Concerns as Saudi bourse slips again

The Saudi stock market fell for the second day in a row on Thursday as investors continued to cut positions in the absence of fresh news and concerns about valuations. Other big Arabian Gulf markets rose.

Middle East fund managers have become less positive towards equities in Saudi Arabia and Kuwait after Turkey’s currency crisis triggered volatility in the markets in August, a monthly Reuters poll showed.

The Saudi index fell 0.9 per cent to 7,948 points, hurt by selling in market heavyweight Saudi Basic Industries, which dropped 1.1 per cent, and Al Rajhi Bank declined 1 per cent. The index is still up 9.9 per cent since the start of the year, but has subject to selling this quarter.

This year’s gains have been fuelled by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed, but not halted, as stock valuations have risen.

In the UAE, the Dubai index was up 0.3 per cent to 2,840 points, with the exchange’s biggest bank Emirates NBD up 0.5 per cent and developer Arabtec up 1.6 per cent.

In Abu Dhabi, the index was up 0.5 per cent to 4,987 points, with First Abu Dhabi Bank up 0.7 per cent and Abu Dhabi Islamic Bank 2.3 per cent higher.

The Egyptian index was up 1.1 per cent to 16,009 points, as the index hit the highest level since July 12, due to sustained interest in financials and property stocks. Commercial Bank International Egypt climbed 2.2 per cent and Madinet Nasr for Housing surged 5.1 per cent.

The Kuwaiti index was down 0.1 per cent at 5,262 points, while Bahrain’s dropped 0.3 per cent to 1,338 points. In Oman, the index fell 0.3 per cent to 4,419 points.

Oil prices rose on Thursday, extending gains on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in US crude inventories. Benchmark Brent crude oil was up 60 cents a barrel at $77.74 by 13.20 GMT (16.40 UAE). US light crude was 40 cents higher at $69.91.

Brent has risen by almost 10 per cent over the past two weeks on widespread perceptions that the global oil market is tightening and could run short in the next few months as US sanctions restrict crude exports from Iran.