International economic woes, stemming from the bleak outlook of US economy, as well as euro-zone debt problems negatively impacted the performance of the Saudi market during 3Q2011.
Tadawul All Share Index (TASI) shed 7.05 percent of its value in 3Q2011, bringing its 9M2011 loss to 7.68 percent, as it closed at 6,112.37 points.

Trading Activity
During 9M2011, a total of 34.94bn shares were traded on the exchange, up by 34.3 percent compared to 9M2010. Aggregate value of shares traded increased from SAR588.7bn (USD157bn) in 9M2010 to SAR776.4bn (USD207bn) in 9M2011, up by 31.9 percent YoY.
The petrochemical sector was the most active in terms of volume and value of shares traded during 9M2011, with 7.6bn shares exchanged at an aggregate value of SAR264.6bn (USD70.5bn), which represented 21.8 percent and 34.1 percent, respectively, of the market’s aggregate volume and value for 9M2011. Within the sector, heavy-weight Saudi Basic Industries Corporation (SABIC) constituted 15.1 percent of total value traded on the exchange during 9M2011, with an aggregate value of SAR117.1bn (USD31.2bn). SABIC recorded a price decline of 11.7 percent, as its stock price ended the 9M2011 at SAR92.5.
In the meantime, Alinma Bank witnessed intense selling pressure during the third quarter of the year, leading its share price to post a 9M2011 decline of 11.9 percent, as it ended at SAR9.25. Investors exchanged 3.2bn of the bank’s shares, at an aggregate value of SAR32.1bn (USD8.6bn), representing 9.2 percent and 4.1 percent of the market’s aggregate volume and value traded during 9M2011, respectively.

Sectoral performance
Out of 15 sectoral indices, only 5 sectors managed to eke out some gains, while 10 sectors posted losses. Among gainers, Media and Publishing index posted the highest advance amongst its peers, up by 29.9 percent. Tihama Advertising and Public Relations Company had a stellar performance during 9M2011, with its share price adding 123.3 percent in gains by the end of that period.
Another prominent gainer was the cement sector, with its index appreciating by 18.9 percent by the end of 9M2011. All the sector’s components managed to end 9M2011 on a higher note, buoyed by strong cement demand in Saudi Arabia and increase in cement prices.

Meanwhile, on the negative side, Banks & Financial Services was among declining sectors, with its index shedding 14.1 percent of its value. All listed banks ended 9M2011 on a lower note, with the sole exception of Bank Al-Jazirah, which managed to add a marginal gain of 2.13 percent by the end of 9M2011. In the meantime, share price of the largest two listed Saudi banks, Al Rajhi Bank and Samba Financial Group retreated by 16.6 percent and 28.5 percent by the end of 9M2011, respectively.
On the companies’ level, 71 companies managed to end 9M2011 on a higher note, versus 75 decliners. Among gainers, 44 companies managed to post double digits gains, with several insurance companies dominating the list. Share price of Amana Cooperative Insurance Company and Buruj Cooperative Insurance Company appreciated by 115.09 percent and 114.16 percent respectively.

Meanwhile on the negative side, Gulf General Cooperative Insurance Company lost 45.5 percent of its value by the end of 9M2011, as it ended at SAR29.6. In the meantime, trading on shares of Etihad Atheeb Telecommunication remained suspended since May 25, 2011, after the company announced accrued losses for the year ended March 31, 2011 which are approximately 95 percent of its capital. Meanwhile, in August 2011, the company reduced its capital from SAR1bn (USD266mn) to SAR400mn (USD106mn). Atheeb’s BOD has recommended raising its capital to SAR1.5bn (USD399.9mn) through a rights issue, which is still subject to regulatory approval.

Market Capitalization
By the end of 9M2011, market capitalization of listed companies on the Saudi bourse stood at SAR1,214.2bn (USD323.8bn), down by SAR111.2bn (USD29.7bn), compared to SAR1,325.4bn (USD353.4bn) reported at the end of FY2010.
New Listings
United Wire Factories Company (Aslak) was listed on the exchange on August 21, 2011. The company offered 30 percent of its SAR325mn paid up capital to the public in an IPO priced at SAR34 per share. The scrip ended 9M2011 at SAR38.8, up by 14.12 percent compared to its IPO price.