News 2006

April 2006

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To increase awareness about stock market: Samba holds a symposium on smart investment for Samba Diamond customers

Samba Financial Group held Monday 24th April 2006 a symposium titled "Smart Investment in Saudi Stock Market" for Samba Diamond customers. The symposium, held in Four Season Hotel, Riyadh, aimed at disseminating awareness among Samba investors, how to benefit from the present market status and avoid losses in future. Mr. Yousef Kassantini, a well-known financial expert, was invited to address the symposium which was attended by more than 500 elite customers.

In his welcome address, Mr. Hassan Al-Madi, Samba Diamond & Gold Manager said the symposium was held at a time where Saudi stock market has been undergoing series of changes & fluctuations that affected many dealers for more than two months. He said holding of the symposium stemmed from Samba care for its customers & their interests.

" Samba understands very well the aftermath of stock market exchange on the dealers. So, it takes necessary initiatives from time to time to support & advise its customers to protect their interests", concluded Al-Madi.

Addressing the symposium, Mr. Yousef Kassantini said that several reasons have led to the recent corrective process including the fast index rise, investors' more focus on speculation than investment in addition to reports alerting that corrective measure were imminent which accelerated the correction process in the Saudi market and neighboring markets alike.

Mr. Kassantini added that reasons behind the corrective process include borrowing large amounts of money without investment awareness, rush by funds' investors to banks to liquidate their deposits into those funds, preventing some leading dealers from purchase but allowing them to sell and finally overbuying losing shares as a result of which confidence over market was lost.

Mr. Kassantini called for money allotment to money markets (stocks, bonds, currencies), or to real estate in order to limit risks and to save liquidity for use upon crisis. He further elaborated that the ideal distribution proportions of the portfolio will be made via lead shares of lucrative revenues, fast growing shares & opportunity shares.

The financial expert stressed that many strategic reasons will drive the stock market improvement ahead in the near future. He specifically mentioned the Saudi strong economy, ladies intensive participation in the Saudi stock market, KSA joining the World Trade Organization, allowing expatriates in Saudi Arabia to invest in the local stock market, highly rising liquidity levels, surging oil prices, the government expenditures in the balance sheet for 2006 and finally the politically & security stable condition in Saudi Arabia.

Mr. Kassantini called on investors to avoid several errors while investing in the stock market. He pointed out that the most outstanding errors are trading with stocks without necessary training, lack of unequivocal & clear-cut investment strategy, lack of stock diversification, borrowing huge amounts of money without investment awareness, obsession of reaping large amounts of money within just a short term, non-application of state-of-the art equipment & software, overbuying losing shares and finally lack of selecting the right broker.