Bank stocks lift Tadawul but drag DFM

Saudi Arabian shares closed higher for a second straight session on Thursday as banks rallied, while Dubai was dragged down by its top lender Emirates NBD. Saudi’s benchmark index rose 1.6 per cent to 7,635.82, with Al Rajhi Bank and Banque Saudi Fransi advancing 3.1 per cent. and 6.6 per cent, respectively.

The world’s fourth-biggest petrochemicals company, Sabic, soared 4 per cent after its joint venture with China’s Sinopec began its ethylene expansion project on this week.

In Dubai, the index fell 1.6 per cent to 2,780.01. Emirates NBD saw its worst session in nearly eight months and closed down 3.8 per cent. The bank’s board approved a capital increase via a rights issue of up to Dh6.45 billion, lower than the Dh7.35bn that the general assembly had decided in February this year. Deyaar Development shed 5.6 per cent after the developer reported a sharp year-on-year decline in its third-quarter profit.

Meanwhile, Abu Dhabi’s index reversed its course to close 0.1 per cent higher at 5,093.29, helped by a 1.4 per cent rise in Aldar Properties. On Wednesday, the developer’s asset management unit issued a $500 million sukuk, which was six times’ oversubscribed.

Egypt’s blue-chip index traded flat at 14205.86 with the country’s largest lender, Commercial International Bank, dropping 1 per cent, while developer Madinet Nasr ended 6 per cent higher. In Bahrain, Oman and Kuwait the indexes all finished 0.1 per cent higher at 1,527.12, 4,005.35, and 6,299,66, respectively.

Elsewhere in emerging markets, the broad EM indexes showed gains for the sixth consecutive day – their longest winning streak since early April – after US Treasury Secretary Steven Mnuchin said US and Chinese trade negotiators were nailing down a Phase 1 trade deal text for their presidents to sign next month.

Turkey’s fragile markets remained in focus after the country’s military advance in Syria created tensions with the US and Europe and incurred mild sanctions. Turkish President Tayyip Erdogan met US Vice President Mike Pence and Secretary of State Mike Pompeo on Thursday.

Turkish stocks were down 1.2 per cent and the lira weakened to 5.8877 to the dollar. It has lost nearly 5 per cent this month, making it the world’s worst performer for October.