Saudi bounces fur­ther from chart sup­port

Kuwait Times - - BUSINESS - DUBAI:

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

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