Tadawul ends up on petchems gains

Saudi Arabia’s stock market continued a strong uptrend yesterday on the back of petrochemical and banking stocks, while rising telecoms shares boosted Egypt.

The Saudi index closed 0.6 per cent up at 8,096 points, having finished above 8,000 points on Monday for the first time since August 2015. Petchems giant major Saudi Basic Industries rose 1.9 per cent before going ex-dividend yesterday. Al Rajhi Bank, meanwhile, gained 0.8 per cent.

Exchange data showed that foreign investors bought a net $206 million of Saudi stocks last week, attracted by rising oil prices and the potential decision by MSCI in June to include the kingdom in its emerging market index.

“Higher oil prices are the main driver for the Saudi market – people are optimistic over prices going up further in coming months,” said Mazen Al Sudairi, head of research at Rajhi Capital.

However, Saudi stocks are on average trading at 17.4 times last year’s earnings, compared with 16 times for FTSE emerging markets, he added, warning that this increased the chances of a pullback in the coming weeks.

Real estate company Arriyadh Development lost 4 per cent after reporting almost flat net profit for the first quarter.

The Abu Dhabi index rose 0.5 per cent on a 1.2 perc ent increase for First Abu Dhabi Bank.

Aldar Properties added 1 per cent after it announced a Dh10 billion plan to enhance its Alghadeer project close to the Abu Dhabi-Dubai border.

Dubai’s index lost 0.3 per cent on a 3.3 per cent decline by courier firm Aramex as it traded ex-dividend. Property developer Emaar lost 0.5 per cent.

In Egypt, the index jumped 1 per cent.

Global Telecom surged 4.7 per cent and Telecom Egypt added 5.4 per cent while Commercial International Bank rose 1.2 per cent.

GB Auto surged 4.5 per cent after its board gave initial approval for a merger with RG Investment at book value.

The Saudi index closed 0.6% up at 8,096 points, having finished 8,000 points on Monday for the first time since August