Saudi bounces further from chart support
Saudi Arabia’s stock market bounced further from a technical support level yesterday but other Gulf bourses were little changed. Egypt’s market edged up. The Saudi stock index has been rebounding in the last few days from support at November’s two-year low of 6,828 points. Yesterday, it added 2.1 percent to 7,179 points, rising above resistance on the November high of 7,161 points.
A second straight daily close above that resistance would confirm a clean break, triggering a minor double bottom formed by the November lows and pointing up to 7,461 points.
However, with Brent oil still below $45 a barrel, an extended rally by the Saudi market still looks unlikely to many fund managers. Traders said they were not aware of any positive, concrete news behind Sunday’s surge and turnover was only moderate, suggesting that many local retail investors remain wary of the market even as others buy on dips. in the past have not resulted in payments actually taking place.
Qatar’s index dropped 0.2 percent as petrochemicals and metals producer Industries Qatar slid 1.2 percent.
Oman’s market also fell 0.2 percent in thin trade after credit rating agency Standard & Poor’s downgraded Oman’s sovereign debt, citing pressure on state finances from low oil prices. Egypt’s stock index rose 0.6 percent, with Palm Hills Development up 2.9 percent after the AlBorsa newspaper reported the government’s New Urban Communities Authority was expected to sign a contract with the firm within days for a major real estate project in New Cairo. Orascom Telecom Media, the most heavily traded stock, fell 1.5 percent after the company said it was removing its North Korean subsidiary Koryolink from its consolidated financial statements because sanctions against Pyongyang had affected its ability to operate there. —Reuters