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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