Stock crash hits luxury goods sales
The sharp correction in the Saudi stock prices has extended to jewellery and luxury good sales in the kingdom, according to a report.
Visitors to high-end shopping malls are spending more time browsing than buying after a bourse crash that hit hundreds of thousands of investors, said a report in Gulf Daily News.
But shop managers, like stock market analysts, hope for a recovery later this year.
Malls in the Red Sea port of Jeddah, popular with Saudi shoppers, are still attracting visitors, but it is taking sale discounts of up to 70 per cent to keep the cash tills ringing.
The offers have multiplied after the crash, which has cut more than half off the capitalisation of the Arab worlds largest stock exchange since late February.
Distributors of luxury brands such as Gucci, Chanel, Louis Vuitton and DKNY, opened shops across Saudi Arabia while the bourse was gaining more than 600 per cent in three years.
Sales are about 20 per cent below targets, said a shop manager.
Look beyond what you see!
The Saudi stock market halted its successive declines last week and regained some of the losses it incurred over the past weeks.
Analysts attributed the rebound to the appointment of Abdul Rahman Al-Tuwaijeri as acting chief of the Capital Market Authority (CMA) after firing its former chairman.
The Tadawul All-Share Index (TASI) climbed 9.95 percent last week, closing on Thursday at 11,046.55 points, up from 10,046.83 points the previous week. The index gained 999.72 points in a week. However, TASI is still 33.9 percent lower than from the years start.
The market turnover increased to SR71.39 billion last week from SR68 billion in the previous week.
Look beyond what you see!
My last article about the social effects of the stock market crash and the needed help to its victims generated different responses. A pro-free market reader called me a communist for soliciting government support. Others, of his stand, were more polite, but hesitant to accept any hint of official intervention. Players in any game should accept losses and gains, they believed. Referees should stay aloof and neutral.
Look beyond what you see!
Saudi stocks dropped 5.2 per cent in moderate trading on Sunday, as investors pocketed gains from last weeks rally that followed a recent crash.
The all-share index of the largest Arab bourse closed at 10,517.3 points after hitting an intraday low of about 10,407, according to Reuters data.
Look beyond what you see!
Saudi Arabias interior minister said he believes the bourses main index should trade within a 14,000-15,000 points band, after a crash which has hit hundreds of thousands of ordinary citizens.
Interior Minister Prince Nayef said in remarks published yesterday by Al Jazirah newspaper that nothing justified a higher level for the index "without positive changes and developments in the performance of listed firms".
Prince Nayef is one of the most powerful figures in Saudi Arabia, an absolute monarchy, but officially has no role in economic policy-making.
Look beyond what you see!
Visa sida
Ogilla! 1
Gilla!
Saudi shares up by 9.95 percent on the week ending Thursday. The Tadawul All-Shares Index (TASI) closed the week at 11,046.55 points, up from last weeks close of 10,046.83.
The Saudi British Bank [SABB] was the top loser with its shares down by 7.7 percent. Other top losers include Banque Saudi Fransi [Saudi Fransi] and Samba Financial Group [samba].
Saudi Research and Marketing Group [SRMG] was the top gainer with its shares up by 83.7 percent, Other top gainers include Tihama Advertising & Public Relations Co. [Tihamah] and Al-Ahsa Development Co.[Al Ahsa for Dev.Co].
Saudi Electricity Company[Saudi Electrc] was the most active terms of volume while Saudi Basic Industries Corp [SABIC] was the most active in terms of value.
Trading value for this week stood at SR71.4 billion ($19.04 billion) up by 0.04 percent.
The Saudi market is the largest in the Arab world in terms of capitalization estimated at over $400 billion.
Look beyond what you see!