Tadawul index breaks 10,000-point barrier

23/07/2014 01:52 AST

Saudi Arabia’s benchmark Tadawul All-Share Index broke the psychological barrier of 10,000 points mark on Tuesday, hitting a fresh six year high. The surge can be attributed to news that the Capital Market Authority is going to open the stock market earlier 2015 to direct investment by foreign financial institutions.

However, the TASI added 275 points or 2.82 percent for the entire session, extending its year-to-date yield to 17.45 percent.

Large cap index remained prominent, posting a growth over four percent. Top ten large caps finished to the upside, with bellwether SABIC (Saudi Basic Industries Corp.) rising by 6.72 percent, Samba Financial Group 6.08 percent and MOBILY 5.04 percent. SABIC also topped the value chart, pumping more liquidity (SR1.3 billion) into the market.

Most of the major sectors closed in the green territory, accumulating an aggregate of 2,234 points. Positive performance was boosted by Real Estate Development sector, which surged 302 points or 4.56 percent to close at 6,923.21.

Petrochemical Industries was another significant gaining sector, advancing 4.12 percent for the day. Banks & Financial Services added considerable 601 points, up more than three percent to cross 20,000-mark.

Market breadth was strong, as rising stocks outnumbered decliners by a margin of three-to-one on the Tadawul market. Buruj Cooperative Insurance and recently traded Al Hammadi Development & Investment Co. played well among all Saudi companies, marching higher by 9.91 percent and 9.82 percent respectively. Three Saudi companies including Bupa Insurance hit an all-time high on Tuesday.

Saudi Telecom Co. volume went 7.7 times high over its 50-day average, liquidating over six million shares. Alinma Bank with trades over fifty million led the volume chart, contributing 14.6 percent to the overall market volume.

A good amount of turnover 348.6 million shares worth SR12.2 billion changed hands on the Saudi stock market. This turnover reflects an increase of 119.4 percent on volume basis and 126.7 percent in terms of liquidity as compared to previous day. The market activity also rose over the 50-day average level, ranging from 31 percent to 42 percent.

GulfBase.com