World Economy

Saudi Equity Market Cap Falls

Saudi Equity Market Cap FallsSaudi Equity Market Cap Falls

The Saudi stock market was in the red last week, reversing after a 4-week surge and dropping 1.19 percent. The benchmark Tadawul index reflecting a 3-day fall during the week, closed at 9,717.9 points last week, trimming 116.6 points for the entire week.

The index went 50 points above and 171 points below the break-even line during the week. On an YTD basis, TASI registered a positive return of 1,385 points or 16.62 percent, Arab News reported.

The market capitalization of Saudi stock exchange reached to SR2.13 trillion ($567b), decreasing 1.34 percent from the previous week’s value.

Med cap was the major decliner among market cap indices, falling one and half percent last week.

Insurance suffered worst of all sectors, showing a reduction of 3.97 percent to close the week at 1,597.82. Energy and tourism sectors followed it, declining by 3.38 percent and 2.96 percent respectively.

Building & construction was the single advancing sector, closing the week slightly up to 3,787.77. The volume of this sector increased significantly (15.2 percent) from 104 million shares to 120 million shares.

Top 10 heavyweight equities also finished the week to the downside, with Saudi Electricity Co. dipping by 3.49 percent, Jabal Omar Development Company 2.8 percent and Petrochemical giant Saudi Basic Industries (SABIC) 2 percent.

But SABIC pumped SR4.2 billion into the market, topping the liquidity chart. The market breadth was in the favor of bears as out of 164 issues traded last week only 49 managed for gains.

Middle East Paper Co. (MEPCO) started shares trading on Tadawul last week with opening price of SR30.00. MEPCO floats 30 percent of its shares in secondary market. The company achieved a growth of sixty percent in a week, finishing at SR48.1.

Al Ahlia Insurance was another significant advancer, which gained 12.02 percent to SR15.5.