Saudi near-4 year high after entering FTSE Russell index

bengaluru — All of Saudi Arabia’s banks rose on Thursday, lifting its stock exchange to a near-four year high following its inclusion in the FTSE Russell’s emerging-market index this week.

Saudi’s Tadawul index will have a weighting of 2.9 per cent in the FTSE Emerging All Cap Index and this year will join the MSCI emerging market benchmark. The market is positioned for passive fund inflows of around $20 billion.

Saudi Arabia’s index was up 0.8 per cent with Al Rajhi Bank and Riyad Bank gaining 2.2 per cent each.

Al Ahsa Development climbed 2.9 per cent after providing an update on the acquisition of Salam Medical Services.

The Abu Dhabi index was up 0.6 per cent with First Abu Dhabi Bank and Abu Dhabi Commercial Bank (ADCB) adding 1.3 per cent each. ADCB shareholders approved its proposed merger with Union National Bank, which traded flat.

In Dubai, the index fell 0.6 per cent after four straight days of gains, with Damac Properties losing 2.8 per cent.

Blue-chip developer Emaar Properties decreased 1.5 per cent. Its board proposed a full-year dividend of 15 fils a share.

Emirates NBD, gained 1 per cent. It listed a $1 billion conventional bond on Nasdaq Dubai.

Network International Holdings, the largest payment processing company in Africa and the Middle East, said it intends to float on the London stock exchange.

The Dubai-based company is jointly owned by Emirates NBD and private equity firms Warburg Pincus and General Atlantic.

Qatar’––s index was down 0.2 per cent with Barwa Real Estate plunging 7.3 per cent and Commercial Bank losing 0.6 per cent as the stocks traded ex-dividend.

Egypt’s blue-chip index was up 0.4 per cent.

Developer Sixth of October Development and Investment (SODIC) climbed 4.7 per cent after it signed a contract with the New Urban Communities Authority (NUCA).