Stocks expected to attract investors after FTSE upgrade help boost Saudi index 0.5 per cent

Saudi Arabia’s stock market rose yesterday, lifted by its expected inclusion in the secondary FTSE emerging market index, while UAE markets were boosted by its top two property companies.

The Saudi index gained 0.5 per cent to close at 7,762 points, backed by leading stocks that investors expect to attract foreign funds if the FTSE upgrade is confirmed at the end of this month.

Al Rajhi Bank rose 1 per cent, with the stock going ex-dividend on Monday. National Commercial Bank added 0.9 per cent and miner Ma’aden gained 2.6 per cent while retail play Jarir rose by 3.2 per cent.

Saudi Electricity Co, however, fell by 4.2 per cent after reporting a 5.5 billion riyals loss for the fourth quarter. The company said shifting to IFRS accounting standards had affected its results, but gave no details. The loss was bigger than forecasts from SICO Bahrain and NCB Capital of 878 million riyals and 1.58bn riyals respectively.

“The Saudi market may stall around current levels for some time, facing technical resistance at 7,800 points and waiting for positive news that can move it up again, like the FTSE inclusion decision,” said Muhammad Faisal Potrik, head of research at Riyad Capital. The index peaked this month at 7,839 points.

The Abu Dhabi index rose 0.9 per cent, with Aldar Properties adding 2.8 per cent after the company said it had signed a joint venture agreement with Dubai’s Emaar Properties to develop local and international projects worth as much as Dh30 billion. The Qatar index was down 1.2 per cent, dragged lower by Qatar Gas Transport’s 6 per cent drop as it went ex-dividend.

The Al Rayan Qatar exchange-traded fund listed yesterday with initial assets exceeding $120 million. Focused on Sharia-compliant stocks, it is Qatar’s second locally listed ETF. Amwal’s QE Index ETF, with assets of $40m, also listed this month.

Egypt’s index closed 0.2 per cent higher as real estate firm SODIC soared 10 per cent to 24.11 Egyptian pounds. CI Capital raised its target price for the stock to 32 pounds.