By Mohamed Abu Meleeh

Riyadh-Mubasher: A number of major investor in Saudi bourse Tadawul capitalised on the market decline on Wednesday and early Thursday following news about Saudi airstrike against Houthi rebels in Yemen.

An alliance led by Saudi Arabia and included other GCC states launched the military action, called ‘Operation Decisive Storm’, that came upon a call from Yemen’s embattled president Mansour Hadi to prevent further progress of Iran-based rebels in Yemen.

During the first minutes of Thursday’s session, Tadawul lost 369 points due to investor panic, added to the 463 points lost in Wednesday, thus totaling 832 points, or 8.9%.

The market slide led to a fall in some stocks to their lowest levels in months, and even in years.

However, equities strongly rebounded late on Thursday to erase earlier losses on reassuring news from Saudi official bodies about the military operations.

Four major equity owners boosted their shareholdings in some stocks that are marked by strong yields and that reached attractive prices.

General Organization for Social Insurance (GOSI) raised its stakes in four companies, namely SABIC, SIIG, Saudi Hollandi Bank and Al Rajhi Bank, through buying 2.73 million shares.

The four companies distribute cash dividends ranging between SAR 1-6 per share.

SABIC stock slid to SAR 80.25; its second lowest price since January 27, while Al Rajhi Bank fell to SAR 56; its lowest since January 28.

Meanwhile, the three other major owners, namely Khaled Al-Shathry, Mohamed Al-Sairafy and Riyadh Al-Humaidan, increased their stakes in Saudi Steel Pipe, Taiba Holding and Fitaihi. The three companies distribute cash dividends ranging between SAR 0.5-2 per share.

Tadawul ended Thursday’s session 0.40% or 35.37 points higher at 8903 points. More than 402 million shares were exchanged in above 184,700 transactions at more than SAR 9.9 billion.

Translated by Sayed Abdel Rahman