Twelve years after the Saudi stock market's crash in 2006, seasoned investors and traders recall the historic day when the Tadawul All Share Index (TASI) closed at a record high of 20,635 points on February 25 in the same year.

 

The market, however, began to collapse soon after that day. By the end of 2006, TASI had lost approximately 65 percent of its value. Market capitalization plunged by half to $326.9 billion, according to figures from the Kingdom’s Capital Market Authority (CMA).

 

In February 2007, the index was hovering around the 8,000-level, closing at 8,443 points on February 25.

 

On February 25— just yesterday— the market concluded the session at 7,494 points, roughly 36 percent of its value during the 2006 peak, but 6 percent above the same day in 2017.

 

The table below shows market closings on the same day since 2006.

 

TASI Levels Since 2006

Period

Closing (Points)

Variation

February 25, 2006

20,635

+133%

2007

8,443

(59%)

2008

10,211

+21%

2009

4,542

(56%)

2010*

6,466

+42%

2011**

5,950

(8%)

2012

7,120

+20%

2013

7,042

(1%)

2014

9,062

+29%

2015

9,320

+3%

2016

5,976

(36%)

2017***

7,046

+18%

2018

7,494

+6%

* Market closing on Feb. 24 (Feb. 25 was a holiday)

** Closing on Feb. 27 (Feb. 25 was a holiday)

*** Closing on Feb. 23 (Feb. 25 was a holiday)

 

Since 2006, the number of listed companies on Tadawul jumped to 182 on February 25, 2018, from 77 in 2006.

 

But the Saudi benchmark has seen a series of de-listings, including Mohammad Al Mojil Group Co. (MMG), Weqaya Takaful, Bishah Agriculture Development Co., Sanad Cooperative Insurance Co. and Integrated Telecom Co.

 

The market also saw the merger of Almarai Co. and Hail Agricultural Development Co. (Hadco), the listing of 34 new insurance companies, and the introduction of a new sector: Real Estate Investment Trusts (REITs).

 

The Saudi index currently trades at P/E and P/B multiples of 16.1x and 1.7x versus 57x and 11x in 2006.

 

Market Performance

Period

Feb. 25, 2006

Feb. 25, 2018

Change

Listed stocks

77

182*

+136%

Market's P/E

57.0

16.1

(72%)

Market's P/B

11.0

1.7

(85%)

* Includes companies and  REITs.

 

During the last week of the 2006 boom, average daily trading volume reached a high of SAR 39.9 billion, versus the current average daily volume of SAR 3.1 billion this year. Daily transactions at that time amounted to half a million, versus around 97,000 transactions now.

 

The table below tracks comparative daily trading volumes.

 

Average Trading Per Day

Period

Feb. 25, 2006

Feb. 25, 2018

Variation

Value (SAR bln)

39.9

3.1

(92%)

Number of shares (adjusted)

326.3

154.2

(53%)

Volumes traded (‘000)

518.0

97.0

(81%)

 

The following table outlines the Saudi market's peaks in the 12-year period:

 

TASI's Peaks

Period

Date

Level (Points)

2006

Feb. 25

20,967

2007

Dec. 24

11,871

2008

Jan. 13

11,965

2009

Oct. 25

6,579

2010

May 4

6,939

2011

Jan. 17

6,795

2012

April 2

7,944

2013

Dec. 24

8,578

2014

Sept. 9

11,160

2015

April 30

9,897

2016

Dec. 28

7,279

2017

July 2

7,586

 

During the market crash of February 2006, only three stocks saw an upward spiral: Jarir Marketing Co., Almarai Co. and Saudia Dairy & Foodstuff Co. (SADAFCO), which rallied by 161, 78 and 9 percent respectively, as shown below:

 

Stocks that Bucked the Downward Trend*

Company

Feb. 25, 2006

Feb. 25, 2018

Variation

Jarir

65.00

169.39

+161%

Almarai

28.50

50.86

+78%

SADAFCO

111.25

121.28

+9%

*Historical prices adjusted to reflect stock splits, capital increases and cuts, and rights issue.

 

During the period, six stocks held up their valuations and retreated by less than 50 percent, including Tawuniya (12 percent); BATIC Investment and Logistics Co. (30 percent) ; Banque Saudi Fransi (41 percent) ; and Yanbu National Petrochemical Co. (41 percent).

