Aramco’s debut cheers Saudi

Most Gulf indexes gain

DUBAI, Dec 11, (RTRS): The Saudi Arabian stock market ended higher on Wednesday as shares of state owned oil giant Aramco surged the maximum permitted 10% on their debut, while other major Gulf markets also rose. Shares of Saudi Arabian Oil Co (Aramco) soared to 35.2 riyals ($9.39), up from the initial public offering (IPO) price of 32 riyals. The increase helped the company close in on the $2 trillion valuation long sought by Saudi Crown Prince Mohammad bin Salman.

If Aramco shares gain 10% on Thursday as well, it will exceed the $2 trillion valuation coveted by Prince Mohammad. The company is expected to be included in the MSCI emerging markets index on Dec 17.

Aramco raised $25.6 billion on Dec 5 through the IPO. It plans to exercise the 15% greenshoe option in whole or part during the first 30 days of its trading period. If the option is exercised in full, the oil giant could raise $29.4 billion in IPO.

The Saudi benchmark index added 0.8% with Riyad Bank and Al Rajhi Banking & Investment Corp gaining 4.5% and 0.6%, respectively. Elsewhere, Prince Alwaleed bin Talal’s firm Kingdom Holding Co leapt 9.9%, to become the top gainer on the index.

In Dubai, the index gained 1% as Emirates NBD Bank climbed 3.3% and Dubai Islamic Bank increased 0.6%. Dubai’s economy will grow 3.2% in 2020, accelerating from expansion of 2.1% in 2019, the Department of Economic Development (DED) was cited as saying in a Twitter posting by the Dubai Media Office.

The Abu Dhabi index closed up 0.4%, driven by a 0.9% rise in telecoms firm Etisalat and a 1.1% gain in First Abu Dhabi Bank.

The Qatari index ended 0.2% up, with market heavyweight Industries Qatar rising 2.2% and Commercial Bank was up 1.1%.

However, Egypt’s blue-chip index fell 0.6% with 23 of its 30 stocks ending in the red, including Sidi Kerir Petrochemical, which plunged 9.6% and Juhayna Food, which lost 5.5%.

Saudi Arabia

Index rose 0.8% to 8,134 points

Abu Dhabi

Index rose 0.4% to 5,040 points

Dubai

Index added 1% to close at 2,714 points

Qatar

Index was up 0.2% to 10,339 points

Egypt

Index was down 0.6% to 13,427 points

Bahrain

Index gained 0.4% to end at 1,555 points

Oman

Index slipped 0.1% to 4,014 points

Kuwait

Index was flat at 6,750 points