oil prices also to play a key role in deciding the trend of Middle East markets in the coming weeks.

Jordanian shares picked up on the last two trading days of the week due to what Taher described as fresh liquidity and improving foreign demand.

The all-share price index of the Amman Stock Exchange lost 0.37 percent on weekly basis, closing at 2,340 points, according to the ASE weekly report.

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Arab News