 

Stocks that Showed Most Resistance to the Downward Spiral*

Company

Feb. 25, 2006

Feb. 25, 2018

Variation

Tawuniya

83.00

72.85

(12%)

BATIC

87.38

61.24

(30%)

BSF

52.13

30.76

(41%)

YANSAB

115.50

67.73

(41%)

SABB

53.17

28.60

(46%)

ANB

51.00

27.20

(47%)

*Historical prices adjusted to reflect stock splits, capital increases and reductions, and rights issues.

 

Meanwhile, 67 stocks tumbled by more than 50 percent, led by Anaam International Holding, Nama Chemicals Co. (97%), and Aseer Trading, Tourism & Manufacturing Co. (95%).

 

These Stocks Lost More than 50% of their Value*

Company

Feb. 25, 2006

Feb. 25, 2018

Variation

Anaam Holding

469.00

13.01

(97%)

Nama Chemicals

498.63

16.86

(97%)

Aseer

247.75

12.48

(95%)

GACO

212.50

12.73

(94%)

Gypsum

199.25

12.16

(94%)

SIDC

117.25

9.42

(92%)

Arabian Pipes

150.75

12.24

(92%)

Amiantit

91.50

7.76

(92%)

Advanced Industries

158.33

13.69

(91%)

Wafrah

190.50

19.68

(90%)

SARCO

352.00

36.98

(89%)

Saudi Cable

100.50

10.81

(89%)

Al Ahsa

101.50

11.35

(89%)

Yamama Cement

141.75

16.32

(88%)

SIECO

2135.00

266.6

(88%)

Tabuk Cement

113.75

14.56

(87%)

Mobily

103.75

14.45

(86%)

Thimar

214.25

31.6

(85%)

FIPCO

224.75

33.4

(85%)

AlBaha

148.75

22.37

(85%)

Tabuk Agriculture

80.83

12.2

(85%)

Eastern Cement

167.00

25.4

(85%)

SISCO

79.17

12.44

(84%)

JAZADCO

113.50

17.91

(84%)

Zoujaj

123.00

20.34

(83%)

Fisheries

177.33

29.98

(83%)

SPIMACO

167.17

29.69

(82%)

Alujain

108.00

20.53

(81%)

Tihama

241.00

46.37

(81%)

Fitaihi Group

60.50

11.92

(80%)

GASCO

154.00

30.50

(80%)

SASCO

82.92

16.72

(80%)

Maadaniyah

97.25

19.67

(80%)

Tasnee

76.25

16.21

(79%)

Dur

89.25

18.99

(79%)

Ash-Sharqiyah

215.50

46.21

(79%)

Aljazira

58.27

12.62

(78%)

ARDCO

91.13

20.01

(78%)

Al Akaria

99.50

21.88

(78%)

Qassim Cement

203.00

45.10

(78%)

Sahara

70.75

16.18

(77%)

SAPTCO

65.25

15.21

(77%)

Zamil

110.75

25.95

(77%)

SIIG

84.50

20.28

(76%)

Savola

151.50

36.90

(76%)

Shams

138.75

33.87

(76%)

Arabian Cement

136.50

34.43

(75%)

Ceramic

98.06

25.00

(75%)

Albilad

84.33

21.59

(74%)

Yanbu Cement

100.50

30.53

(70%)

Al Rajhi

228.01

74.38

(67%)

Saudi Investment

47.81

15.82

(67%)

Bahri

86.75

28.96

(67%)

SPCC

148.50

49.95

(66%)

Riyad Bank

39.63

13.45

(66%)

Makkah Construction

226.00

78.20

(65%)

Saudi Chemical

92.00

32.40

(65%)

Al Jouf

88.00

31.15

(65%)

SEC

50.75

20.47

(60%)

Alawwal

29.79

12.49

(58%)

SAMBA

60.00

25.39

(58%)

SABIC

243.75

105.18

(57%)

STC

174.75

75.77

(57%)

NADEC

72.32

31.49

(56%)

Taiba

71.25

31.31

(56%)

SAFCO

139.00

67.08

(52%)

Saudi Cement

101.75

51.30

(50%)

*Historical prices adjusted to reflect stock splits, capital increases and cuts, and rights issues.

