Saudi post-bud­get rally stalls, UAE bourses firm

Kuwait Times - - BUSINESS -

The Saudi Ara­bian stock mar­ket’s post-bud­get rally ran out of steam yes­ter­day as the in­dex neared tech­ni­cal re­sis­tance, while United Arab Emi­rates bourses out­per­formed the re­gion.

The Saudi in­dex added 1.5 per­cent on Sun­day in re­ac­tion to Riyadh’s mod­estly ex­pan­sion­ary state bud­get for 2017. But it closed 0.3 per­cent lower at 7,166 points yes­ter­day in lower trad­ing vol­ume. Tech­ni­cal re­sis­tance lies at this year’s peak of 7,235 points, hit ear­lier this month.

Util­ity Saudi Elec­tric­ity, which jumped 8.7 per­cent on Sun­day af­ter the gov­ern­ment said in the bud­get that it would raise do­mes­tic fuel and elec­tric­ity prices by un­spec­i­fied mar­gins later this year, fell back 2.6 per­cent.

The petro­chem­i­cal sec­tor, which had out­per­formed af­ter the bud­get plan pledged not to raise gas feed­stock prices be­fore 2019, slipped 0.4 per­cent.

But Zain Saudi, which rose 1.9 per­cent on Sun­day af­ter say­ing it was in talks to sell its mo­bile trans­mit­ter tow­ers to a con­sor­tium of TASC SAL and ACWA Hold­ing, climbed a fur­ther 3.0 per­cent yes­ter­day. In Dubai, the in­dex rose 0.8 per­cent as trad­ing vol­ume ex­panded. Amuse­ment park op­er­a­tor DXB En­ter­tain­ments gained 3.9 per­cent.

Shuaa Cap­i­tal ini­tially rose as much as 2.6 per­cent af­ter it bought 14 per­cent of Bahrain’s Khaleeji Com­mer­cial Bank, a sub­sidiary of GFH Financial Group , on Sun­day for 9.6 mil­lion di­nars ($25 mil­lion). But Shuaa closed down 1.3 per­cent. Retail and hos­pi­tal­ity firm Marka, which surged last week af­ter news that its chief ex­ec­u­tive Nick Peel had re­signed, con­tin­ued pulling back, los­ing 2.6 per­cent.

Abu Dhabi rose 0.4 per­cent on the back of strength in blue-chip banks such as Abu Dhabi Com­mer­cial Bank, up 1.6 per­cent. In Egypt, the in­dex dropped 0.6 per­cent amid profit-tak­ing in blue chips such as Global Tele­com, down 4.0 per­cent. But Ara­bia Cot­ton Gin­ning, which climbed 5.9 per­cent on Sun­day af­ter its board ap­proved split­ting the com­pany into two sep­a­rate en­ti­ties, rose by the same mar­gin again yes­ter­day.

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