alharbi
10-07-2003, Thu 6:05 AM
السوق السعودي مدعوماً بارتفاع اسعار النفط والنتائج الجيده الغير متوقعه للشركات والسيوله المرتفعه في السوق وانخفاض سعر الفائده العالميه وعدم وجود فرص اخرى بديله عن سوق الاسهم .
The Al Tadawul All Shares Index of Saudi Arabia closed the first half 43.17 per cent higher following a gain of 3.22 per cent in 2002.
The 30 per cent flotation of the Saudi Telecom Company gave the market a big push early in the year. The stock market was also supported by firm oil prices, better than expected corporate results, high liquidity, low interest rates and lack of alternative investment opportunities.
The approval by the Saudi Cabinet of a new securities law setting the stage for establishing a formal stock exchange should reflect positively on the market in the second half of the year. However, the stock market index is now trading at all time high in terms of valuation multiples, with a price/earning ratio exceeding 20 compared to an average of 14.8 from 1995 to 2000.
There is still scope for appreciation in selected stocks, but the Saudi market is likely to change from a bull market to a "stock pickers" market. While STC for example is quoted at a price/earning of 23, SABIC and the banks are trading at 16-18 range.
The Al Tadawul All Shares Index of Saudi Arabia closed the first half 43.17 per cent higher following a gain of 3.22 per cent in 2002.
The 30 per cent flotation of the Saudi Telecom Company gave the market a big push early in the year. The stock market was also supported by firm oil prices, better than expected corporate results, high liquidity, low interest rates and lack of alternative investment opportunities.
The approval by the Saudi Cabinet of a new securities law setting the stage for establishing a formal stock exchange should reflect positively on the market in the second half of the year. However, the stock market index is now trading at all time high in terms of valuation multiples, with a price/earning ratio exceeding 20 compared to an average of 14.8 from 1995 to 2000.
There is still scope for appreciation in selected stocks, but the Saudi market is likely to change from a bull market to a "stock pickers" market. While STC for example is quoted at a price/earning of 23, SABIC and the banks are trading at 16-18 range.