Contrary to earlier perceptions before the start of the new transparency law governing the trading of stocks on the Kingdom's stock market, the Saudi bourse rose for a fourth trading day on Saturday as the market operator Tadawul began naming investors holding stakes of five percent or more to boost transparency on the largest Arab bourse. The Saudi benchmark, which has fallen more than 24 percent this year, advanced 1.75 percent to 8,331.63 points as investors snapped up shares they judged were cheap relative to earnings expectations. Tadawul said last month it was implementing the rule to improve transparency. The Saudi market is dominated by day traders and restricts foreign access to shares. The disclosure rule naming investors holding stakes of five percent or more is aimed at boosting transparency on the largest Arab bourse as it helps dispel rumors that big retail traders are behind rapid fluctuations in share prices, a common assumption in the market. The index has risen 5.7 percent in the last four trading days, having dropped almost nine percent in the seven sessions after Tadawul said on July 30 it would name large investors at the end of each trading day from Aug. 16. “The positive sentiment is (not only) due to the new disclosure rules but also because some of these stocks are very attractive now,” said John Sfakianakis, chief economist at SABB bank. Data on the bourse website showed about 60 individuals hold stakes of more than five percent in listed firms, including 10 investors with SR70 billion ($18.67 billion) of stakes in banks. “The disclosures demonstrate that at least for the big companies, the ownership is not just the well-known investors in the market,” Sfakianakis said. The Saudi Public Investment Fund is the largest investor in the Saudi stock market, with holdings in 18 firms worth SR376.9 billion as per closing prices Wednesday, data showed. The General Organization for Social Insurance held shares in 25 firms worth SR82.2 billion, the Public Pension Agency SR15.7 billion and the Saudi Arabian Monetary Agency - the central bank - SR3.04 billion. “The state, especially in the banking sector, continues to have an important ownership position with about 19.6 percent of the 11 listed banks,” Sfakianakis said. The private sector owns about 22 per cent in banks, he added, citing bourse data. A downturn in the Saudi stock market - the Gulf region's worst performer this year - has made many stocks attractive. Banque Saudi Fransi added 3.47 percent to SR74.50, a discount to Global Investment House's SR97.3 target, while Samba Financial Group - in which the state owns 44.4 percent - rose 1.15 percent to SR65.75. Global's target price for Samba's stocks is SR77.6. Almarai shares also rose 4.28 percent after the dairy company said it had signed an initial deal to buy an Egyptian food company as part of expansion plans. However, the full impact of new disclosure rules would not be apparent until investors return from summer holidays, Sfakianakis added. Meanwhile, Prince Alwaleed Bin Talal is the top shareholder in Saudi stock market, with the market value of his shares amounting to about SR47.4 billion, according to data released by Tadawul. The data showed that 94 percent of the share holdings of Alwaleed are mainly held by the Kingdom Holding Company which owns shares in other listed companies like the Manufacturing Company, the Saudi Research Company, SAMBA and Savola. Tadawul has started displaying major shareholders of its listed companies in the latest of a series of steps intended to regulate dealing and restore discipline. Sheikh Sulaiman Bin Abdul Aziz Al-Rajhi came to next, with his shares amounting to SR32 billion as per the market value, mainly concentrated on a quota of 24.6 percent in Al-Rajhi Bank along with other shares in Yanbu Cement Factory, Arabian Cement Company and Nadec. Other well known companies and individuals such Saleh Bin Abdul Aziz Al-Rajhi, Al-Olayan Company, Mohammad Ebrahim Al-Eisa, Al-Rashid family, Abdullah Bin Abdul Aziz Al-Rajhi, Prince Sultan Bin Mohammad Bin Saud Al-Kabeer and Al-Nahla Company were also on list of the top 10 shareholders. Mohammad Hamad Al-Meijil was the ninth in the list of the top shareholders. The list of the top shareholders showed that their shares concentrate on the banking and petrochemical sectors. Ramadan schedule Daily trading hours at Saudi Arabia's stock market will be shortened by 30 minutes during Ramadan, Tadawul said on Saturday. The Saudi bourse will be open from 11 A.M. local time (0800 GMT) to 3 P.M. (1200 GMT) during the month of fasting, which coincides with the month of September this year. – With input from Tadawul website and agencies __
