Thursday, 13 December 2007
By Adel Al-Malki
JEDDAH - Saudi stocks continued their ascent on Wednesday with the Tadawul All Shares Index (TASI) gaining 2.07 percent or 223.25 points to close at 11,022.65 points on strong buying. But in spite the record run up, analysts have cautioned of a possible correction before the long Haj holiday as investors cash in on the short term gains.
"I expect a market retreat before [the Haj vacation] as some investors will mop off the excess liquidity in the market, but the retreat may not be substantial for the index to go below the 10,000 marker," Fadel Albuainain, a stockmarket analyst with the King Fahd University, said.
Megbail Al-Thekair, an independent stock market analyst, added some unpleasant surprises may spring during the holidays such that investors may rather cash than be caught flatfooted.
"There may be a slight decline... for fear of surprises but there would be no serious retreat," he said.
Aggregate turnover on Wednesday was valued at SR18.79 billion with 461.64 million shares changing hands. A total 61 symbols were up against only 37 losing ground.
The index's restructuring, which freed up some corporate restrictions, may have also provided momentum to the bullish market sentiment, Albuainain said.