to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
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S<strong>to</strong>ck Market<br />
Market Profitability<br />
» The <strong>to</strong>tal market profitability increased by 7.7% in <strong>the</strong> 9M-2008 <strong>com</strong>pared <strong>to</strong> <strong>the</strong> corresponding<br />
period last year. The profitability was led by <strong>the</strong> petrochemical sec<strong>to</strong>r which rode on high<br />
crude oil and fertilizer prices <strong>to</strong> register a 17.8% increase in 9M08 YoY.<br />
» The Saudi banking escaped severe repercussions at a time of global financial distress due <strong>to</strong><br />
limited exposure <strong>to</strong> <strong>the</strong> global financial markets. The banking sec<strong>to</strong>r posted a modest growth<br />
of 1.6% in <strong>the</strong> 9M08 YoY. The bank profitability growth was held back in <strong>the</strong> third quarter<br />
with some banks posting a decline on account of investment portfolio losses.<br />
» Tele<strong>com</strong>munications sec<strong>to</strong>r profitability witnessed a rise of 13.9% in 9M08 YoY which was<br />
driven by volumetric growth despite a fall in average revenue per unit.<br />
» Cement sec<strong>to</strong>r witnessed a decline in profitability by 7.1% in 9M-2008 YoY mainly due <strong>to</strong><br />
a ban on exports which was imposed in June 2008 <strong>to</strong> cater for strong local demand while <strong>the</strong><br />
Energy and Utilities sec<strong>to</strong>r witnessed a decline of 25.6% on account of higher operational<br />
costs.<br />
Global Investment House<br />
73 Saudi Arabia Economic Overview - January 2009
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