RIYADH, Jan 5 (Arab News): The Saudi stock market in 2013 posted the
strongest annual performance since 2009 with the Tadawul All-Share Index
(TASI) up 25.5 per cent.
According to the Tadawul Annual Statistical Report released on last Wednesday, at the end of 2013, TASI closed at 8,535.60 points compared to 6,801.22 points for the previous year, thus gaining 1,734.38 points (25.50 per cent).
The highest close level for the index (TASI) during the year was 8,561.84 points as on December 23.
Commenting on the Tadawul performance, John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News: "Many factors account for the rally, including high liquidity, confidence, good corporate profits, retail momentum as well as selective foreign institutional positioning."
He added that the economy is on solid footing and 2014 will continue to be a year of high government spending, consumer growth and private sector expansion. "The catalysts for higher index growth are there absent of any global or regional surprises.
However it's very difficult to predict how high the index will rise and how quickly and whether there will be significant pullbacks or minor adjustments," Sfakianakis said.
"There is ample liquidity waiting on the sidelines and each time there is a small correction an upward direction gains strength," he added.
"This is the highest annual increase since 2009, which was driven mainly by the petrochemical, banking and telecom sectors," Basil Al-Ghalayini, CEO of BMG Financial Group, said.
"In 2014, not withstanding the effect of the geopolitical impact on traders' sentiments, I believe this growing trend may continue.," he added.
"With more IPOs expected to be pumped into the Tadawul system in 2014, the market will enjoy a healthier trading environment. Furthermore, in the event the market opens directly to international institutional investors in 2014, we may witness higher trading volumes." Al-Ghalayini said.
Fahad Alturki, head of research at Jadwa Investment, said: "Elevated oil prices, an expansionary fiscal budget, robust private nonoil sector performance and gains on global markets will keep sentiment positive in 2014."
The report said total market capitalization at the end of 2013 reached SR1.75 trillion ($467.43 billion), increasing by 25.17 per cent compared to the end of the previous year.
The total value of traded shares for 2013 reached SR1.37 trillion ($365.25 billion) compared to SR1.93 trillion ($514.49 billion) for the previous year, decreasing by 29.01 per cent.
The total number of transactions executed during 2013 reached 28.97 million compared to 42.12 million trades for the previous year, decreasing by 31.20 per cent.
The total number of shares traded for 2013 reached 52.50 billion compared to 83.28 billion shares traded during the previous year, decreasing by 36.96 per cent.
The Jadwa Investment said in its report on last Wednesday, 13 of the 15 sectors rose in 2013. Sectors oriented toward the local economy were the best performers, owing to sound local economic fundamentals, regional unrest and global economic uncertainty.
Changes in labor market conditions continue to affect related sectors for the second consecutive month in December.
According to the Tadawul Annual Statistical Report released on last Wednesday, at the end of 2013, TASI closed at 8,535.60 points compared to 6,801.22 points for the previous year, thus gaining 1,734.38 points (25.50 per cent).
The highest close level for the index (TASI) during the year was 8,561.84 points as on December 23.
Commenting on the Tadawul performance, John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News: "Many factors account for the rally, including high liquidity, confidence, good corporate profits, retail momentum as well as selective foreign institutional positioning."
He added that the economy is on solid footing and 2014 will continue to be a year of high government spending, consumer growth and private sector expansion. "The catalysts for higher index growth are there absent of any global or regional surprises.
However it's very difficult to predict how high the index will rise and how quickly and whether there will be significant pullbacks or minor adjustments," Sfakianakis said.
"There is ample liquidity waiting on the sidelines and each time there is a small correction an upward direction gains strength," he added.
"This is the highest annual increase since 2009, which was driven mainly by the petrochemical, banking and telecom sectors," Basil Al-Ghalayini, CEO of BMG Financial Group, said.
"In 2014, not withstanding the effect of the geopolitical impact on traders' sentiments, I believe this growing trend may continue.," he added.
"With more IPOs expected to be pumped into the Tadawul system in 2014, the market will enjoy a healthier trading environment. Furthermore, in the event the market opens directly to international institutional investors in 2014, we may witness higher trading volumes." Al-Ghalayini said.
Fahad Alturki, head of research at Jadwa Investment, said: "Elevated oil prices, an expansionary fiscal budget, robust private nonoil sector performance and gains on global markets will keep sentiment positive in 2014."
The report said total market capitalization at the end of 2013 reached SR1.75 trillion ($467.43 billion), increasing by 25.17 per cent compared to the end of the previous year.
The total value of traded shares for 2013 reached SR1.37 trillion ($365.25 billion) compared to SR1.93 trillion ($514.49 billion) for the previous year, decreasing by 29.01 per cent.
The total number of transactions executed during 2013 reached 28.97 million compared to 42.12 million trades for the previous year, decreasing by 31.20 per cent.
The total number of shares traded for 2013 reached 52.50 billion compared to 83.28 billion shares traded during the previous year, decreasing by 36.96 per cent.
The Jadwa Investment said in its report on last Wednesday, 13 of the 15 sectors rose in 2013. Sectors oriented toward the local economy were the best performers, owing to sound local economic fundamentals, regional unrest and global economic uncertainty.
Changes in labor market conditions continue to affect related sectors for the second consecutive month in December.
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