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Quotes

STC
40.00
0.05 0.13%
ETIHAD ETISALAT
53.60
(1.00) (1.83%)
SAUDI ELECTRICITY
16.88
0.10 0.60%
TAWUNIYA
129.60
(1.20) (0.92%)
NADEC
24.10
0.28 1.18%
GACO
18.88
0.26 1.40%
TADCO
15.28
0.00 0.00%
SFICO
23.44
(0.20) (0.85%)
SHARQIYAH DEV
19.38
0.08 0.41%
JAZADCO
12.94
(0.02) (0.15%)
ALRAJHI
93.90
0.40 0.43%
ALBILAD
35.65
(0.30) (0.83%)
ANB
19.90
0.40 2.05%
BJAZ
16.58
0.04 0.24%
RIBL
26.60
0.00 0.00%
SAB
31.75
0.25 0.79%
SAMBA
38.50
1.70 4.62%
BSF
31.40
0.20 0.64%
Alawwal
19.58
0.28 1.45%
SAIB
13.80
(0.10) (0.72%)
ACC
26.00
(0.05) (0.19%)
EPCCO
34.15
0.20 0.59%
QACCO
53.90
0.20 0.37%
SAUDI CEMENT
41.15
0.30 0.73%
TCC
12.48
0.14 1.13%
YC
31.25
(0.05) (0.16%)
YCC
23.56
0.20 0.86%
AYYAN
14.04
(0.02) (0.14%)
ALMARAI
53.00
0.30 0.57%
ALUJAIN
36.90
(0.05) (0.14%)
AMIANTIT
31.75
(0.15) (0.47%)
SAUDI CABLE
95.70
(2.20) (2.25%)
SAUDI CERAMICS
35.35
(0.25) (0.70%)
FIPCO
47.70
(0.30) (0.63%)
WAFRAH
38.70
(0.35) (0.90%)
GASCO
105.60
0.60 0.57%
ZOUJAJ
58.10
1.10 1.93%
NGC
21.90
0.00 0.00%
TASNEE
10.42
0.02 0.19%
MAADANIYAH
17.70
(0.14) (0.78%)
NAMA CHEMICALS
26.00
0.05 0.19%
SPIMACO
31.30
0.20 0.64%
APC
112.20
(2.20) (1.92%)
SABIC
69.90
0.20 0.29%
SADAFCO
339.00
(5.20) (1.51%)
SABIC AGRI-NUTRIENTS
112.60
0.60 0.54%
Sahara Petrochemicals
17.46
0.20 1.16%
SARCO
73.80
(0.30) (0.40%)
SAIC
35.65
0.30 0.85%
CHEMICAL
10.10
(0.14) (1.37%)
SIDC
27.65
0.10 0.36%
SAVOLA GROUP
24.06
(0.20) (0.82%)
SIIG
17.80
0.18 1.02%
SISCO HOLDING
29.60
(0.30) (1.00%)
YANSAB
37.55
(0.30) (0.79%)
ZAMIL INDUST
28.00
0.65 2.38%
ALBAHA
0.31
(0.02) (6.06%)
SINAD HOLDING
14.00
0.24 1.74%
FITAIHI GROUP
4.07
0.00 0.00%
Dur
27.00
0.20 0.75%
JARIR
12.70
(0.02) (0.16%)
MCDC
109.00
(0.40) (0.37%)
BATIC
3.59
(0.12) (3.23%)
ALAKARIA
25.40
0.30 1.20%
SAPTCO
23.00
0.88 3.98%
SASCO
75.40
(2.10) (2.71%)
SIECO
2.52
0.00 0.00%
ANAAM HOLDING
1.22
(0.02) (1.61%)
TECO
0.94
(0.01) (1.05%)
BAHRI
28.20
(0.30) (1.05%)
TAIBA
39.30
(0.20) (0.51%)
THIMAR
42.65
(0.95) (2.18%)
TAPRCO
15.34
0.22 1.46%
JOUF CEMENT
10.20
(0.02) (0.20%)
TADAWUL GROUP
223.60
(1.80) (0.80%)


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